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Selected distinctions between market economy and planned economy (9 chapters)

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 Difference between market economy and planned economy

Chapter 1: Model article on the difference between market economy and planned economy

The 14th National Congress of the Communist Party of China clearly stated for the first time that the goal of China's economic restructuring is to establish socialism market economy System. This is the further improvement and concretization of the goal of economic reform aimed at the self-improvement of the socialist economic system. However, how to understand and understand the connotation of socialist market economy, what is the essential difference between socialist market economy and capitalist market economy, etc. After several years of practice and theoretical exploration, especially the exposition of the 15th National Congress of the Communist Party of China, although it has become more and more clear, there is no doubt that some of them are even more vague and confused. Therefore, after we have had a comprehensive understanding of the history and current situation of the market economy in capitalist countries, as well as its experience and lessons, in order to better absorb its useful ingredients for our own use, it is necessary to make a discussion here, in order to clean up the root causes and better establish a real socialist market economy, rather than a capitalist market economy that sells dog meat on a sheep's head.

This paper intends to discuss the following three issues:

(1) Socialism planned economy Relationship with socialist market economy

⑵ The essence of socialist market economy and capitalist market economy difference

⑶ Differentiation and analysis of various viewpoints that obliterate the essential difference between socialist market economy and capitalist market economy

1、 The Relationship between Socialist Planned Economy and Socialist Market Economy

This is intended to illustrate whether the plan and the market are mutually opposite or substitute, or complement each other and complement each other, from a historical perspective, in the combination of theory and practice.

Marx's social capital reproduction theory points out that the proportional development of the national economy is the objective and inevitable requirement of any socialized mass production. But how to realize this requirement of proportional development, that is, how to reasonably allocate resources, can have different ways and methods under different socio-economic conditions; Economists of different classes will have different views and evaluations on the nature and function of these different methods.

Adam Smith, a classical economist of the bourgeoisie, lived under the conditions of free capitalism in the period of rising development. He first put forward the principle of "an invisible hand" and believed that the goal of optimal allocation of resources could be achieved through the spontaneous adjustment of the market mechanism; Alfred Marshall, a bourgeois vulgar economist, further boasted that the market mechanism was like a pendulum subjected to gravity, which was a very smart and wonderful universal automaton for rational allocation of resources.

Marx and Engels, standing on the proletariat's position, guided by dialectical materialism and historical materialism, made a scientific analysis of capitalist socialized mass production and its movement laws, and clearly pointed out that when the social economy replaced private ownership by public ownership, the anarchy within social production would be replaced by planned and conscious organizations. Therefore, human beings finally broke away from the animal kingdom in a certain sense, and entered into the real human living conditions from the living conditions of animals. "This is a leap from the realm of necessity to the realm of freedom". (The Complete Works of Marx and Engels, Volume 20, page 308)

In this way, in the history of modern human economic thought, market mechanism and planning mechanism were proposed as two ways to allocate resources, and different ideas were also debated accordingly.

After the October Revolution, when the establishment of the socialist public ownership and planned economy system has become or is becoming a reality, and the capitalist system is facing the impact and threat of socialism, the liberal bourgeois economists represented by Ludwig von Mises launched an attack on the socialist planned economy in theory. In his article Calculation under the Socialist System published in 1920, he publicly accused the socialist plan of failing to make reasonable allocation of resources. Because the reasonable allocation of resources should be based on economic calculation; Economic calculation should be based on price mechanism; The price determination of various goods must depend on the market, and the existence of the market must be based on the premise that the owners of various goods exchange their availability. Under the socialist economic system, all these conditions do not exist, so it is impossible to reasonably allocate resources. In this way, he set socialism against the market economy, asserting that "the problem is still that they must be one of the two, either socialism or the market economy". (See Selected Essays on Modern Foreign Economy, Vol. 9, Commercial Press, 1986 edition, page 67)

Lord Robbins and F. A. V. Hayek, followers of Mises and liberals of the London School, even believed that the socialist planned economy was not worth pursuing even if it could be realized to some extent, because it would eventually lead to totalitarianism. In their view, once socialism is implemented, the central planning department will surely take precedence over individual enterprise activities, so that enterprise interests and personal interests will no longer exist, and individual initiative and initiative will not be brought into play. As a result, bureaucracy will grow and totalitarianism will prevail. Robbins said that the planning authorities "will manage the whole production in the same way that the General Staff Headquarters commanded the army during the war... This system will require that personal funds as producers be incorporated into a strict organization". (Robbins: The Great Depression, 1934, English edition, pp. 154-155.) Hayek further set "socialism", "planned economy" and "freedom" in diametrically opposite terms in his article "Freedom and Economic System" published in 1938, and considered the two incompatible. In his book The Road to Slavery in 1944, he even confused the socialist economy with Hitler's fascist control, thinking that they were both "the road to slavery". These facts show that, before the October Revolution, bourgeois economists only generally put forward and demonstrated the method of market mechanism; After the October Revolution, the liberal bourgeois economists took the planned economy as an incompatibility with the market economy and attacked it crazily.

In the face of attacks from liberal economists such as Mises, the famous Polish economist and social activist Oscar Lange gave a firm counterattack. In his famous paper "Socialist Economic Theory" published from 1936 to 1937, he pointed out that Mises actually equated the socialist planned economy with the natural economy. It should be noted that the socialist planned economy does not necessarily exclude the existence of monetary price tools. At the same time, he also proved from the general equilibrium theory that the price decision in the socialist economy is not arbitrary, but achieved through the wrong method of successive experiments, so it has an objective nature. Once the central planning authority takes this price as a calculation tool, it can implement the rational allocation of resources and achieve the economic equilibrium. In his article Computer and Market, which was published after his death in 1965, he pointed out that Hayek and Robbins believed that if prices were calculated by central planning, millions of equations would need to be solved, and said: "If I rewrite my paper today (referring to the Socialist Economic Theory - citation note), my task might be much simpler. My answer to Hayek and Robbins may be: What's the difficulty? Let's put simultaneous equations into an electronic computer, and we will get their solutions in one second. The market process, together with its cumbersome experiments, seems to be out of date. " (Quoted from Li Ke et al., Western Economics at the Beginning of the 20th Century, p.138, published by Fudan University in 1990.) Although these views of Lange are not completely scientific, it is very clear that he stands in the position of sympathizing with socialism and resolutely opposes the attitude of liberal bourgeois economists who fundamentally deny planned economy. Therefore, he further proposed the concept of market socialism, that is, the means of production can be publicly owned, and the basic decision-making and development direction can be determined by the central planning, but other economic activities let market forces play their role.

Some other bourgeois economists also believe that the use of planning mechanism is an effective way to allocate resources. For example, as early as 1902-1903, Italian economist Wilfredo Pareto believed in the book "Socialist System" that "a socialist production department can theoretically achieve exactly the same economic plan as the balanced force of an ideal laissez faire capitalist economy". (Quoted from Rolle: A History of Economic Thought, Chinese version of the Commercial Press, 1981 edition, page 403.) Enrico Barone, another Italian mathematical economist, also believed in the article "Ministry of Production Management in Collectivist Countries" written in 1908 that, based on Wallace's general equilibrium theory, even under the condition of public ownership of the means of production, The central planning authority can also calculate the planned price with the same function as the market price inherent in the competitive economy by solving simultaneous equations. (See Contemporary Schools of Eastern European Economics, p.70, Hong Yinxing, Zhou Xiaohan, etc., China Economic Publishing House.) When Mises launched an attack on the socialist planned economy, in addition to Lange, there were also some bourgeois economists who sympathized with socialism, such as Fred Manville Taylor Henry Douglas Dickinson of Britain and others disagreed with the view that Mises and others totally denied the planning mechanism.

In the 1960s and 1970s, some economists in former Eastern European countries further revised and improved the market socialism model proposed by Lange in the process of economic reform in various countries. They believe that the Lange model is generally a dual operation mechanism, and the market scope is narrow. The market for means of production is still a "simulated market". The market price determined by the central planning authority through the experimental method is prone to distortion and lag. At the same time, it can not fundamentally solve the enterprise dynamics, and whether the enterprise can "simulate the market" The issue of timely response to the price signal sent out is lack of operability in application and has never been put into practice. Among the economists who put forward this opinion, the representative ones are: ⑴ Horwat, a famous economist of the former Yugoslavia. He stressed that rapid economic development is only possible if it is based on the market; The market pricing system has four major functions: balancing supply and demand, rationally allocating scarce resources, rationalizing and fairness of economic behavior, and selecting the optimal material structure; Abolishing the market will inevitably lead to the (former) Soviet style national socialism, and therefore is a market socialist among Eastern European economists who emphasize the role of the market more. ⑵ The famous polish economist, w. brus. After comparing various models of socialist economy, he proposed the decentralization model of central planning economy with the introduction of market mechanism. He believes that this is a more correct and ideal model in theory, with the advantage that the supply structure can more flexibly adapt to the demand structure. Within the limits of the proportion and conditions specified in the plan, this adaptation is achieved on the basis of direct linkage between suppliers and buyers, without the need for direct and detailed decisions at the central level, or approval at the central level on every occasion. ⑶ Janos Kornai, a famous Hungarian economist. He emphasized that Lange did not consider hard budget and buyer's market, so his model was based on the wrong assumptions about planners and enterprise behavior. Although he did not directly propose a new socialist model, the essence of his famous shortage theory is also inclined to market socialism and provides a theoretical basis for it. ⑷ Otta Sik, a famous economist in Czechoslovakia, believes that the goal of economic reform is to establish a "free market price". In his view, the function of the market is not only information and management, but also mainly benefits; An enterprise should have certain investment decision-making power. It should not only benefit from the profits of correct production and investment decisions, but also bear the operational responsibility and investment risks.

In short, some former economists in Eastern Europe further modified and deepened the market socialism model of Lange. However, the most typical model for practice is the socialist model of worker autonomy in the former Yugoslavia. It deepens the Lange's socialist model, but it is not completely the same as the Lange model, that is, it does not attach importance to the role of planning as the Lange model, but emphasizes the role of enterprise and worker autonomy. Whether this model is correct can only be answered by practice. History has concluded that this model is unsuccessful.

The theory of market socialism mode not only appears frequently in eastern socialist countries, but also in western capitalist countries. Britain is a prominent example.

Early market socialism in Britain originated from Fabian socialism represented by the Weber couple (the Fabian Society was founded in 1884). In the 1920s and 1930s, Tony, Durbin and Gatzker expounded the new Fabian socialism, that is, the British socialist economic theory and policy propositions. When the Labor Party came to power in 1945, British socialism and Keynesian welfare economics merged to form a peculiar mixed economics, namely, early British market socialism. Its main viewpoints are: first, income socialization, advocating "poverty eradication", "reasonable income distribution", and establishing a "welfare state" and a "cradle to grave" social security system; Second, the socialization of means of production. Try to transform the means of production of several sectors into social ownership through the "nationalization" policy, transform the single private economy into a mixed economy of public and private sectors, and regard it as a major measure to change ownership, so that producers can get rid of the shackled status; Third, the central planning authority uses the principle of optimal market allocation to guide decision-making. A socialist economic system that requires a freely chosen labour market and is based on market pricing and consumer sovereignty.

In the 1980s, there was a new upsurge of discussion about market socialism in British economics. "Market Socialism" written by British market socialists, Lear Easterling of the London School of Economics, Julian Le Grande and others, "Market, State and Society: Theoretical Basis of Socialism" written by Oxford University Miller (1989), "Equality, Market and State" (1987) written by Southampton University Pratt played a leading role in this discussion. They put forward the theory of "marriage" between socialist public ownership and market economy and the theory of market "leading mechanism" aimed at starting market oriented reform, in an attempt to use the market to achieve the goal of socialism. In the view of these market socialists, the post-war British Labor Party government's implementation of the nationalization policy and welfare policy is to engage in market socialism. However, it is clear that this kind of market socialism in Britain is essentially bourgeois reformism, because they place their hope of realizing this kind of socialism on the British bourgeois government, especially the Labor Party government, neither touching its political structure nor fundamentally changing its economic basis of private ownership.

The above shows that under the conditions of socialized mass production, there has been a debate on how to allocate resources in two ways, plan and market, all over the world for a long time. The focus of the debate is whether resources can be effectively allocated by relying on plans, and whether plans can be combined with the market? How to combine? Can true socialism be established under the condition of taking the market as the leading force? What is the essence of so-called market socialism.

From the perspective of social and historical practice, after the October Revolution, a series of socialist countries, such as the Soviet Union and China, used planning to allocate resources under the socialist conditions based on public ownership of the means of production. Although it brought many disadvantages and negative effects, it was an undeniable fact that under the historical conditions at that time, it had effectively promoted the rapid development of production.

Now, some people say nothing about the socialist planned economy in the past, and think that the root of all the historical twists and mistakes of socialist countries in the past lies in the implementation of the planned economy, and even blame the implementation of the planned economy for some corruption, difficulties and "inclusiveness" of state-owned enterprises in China. Therefore, I think it is necessary to talk about the gains and losses of the planned economy in the past.

As far as the former Soviet Union is concerned, in the era of Lenin and Stalin, the planned economy made a backward tsarist Russia become a superpower on an equal footing with the most developed countries in the West within half a century, and its heavy industry, national defense force and science and technology were among the best in the world. If we consider that the Soviet Union also withstood the historical merits of fascist crazy aggression and suffered huge losses in the war, while the United States became the beneficiary of the war and other factors, it can show the power of the planned economy. In the Soviet Union, only after the war, when the economy had further developed, did the highly centralized planned economy increasingly show that it did not meet the requirements of the further development of productive forces and needed to be properly adjusted; At that time, the Soviet Union had changed the situation of being surrounded by capitalism in the Stalin era. It could have made appropriate adjustments to the structure of the national economy, accelerated the development of light industry, improved people's living standards faster, and improved the speed and quality of national economic growth faster. But at this time, under the revisionist line represented by Khrushchev, he stuck to the original system and economic structure, and at the end, he fundamentally denied the planned system and went to the other extreme, which completely ruined the socialist economy.

