On The Basic Economic System And Two Essential Distinctions

The basic economic system, is not only the innovation of the Maxist theory, but also is the scientific summary of PRC’s historical experience, and it is the practical needs of deepening the economic reform. Since the basic economic system established, we have been persisting in and perfecting it. However, in the process of adhering to and perfecting the basic economic system, there is a "left" and right two wrong tendencies, which influencing our upholding and improving the basic economic system. Therefore, we must oppose the "left" and right two wrong tendencies, and draw two fundamental boundaries, one is the boundary of basic economic system and single public ownership, the other is the boundary of basic economic system and privatization.On the one hand, we have to draw the boundary of basic economic system and single public ownership, in real terms was to draw the public ownership as the mainstay and single public ownership. The key to drawing the boundaries is while publicly-owned economy developed, whether we are able to create a good environment and favorable conditions for the non-public economy, so as to make the public ownership economy and Non-public economy equal competition, mutual promotion and common development. Due to some of the traditional concept of single-State-owned are perpetuating, making Non-public economy dare not to devoting major efforts to developing and limiting the healthy growth of the non-public economy. This requires that we draw the public ownership as the mainstay and single public ownership, alert at all times resurgence and spread of the "left" tendency errors. Constantly improve the non-public economic policies, laws and regulations, and develop appropriate support measures to create a more favorable environment and conditions for the non-public economy development.On the other hand, we have to draw the boundary of basic economic system and privatization, in real terms was to draw the coexistence of diverse forms of ownership and privatization. Various forms of ownership develop commonly does not mean to make the private economy as main body, more does not mean overall privatization. The key to drawing the boundaries is while the common development of various forms of ownership, whether adhere to the main body of public ownership status and play the leading role of State-owned economy. Visibly, proposed Public ownership economy and Non-public economy developed commonly, is not to use non-public economy to replace public ownership economy. Instead, our goal is to consolidate of the principal status of public ownership and play the leading role of State-owned economy through equal competition and mutual promotion of public ownership economy and non-public economy.Party of16reports that various forms of ownership could have their advantage in market competition, promote each other to achieve common development. This important exposition illustrates that the Public ownership economy and the non-public economy have different nature, but they are not completely opposite. They can complement and promote mutually. Public ownership economy not only provides the material basis for the non-public economy by strengthening itself, but also guides non-public economy towards deeper, broader areas by developing new fields. Development of non-public economy, on the one hand can deepen the reform of public ownership economy, on the other hand can fit in and help the development of the public ownership economy. Therefore, to make full use of each advantage of the non-public-owned economy and the public ownership economy, enabling them to learn from each other, complement each other.Therefore, only correctly draw the boundary of the basic economic system and single public ownership, the boundary of the basic economic system and privatization, overcome the "left" and right two wrong tendencies, can make the basic economic system develop and improve continuously, and this will play an active role in promoting China’s economic development and consolidating the Socialist system.