China's Modernization, Research, Equity And Efficiency Issues

After a dozen years of practicing the socialist market economy, not only has China created a great economic miracle that has attracted worldwide attention, but also has led to extreme disparity between the rich and the poor. It's an urgent issue for China to overcome the market failure, to deal, properly, with the issue of the relationship between equity and efficiency, and to propose a new development idea that not only accords to the current conditions of China, but gives consideration to both equity and efficiency as well.The both methods of theoretical and empirical analyses are adopted and a large amount of domestic and foreign literature is selected, read, and studied. The thesis introduces in detail various viewpoints and propositions about the concepts and the classification of equity and efficiency, and about the relationship between them. It also shows the two principal methods to measure and evaluate the extent of equity, and summarizes the gains and losses, the success and failure that China has made during the decades of planning economy and socialist market economy. After that, the thesis makes an empirical study on the status of equity and efficiency and their relationship in some other countries in the world. At last, using the experience on the issue of equity and efficiency of other countries for reference, and employing the fundamental principles of Marxism' political economics and the general approaches of the western economics, the thesis analyzes and demonstrates the issue of equity and efficiency during the process of modernization in China, and proposes the view that China should realize the sound interaction of equity and efficiency basing itself upon the reality and taking a broad view of the future.