As far as China is concerned, in the nearly 30 years before the reform and opening up, under the planned economic system, China has transformed from an extremely poor and backward semi feudal and semi colonial country into a socialist power that has basically established an independent and complete national economic system and scientific and technological system, laying a solid material foundation for the reform and opening up. According to the data of the National Bureau of Statistics, from 1953 to 1978, the annual average real growth rate of China's national economy was 6.0% of national income, 7.9% of gross social output value, and 8.2% of gross industrial and agricultural output value, which greatly exceeded the economic growth rate of Western capitalist countries in the same period. In terms of the output of major industrial products, raw coal increased from 66 million tons to 618 million tons, power generation increased from 7.3 billion kilowatt hours to 256.6 billion kilowatt hours, steel increased from 1.35 million tons to 31.75 million tons, finished steel increased from 1.06 million tons to 22.08 million tons, and cement increased from 2.86 million tons to 65.24 million tons, an increase of 8-34 times respectively. From the output of major agricultural products, the grain output increased from 163.92 million tons to 304.77 million tons in the same period, and the cotton output increased from 1.304 million tons to 2.167 million tons, up 86% and 67% respectively. With the rapid economic growth, the national economic structure has undergone profound changes. The proportion of agriculture in national income has dropped from 57.73% to 32.76%, and the proportion of industry (excluding construction and transportation) has risen from 19.52% to 49.40%; In the total industrial and agricultural output value, the proportion of agriculture, light industry and heavy industry changed from 56.9:27.8:15.3 to 24.8:32.4:42.8. It is worth noting that, in the case of widespread inflation in western countries, China has basically maintained price stability, and the national retail price inflation rate was only 2.3% in the 1950s, 0.92% in the 1960s, and 0.56% in the 1970s, even under the impact of the KMT's hyperinflation. Therefore, except for the difficult period of three years of natural disasters, people's lives are stable, and the national resident consumption index rose from 100 in 1952 to 188 in 1979.

More importantly, relying on the planned system, during the first five-year plan period, with the assistance of the Soviet Union, China successfully carried out capital construction centering on 156 key projects and consisting of 694 large and medium-sized projects above the designated size. Moreover, most of these projects are located in the economically backward hinterland where China's industrial transportation has always been underdeveloped, reducing the imbalance between coastal and inland economic development; Changed the deformed industrial structure layout of old China; A series of new industrial departments have been established and developed, and a world advanced high-tech and national security system represented by "two bombs and one satellite" has been established.

In the 1980s, although the planned economy system of our country had been broken through, but the economic plan still played a considerable role in the development of the national economy, the speed of economic development was further improved. From 1979 to 1990, the annual average real growth rate of China's gnp was 8.7%. The annual average real growth rate of national income is 8.4%.

It can be seen that the complete negation of the historical achievements of the planned economy in the past, especially the necessity of the complete negation of the national economic plan, is not fully based.

It is even more unreasonable for some people to blame the planned economy for some negative phenomena such as corruption, difficulties of state-owned enterprises, "wind" and so on. We don't need to spend much time, just arrange the time sequence can completely overthrow this "causal" relationship theory. Since the beginning of reform and opening up, China's planned economic system has been constantly being reformed and weakened. As its most representative product mandatory planning indicator, it has basically disappeared today. (According to relevant data, 837 kinds of products were included in the mandatory plan in 1978, reaching the highest point in history. By the end of 1996, the proportion of the national total industrial output value under the mandatory plan had dropped to less than 5%, and only 14 commodities were still distributed under the plan, such as grain, edible vegetable oil, pigs, sugar, cotton, compressed tea, fertilizer, pesticide, agricultural film, salt, refined oil, cigarettes, tobacco leaves, and traditional Chinese medicine.) However, corruption and difficulties of state-owned enterprises, which are very noticeable in China at present, happen to occur in the process of the weakening of the planned economy in the past 20 years. However, this situation did not exist in the planned economy period for decades before that. And we can say without exaggeration and pride that in the past ten years, under the leadership of the Communist Party of China, the most honest government in the world history has been established and a large number of high-quality honest cadres have been trained; State owned enterprises have also grown from scratch, from small to large, vibrant and thriving. So how can we say that the planned economy has brought about corruption and difficulties for state-owned enterprises? Here, we are not saying that the planned economy is perfect and does not need reform in the past practice, which will be discussed later. However, it is unconvincing to blame the planned economy 20 years ago for all the current problems. As for the "wind blowing", it is a problem in the way of thinking and work style, and it has no internal inevitable connection with the planned economy. Facts have proved that in the past there was a "flamboyant style" and "communist style"; Now there are also superstitions such as "one package is effective", "one shot is effective", "going abroad", "eating and drinking, extravagance and waste, and fake, false and boastful, etc. Therefore, it is totally unreasonable to put the "wind blowing" phenomenon on the account of the planned economy.

Of course, the socialist planned economy, like any new thing in history, cannot be perfect, nor can it not pass the twists and tests of history. The main defects of China's past economic planning are: first, the role of planning is only emphasized unilaterally, while the role of market in allocating resources is ignored; Second, as the basis of the plan, the economic statistics work is weak, the means are backward, and the statistical data are not accurate enough, which makes the plan lack of scientificity and accuracy; Third, the plan is too rigid and too concentrated, which to a certain extent restricts the enthusiasm of enterprise management; Fourth, in terms of planning and arrangement, while correctly adhering to the policy of giving priority to the development of heavy industry, we lack sufficient attention to the development of agriculture and light industry, making the production of consumer goods relatively inadequate. However, all these shortcomings are due to lack of experience and problems in the actual operation of the application of economic planning rules, rather than the mistakes of the planning requirements themselves. Therefore, with the development of the economy, there is no doubt that the past planning work must be reformed. Without reform, there is no way out; However, the reform is to correct its defects, not to deny them completely, just as pouring sewage can not dump children together.

In fact, under the condition of commodity economy, as a means of resource allocation for socialized mass production, no matter how its social form is, it must combine planning with the market to truly allocate resources comprehensively and reasonably. Any partial waste is not conducive to the optimal allocation of resources and the stable development of social economy. Because market regulation is based on microeconomic interests, even though it is optimal in the micro level, it is not necessarily optimal in the macro level; Planning adjustment is a macro adjustment, so it is easy to ignore the micro benefits, and it is difficult to give full play to the potential of resource utilization. The national economy is a unified whole combining the macro economy and the micro economy. Therefore, as the adjustment mechanism for the operation of the national economy, it is natural to combine the macro planning mechanism with the micro market mechanism accordingly, and learn from each other to make the most effective and reasonable use of the entire social resources, so that the entire national economy can be sustained, stable Rapid and healthy development. As we will see below, the practice of economic development in countries around the world has proved that this is an immutable truth.

Before the 1930s, the capitalist economy based on private ownership unilaterally emphasized market mechanism regulation and opposed state intervention in the economy. Because of the inherent blindness and lag of market regulation and the unfairness of income distribution, production inevitably fell into anarchy and cyclical economic crisis, As a result, an unprecedented economic crisis broke out in the 1930s, making the neoclassical market economy theory characterized by superstition in the omnipotence of market mechanism completely bankrupt.

Faced with the great crisis in the 1930s and the bankruptcy of neoclassical market economy theory, Keynesianism came into being in order to maintain the rule of capitalism. Keynesian theory is a macroeconomic theoretical system. Its basic feature is to oppose laissez faire and advocate state intervention in the economy. However, Keynes' economic theory system lacks micro theoretical basis. After the war, American Keynesians combined Keynesian macroeconomic theory system with neoclassical market economy theory to create a neoclassical comprehensive theory system. This theory emphasizes the role of market mechanism while emphasizing state intervention, and advocates the implementation of a "package" plan of "discretionary" and "tight and loose" macro-control methods. This kind of economic theory system, which combines state intervention with market mechanism or combines planning with market as a means of allocating resources, is a modern market economy theory different from the neoclassical market economy theory. Its basic feature is to recognize the social and economic operation of socialized mass production, which should not only be based on market economic regulation, but also attach importance to the state's intervention and macro-control in the economy. Therefore, modern market economy theory is the inheritance and development of neoclassical market economy theory.

The post-war market economy of capitalist countries in the West can be said to be the modern market economy that combines state intervention with the market in different degrees and forms. The reason why the post-war capitalist countries had relatively stable and rapid economic development, rather than the great crisis of the 1930s, was related to the implementation of this new mechanism of combining state intervention and market regulation. It can be seen that the combination of plan and market is indispensable to improve the operation mechanism of commodity economy of socialized mass production.

As a socialist market economy based on public ownership instead of private ownership, compared with capitalist economy based on private ownership, it is undoubtedly more necessary and more likely to combine planning with the market, because public owned enterprises provide more favorable conditions and micro foundation for the role of macro planning. Based on this judgment, Marx and Engels foresaw that when the social economy replaced private ownership by public ownership, the anarchy of social production would be replaced by planned and conscious organizations. As mentioned earlier, the practice of planned economy in a series of socialist countries after the October Revolution and World War II also achieved great success. Regrettably, Marx's correct principle of planned and proportional development has not been developed as it should be in the past quite a long period of socialist economic construction practice, that is, while developing in a planned way, the role of market regulation has been ignored, which has brought some difficulties to social and economic development, and with the development of social productivity, This difficulty is becoming more and more obvious. As Comrade Chen Yun said in March 1979 when he talked about "the problem of planning and the market", "After the October Revolution and the establishment of New China in 1949, the Soviet Union and China were completely right to do such planning work, but there was no understanding of Marx's principles (planned and proportionate development) based on the experience of establishing a socialist economic system This has led to the shortcomings in the current planned economy "(see Selected Documents Since the Third Plenary Session of the CPC Central Committee (I) People's Publishing House, 1982 edition, pp. 68-69)

After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, under the guidance of the line of building socialism with Chinese characteristics, our economic system reform has set the establishment of a socialist market economy as the goal, overcome the one-sided nature of relying solely on plan adjustment in the past, and combine the plan with the market, take the advantages of both, and make up for the shortcomings of both, Instead of using the market to replace the plan so as to negate the positive role of the plan. As Comrade Jiang Zemin said in the report of the 14th National Congress of the Communist Party of China: "We should establish a socialist market economic system... At the same time, we should also see that the market has its own weaknesses and negative aspects, and we must strengthen and improve the state's macro-control of the economy.". He also said, "In terms of macro-control, our socialist country can combine the people's current interests with long-term interests, and local interests with the overall interests, so as to give better play to the advantages of the two means of planning and the market. The national plan is one of the important means of macro-control." That is to say, when Jiang Zemin expounded the implementation of the market economy system, Never forget to emphasize the importance and necessity of using planning means for a moment. Therefore, when we regard plan and market as the means of allocating resources, the relationship between them can only be understood as the relationship of complementing each other, rather than the replacement or negation of the former by the latter. Since the reform and opening up, it is precisely because we have combined planning with the market to a certain extent that our economy has developed rapidly and steadily.

The above facts show that both capitalist economy and socialist economy have gradually developed to the stage of combining planning and market in their development process, which is the requirement of objective economic laws that do not depend on people's will. The difference is that the history of capitalist economic development is from one-sided market regulation to the combination of planning and market; The history of socialist economic development is a road from one-sided planning regulation to the combination of planning and market, both of which reach the same goal by different routes. This fact once again shows that the plan and the market are complementary to each other, rather than antagonistic and substitutive.

It must be pointed out that there is a tendency to oppose the plan to the market, to advocate the omnipotence of the market economy, and to boast that the market mechanism is the best means of allocating resources for mankind. It is believed that to implement the market economy, we must fundamentally deny the planned nature of the economy. Anyone who says that we should strengthen macro regulation and planning will be detained to go back, We will continue to engage in the big hat of planned economy. This view is not only absurd in theory, but also very harmful in practice. The facts in recent years show that whenever the country relaxes macro-control, the social economy will be in chaos to varying degrees, and whenever it strengthens macro-control, the social economy will tend to be stable. For example, the victory of "soft landing" and the good situation of "high growth, low inflation" since 1993 under the correct decision of the central government to strengthen macro-control are a good illustration. However, it must be noted that in this good situation, the tendency of superstition about the omnipotence of the market is far from being eliminated. For example, some places, departments and enterprises resist the macro-control plan and allow the market to adjust, so that there are large and comprehensive, small and comprehensive, blind investment, repeated construction, economic structure imbalance, and insufficient start-up of enterprises, which aggravate the problem of unemployment and layoff of workers, and the serious waste of social resources is its obvious manifestation. According to the materials disclosed by the People's Daily, in some major industries in China, such as machinery, electronics, light industry and textile, there is a large oversupply of general processing products, and the utilization rate of production capacity is mostly below 70%; There are also many cases below 50% and 40%. (People's Daily, February 19, 1998, "Repeated construction is mainly in the processing industry.") If we look at the supply and demand of more than 600 major commodities in the country, the oversupply of commodities accounted for 5.3% in the first half of 1997, and jumped to 31.8% in the second half of 1997, 26.5 percentage points higher (Economic Daily, February 25, 1998, Feng Bing and Yan Kalin, "Comprehensively Understanding the Buyer's Market.") In this case, As a result of structural adjustment, some workers have been laid off and diverted, which is naturally a last resort. However, this is a huge waste of resources in the reform, which is also a fact. It is estimated that at present, there are about 6 million unemployed people in cities and towns, and 5.7 million registered unemployed people, the unemployment rate is as high as 6.3% or so (see China Information Daily, "Answers to Urban Employment", February 24, 1998). It is incomprehensible that some people now blame the result of the planned economy in the past for this structural imbalance and its series of consequences, instead of finding the reason from the weakening of the plan (of course, this is not the only reason). As mentioned earlier, the planned economic system in the past has been weakening since the day of reform and opening up. Today, only 14 kinds of agricultural and sideline products, such as grain, have been included in the planned distribution. At present, the products with overproduction and structural imbalance are not agricultural and sideline products planned for distribution, but mechanical, electronic and other products regulated by the market. For example, in 1997, the national production capacity of cars reached 1.1 million, and the production rate of only 479000 cars was less than 45% (Economic Daily, March 12, 1998, "Calm down on car prices"). For another example, according to the queuing of 605 kinds of goods by the Business Information Center of the Domestic Trade Bureau, the oversupply of goods accounted for 72% in the first half of 1999, and further increased to about 80% in the second half of 1999, of which the oversupply of industrial products accounted for 91.14%. In the tertiary industry, such as high-end shopping malls and star rated hotels, a large number of redundant construction and idle equipment are also caused by the planned economy?

It can be seen that if we do not combine the plan with the market to make them complement each other and complement each other, but move from one extreme to the other, and simply unilaterally replace or deny the positive role of the plan with market regulation, there will be no negative impact and chaos on society.

