Government And Market, In The Vision Of Socialism With Chinese Characteristics

How to deal with the relationship between the government and the market is a major issue in developing the socialist market economy in China. During the process from the planned economy with typical characteristics of the Soviet Union to the socialist market economy with Chinese characteristics, China has experienced a tough exploration in theory and practice under the leadership of CPC.The main issues we discuss here are: What is the boundary between the government and the market under the condition of socialist market economy with Chinese characteristics? How has it developed in our history? What are the experiences and lessons? How could we carry on the further reform in order to serve our socialist goal better? Those problems are very important in our future reform and modernization.Concentrating on the development of the relationship between the government and the market in theory and practice under the socialist condition, we review the Marxist theory on it, study Lenin's practice in Russia, and in the end we learn the lessons from the Soviet mode, which China has taken in the past decades. We will focus on China's practice, analyze its historical development and summarize lessons. This is the main part of the thesis. The analysis tries to explain the reason that the first generation of central collective leadership chose the Soviet mode, the breakthrough that the second generation of central collective leadership admitted market's role in the reform of rural area, and the further reform of marketization that the third generation of central collective leadership promoted. We could tell that with the constant reform in the process of buildingthe socialist market economy with Chinese characteristics, our cognition on the government and the market has been deepened. The relationship between the government and the market has been improved significantly with the reform under way. Meanwhile, there are still many problems, so we will discuss these problems and the urgent ones that should be solved in the near future reform in the last part of the paper.Conclusion: In contrast to the western countries, the function of Chinese government in the process of developing market economy has lots of differences. Because of leading the reform from the planned economy to the market economy, the government plays a very special and important role in the market economy building. Under the current national condition of China, the socialism without market is rigescent socialism; the market without socialist principles is anarchy market. Under the socialist condition the government and the market could combine organically to emancipate and develop the productive forces. The relationship between the government and the market has been clarified step by step. The most important responsibility of the government is to create an effective and sound market environment and build the social security system to keep the social stability and balance. To emphasize the market role in the economy does not mean that we deny the function of the government, and to strengthen the market role will not instablize the central status of the, government and the essence of the socialism. But it does require the government to change its working style.