On The Relationship Between Government And The Market

In s Variety Of countries the relationship between the government and the market has been for a long time, a hot topic in both political science and economics. Being the two basic and mutually dependent elements in the modem economy, the government and the market have different effects in promoting economic growth and social development.Along with the development and flourishing of the market economy in developed Euro American countries, the relationship between the government and the market have gradually evolved into the marke - leading pattern. After the World War II some east A-sian countries took a totally different approach; They created the East Asia Miracle by following theGovemment -leading pattern. However, the Asian Financial Crisis revealed some problems of this pattern.At present, China is in a pivo'.al stage Of changing from traditional planing economy to socialist market economy. It is important to draw lessons from the experience of those two representative patterns and construct the government - market relationship suitable for the circumstances of our country. This issue is also crucial, both in theory and In practice , for improving our economy and social life. Based on theoretical and practical analyses, this article tries to reveal the relationship between the government and the market from political and economic point of view. Throughout this article, the discussions on government - market relationship of China in this migrating period is rooted on the comparison of the Euro - American pattern and East Asia pattern. From the consideration of politics, this article reaches a conclusion that reforming the government is the rational resolutin based on analysis of the government - market relationship.