2、 The essential difference between socialist market economy and capitalist market economy

As has been explained previously, under the commodity economy of socialized mass production, both capitalist and socialist economies need to take the market as a means of allocating resources, that is, there is a market economy under the capitalist system and there is a market economy under the socialist system. However, this does not mean that there is no difference between socialist market economy and capitalist market economy. In fact, there is an essential difference between the two. Some attempts to deny the essential difference between the two are groundless.

First of all, what is market economy? The term "market economy" usually has three different meanings in domestic and foreign literature: first, it refers to the products produced are commodities for exchange, so market economy is often equated with commodity economy to distinguish it from self-sufficient natural economy; Second, it refers to the means of allocating resources in the social economy. Therefore, the market economy is often equated with the market mechanism to distinguish it from the method of allocating resources through planning and state intervention. In the previous section, we mainly discussed the market economy in this sense; Third, it refers to a social economic system. Bourgeois economists generally equate market economy with capitalist economy. The Dictionary of Modern Economics (published by Shanghai Translation Publishing House in 1988), edited by British economist David W. Bowles, explains that, The market economy is "an economic system,... the decision-making of this economy is decentralized, that is, economic decision-making is independently decided by some organizations and individuals in the economy, not by the central planning authority. The market economy usually also includes private ownership of the means of production, that is, capitalist economy". Moreover, in the past, the United Nations also equated the market economy with the capitalist economy and distinguished it from the socialist planned economy. For example, the United Nations Statistical Yearbook and the United Nations World Statistics Digest divided the world into three types: centrally planned economies, market economies, and developing market economies before the drastic changes in the Soviet Union and East Asia. The first refers to socialist countries; The second and third refer to capitalist countries.

It is unscientific for bourgeois economists to equate the market economy with the capitalist economy, but there are some reasonable factors in it, that is, to admit that the market economy contains the connotation of the system (not the basic system of society) that protects people's certain economic interests. Through the analysis of the operating mechanism of the market economy, it is not difficult to find that the market economy, as a means of allocating resources, can adjust and allocate resources only because it can adjust the economic interest relationship of the participants in the market behavior, thus producing a strong incentive and constraint function. It can be seen that market economy is not only a means to allocate production resources, but also an economic system to safeguard people's certain economic interests, that is, to maintain the economic system in which various actors participating in market economic activities obtain different interests according to the resources they invest and the quality of their products. Of course, this economic system does not exist independently or in isolation; On the contrary, it can only be, and must be, a derivative economic system that is subordinate to or dependent on a basic social system.

Why can market economy only be a system derived from a basic social system? This is because the most basic system of a social form is based on the ownership of the means of production, and the basic way of market economy is commodity exchange. Commodity exchange is the exchange of products or property rights between different owners of products, so market economy is always connected with the basic system of a certain society, And as an economic system derived from it. There has never been a purely abstract market economy. The first market economy in history is the market economy linked with private ownership, and the most typical is the capitalist market economy. No wonder western economists always regard market economy as capitalist economy, and they can almost be equated. Later, people gradually found in the practice of socialist construction that market economy can also be linked with socialist public ownership, and subordinate to the latter to form a socialist market economy. That is to say, the socialist market economy is an economic system combined or linked with the basic socialist system, just as the capitalist market economy is an economic system combined or linked with the basic capitalist system. Comrade Jiang Zemin pointed out in the report to the 14th National Congress of the Communist Party of China that "the socialist market economic system is integrated with the basic socialist system."

As mentioned above, the term "market economy" usually has three different meanings. In fact, these three meanings are the reflection of its objective existence, and they are interrelated, and together form a complete and unified connotation of market economy. In short, market economy refers to an economic system formed on the basis of certain development of commodity economy, which is used to allocate resources and maintain certain economic interests of people.

Since the socialist market economy is combined with the basic socialist system, and the capitalist market economy is combined with the basic capitalist system, there can be no essential difference between the socialist market economy and the capitalist market economy., Because there are essential differences between the basic systems of two different societies. The basic systems of these two societies respectively maintain the economic relations or economic interests of different groups of people, which cannot but affect the two market economies' respective maintenance of the interests of different groups of people, that is, the capitalist market economy mainly aims to safeguard the interests of the bourgeoisie, especially the monopoly asset class; In the final analysis, the socialist market economy aims to safeguard the interests of the working people. This essential difference is mainly manifested in the following aspects in the actual operation.

1. The basic social systems of the two market economies are different. The basic social system here refers to the ownership structure of the means of production. The ownership structure of the socialist market economy must adhere to the principle of public ownership, the joint development of individual economy, private economy and other elements; The ownership structure of capitalist market economy has no public ownership at all, but is based on private ownership of means of production. This is the essential difference between the two market economies. Here are some problems that are easy to cause misunderstanding and need to be explained:

First, why the socialist market economy must adhere to the ownership structure with public ownership as the main body. Some people think that public ownership is not an essential feature of socialism, which is incorrect. Marxism believes that with the development of socialized production, capitalist private ownership will be replaced by socialist public ownership. Therefore, the most fundamental difference between socialist society and capitalist society is to replace private ownership with public ownership. Adhering to public ownership means that the united workers engaged in socialized production become the owners of the enterprise, can consciously give full play to the enthusiasm of production, and effectively promote the development of productivity; Abandoning public ownership means that workers will fall back into the situation of being exploited, oppressed and enslaved sooner or later, which severely suppresses the enthusiasm of production and constrains the development of productivity. Therefore, Engels said: "The task of socialism is not to say only to transfer the means of production to the public possession of producers" (Selected Works of Marx and Engels, Vol. 4, p. 303). This shows that public ownership is the most essential basic feature of socialism. One of the fundamental mistakes of all revisionists is that they gave up the requirement of realizing the fundamental task of public ownership. Bernstein said: "As long as the society fully exercises its right to supervise economic relations, the actual transfer of economic enterprises to public operations will not be of fundamental importance as generally believed. A good factory law can contain more socialism than the nationalization of a whole batch of factories" (Bernstein: The Struggle of the Social Democratic Party and the Social Revolution). Of course, as China is still in the primary stage of socialism, in order to meet the requirements of the development of different levels of productive forces, we can not implement a single public ownership, but can only implement an economic structure that adheres to the principle of public ownership, that is, ownership by the whole people and collective ownership by the working people.

Second, what is the connotation of the so-called public ownership as the main body? To put it simply, it is both a quantitative concept and a qualitative concept, that is, in terms of quantity, public assets must occupy an advantage in the total social assets. Of course, this advantage should not only calculate the part of purely public enterprises, but also include the part of public assets integrated into non-public enterprises. This was clearly put forward at the 15th National Congress. The report of the 15th National Congress pointed out: "We should fully understand the meaning of the public economy, which includes not only the state-owned economy and the collective economy, but also the state-owned and collective components in the mixed ownership economy; At the same time, in terms of quantity, since it is "advantage", its proportion in total assets should not be only a few or less than 50%, nor a simple majority or more than 50%, but must be more than 60-70% or more than 2/3. This is a common sense, otherwise the socialist nature of the whole society would be difficult to guarantee. The report of the 15th National Congress also pointed out that the 'advantage' of this public asset is that in terms of the whole country, some places and some industries can be different ". Therefore, some villages, townships and even small communities and counties with only tens of thousands of people do not necessarily require public assets to take advantage, but they cannot arbitrarily expand the "some places" to one prefecture, city or even one province or several provinces, because this is tantamount to arbitrarily expanding the policy of "one country, two systems" to the mainland. And from the perspective of development, if the scope of private ownership is gradually expanded from one village, one township, one district, one county, one place, it is hard to guarantee that it will not affect other provinces and cities in other regions or even shake the socialist nature of the whole society and the country. This is by no means alarmist, but an evolving reality. For example, according to statistics, the proportion of public assets in total assets in some provinces has dropped to below 50% (according to China Information Daily, the registered capital of non-public enterprises (264.68 billion yuan) in Guangdong had exceeded the total registered capital of public (state-owned and collective) enterprises by the end of 1992. The proportion of state-owned, collective and non-public enterprises is 30.2%, 16.4% and 52.4% respectively. See China Information Daily on April 23, 1993.), This cannot but arouse people's vigilance.

The dominant position of the public economy is not only in quantity, but also in quality. Comrade Jiang Zemin said in the report of the 15th National Congress: "The dominant position of public ownership should be reflected in the dominance of public assets in total social assets; the state-owned economy controls the lifeline of the national economy and plays a leading role in economic development." That is to say, the 15th National Congress not only reaffirmed that the dominant position of public ownership should be reflected in the dominance of the public economy, Moreover, it is further clarified that the control of the state-owned economy over the lifeline of the national economy and its leading or guiding role in the development of the national economy must also be included in the connotation of the "subject" of the public economy as a part of it. It can be seen that in the report of the 15th National Congress of the Communist Party of China, the connotation of the "dominant position" of the public economy is richer and more demanding than what people used to understand, rather than lower than what some people now understand. That is, it seems that the "dominant position" of the public economy is no longer required to have an advantage in quantity, so its proportion in total social assets is insignificant, In other words, the state-owned economy can continue to decline, even to 20% or less. (Interview with Cao Siyuan: Where is the Way Out for the Reform of the State owned Economy, China Economic Information Daily, September 7, 1995.) This is totally a misunderstanding. The original quality and quantity are a dialectical unity, and the improvement of quality can only be based on a certain quantity, which is a basic philosophical common sense. The 15th National Congress of the Communist Party of China requires that "we should pay more attention to the improvement of quality, not to abandon the requirement of quantity and pursue the so-called improvement of quality. In fact, if we weaken the requirement of quantity and improve the quality, it will be like a building built on the beach has no foundation. Suppose that if the state-owned assets only account for 20% of the total social assets (that is, the public economy has no advantage in quantity) How can it guarantee the socialist nature of the country's economic foundation, and thus how can it play a guiding role in building a modern socialist power? At best, it can only play a guiding role in developing capitalism like the state-owned economy of some western countries.

It seems that if we want to make our state-owned economy play the role of guiding the state-owned economy like that of capitalist countries, it is not the subjective inference we have imposed on those theorists, but the blueprint carefully designed by them. For example, some strongly require state-owned assets to withdraw from competitive industries, and actively advocate that "the state-owned economy should mainly focus on those enterprises that affect the overall development of the national economy, master the lifeline of the national economy, and can not or can not be run by non-state-owned enterprises, so they can only be run by the state". Some also further specified the scope of state-owned enterprises, saying that "the only public welfare industries that really need to implement state-owned ownership in our country, such as urban transportation and other industries whose profit margins are lower than the average profit margins or even lose money, or related industries, such as posts and telecommunications, aviation, etc." (Interview with Cao Siyuan: "Where is the way out for state-owned economic reform", China Information Daily, September 7, 1995) According to their calculations, the assets of these state-owned enterprises account for less than 20% of the total assets (ibid.). Their wishful thinking was to let the state run the enterprises with meager profits or losses, that is, let the state bear the losses, and let the remaining 80% of non-state-owned enterprises, mainly foreign veterans and domestic tycoons with non-public economies, make big money, thus changing the socialist nature of China's state-owned enterprises, Make it a tool to serve the capitalists, that is, capitalist enterprises. As we know, the fundamental economic reason why state-owned enterprises in capitalist countries are capitalist enterprises that are ideal collective capitalists and serve private capital is that they use national fiscal revenue to bear losses, so that private capital enterprises can make big money. In fact, it is for this reason that western countries generally establish state-owned enterprises. Moreover, their state-owned enterprises account for about 20% of the national economy, some even more. For example, in 1968, the assets of state-owned enterprises in western countries accounted for 17% of the total assets of national enterprises: Britain, 227% in West Germany, 28% in Italy, and 33% in France. (The Compendium of World Economic Statistics, Sanlian Bookstore, 1974 Edition, p.342.) It can be seen that the view that state-owned enterprises should withdraw from competitive industries and continue to decline the proportion of state-owned assets is actually an attempt to change the socialist nature of our country's economic foundation into capitalist nature according to the Western model, Confusing the essential difference between socialist market economy and capitalist market economy.

Another important content required in the qualitative aspect of the main position of public ownership, that is, the production relationship embodied by the public economy, is more important. Marxism believes that ownership of means of production reflects not only the relationship between owners and means of production, but more importantly, or in essence, the relationship of production, which is the economic relationship between people in the process of production and reproduction. Marx said that the bourgeoisie "private ownership is not a simple relationship, nor is it any abstract concept or principle, but the sum of bourgeois relations of production." (Selected Works of Marx and Engels, Vol. 1, p. 191, People's Publishing House, 1972 edition.) Later, when Marx gave a general definition of ownership, he further pointed out that ownership is people's "relationship to production conditions." The production conditions mentioned here refer to the means of production and workers. Therefore, the concept of ownership, on the surface, is only the relationship between people's possession of the means of production, that is, the relationship between people and things, but in essence, it reflects the relationship between people who own the means of production and labor force through the relationship between people and things. Under the capitalist private ownership, it is the capitalist who owns the capital that owns and controls the employment of labor, while under the socialist public ownership, it is the relationship between the workers who jointly own the means of production and the occupation and use of their own labor. When talking about the difference between socialist society and capitalist society, Engels also pointed out that "the decisive difference is, of course, to organize production on the basis of public ownership of all means of production", (The Complete Works of Marx and Engels, Vol. 37, p. 433.) Its "purpose is to completely abolish the wage labour system". (The Complete Works of Marx and Engels, Vol. 19, p. 286.) Therefore, in addition to the relationship between people and things, that is, the proportion of public assets in total assets, the concept of the subject of public ownership cannot be ignored, That is, whether the main part of the workers who participate in the production of the whole society has got rid of the shackles of the employment labor system and become the owner of the public enterprises. Therefore, at present, if a large number of workers become employees of non-public enterprises in order to adjust the industrial structure and solve some difficulties of state-owned enterprises, and finally become the main body of workers in the whole society, it is difficult to say that it is to adhere to the dominant position of the public economy.

