China's Gradual Reform Research, Equity And Efficiency Issues

It should be free and equal to come in life. Freedom means that people can be paid completely by their competence and efforts. While fairness means that people can obtain economic equality of getting income. On the premise of limited resource, free competition will improve the service efficiency of resources and impel the growth. But it will also enlarge the income gaps at the same time, which will go against society fairness. On the contrary, efficiency first will obliterate the income gap. That will damage people's work enthusiasm and reduce the efficiency of resource distribution. Therefore, our society faces to decide whether efficiency priority at the cost of fairness or fairness priority or compromise to each other so as to get equilibrium.The western scholars have dispute about the relationship between efficiency and fairness for a long time. But they mostly focused on the aspect of policy operating rather than the system established. They generally acquiesce in effective operations of the market as the prerequisite. They dispute what kind of roles of the country play and policy should be taken place in the income distribution under the condition of perfect market mechanism. These theories were developed on the basis of hundreds of years'market economy in western countries. It can be referred by China to solve the contradiction between efficiency and fairness. In addition, there are many institutional factors that restrict the market operating completely. So it will be more complicatedly to more complicate while employing these theories to analyze the question of China. We can't apply mechanically among them some theories or views whose we are can simple. But it is definite at two points at least. First, the sufficient operation of the market can make resources get quite efficient disposition (market failure also existing sometimes.) Second, the...