The Relationship Among Market?Government And System In The View Of Economic Law

It is a logical starting point in economic legal systems as well as economic law research that the relationship between government and market, which causes the theoretical and practical confusion in economic legal systems. There are failures, such as monopoly, negative externality, short supply of public goods, in market. Government should regulate market failure while government intervention has to be standardized by legal system in order to decrease government failure, which has been fully elaborated in the disputes on independence of economic law. In Chinese economic law theory, although “market failure” holds a position similar to what axiom has in natural science, the formation of this concept is based on social prototype of developed market economic countries in the west, which is totally different with the shaping path of marketization in China. Therefore, how market failure applies to Chinese construction of economic law is bound to be treated differently.The system is closely related to market mechanism and government intervention. By contrast, due to the long-term influence of planned economy in the past, China has become excessively obsessed with system construction, especially with strong dependence on public power regulating private power, which leads to inadequate attention paid to market, inherent strength of private power. In fact, system is simply a means but the goal, thus it cannot indulge the obsession with system at any stage. Moreover, there are failures, such as system replacement, system breaking, system speculation, system resistance, system misapplication, system copying. Unreasonable legal system can surely become resistance to reform in turn, which affects legal efficacy. Studying on institutional failures could make economic legal systems compensate for market failure and government failure.Based on the these logic, the paper aims at discovering interactive relationship among market, government and system, and clarifying decisive role of market as well as identifying the boundary between government and market, which enable economic legal systems to meet the need of market better, thus promoting the development of economic law.There are six chapters including the introduction and conclusion in this paper.The first chapter, introduction, introduces the era background of the writing. The reform goals of marketization that making market playing a decisive role in resource allocation and better playing the role of government has been proposed in third plenary session of the 18 th central committee of the Communist Carty of China. Besides, the idea that comprehensively promoting managing state affair according to the law has issued in fourth plenary session of the 18 th central committee of the Communist Party of China. In this background, it has urgent significance to discuss the relationship among government, market and system, both theoretically and practically.There are three sections in second chapter, illustrating the necessity of discussing the relationship among market, government and system. Firstly, it introduces the fact that the anti-market situation is serious in China, the relationship between government and market has to be dealt well to achieve marketization reform. Secondly, as a result of inadequate fit between current economic legal system and market, it causes the insufficient restriction on government actions, which goes against the idea of “ruling country by law”. Thirdly, it discusses the study of system in legal academy and how the system adapts to the deficiency of study on market mechanism, under the background of market playing a decisive role.The third chapter consists of four segments, distilling the experience of handling the relation between government and market in China and the west from four aspects. In the first place, what China gets as the understanding of the decisive role of market in resource allocation, and what the logic behind the operation of market is. Next, the development of market depends on institutional guarantee, and market economy is rule of law economy. Legal systems, such as property rights protection, market access, market transactions and market competition, are necessary guarantees to stabilize the market and boost market transactions. Then, market failure consisting of, efficiency market failure, equity market failure and immature market failure, has to be interpreted by government, which should be handled separately. Finally, government failures, like public policy mistakes and low efficiency of the supply of public goods, are regulated by system. Drawing the experiences above, the close association among system, market and government could be revealed.Chapter four has four segments, discussing the market mechanism, government intervention and the theory of “centralization of system” with three meanings. To start with, there is no doubt that systems are a guarantee to the free development of market and government intervention in accordance with the law. In contrast, avoiding falling into the faulty logic of theory of “centralization of system”, systems are simply means but the goal, not even all-powerful. The rule of law economy cannot be achieved by theory of “centralization of system”. In the second place, as the fact that mechanism might fail, the papers introduces the classification and appearance of mechanism failure, analyzing the reasons behind it. Last but not least, the influence of handling with government and market exerted by theory of “centralization of system” has also illustrated.In chapter five, it has three segments, which is discussing how system matches with market mechanism and government intervention. First of all, the decisive role of market should be clarified. Market independence is bound to be fully encouraged while decreasing immature market failure. In addition, government intervention has to respect the market mechanism, which could be achieved by a series of acts, like trying to minimize micro-supervision, and strengthen macro-control under the rule of law, and implementing combination of delegating power and regulating, establishing public service government. All in all, the paper gives some advice on how mechanism matches with market. The first is to establish supporting legal work, aiming at key fields of current reform, such as basic industry, land, finance and environment. The second is making transition arrangements during the different phases of reform, to reduce reform risk. The last discusses improving the quality of legislation and reducing mechanism failure, which starts with legislation, law enforcement, law-abiding and constriction of legal responsibility system.The sixth chapter summarizes the interactive relationship among government, market and system in the view of economic law...