The Decisive Role Of The Market In Resource Allocation

Since the reform and opening up,the Chinese Communists explore deeply in the the basic national conditions of China's primary stage of socialism over the departure of the socialist market economic theory.The 14 th Party National Congress determined the goal of China's economic reform is to establish the socialist market economic system,and to make the market play a fundamental role in the socialist state macro-control allocation of resources.The 16 th Party National Congress proposed to make the market play a fundamental role in allocating resources to a greater extent.The 18 th Party National Congress further emphasized the need for the market to play a wider range of greater basic role in resource allocation.The 3rd Plenary Session of 18 th CPC Central Committee talked about deepening reforms of the resolution on Some Major issues comprehensively,and proposed " make the market play a decisive role in allocating resources." The above definition about the market role,reflects the historical process of China's socialist market economic system evolving our party's continuous exploration and innovation of the socialist market economy theory.Accurately and deeply understanding and grasping the innovative idea that the market plays a decisive role in allocating resources,is the practical need to further promote the economic reform.This paper is guided by the basic theory of Marxism on resource allocation,makes comparative analysis of the planned economy and market economy in resource allocation and reveals the effectiveness of the market mechanism in the allocation of resources,so as to coming the conclusion that we must adhere to the direction of the socialist market economic reform.Through the process of China's economic reform,shows that making the market allocate resources is the general rules for the market economy to follow,emphasizing the decisive role of the market in resource allocation.This innovative formulation reflects and adapts to China's socialist market economic system and gradually perfect the development requirements,its importance lies in cracking the problem of deepening economic reform.The first is to solve the problem that government make too much intervention in the allocation of resources,lacking in the role of macroeconomic regulation and inadequate management,poor supervision,that is government's "offside" issue and the "absence" issue.The second is to stimulate and enhance the vitality and innovation of economic entities,in particular to address the non-public economy to allow equitable participation in market competition.The third is to solve the imperfect and not well-regulated market system,only by forming a unified national market system and fair competitive market environment,can the market play a decisive role in allocating resources.Making the government play a decisive role in market allocation of resources much better.The two is a complementary and coordinating relationship.It focuses on the role of government macroeconomic regulation to maintain economic stability,health and sustainable development;strengthen market supervision,to ensure fair and orderly market order;strengthen and optimize public services,and promote common prosperity.Effectively play the role of government,in order to compensate for market failure.To deepen administrative reform through innovative management style,effectively transforming government functions,the formation of positive interaction between the government and the market.On the basis of existing research results,this paper attempts to interpret the transition of the market from "fundamental" role to a "decisive" role,according to the Marxist theory of the basic theory of resource allocation,combined with understanding of the Chinese Communist Party Two leaps thought process of the socialist market economy.And from the domestic and international conditions,analyse the background of the market in allocating resources from the new point.Combing through the reform process,interpret the great theory innovation of the market "decisive" role in resource allocation,understand that the core issue to deal with economic reform is to know the relationship between the government and the market,so as to further understanding of the relationship between them.After clarifying the urgent problem based on the market's decisive role in the allocation of resources,fully study these issues,propose solutions,and then to guide China's economic reform.