Third, the nature of non-public economy. Some people assert that the non-public economy is socialist in nature and called it an integral part of the socialist economy according to the "public ownership as the main body and the common development of various ownership economies is a basic system in the primary stage of socialism in China" proposed at the 15th National Congress. This is another big misunderstanding. The "basic system" mentioned here is just the ownership structure that we have repeatedly pointed out before. A basic system or ownership structure of our country at the present stage is determined by the actual productive forces of our country. There are both socialist economic elements occupying the dominant position and non socialist economic elements occupying the non dominant position. It can be seen that the inclusion of the non-public sector of the economy in the "basic system" of the primary stage does not mean that the non-public sector of the economy has become socialist. Therefore, after the Fifteenth National Congress put forward the above concept of "basic system", it was followed by an explanatory emphasis that "China is a socialist country, and must adhere to public ownership as the basis of the socialist economic system". It has never been said, nor can it be said, that the non-public economy is the economic basis of the socialist economic system, or an integral part of the socialist economy. Because they are not originally socialist economic elements. If the non-public economy is also regarded as a socialist economy, then China is now not in the primary stage of socialism, but a complete socialist society. In fact, the objective situation is very obvious: the individual economy belongs to the small production economy and has duality. Under the capitalist system, there is a spontaneous capitalist tendency, but it is not a capitalist economic component itself; Under the socialist system, it can be guided onto the socialist road or used as a supplement to the socialist economy, but it is not a component of the socialist economy itself. Both the private economy and the foreign-funded economy are based on the exploitation of wage labour, so they are capitalist or basically capitalist economies. (Here, the reason why the attribute of "basically" should be added before the "capitalist nature" is that some small-scale private entrepreneurs also participate in a small amount of productive labor, so they are not completely typical capitalist enterprises, but they are by no means socialist economies.)

2. The distribution systems of the two market economies are different. Capitalist market economy implements the principle of distribution according to capital or production factors, which will inevitably lead to wide income gap and polarization. The socialist market economy implements the system of giving priority to distribution according to work, supplemented by other distribution methods, which will give consideration to fairness and efficiency, prevent polarization, and achieve the goal of common prosperity. This was clearly stated in the report to the 14th National Congress of the Communist Party of China. It is also a result derived from the ownership structure mentioned above. That is, under the condition of public ownership as the main body, distribution of consumer goods should naturally be based on distribution according to work, which fully reflects the socialist nature of distribution; Under the condition that there is still a non-public economy, the distribution of products must also correspondingly have other distribution methods. The so-called other distribution methods, including the products of small producers based on individual labor, are all owned by individual workers themselves (excluding taxes paid); The products of private enterprises and foreign-funded enterprises are distributed to investors according to the amount of capital contribution, or the principle of distribution according to capital, in addition to the wages and bonuses paid to employees according to the value of labor force. Due to the different sources of enterprise capital, some are the owner's own capital and some are borrowed capital, so the residual value of this distribution according to capital is often divided into profit, dividend, interest and other different forms to distribute to each capital holder. In addition, the land owner also needs to share the land rent. In this way, the distribution in the non-public economy has various forms of wages as the value of labor force, profits, interest, dividends, land rent as the surplus value in various specific forms, as well as the labor products of individual small producers, and these various forms of income are based on the provision of different production conditions or production factors, so this "other distribution methods" It can also be more specifically described as "distribution by elements". Therefore, when discussing the improvement of distribution structure and distribution methods, the report of the 15th National Congress reiterated the need to "adhere to the system of distribution according to work as the main body and coexistence of multiple distribution methods", and then specifically pointed out the need to "combine distribution according to work with distribution according to production factors". Obviously, the "combination" of the two mentioned here is self-evident that it is also the combination of distribution according to work as the main body and distribution according to factors as the supplement, rather than the combination of the two when the primary and secondary are not separated or the primary and secondary are reversed.

At present, there are three misunderstandings about the distribution system stated in the 15th National Congress of the Communist Party of China, which should be clarified.

First, some people believe that distribution according to work should not occupy the dominant position in the socialist market economy. This view is not only incompatible with the ownership structure in which public ownership occupies the dominant position, but also contradicts the stipulation of "adhering to distribution according to work as the main body" emphasized by the 15th National Congress.

Secondly, some people integrate "distribution according to work" into "distribution according to factors", thus further emphasizing that the socialist market economy is based on distribution according to factors, or even all of them are distributed according to factors. In their view, labor is also a factor of production, so "distribution according to factors" has included the content of distribution according to work. We believe that this is a distortion of the spirit of the 15th National Congress. If "distribution according to work" can be integrated into "distribution according to factors", then it is totally unnecessary to mention "adhere to distribution according to work as the main body" and "adhere to the combination of distribution according to work and distribution according to production factors", and only need to mention "distribution according to factors". The correct understanding should be that the distribution according to work and distribution according to factors mentioned at the 15th National Congress refer to the distribution systems in the two different economies of public ownership and non-public ownership respectively, and the two can neither be compatible nor substitute for each other. Even as far as labor is concerned, its income under public ownership is the result of distribution according to work; The income from private and foreign-funded enterprises is based on the value of labor force, that is, the value or price of labor force sold; In the case of small individual production, it is the income of all labor of workers. The latter two are different from the income from "distribution according to work" in principle. In fact, the key point of the view that distribution according to work is integrated into distribution according to factors is to try to erase the principle distinction between distribution according to work and distribution according to labor factors under different ownership, and then deny the dominant position of public ownership and distribution according to work, so as to confuse distribution according to work under socialist economy with distribution according to factors under non socialist economy, So as to erase the essential difference between the two market economies in the distribution system.

The third is to confuse "distribution according to production factors" with "creating value by production factors". The 15th National Congress of the Communist Party of China put forward the idea of "distribution according to factors of production". Some people mistakenly thought that the 15th National Congress of the Communist Party of China had recognized that value was created by factors of production, so it was necessary to distribute according to factors. In fact, the distribution of value is totally different from the creation of value. According to the basic principles of Marxism, value can only be created by labor. In the production factors of capitalist enterprises, there are both labor factors that create value and production factors that do not create value but divide the value created by labor, such as land, capital, etc. The commentators generally say that the factors of production can create value, or that they have made "contributions" in the creation of value, which is nothing more than defending the value created by the owners of capital, land and other factors of production to divide up workers' surplus labor free of charge, and covering up the essence of their exploitation. The vulgar nature of this view has been fully exposed by Marx in his analysis of the "Trinity" formula. There is no need to say more here.

It is also important to note that, with the development of science and technology, people are accustomed to including technology, information, brands and entrepreneurs' business management ability in the production factors, and they should also receive certain corresponding income in product distribution. However, the nature of the income derived from the distribution of these elements needs specific analysis, and it cannot be said in general that they are the result of their own creation of value. It is explained as follows:

(1) In terms of technical elements, if it refers to the technical knowledge and experience of engineering technicians and workers, it is actually the mental and physical strength of workers, mainly the mental labor ability. Therefore, the income obtained can be classified into income distributed according to work (in the socialist economy) or income distributed according to the value of labor (in the capitalist economy); If it refers to a kind of technical achievement, such as technical design drawings, patents, machinery and equipment, it can be regarded as various kinds of accumulated labor, which does not create new value in itself. Part of the income it obtains is the transferred value, and part, probably more, is the excess profit obtained by using this new technology.

(2) In terms of information elements, since the acquisition of information requires labor and other costs, it can be said that it is a form of materialized labor. Although some information does not have a certain carrier, part of the income derived from information has income similar to that of technological achievements: one part belongs to the transferred value, and the other part belongs to excess profits.

⑶ In terms of brand, it actually refers to the reputation of enterprise products. It is not the condensation of labor itself, so it has no value at all. However, it is based on high-quality products, high-quality services, superior scale, honest publicity and other factors. These factors are the result of direct and indirect labor input, so although the brand itself has no value, it is ultimately related to labor value, that is, the price of the brand is because the enterprise can expand its sales and market share by virtue of the reputation of products related to labor value, thus bringing more profits to the enterprise than ordinary enterprises in the same industry, This can be called "industry excess profit", which is different from the excess profit obtained by individual enterprises for improving labor productivity through innovation, which exceeds the average profit rate of the society. The price of famous brands is the capitalization of the industry's excess profits, just as the price of worthless land is the capitalization of land rent.

Expressed by formula:

Industry excess profit

Brand price (or brand value)=————————

Interest rate

(rpm–arpm)(q)(spp)

= —————————————

i

Where rpm refers to the rate of post market (abbreviated as rpm), arpm refers to the average rate of post market (abbreviated as arpm), q refers to the quantity of product sales in the same industry (abbreviated as q), and spp refers to the average single product profit (abbreviated as spp) of famous brand enterprises, I stands for interest rate (i). The meaning of the numerator formula in English capital letters is very clear. The numerator is the industry excess profits obtained by famous brand enterprises, and the numerator is the general interest rate of bank deposits. The formula indicates that the value of a famous brand is the capitalized price of the industry's excess profits that the famous brand enterprise can obtain. If other enterprises are willing to buy this brand at this price, it is equivalent to investing capital at this price to obtain excess profits in the industry. Therefore, this price becomes the price or value of the brand.

⑷ As far as the business management ability of entrepreneurs is concerned, if the business management decision-making and management ability of entrepreneurs belonging to the production enterprise is the same as the ability of ordinary workers in the enterprise, it belongs to the content of labor force, so its use can create value. Therefore, this part of income is labor income, and should generally obtain more income than ordinary workers, Because his labor value is greater than that of ordinary workers, or his labor contribution is greater. However, at present, the income of the managers of some enterprises in China, especially private and foreign-funded enterprises, is often many times higher than that of ordinary workers, for example, more than ten times higher, even dozens of times higher, hundreds of times higher. It is unreasonable that some of them are obtained by dividing up the surplus labor of workers.

In short, the income distributed according to factors is not all the value income created by factors. Therefore, from the perspective of creating value, it is not practical to say that distribution according to factors is the value distribution according to the contribution of factors in general. This is just another way of saying the "trinity" formula criticized by Marx.

3. There are significant differences between the operating mechanisms of the two market economies.

In terms of operating mechanism, both socialist market economy and capitalist market economy need to combine the market mechanism with the planning mechanism, but the degree and way of the combination of the two are different. Capitalist market economy, because it is based on private ownership, is more conducive to giving full play to the role of the market mechanism, and the corresponding role of macro regulation and planning regulation is relatively weak, that is, it is generally limited to indirect regulation and referential and intentional planning. The national binding force is relatively small. As the socialist market economy is dominated by public ownership, it is more likely to strengthen the role of national macro planning and regulation while giving full play to the positive role of the market mechanism. Because the macro plan reflects the long-term and overall interests of the country; The adjustment of the market mechanism is only based on the immediate and local interests of individual enterprises. Therefore, if the entire national economy is to achieve sustained, rapid and healthy development, it is necessary to organically combine the macro plan with the market mechanism under the guidance of the macro plan, give full play to their strengths, and avoid their weaknesses. Thus, the immediate and local interests of the enterprise will be combined with the long-term and overall interests of the country, and the immediate and local interests of the former will be subordinated to the long-term and overall interests of the latter.

Now there is a view that the market mechanism is the most efficient way to allocate resources. Under the socialist market economy, as long as the role of the market mechanism is fully played, the national economy can develop continuously and rapidly. Even if there is a need for a plan, it can only play a complementary role in the case of "failure" of the market. Thus, the market is put above the plan, and the leading role of the plan in the development of the national economy is fundamentally denied. In this way, the operating mechanism of the socialist market economy is confused with that of the capitalist market economy, and even the state's role in using planned regulation is inferior to that of some capitalist countries, such as France and Japan.

4. The results of the two market economies are different. Capitalist market economy, based on private ownership of means of production, implements distribution according to factors, resulting in polarization and insufficient demand; In addition, the formation of anarchic production under the mode of resource allocation based on market regulation will inevitably lead to cyclical overproduction crisis and serious unemployment. Therefore, unemployment has become the inevitable partner and necessary condition of the capitalist market economy. Because the socialist market economy takes public ownership as the main body, and implements the distribution system based on work, supplemented by other distribution methods, it can give consideration to fairness and efficiency, avoid polarization, and achieve common prosperity, so there will be no problem of insufficient consumption demand; At the same time, strengthening the role of national macro-control, especially combining the two means of planning and market under the guidance of macro planning, giving full play to their strengths and avoiding their weaknesses, will be the most reasonable and effective allocation of resources, avoid anarchic production and structural imbalance, and also avoid cyclical economic crisis and unemployment, So as to ensure the sustained, rapid and healthy development of the national economy. This is the greatest advantage of the socialist market economy.

Chapter 2: Model article on the difference between market economy and planned economy

In the final analysis, the task of China's economic restructuring is to establish a new socialist system full of vitality and vitality, and liberate and develop the productive forces. The key to establishing a new system is to correctly understand the plan and market and their relationship, which has been proved by the practice of reform and opening up. Therefore, the 14th National Congress of the Communist Party of China confirmed that the socialist economy is a market economy, which is not only a question of changing concepts or formulations, but also of profound significance in theory and practice. First of all, the recognition of the socialist market economy is a new leap in understanding and a major development of Marxist socialist economic theory.

For a long time, because of the "Left" ideological constraints, we are confined to the classical writers' statements that there is no longer a commodity economy in socialist society, regardless of the development of China's productive forces, and completely deny that the socialist economy is a commodity economy. The report of the Twelfth National Congress of the Communist Party of China put forward the principle of "planned economy first, supplemented by market regulation", breaking through the traditional planned economy model. The Decision on the Reform of the Economic System formulated at the Third Plenary Session of the Twelfth Central Committee of the Communist Party of China summarized the new experience of China's reform practice, clearly proposed that the socialist economy is a planned commodity economy based on public ownership, and further broke through the traditional concept of putting planned economy and commodity economy in opposition. In 1985, the Central Committee of the Communist Party of China included the proposal of the Seventh Five Year Plan as one of the three major tasks of establishing a new economic system: further developing the socialist planned commodity economy and gradually improving the market system. In 1987, in the report of the 13th National Congress of the Communist Party of China, the new system of planned commodity economy was summarized as a new system of internal unity between planning and the market, and it was clearly pointed out that the essential difference between socialist commodity economy and capitalist commodity economy lies in the different basis of ownership. Our task is to be good at using the means of planned adjustment and market adjustment, Gradually establish the mechanism of "the state regulates the market and the market guides enterprises". In his speech at the conference celebrating the 70th anniversary of the founding of the Communist Party of China, comrade reiterated the issue of combining planning with the market.

