Modern Market Economy Conditions The Role Of Government

Government function is an old but new topic in the economic field. With the development of modem market economy, how does a government play the part of a "visible hand" and become a "dexterous hand", hand in hand with the market "invisible hand" to make economy and society not only to develop rigorously and efficiently but without losing fairness and balance? It is a question for each modem nation to face seriously. The trends of economic marketi-zation and globalization promote the government of every state to reform and bring forth new ideas; During the period of transformation, China has become one of members of the WTO. On this important historic point, Chinese government has been pushed to the top of the reform trends, The government reform would go backward if it doesn t go forward. Based on such a background of the development of world economy and the reality of the development of Chinese economy, from the ask of the theories, the paper puts forward opinions on government function, which is under the condition of the modem economy, brings up suggestions and countenneasures against the present government reform of China.The paper consists of four sections.Section 1 traces back Jo the theories on government function by using historical analysis. Since market economy came out, the relationship between government and market has been disputed in economic field, and the knowledge storage of which is abundant and enormous. So it is necessary to comb and induce those economic theories to expound the general character and absorb the thought cream.Section 2 investigates the fulfillment of government function of modern nations by using positive methods, mainly including two aspects: one is about models of market economy; the other is about government behaviour and role, because to carry out whatever economic behaviour and to bring into whatever play, any government can not push away some model. Through investigation, the reality basis is founded for further study of government function.Section 3, based on the above, induces and summarizes the general regulation about government function from high theoretic degree, analyzes detailedly the neccessity, limitation, intercommunity, difference and dynamic, etc in order to provide thought guide and theory basis for market reform and government reform.Section 4, following general thinking rules that we think from concrete to abstraction and then back to concrete again, with the direct of the theories of section 3, and with the economic globalization and China's entry into the WTO for background, brings up speculation about the model of market economy which China would select and puts forward suggestions or countermeasures against government reform in its behaviour and its role.