Looking back on our understanding of the market economy over the years, we can see that in theory we have confirmed that China's economy is a planned commodity economy. We just oppose the commodity economy to the market economy, and have not yet got rid of the shadow of the market economy, that is, capitalism. We have adopted some practices in the market economy to adapt to the commodity economy and socialized mass production, For example, the implementation of the joint-stock system, the opening of stock exchanges, the implementation of the bankruptcy law, enterprise mergers and other things that are all capitalist and refuse to use them. As a result, our commodity economy has become an abstract and incomplete commodity economy without a market. Through more than ten years of practice, we have finally walked out of the misunderstanding in theory. Comrade Xiaoping pointed out in his speech during his southern tour: "More planning or more market is not the essential difference between socialism and capitalism. Planned economy is not equal to socialism, and capitalism also has plans; market economy is not equal to capitalism, and socialism also has markets. Both planning and market are economic means." This shows that we have deepened and improved our understanding of a series of issues, such as the relationship between planning and the market and the establishment of a new socialist system. Because market economy is an advanced stage of the development of commodity economy, it has not only general commodity markets, but also production factor markets, thus forming a broad market system. It can play the role of saving and allocating social resources through the interaction of supply and demand, price, competition and other factors. Obviously, only by recognizing that the socialist commodity economy is a market economy can it be thorough in theory. It not only fundamentally breaks the highly centralized planned economy management system, breaks through the idea of putting the planned economy against the market economy, but also distinguishes the socialist market economy based on public ownership from the capitalist market economy based on private ownership. This is more scientific and accurate than the abstract statement that socialism is a planned commodity economy. Therefore, the recognition of the socialist market economy is a leap in understanding and a scientific summary of the reform and opening up practice since the Third Plenary Session of the 11th CPC Central Committee, especially after the 13th National Congress. It is not only a shock to the theory and thought of "fear of capital" and "fear of market", but also shows that the socialist planned commodity economy has gone out of the primary stage of commodity economy, which is fragmented, signal distorted, and resources difficult to be allocated reasonably, and has begun to evolve to a higher level of socialist market economy. Planning and market are the internal requirements of modern commodity economy, It has been organically unified and has begun to form an organically integrated adjustment mechanism - market economy mechanism.

Secondly, the recognition of the socialist market economy has set a clear goal for us to deepen reform.

The deep root of the difficulties we encounter in deepening the reform of the economic system lies in the conflicts between the planned economy and the market economy. In practice, because the existing economic system does not adapt to the organic combination of planning and the market, the distorted market signal and the attraction of short-term market interests have formed a serious imbalance between production and marketing. Planning cannot control the market, and the market does not reflect the plan. The Pearl River Delta, Suzhou Wuxi Changzhou, Shandong Peninsula and Southeast Fujian along the coast of China's mainland have become the "four dragons" of China's economic development because they took the lead in breaking away from the shackles of highly centralized planned economy, moving towards a market economy, and constantly improving and perfecting the operating mechanism of the market economy. Practice has proved that in order to truly liberate and develop the productive forces, the goal of reform should first of all be to establish a new socialist market economy system and speed up the pace of reform and opening up, which can only speed up the pace towards a market economy.

Obviously, it is natural for economic restructuring to be carried out according to the requirements and principles of the market economy. This requires us to: first, thoroughly reform the highly centralized old planned economy system, establish the market subject according to the market economy principle, and reform the enterprise system. The main body of the market economy is the enterprise. To establish its main position, at least we should improve the organizational structure and property rights management of the internal production rights of public ownership, so that the enterprise can truly become a legal entity with independent operation, self responsibility for profits and losses, self-development, self-restraint and self risk, and push the enterprise to the market. Second, cultivate and improve the market system and establish the market mechanism in accordance with the principles of market economy. In view of the fact that China's market is incomplete, we should actively cultivate and develop financial markets, technology markets, labor markets, information markets, real estate and other markets, and gradually form a complete and unified socialist market system. In particular, we should accelerate the pace of price reform, Establish a price signal system that can sensitively reflect the degree of resource scarcity and correctly play the guiding function of resource allocation, so that it can reflect both the value and the relationship between supply and demand, and give full play to the role of price as market signal and supply and demand regulation. Third, in accordance with the principles of the market economy, we should further improve the macro management system and establish an effective macro-economic regulation mechanism that meets the requirements of the market economy. To this end, it is necessary to effectively transform the government's function of managing the economy, make good use of economic leverage, and work hard on structural adjustment, macro planning, and industrial policies. In order to meet the requirements of the market economy, we need to update the concept of planning, change the direct government intervention in enterprises into indirect regulation through the market. Use economic leverage to regulate enterprises indirectly, from individual quantity control to total quantity control, from physical control to value control, and from static control to dynamic control. In a word, we should learn to use economic means, legal means and necessary administrative means to ensure the balance of economy, urgent quantity and coordination of major economic structure and layout.

The above three aspects are the most basic requirements of the market economy, and should also be the important goal of deepening reform. Because of this, it can be said that the recognition of the socialist market economy has further clarified the goals and tasks of reform.

Finally, the confirmation of socialist market economy will further promote the development of productive forces.

Chapter 3: Model article on the difference between market economy and planned economy

From the process of our consultation with clients, we summarized the analysis and research of economic environment, regional urban structure investigation and development planning, commercial development planning and policy research, regional retail market investigation and analysis, typical investigation and research, future supply analysis of commercial real estate, consumer consumption behavior investigation and research, site conditions research The determination and study of the business district are as follows, and I hope to discuss with you. 1、 Analysis of economic environment and study of life structure

The development of any project involves the analysis and research of the economic environment, especially the commercial real estate project. Because of its long development cycle, large investment, and great impact of economic development and policies, the ultimate purpose of its development is to achieve development profits through leasing or sales, so its risk is very high. Therefore, it is very important to study the economic environment when developing commercial real estate projects. During the investigation and research, the following indicators should be investigated and analyzed.

Total population and regional population structure, occupation composition, household composition, income level, consumption level, etc

GDP development and industrial structure

Total retail sales of consumer goods in the whole society

The city's commercial added value

Per capita disposable income of urban and rural residents

Balance of savings deposits of urban and rural residents

Through the analysis of the data regularly released by the statistics bureau and the urban research team for 3-5 consecutive years, the overall level of economic development of a city can be basically reflected. Some information is obtained through statistical yearbooks and government work reports. 2、 Regional urban structure survey and urban development planning survey

The structure of the city in the region is of great significance to the development of commercial real estate. There may be market opportunities in the traditional business district, whether it is the centralized operation of the same industry or the dislocation and complementation of different industries; If the location of this area in the city is in a place with intensive administrative, economic, cultural and other population activities, the functions of the city will be easy to play out. Because of the concentration of people, it will naturally form a business atmosphere. The above is just one aspect, including:

Public facilities

Traffic system

Road condition and traffic volume

Urban nature and functional characteristics

Functions of cities

city planning

Through the investigation of the actual living space in the region, including the urban structure and function of the central area and surrounding areas, we can understand the current situation of the facilities, transportation, terrain conditions, activity space and other environments in the region, as well as the future development planning. For example, in the development plan of the transportation network, the places where the transportation network is densely distributed tend to be the places where the population is easy to concentrate or the flow is particularly large, so the traffic routes and the vehicles, shifts and passenger carrying capacity are all taken as the elements of the survey during the survey; Urban development planning is critical to the future development of business. For example, the development plan of large communities and the construction plan of commercial areas will directly have an important impact on the planning and future operation of the project.

The above survey must be learned through the field survey of professional market research companies. Due to the different angles of reflection, it is difficult for ordinary investigators to complete the above work. The survey must be purposeful. If the purpose is not known, the reference value of the survey data and materials obtained in this way will be greatly reduced. 3、 Business development planning and policy research

Every city has a development plan, and the commercial layout and planning is also a sign of the perfect function of the city. Since more than a decade ago, the development of China's tertiary industry, especially the retail service industry, has been obvious to all. Especially at the end of the last century, a large number of department stores closed, the rapid development of supermarket formats and the "invasion" of foreign retail businesses have accelerated the overall development of the retail industry, There have also been repeated construction of large-scale commercial facilities, waste of resources, excessive competition and other phenomena, posing new challenges to the development of domestic retail commerce. Some industry management departments in large and medium-sized cities have begun to strengthen the overall planning and layout of commercial outlets.

In order to enhance the scientificity and authority of the planning and management of urban commercial outlets and expand the coverage of planning work, the Domestic Trade Bureau of the State Economic and Trade Commission issued the Guiding Opinions on the Planning of Urban Commercial Outlets (GJMT [2001] No. 789) and the Notice on Further Improving the Planning of Commercial Outlets in Large and Medium Cities on January 24 this year (Guo Jing Mao Department, Trade [2002] No. 44), and issued the Notice on Strengthening the Planning of Urban Commercial Outlets, requiring municipalities directly under the Central Government, cities specifically designated in the plan, and provincial capitals (capitals) to formulate commercial network planning as soon as possible, and requiring cities directly under the Central Government, cities specifically designated in the plan, and provincial capitals (capitals) that have not formulated urban commercial network planning to intensify their efforts, The city commercial network planning shall be formulated as soon as possible and reported to the Trade Bureau for filing. Cities without commercial network planning (including commercial development planning with network planning content) shall not report foreign-funded commercial enterprise projects. The notice requires that the formulation of the plan and the establishment of the legal management system of urban commercial outlets should be completed by the end of December 2004.

At present, including Beijing and other provincial capitals and cities with independent planning status, this work has been completed. In the process of large-scale commercial real estate development, it is critical for developers to understand the layout planning of commercial outlets in time to avoid policy risks and repeated construction. For example, the Beijing Municipal Commission of Commerce not only considers the characteristics of the current commercial layout, but also has clear provisions on restricted projects in restricted areas in combination with the urban development: it particularly encourages the development of large-scale professional markets, wholesale markets and new retail business circles around the Fourth Ring Road; In the newly developed residential area, 100000 to 150000 people will plan to build a regional business center; In principle, there should be a comprehensive community business center in the residential area 1 km away from the regional business center with a resident population of 30000 to 30000. These are specific constructive requirements based on the actual situation of urban development. 4、 Market Investigation and Analysis of Regional Retail Structure

If the content of the previous survey is mainly about macroeconomic situation, policies and other aspects, then the regional retail structure is the survey of the actual situation of the regional retail industry, which is usually referred to as the commercial census. It not only reflects the indicators and commercial characteristics of the regional retail economic activities, but also provides qualitative reference analysis for the project's market positioning, business type design and economic benefit forecast.

Sales trends between regions

Sales trend of business category

Competition between commercial areas

Trends of large anchor stores

Chapter 4: Model article on the difference between market economy and planned economy

In the past 30 years, China has been carrying out market-oriented reforms, especially before and after its accession to the WTO. David Wall, a British economist, thinks that China's market economy has made great achievements and gives high praise. In this case, the United States and Europe still use the name of "non market economy countries" to restrict China's exports to the United States and Europe. In fact, it is to set obstacles to China's market economy status and hinder the development of China's market economy.

2、 The Development of Market Economy in China

Facts have proved that the gradual development mode of market economy conforms to the basic national conditions of China. The theoretical understanding of China's market economy has been deepened, the relevant policies and measures have been improved, and the degree of marketization in all aspects has been continuously improved. The development of China's market economy owes first of all to breakthroughs in theory and policy. The Third Plenary Session of the 11th CPC Central Committee decided to shift the focus of work to economic construction and implement reform and opening up; The Twelfth National Congress proposed that the planned economy should be given priority to, supplemented by market regulation; The Third Plenary Session of the Twelfth Central Committee proposed that the socialist economy is a planned commodity economy based on public ownership; At the Thirteenth National Congress, the theory of the primary stage of socialism was put forward, and at the Fourth Plenary Session, the plan was combined with the market; Aiming at the problem of market economy surnamed "society" and "capital", which has long puzzled the academic circles in China, Deng Xiaoping stressed that "the difference between capitalism and socialism is not in such problems as planning or market. Socialism also has a market economy, and capitalism also has planned control", "planned economy... market economy... both are means, and the market can also serve socialism", Major theoretical breakthroughs have been made; The 14th National Congress of the Communist Party of China formally put forward the theory of socialist market economy, and clearly proposed that the market should be built into the main way of resource allocation.

Since joining the WTO, in order to better integrate with the world economy, China has introduced a large number of policies related to the construction of market economy. The report of the 16th National Congress proposed to improve the modern market system, give play to the fundamental role of the market in resource allocation, deepen the reform of the circulation system, rectify and standardize the order of the market economy, improve the functions of the government, and reduce and standardize administrative approval. The Third Plenary Session of the Sixteenth Central Committee adopted the Decision on Several Issues Concerning the Improvement of the Socialist Market Economic System, proposing to improve the market system, standardize the market order, accelerate the construction of a unified national market, and break the industrial monopoly and regional blockade. The Fifth Plenary Session of the 16th Central Committee of the Communist Party of China adopted the Proposal of the Central Committee of the Communist Party of China on Formulating the Eleventh Five Year Plan for National Economic and Social Development, proposing to promote the construction of a modern market system, further break the administrative monopoly and regional blockade, and improve the unified open market of the whole country; We will continue to develop the market for land, technology, labor and other factors, and improve the pricing mechanism for commodities and factors; We will further rectify and standardize market order.

3、 Enlightenment from the status of market economy

The United States and Europe set obstacles to China through the issue of market economy status, which has affected the development of China's economy to a certain extent. As for the status of market economy, China should make tit for tat and strive for reasons. In addition, the status of market economy also has some enlightenment on the construction of China's market economy.

(1) Further deepen and implement the modern market economy system in theory and policy

China has made a series of breakthroughs in theory and policy, and will encounter many new problems in the future economic and social development. There is no ready experience to follow in how to solve these problems. Many different theoretical schools and rich practical experience of market economy in western countries provide conditions for us to summarize the general laws of market economy and the special laws under specific economic and social environment. We can select laws that are close to the specific situation of our country and can be used by us to further understand the modern market economy theoretically, Deepen the construction of the modern market economy system from the policy.

(2) Theory, policy and practice should be unified

Theory, policy and practice are inseparable links in the construction of socialist market economy. Whether the theory completely gets rid of the shackles of the planned economy, whether the policy is reasonable, and whether the practice is standardized are all related to the success or failure of China's modern market economy construction. The theory, policy and practice should be unified, but the key is whether the practice follows the existing theory and policy, or the economic operation will have problems. For example, the modern market economy theory is the mainstream economic theory in western countries, but the standard of market economy status in the United States and Europe does not follow the modern market economy theory, but is formulated according to the classical market economy theory, resulting in the inconsistency between theory and policy practice. Making policies and guiding practice according to the classical market economy theory will inevitably lead to confrontation between practice and modern market economy theory, resulting in a certain degree of confusion in economic operation.

(3) Extensive exchange and cooperation in market economy theory

There are many differences between China and western countries in market economy theory. For example, China and western countries have different views on whether the market economy has the attribute of ownership or not, and whether the socialist market economy belongs to the market economy. We can take the opportunity to discuss the status of market economy, strengthen exchanges with western countries represented by the United States and Europe, exchange theoretical understanding of market economy, exchange relevant policies and practical experience of modern market economy, and develop and deepen the theory of China's modern market economy in constant exchange, discussion and debate. Openness is the proper meaning of the market economy. It is no good to carry out construction behind closed doors, nor to carry out theoretical construction of modern market economy behind closed doors.

Chapter 5: Model article on the difference between market economy and planned economy

Key words: Western market, socialism, socialist market economy, resource allocation, market mechanism

1 Overview of Market Socialism

Market socialism is an ideological theory that has been advocated and explored by the West for more than a century to combine socialism with market economy. It is not only different from the market socialism represented by the United States, but also different from the planned socialist social and economic system represented by the Soviet Union. Galbrain, Ward, Bergson and other scholars generally summarize its characteristics as follows:

First, separate the form of resource allocation from the social system. Separate the planning mechanism and the market mechanism from socialism and capitalism. They believe that both planning and the market are means of resource allocation and have nothing to do with the nature of the social system.

Second, we should advocate public ownership of the means of production. Market socialism opposes the existence of private ownership of the means of production and advocates public ownership of the means of production. For example, Cohen, a British scholar, believes that "market socialism is socialism because it overcomes the separation of labor and capital. In market socialism, there is no capitalist who does not own capital as opposed to workers." But they have different views on the specific forms of public ownership of the means of production, such as state ownership, collective ownership, and the national shareholding system.

Third, they advocate the market as the main means of resource allocation, which is also the main feature of market socialism. However, in terms of the scope, extent, and method, different periods, countries, and scholars have different opinions.

The development of market socialism theory has roughly gone through three stages from the 1920s and 1930s to the end of the 20th century and the beginning of the 21st century.

The first stage: from the 1920s to the 1990s, market socialism was initially formed. During this period, the most famous is the "Lange model" proposed by Oskarlange, a Polish economist in the United States: the means of production should be public ownership, but small-scale workers and agriculture can remain private; It is required to establish an incomplete market system. There are not only consumer goods markets, labor service markets, but also means of production markets and capital markets; Implement a multiple decision-making system involving the state, local and family; A dual price pricing system is implemented, in which the value of consumer goods and labor force is priced through the market, while the value of production is determined by the central planning authority by simulating market competition. Although this model has obvious planning characteristics, it marks the formation of market socialism.

The second stage: from 1950s to 1980s. Mainly, some economists from Eastern Europe and the Soviet Union advocated giving full play to the role of the market mechanism within the framework of the planned economy. For example, the "market economy school" composed of Yugoslav economists believes that rapid economic development is only possible on the basis of the market. Polish economist Bruce put forward the planned economy model of market mechanism. Czech Sikh analyzed the imbalance of macro and micro commodity economy in his "Monetary Relations of Commodities under Socialism". The macro should be regulated by the plan, and the micro by the market.

The third stage: from the 1980s to the early 21st century. Their research center returned to focusing on the West. They re discussed market socialism, with the purpose of clarifying how to make the West move towards socialism through the market. The main theories of market socialism are Miller's "cooperative market socialism" theory; Romer's theory of "market socialism of securities"; Sweekat's theory of "market socialism of economic democracy", etc.

The Enlightenment of Market Socialism Theory on the Construction of China's Socialist Market Economy

The prosperity and development of western market socialism theory undoubtedly provides reference and research value for China to vigorously develop socialist market economy.

2.1 The market socialism theory enlightens and draws lessons from the construction of China's socialist market economy theory, and becomes an important historical source of Deng Xiaoping Theory

First, the idea of "neutral mechanism" put forward by market socialists provides enlightenment for the relationship between China's exploration plan and the market. In the 1960s and 1970s, Galbrain, Ward, Bergson and others criticized the traditional view that the market belongs to capitalism and the plan only belongs to socialism, believing that the market and the plan are only "means" or "tools", and put forward the theory of "neutral mechanism". In the process of exploring the relationship between plan and market, Comrade Deng Xiaoping absorbed the desirable elements of market socialism, combined with China's reality and the experience of other countries, and clearly pointed out that both plan and market are means, and the market can also serve socialism. In his speech during the Southern Tour in 1992, he put forward: "More plans or more markets, not the essential difference between socialism and capitalism. Planned economy is not equal to socialism, and capitalism also has plans; market economy is not equal to capitalism, and socialism also has markets. Both plans and markets are economic means." After a long-term exploration, Deng Xiaoping, On the basis of deeply summarizing previous research results and carefully absorbing the practical experience of socialism, we found the key to understand the complex relationship between the open plan and the market, removed the so-called basic social system attribute intertwined in the issue of the plan and the market, thus establishing the socialist market economy theory and the socialist market economy system, It has cleared the way and laid the foundation for the development of the socialist market economy.

Secondly, on the basis of clarifying the complex relationship between the plan and the market, apply the market to socialism. The market socialists' theory of "marriage" between the market and socialism provides us with a positive ideological source for establishing the theory of socialist market economy. For example, Miller clearly pointed out that "the market is the secretary of socialism" (that is, socialism needs the market). As early as 1979, Deng Xiaoping clearly pointed out in a talk with American guests: "It is certainly not correct to say that market economy only exists in capitalist society, and only capitalist market economy. We are mainly planned economy, but also combined with market economy, but this is a socialist market economy. Market economy has sprouted in the feudal society. Socialism can also develop a market economy. " This fundamentally breaks the traditional understanding that the planned economy is equal to socialism and the market economy is equal to capitalism, which has ruled the international communist movement for many years. It shows that the market economy and socialism are compatible, laying a theoretical foundation for the development of the socialist market economy.

Third, the market and the plan are not equal, but the market does not exclude the plan. Both serve the socialist market economy. In the socialist market economy, the market plays a fundamental role in resource allocation and is the leading force. The plan is reflected in the national macro-control. In his "Cooperative Market Socialism", Miller pointed out that the role of the state is to formulate income standards and positive policies to achieve orderly distribution; The state should also set up public institutions to provide welfare and other public welfare matters... It can be seen that market socialism does not blindly worship the market. Similarly, under the condition of socialist market economy, market mechanism and planning mechanism must be combined to make them complement each other. However, the position and role of the two are different. The market mechanism plays a basic regulatory role, while the planning mechanism and macro-control can only play an auxiliary or guiding regulatory role, creating conditions for the market mechanism to play a better role.

Finally, the view of efficiency and fairness of market socialism is also the view of socialist market economy. Market socialism combines the market with socialism, that is, to give play to the efficiency of the market, but also to pursue the basic value of socialism. They advocate taking the market as the leading mechanism for resource allocation, taking the enterprise as the unit and profit as the guide to participate in market competition, maintaining high efficiency, advocating some form of public ownership of production assets, and paying attention to equal income distribution. However, the socialist market economy to be established in contemporary China also attaches great importance to the consistency of efficiency and equality, emphasizes that fairness and efficiency must be taken into account, and advocates that when fairness and efficiency are taken into account, efficiency should be given priority, and fairness should be achieved on the premise of improving efficiency.

2.2 The practice of foreign market socialism has enriched the experience of China's socialist market economy construction, and is conducive to promoting the establishment, development and improvement of China's market economy system

First of all, although western scholars adhere to the socialist value orientation, they still lack understanding of what is scientific socialism. Although they realized that socialism must implement public ownership, they still had differences in its specific form and lacked depth. Therefore, the various models proposed by them are difficult to implement, because they have not found the main force to implement. So it is just a modern and contemporary utopianism. At the very beginning of building a socialist market economy, China has been guided by Marxism Leninism, ideology and Deng Xiaoping Theory. It has theoretical clarity to scientifically understand what socialism is and how to build socialism, which is to absorb the positive views of western scholars Experience in socialist construction and the construction of a socialist market economy based on our own reality.

Secondly, the exploration of the former Soviet Union and Eastern European countries on the construction of socialism and market economy has given us the enlightenment that China's socialist market economy must always adhere to the socialist nature and the correct direction of the socialist road, which is a market economy proposed before adhering to the basic socialist system. The combination of the market economy and the basic socialist system must reflect the essential requirements of the socialist system different from the capitalist system, such as the socialist essential requirements such as the dominant position of the socialist public ownership, the dominant mode of distribution according to work, the people's democracy led by the Communist Party, and the ultimate goal of common prosperity, which are the basic characteristics of the socialist market economy. Correctly understanding and grasping the basic characteristics of the socialist market economy is of great guiding significance for correctly adhering to the socialist nature and direction and further deepening the reform in the practical activities of establishing the socialist market economy system. At the same time, in the process of building a socialist market economy, the construction of spiritual civilization is an indispensable part. This requires ideological and political workers to vigorously strengthen their work, ensure the main theme of socialist construction, advocate the new trend of socialist construction, and create a good social atmosphere for the development of market economy.

Differences between market socialism and socialist market economy

First, their basic systems are different. Our basic economic system is socialist public ownership, which is guaranteed by the socialist political system. Ownership is the core content of the socialist economic system. The goal model of China's socialist market economic system stipulates the basic principle of the common development of public ownership subjects and various economic sectors, and emphasizes that the realization forms of public ownership can and should be diversified. While contemporary foreign market socialism also advocates public ownership, in general, they all hold a negative attitude towards the state-owned economy, and most models are more concerned with income equality than ownership. However, in this way, it is difficult to ensure social equality in achieving equal income distribution.

Secondly, the operation mechanism is also different. China plays a fundamental role in the allocation of resources by the market under the national macro-control. In order to achieve the goal, it is necessary to establish a modern enterprise system, improve a unified and open market system, transform the government's management functions, improve the macro-control system, and reform the distribution system and establish a social security system. However, various foreign theories of market socialism have never found an effective way to organically combine market economy with socialism.

Thirdly, the socialist market economy is closely linked with spiritual civilization. The material civilization brought by the development of market economy provides material guarantee for the construction of spiritual civilization; The development of spiritual civilization provides strong spiritual power and intellectual support for material civilization.

reference

Chapter 6: Model article on the difference between market economy and planned economy

1、 Reforming the lagging planning system is an important and urgent task

China's planning system and the "Five Year Plan" have been undergoing adjustments and changes. Especially since the reform and opening up, focusing on the requirements of establishing a socialist market economy system and the transformation of government management functions, the planning system has made significant progress in the functional transformation from a strong plan to a re planning that is more in line with the requirements of the market economy The method and content have been greatly improved and adjusted. However, on the whole, these changes in the planning system are more of a catch-up and adaptive change. The planning system and its operating mechanism still have many obvious problems and even defects, which seriously affect the role of the planning itself and reduce the allocation efficiency of economic and social resources. These problems include the disorder of planning system and excessive quantity; The functional positioning of each planning is not clear, and the interconnection is not close; The planning approval procedure is not clear and the preparation procedure is not standardized; There are too many outdated plans and contents and insufficient plans to be strengthened; Emphasize the preparation process of the plan, and ignore the implementation evaluation of the plan. In the planning work, it is embodied in the overflow of mechanism and formalism, the division of departments, the non connection of planning, the overlapping and even contradictory planning contents; Subordinate plans copy superior plans, and superior plans cannot be implemented in subordinates; There are many plans hanging on the wall, but few operable plans.

Compared with the Tenth Five Year Plan period, many new changes will take place in China's social and economic life. The initial framework of the socialist market economy system has been established, the degree of marketization has been further improved, and the fundamental role of the market in resource allocation will be further strengthened; The urban-rural gap, regional gap, income gap between social groups, employment and other issues have become major issues affecting the healthy development of social economy. The goal of pursuing coordinated development and reducing social friction will become more prominent; The process of market integration will be accelerated, and cross regional economic exchanges and links will be further highlighted; More attention has been paid to the issue of economic security, and the development and construction of strategic resources related to the national economy and the people's livelihood need more comprehensive planning; The process of political civilization construction is accelerated, and the government will pay more attention to democratic decision-making and administration according to law; The transition period set after China's accession to the World Trade Organization has basically ended, and the conditions for regulating and restricting government behavior have been further improved. All these changes will put forward higher reform requirements for the current planning system, which requires continuous reform, innovation and improvement of the planning system to establish a planning system that is in harmony with the requirements of social and economic development in the new period.

2、 Foreign experience provides a useful reference for China's planning system reform

The planning system is a procedure and system for the preparation, implementation and evaluation of economic and social development plans, involving a series of institutional provisions on planning system, planning content, planning preparation, planning implementation and planning adjustment. The difference of planning system depends on a country's ideology, value orientation, political and economic system, cultural tradition, social and economic structure, development stage, international comparative status and path dependence, which makes the planning systems of various countries always have their own characteristics and have various differences. For example, in terms of the basic system that determines the planning system, the American and British models place more emphasis on economic liberalism. In the field of private goods and competitiveness, the role of the government is more reflected in the establishment and maintenance of a public environment for private capital to compete. The French, German and Japanese models mainly reflect the characteristics of the government's implementation of the social market economy strategy, emphasizing that while the market mechanism plays a fundamental role, the government adopts more economic intervention policies to make up for the lack of market power. The Russian model has the typical characteristics of institutional transformation, and the government planning function has gone through the process from a highly planned model to a basic abandonment, followed by restoration and reconstruction. On the other hand, the marketization and globalization of the economy make the planning systems of these countries have many common characteristics. The reform of China's marketization trend also determines that there are many models and characteristics of foreign market economy countries in the planning system that can be learned and used for reference.

(1) Different countries have different planning systems, but planning plays an important role in social and economic development

According to different functions, the planning systems of various countries mostly include three categories: socio-economic development planning, spatial planning and special planning, but the focus of each country is different.

Germany takes spatial planning as the main body, and the federal land planning is prepared by the federal government, which mainly formulates the planning objectives and national planning standards within the federal scope, and adjusts the national layout from the perspective of balanced development according to the development status of each state. Economic division and balance shall be carried out for infrastructure, environmental quality, economic structure, employment opportunities and settlement conditions. The plan is long-term and instructive. The Federal Ministry of Construction takes the lead and proposes a draft plan after consultation with relevant ministries. In addition to this comprehensive plan, the federal government is also responsible for preparing national professional plans, such as the plans for railways, federal highways and expressways, major waterways, national parks, natural resource reserves, and military land. Federal planning plays a guiding role in the planning of states, cities and counties. The state and local governments shall be responsible for the preparation of special plans and land use plans in areas coordinated with the superior plans.

France is the most "planned" among the western developed market economy countries. Shortly after the end of the Second World War, the French government established the General Planning Office, which is responsible for the overall planning of economic development. 11 4-year economic development plans have been formulated and implemented. With the development of the market and the increasing emphasis on the role of the market, the mandatory plan gradually withdrew from the historical stage, and the ninth plan began to develop in the direction of the contract system, and became a tool for the central government to regulate national and local policies. From the tenth plan, the quantitative indicators in the plan contract are decreasing, and the indicators measuring structural adjustment and quality are increasing. However, the government still guides the direction of economic development through plans, designs national development strategies, and narrows the income gap of all sectors of society.

The United States government has its own clear national development strategy. Compared with France, Germany and other countries, although there is no relatively fixed and direct national plan, each committee and department under the federal government has its own department's detailed planning, and usually plays its role in the form of bills. At the same time, the federal government also temporarily formulated relevant plans according to the needs of the national strategy, such as the Apollo moon landing plan, the information highway plan and the Tennessee Valley development plan.

Since the beginning of the "All Russia Electrification" plan in the Soviet period, Russia's planning system has generally experienced two periods, namely, the planning management stage characterized by mandatory plans and the planning management stage characterized by guiding plans. After the disintegration of the Soviet Union, Russia once gave up the overall economic planning of the country, but began to formulate the medium and long-term plans for the country's socio-economic development in the 1990s. In 2000, the Basic Guidelines for Long term Social and Economic Development of the Russian Federation (2000-2010) was implemented, and from 1993, a medium-term plan ranging from 3 to 4 years and a specific implementation plan ranging from 1 to 2 years were formulated and implemented.

Japan is a country that has more government led industrial policies. Since 1949, 13 medium - and long-term economic plans have been formulated. Since the 1990s, the Japanese government has mainly adopted the following three economic plans: the Five Year Plan for Living in a Big Country - Coexistence with the Earth Society in 1992 (1992~1996), the Five Year Plan for the New Economy in 1995 and the Ten Year Plan for the Future - The State of Economy and Society and the Policy Guidelines for Economic Regeneration in 1999. At the same time, Japan's comprehensive planning of land development and renovation has also absorbed more German experience in spatial planning, and made a more systematic planning for natural resources and infrastructure construction, including land, transportation, forests, etc.

The South Korean government also pays more attention to the long-term economic development plan. Since the 1960s, it has successively implemented seven five-year economic and social development plans, and then began to implement the "New Economic Long term Vision Plan" (1996-2020). After the impact of the Asian financial crisis, the government began to adjust the government led development strategy, with more emphasis on the role of the market.

(2) The status and content of the plan are constantly adjusted and changed in different stages of economic and social development

Planning comprehensively reflects the will and policy orientation of the government in managing the country. It is a plan and arrangement made by the government to promote social and economic development and achieve macro-control, and an important tool for policy implementation. From the process of development and evolution of planning systems in various countries, the content of planning is increasingly rich, the subject of planning is increasingly clear, the planning procedure is increasingly scientific, the planning system is increasingly perfect, the authority of planning is increasingly improved, and the functional definition and interconnection between planning are increasingly strengthened. On the whole, planning has increasingly become the will of citizens and national laws. At the same time, however, an obvious feature is that the contents of national plans are different in different periods. The fundamental reason is that the stage of economic and social development and the relative position of countries in the international economic environment are changing. The more developed the market economy is, the stronger the market power is, the more advanced the country's economic advantage in the world is, and the weaker the government's industrial policy is. In line with this, the medium and long-term planning of social and economic development will become more strategic, guiding and qualitative, and the government will pay more attention to the planning and guidance of public resources, public goods and services, and coordinated social development. At present, the preparation of medium and long-term comprehensive socio-economic development plans in developed market economy countries is weakening, while the status of special planning and spatial planning in key areas is constantly improving.

(3) With a standardized and democratic planning preparation procedure and a sound planning law system

Whether the planning preparation procedure is standardized and democratic directly determines whether the enforceability and authority of the plan can be guaranteed. Most developed market economy countries have corresponding planning law systems, which clearly stipulate the objectives, functions, main contents, preparation procedures and legal procedures for planning adjustment. The formulation of the plan should comply with openness and transparency. Most people have extensive participation. The plan should be approved by the authority. Once approved, it is usually implemented in the form of a bill or law. The preparation process of plans in all countries is basically the same, and they should follow a scientific and democratic decision-making mechanism. For example, the development process of German spatial planning scheme can be roughly divided into three stages:

Preparation stage. The first draft of the staffing plan organized by relevant government departments. Compilers can include internal staff or experts hired from outside.

Discussion stage. The government invites relevant stakeholders to discuss the first draft of the plan, and the discussion process is often repeated many times. After the government synthesizes the opinions of the interested parties, the interested parties can still express their objections to the final draft of the plan.

Review stage. The government will send the final draft of the plan, the objections of relevant stakeholders to the final draft and the government's solution to the objections to the draft to the parliament. The planning will become a legally binding document after the parliament discusses relevant information and finally votes for approval.

In addition, the planning between the superior and subordinate governments has a clear coordination mechanism. After the regional planning is approved by the regional council, it needs the final approval of the superior government to ensure the consistency of the superior and inferior planning. When the local planning conflicts with the national planning, the relevant departments of the federal or central government can guide the local planning. In theory, if local governments refuse the guidance of the central government, the central government has the right to directly modify local plans. At the same time, since the regional planning directly involves private interests, the interested parties have the right to appeal to the superior government and the federal or central government. The planning laws of the German states have detailed provisions on the planning procedures. If they do not follow the prescribed procedures, citizens can carry out the approved plan, and the court will rule that the plan is invalid. Although it is easy to make the plan for a long time, the final plan can reflect the will of the vast majority of people and ensure the scientificity, rationality and legitimacy of the plan because the plan is widely listened to in the process of making. After the plan is issued, it can also get support from all aspects and be easy to implement.

(4) It has a clear division of labor planning organization system and a sound and effective planning implementation evaluation mechanism

A planning organization and system with clear division of labor and reasonable functions is an important prerequisite to ensure the orderly and efficient planning work. Most market economy countries have special planning departments, bureaus, bureaus or committees in the federal or central government, which are responsible for organizing and coordinating the formulation of national master plans. For example, the planning power of Germany belongs to three levels of government, namely the federal, state and local governments. The Federal Government has a Ministry of Regional Planning and Urban Development, which is in charge of legislation, formulating urban planning guidelines, policies and regulations, drawing up the national economic zone plan and regional planning outline, coordinating the work between local and department, and mastering some funds to fund local urban construction. The French agency responsible for coordinating the formulation of social and economic development plans is the General Planning Office. The General Planning Administration can get support from other research institutions, such as the International Information and Outlook Center (the official international economic research institution in France), the Planning Mathematical and Physical Economic Outlook Research Center, the Living Condition Observation and Research Center, etc. The General Planning Administration will give these institutions certain budget subsidies.

At the same time, all countries attach great importance to the evaluation of planning implementation results, and have a set of legal procedures and operating mechanisms for evaluation. After formulating the plan, the French government should evaluate the implementation of the plan in order to make citizens more aware of the effect of the government's public policies, better allocate national resources, and improve the sense of responsibility of government officials. An inter ministerial evaluation committee of the government is responsible for the evaluation, which is called the National Evaluation Committee. The committee is chaired by the Prime Minister and consists of 11 independent professionals. The National Evaluation Commission, through coordination with the General Administration of Planning, establishes an evaluation institution, jointly determines the planning evaluation scheme and the evaluation cost budget with relevant government departments, tracks the implementation of the plan, confirms the implementation of the project costs, etc., and finally issues the evaluation report.

3、 Suggestions on establishing a planning system that meets the requirements of China's economic and social development in the new era

(1) We should fully understand that the role of planning in the market economy is not to weaken but to strengthen

Planning is an important means for the government to exercise its economic and social management responsibilities, rather than a system. The status of planning has nothing to do with social system in essence, but depends on the stage of economic and social development and the policy orientation of government regulation and management of social and economic development, as well as the characteristics of economic and social development and the international comparative status of national economic development. In the process of establishing the socialist market economy system in China, the allocation of social and economic resources and the solution of many major social and economic problems need the government to play an active role. Under the condition that the market mechanism has not been completely established, the defects caused by the insufficient development of the market need to be corrected by the government. Even in the field where the market mechanism is relatively perfect, there will be market failure, which also needs to be remedied by the government. At the same time, with the development of social economy, the public sphere is expanding, and the demand for public goods, public services and public policies is increasing. At the same time, with the increasing shortage of land, water resources and energy, and the increasingly prominent problems of environmental pollution, ecological governance, development gap, employment and social security, the government's task of overall arrangement, unified coordination and overall planning becomes more urgent. Under the background of globalization and regional economic integration, the competition between countries is becoming increasingly fierce, and the status of national strategies is becoming increasingly prominent. The means and ways for the government to formulate and implement national strategies are becoming increasingly important. At the same time, as a developing country, China is still in a disadvantageous position in the international competition, and some industrial policies in the competitive field still play a positive role in the development of the national economy. Therefore, it is necessary to fully realize that under the condition of market economy, the position of planning is not weakened, but strengthened; At the current stage of development in China, the status of planning is not to be weakened, but to be further strengthened.

(2) We should adhere to the principle of "long-term planning, step-by-step implementation, extensive reference, consideration of reality, moderate advance, and coordination"

It is imperative to reform the planning system to meet the requirements of economic and social development during the 11th Five Year Plan period. The reform of the planning system should adhere to several basic guiding principles:

First, long-term planning and step-by-step implementation. In the direction of marketization, we will take the establishment of a planning system that meets the requirements of the market economy as the long-term goal of planning system reform, implement it in stages, and establish a planning system that is consistent with the process of marketization in China.

Second, we should learn from and take into account the reality. We should not only fully learn from the experience and practices of developed market economy countries, but also pay attention to adapting to the stage and characteristics of China's economic and social development, and fully reflect and reflect the new situations, new problems and new contradictions in different periods.

Third, moderate advance and coordination. We should solve the contradiction that the planning system does not meet the requirements of economic and social development as soon as possible, give full play to the important role of institutional innovation in promoting productivity and promoting social and economic development, give play to the strategic, forward-looking and guidance of planning in social and economic development, and coordinate the planning system with the level of social and economic development and the political and economic system.

(3) It is necessary to highlight and reflect the "systematicness, standardization, usefulness and authority" of the planning

First, systematic. It is necessary to strengthen the functional division and interconnection between different plans, highly integrate the planning system, avoid overlapping or even contradictory plans, and establish a planning system with clear hierarchy, clear boundaries, and coordination. We should adjust and solve the interconnection between economic and social development planning and spatial planning. For example, the urban system planning, land use planning and urban master planning at all levels should be based on the national economic and social development plan approved by the people's congress at the same level. The content of economic and social development planning should be implemented in specific space. It is necessary to adjust and solve the connection between key special plans and industry plans, as well as between industry plans. At the same time, coordination between the central government and local government planning should be well coordinated.

Second, standardization. At present, some of the institutional provisions in China's planning system are stipulated by laws and regulations, and more are unwritten practices and conventional practices. The nonstandard planning work has led to the randomness of planning procedures and planning contents. Therefore, the planning work must be legalized, democratized and scientific, and a planning system that conforms to China's socialist democratic and legal construction and government administration according to law must be established. For this reason, in the long run, the Planning Preparation Law should be formulated.

Third, usefulness. We should effectively cancel a large number of outdated, excessive and excessive plans, especially many industrial plans that have not met the requirements of economic system reform and are no longer the focus and field of government industrial policy adjustment. In view of the similarities and lack of local pertinence in the local plans prepared by local governments at all levels and linked with the national medium and long-term economic and social development program, local governments, especially those below the provincial level, should be adjusted or no longer required to prepare medium and long-term plans. In view of the problems of too strong principle and poor operability of the current planning content, the operability, feasibility and pertinence of the planning should be further improved by improving the planning preparation method.

Fourth, authoritativeness. In view of the current problem that the lower level planning is not connected with the higher level planning, and the higher level planning is difficult to implement in the lower level planning, we should effectively strengthen the supervision of the planning preparation and implementation, use judicial procedures according to law to ensure the implementation and implementation of the planning, and improve the enforcement and binding force of the planning implementation.

(4) The design and implementation of planning system reform should focus on the "four transformations"

First, the planned fields have changed from covering more social and economic fields to focusing on public goods and services and non competitive fields. China's market-oriented reform has expanded the fields in which the market mechanism plays a role, and many industries and fields have basically realized the market-oriented operation of the economy. Therefore, the planning of many competitive fields under the traditional system should be withdrawn, and the content of the planning should be further changed to the field of public policy.

Second, the planning system has changed from an economic and social comprehensive planning as the main body to a combination of economic and social comprehensive planning and spatial planning to gradually strengthen spatial planning. The spatial planning shall include the national comprehensive land spatial development planning, the regional spatial development planning across provincial administrative divisions, the land use planning and urban construction planning of various regions, etc. The spatial planning should focus on the policy orientation of the development and utilization of major resources, infrastructure construction, economic efficiency and social equity, environmental protection and cultural development, and should conform to the policy goal of coordinated development of economy, society, environment and culture.

Chapter 7: Model article on the difference between market economy and planned economy

1、 Reforming the lagging planning system is an important and urgent task

China's planning system and the "Five Year Plan" have been undergoing adjustments and changes. Especially since the reform and opening up, focusing on the requirements of establishing a socialist market economy system and the transformation of government management functions, the planning system has made significant progress in the functional transformation from a strong plan to a re planning that is more in line with the requirements of the market economy The method and content have been greatly improved and adjusted. However, on the whole, these changes in the planning system are more of a catch-up and adaptive change. The planning system and its operating mechanism still have many obvious problems and even defects, which seriously affect the role of the planning itself and reduce the allocation efficiency of economic and social resources. These problems include the disorder of planning system and excessive quantity; The functional positioning of each planning is not clear, and the interconnection is not close; The planning approval procedure is not clear and the preparation procedure is not standardized; There are too many outdated plans and contents and insufficient plans to be strengthened; Emphasize the preparation process of the plan, and ignore the implementation evaluation of the plan. In the planning work, it is embodied in the overflow of mechanism and formalism, the division of departments, the non connection of planning, the overlapping and even contradictory planning contents; Subordinate plans copy superior plans, and superior plans cannot be implemented in subordinates; There are many plans hanging on the wall, but few operable plans.

Compared with the Tenth Five Year Plan period, many new changes will take place in China's social and economic life. The initial framework of the socialist market economy system has been established, the degree of marketization has been further improved, and the fundamental role of the market in resource allocation will be further strengthened; The urban-rural gap, regional gap, income gap between social groups, employment and other issues have become major issues affecting the healthy development of social economy. The goal of pursuing coordinated development and reducing social friction will become more prominent; The process of market integration will be accelerated, and cross regional economic exchanges and links will be further highlighted; More attention has been paid to the issue of economic security, and the development and construction of strategic resources related to the national economy and the people's livelihood need more comprehensive planning; The process of political civilization construction is accelerated, and the government will pay more attention to democratic decision-making and administration according to law; The transition period set after China's accession to the World Trade Organization has basically ended, and the conditions for regulating and restricting government behavior have been further improved. All these changes will put forward higher reform requirements for the current planning system, which requires continuous reform, innovation and improvement of the planning system to establish a planning system that is in harmony with the requirements of social and economic development in the new period.

2、 Foreign experience provides a useful reference for China's planning system reform

The planning system is a procedure and system for the preparation, implementation and evaluation of economic and social development plans, involving a series of institutional provisions on planning system, planning content, planning preparation, planning implementation and planning adjustment. The difference of planning system depends on a country's ideology, value orientation, political and economic system, cultural tradition, social and economic structure, development stage, international comparative status and path dependence, which makes the planning systems of various countries always have their own characteristics and have various differences. For example, in terms of the basic system that determines the planning system, the American and British models place more emphasis on economic liberalism. In the field of private goods and competitiveness, the role of the government is more reflected in the establishment and maintenance of a public environment for private capital to compete. The French, German and Japanese models mainly reflect the characteristics of the government's implementation of the social market economy strategy, emphasizing that while the market mechanism plays a fundamental role, the government adopts more economic intervention policies to make up for the lack of market power. The Russian model has the typical characteristics of institutional transformation, and the government planning function has gone through the process from a highly planned model to a basic abandonment, followed by restoration and reconstruction. On the other hand, the marketization and globalization of the economy make the planning systems of these countries have many common characteristics. The reform of China's marketization trend also determines that there are many models and characteristics of foreign market economy countries in the planning system that can be learned and used for reference.

(1) Different countries have different planning systems, but planning plays an important role in social and economic development

According to different functions, the planning systems of various countries mostly include three categories: socio-economic development planning, spatial planning and special planning, but the focus of each country is different.

Germany takes spatial planning as the main body, and the federal land planning is prepared by the federal government, which mainly formulates the planning objectives and national planning standards within the federal scope, and adjusts the national layout from the perspective of balanced development according to the development status of each state. Economic division and balance shall be carried out for infrastructure, environmental quality, economic structure, employment opportunities and settlement conditions. The plan is long-term and instructive. The Federal Ministry of Construction takes the lead and proposes a draft plan after consultation with relevant ministries. In addition to this comprehensive plan, the federal government is also responsible for preparing national professional plans, such as the plans for railways, federal highways and expressways, major waterways, national parks, natural resource reserves, and military land. Federal planning plays a guiding role in the planning of states, cities and counties. The state and local governments shall be responsible for the preparation of special plans and land use plans in areas coordinated with the superior plans.

France is the most "planned" among the western developed market economy countries. Shortly after the end of the Second World War, the French government established the General Planning Office, which is responsible for the overall planning of economic development. 11 4-year economic development plans have been formulated and implemented. With the development of the market and the increasing emphasis on the role of the market, the mandatory plan gradually withdrew from the historical stage, and the ninth plan began to develop in the direction of the contract system, and became a tool for the central government to regulate national and local policies. From the tenth plan, the quantitative indicators in the plan contract are decreasing, and the indicators measuring structural adjustment and quality are increasing. However, the government still guides the direction of economic development through plans, designs national development strategies, and narrows the income gap of all sectors of society.

The United States government has its own clear national development strategy. Compared with France, Germany and other countries, although there is no relatively fixed and direct national plan, each committee and department under the federal government has its own department's detailed planning, and usually plays its role in the form of bills. At the same time, the federal government also temporarily formulated relevant plans according to the needs of the national strategy, such as the Apollo moon landing plan, the information highway plan and the Tennessee Valley development plan.

Since the beginning of the "All Russia Electrification" plan in the Soviet period, Russia's planning system has generally experienced two periods, namely, the planning management stage characterized by mandatory plans and the planning management stage characterized by guiding plans. After the disintegration of the Soviet Union, Russia once gave up the overall economic planning of the country, but began to formulate the medium and long-term plans for the country's socio-economic development in the 1990s. In 2000, the Basic Guidelines for Long term Social and Economic Development of the Russian Federation (2000-2010) was implemented, and from 1993, a medium-term plan ranging from 3 to 4 years and a specific implementation plan ranging from 1 to 2 years were formulated and implemented.

Japan is a country that has more government led industrial policies. Since 1949, 13 medium - and long-term economic plans have been formulated. Since the 1990s, the Japanese government has mainly adopted the following three economic plans: the Five Year Plan for Living in a Big Country - Coexistence with the Earth Society in 1992 (1992~1996), the Five Year Plan for the New Economy in 1995 and the Ten Year Plan for the Future - The State of Economy and Society and the Policy Guidelines for Economic Regeneration in 1999. At the same time, Japan's comprehensive planning of land development and renovation has also absorbed more German experience in spatial planning, and made a more systematic planning for natural resources and infrastructure construction, including land, transportation, forests, etc.

The South Korean government also pays more attention to the long-term economic development plan. Since the 1960s, it has successively implemented seven five-year economic and social development plans, and then began to implement the "New Economic Long term Vision Plan" (1996-2020). After the impact of the Asian financial crisis, the government began to adjust the government led development strategy, with more emphasis on the role of the market.

(2) The status and content of the plan are constantly adjusted and changed in different stages of economic and social development

Planning comprehensively reflects the will and policy orientation of the government in managing the country. It is a plan and arrangement made by the government to promote social and economic development and achieve macro-control, and an important tool for policy implementation. From the process of development and evolution of planning systems in various countries, the content of planning is increasingly rich, the subject of planning is increasingly clear, the planning procedure is increasingly scientific, the planning system is increasingly perfect, the authority of planning is increasingly improved, and the functional definition and interconnection between planning are increasingly strengthened. On the whole, planning has increasingly become the will of citizens and national laws. At the same time, however, an obvious feature is that the contents of national plans are different in different periods. The fundamental reason is that the stage of economic and social development and the relative position of countries in the international economic environment are changing. The more developed the market economy is, the stronger the market power is, the more advanced the country's economic advantage in the world is, and the weaker the government's industrial policy is. In line with this, the medium and long-term planning of social and economic development will become more strategic, guiding and qualitative, and the government will pay more attention to the planning and guidance of public resources, public goods and services, and coordinated social development. At present, the preparation of medium and long-term comprehensive socio-economic development plans in developed market economy countries is weakening, while the status of special planning and spatial planning in key areas is constantly improving.

(3) With a standardized and democratic planning preparation procedure and a sound planning law system

Whether the planning preparation procedure is standardized and democratic directly determines whether the enforceability and authority of the plan can be guaranteed. Most developed market economy countries have corresponding planning law systems, which clearly stipulate the objectives, functions, main contents, preparation procedures and legal procedures for planning adjustment. The formulation of the plan should comply with openness and transparency. Most people have extensive participation. The plan should be approved by the authority. Once approved, it is usually issued and implemented in the form of a bill or law. The preparation process of plans in all countries is basically the same, and they should follow a scientific and democratic decision-making mechanism. For example, the development process of Germany's spatial planning scheme can be roughly divided into three stages:

Preparation stage. The first draft of the staffing plan organized by relevant government departments. Compilers can include internal staff or experts hired from outside.

Discussion stage. The government invites relevant stakeholders to discuss the first draft of the plan, and the discussion process is often repeated many times. The government will issue the final draft of the plan after considering the opinions of the relevant stakeholders, and the relevant stakeholders can still express their objections to the final draft.

Review stage. The government will send the final draft of the plan, the objections of relevant stakeholders to the final draft and the government's solution to the objections to the draft to the parliament. The planning will become a legally binding document after the parliament discusses relevant information and finally votes for approval.

In addition, the planning between the superior and subordinate governments has a clear coordination mechanism. After the regional planning is approved by the regional council, it needs the final approval of the superior government to ensure the consistency of the superior and inferior planning. When the local planning conflicts with the national planning, the relevant departments of the federal or central government can guide the local planning. In theory, if local governments refuse the guidance of the central government, the central government has the right to directly modify local plans. At the same time, since the regional planning directly involves private interests, the interested parties have the right to appeal to the superior government and the federal or central government. The planning laws of the German states have detailed provisions on the planning procedures. If they do not follow the prescribed procedures, citizens can sue the approved plan, and the court will rule that the plan is invalid. Although it is easy to make the plan for a long time, the final plan can reflect the will of the vast majority of people and ensure the scientificity, rationality and legitimacy of the plan because the plan is widely listened to in the process of making. After the plan is issued, it can also get support from all aspects and be easy to implement.

(4) It has a clear division of labor planning organization system and a sound and effective planning implementation evaluation mechanism

A planning organization and system with clear division of labor and reasonable functions is an important prerequisite to ensure the orderly and efficient planning work. Most market economy countries have special planning departments, bureaus, bureaus or committees in the federal or central government, which are responsible for organizing and coordinating the formulation of national master plans. For example, the planning power of Germany belongs to three levels of government, namely the federal, state and local governments. The Federal Government has a Ministry of Regional Planning and Urban Development, which is in charge of legislation, formulating urban planning guidelines, policies and regulations, drawing up the national economic zone plan and regional planning outline, coordinating the work between local and department, and mastering some funds to fund local urban construction. The French agency responsible for coordinating the formulation of social and economic development plans is the General Planning Office. The General Planning Administration can get support from other research institutions, such as the International Information and Outlook Center (the official international economic research institution in France), the Planning Mathematical and Physical Economic Outlook Research Center, the Living Condition Observation and Research Center, etc. The General Planning Administration will give these institutions certain budget subsidies.

At the same time, all countries attach great importance to the evaluation of planning implementation results, and have a set of legal procedures and operating mechanisms for evaluation. After formulating the plan, the French government should evaluate the implementation of the plan in order to make citizens more aware of the effect of the government's public policies, better allocate national resources, and improve the sense of responsibility of government officials. An inter ministerial evaluation committee of the government is responsible for the evaluation, which is called the National Evaluation Committee. The committee is chaired by the Prime Minister and consists of 11 independent professionals. The National Evaluation Commission, through coordination with the General Administration of Planning, establishes an evaluation institution, jointly determines the planning evaluation scheme and the evaluation cost budget with relevant government departments, tracks the implementation of the plan, confirms the implementation of the project costs, etc., and finally issues the evaluation report.

3、 Suggestions on establishing a planning system that meets the requirements of China's economic and social development in the new era

(1) We should fully understand that the role of planning in the market economy is not to weaken but to strengthen

Planning is an important means for the government to exercise its economic and social management responsibilities, rather than a system. The status of planning has nothing to do with social system in essence, but depends on the stage of economic and social development and the policy orientation of government regulation and management of social and economic development, as well as the characteristics of economic and social development and the international comparative status of national economic development. In the process of establishing the socialist market economy system in China, the allocation of social and economic resources and the solution of many major social and economic problems need the government to play an active role. Under the condition that the market mechanism has not been completely established, the defects caused by the insufficient development of the market need to be corrected by the government. Even in the field where the market mechanism is relatively perfect, there will be market failure, which also needs to be remedied by the government. At the same time, with the development of social economy, the public sphere is expanding, and the demand for public goods, public services and public policies is increasing. At the same time, with the increasing shortage of land, water resources and energy, and the increasingly prominent problems of environmental pollution, ecological governance, development gap, employment and social security, the government's task of overall arrangement, unified coordination and overall planning becomes more urgent. Under the background of globalization and regional economic integration, the competition between countries is becoming increasingly fierce, and the status of national strategies is becoming increasingly prominent. The means and ways for the government to formulate and implement national strategies are becoming increasingly important. At the same time, as a developing country, China is still in a disadvantageous position in the international competition, and some industrial policies in the competitive field still play a positive role in the development of the national economy. Therefore, it is necessary to fully realize that under the condition of market economy, the position of planning is not weakened, but strengthened; At the current stage of development in China, the status of planning is not to be weakened, but to be further strengthened.

(2) We should adhere to the principle of "long-term planning, step-by-step implementation, extensive reference, consideration of reality, moderate advance, and coordination"

It is imperative to reform the planning system to meet the requirements of economic and social development during the 11th Five Year Plan period. The reform of the planning system should adhere to several basic guiding principles:

First, long-term planning and step-by-step implementation. In the direction of marketization, we will take the establishment of a planning system that meets the requirements of the market economy as the long-term goal of planning system reform, implement it in stages, and establish a planning system that is consistent with the process of marketization in China.

Second, we should learn from and take into account the reality. We should not only fully learn from the experience and practices of developed market economy countries, but also pay attention to adapting to the stage and characteristics of China's economic and social development, and fully reflect and reflect the new situations, new problems and new contradictions in different periods.

Third, moderate advance and coordination. It is necessary to solve the contradiction that the planning system does not meet the requirements of economic and social development as soon as possible, give full play to the important role of institutional innovation in promoting productivity and socio-economic development, give play to the strategic, leading and guiding functions of planning in socio-economic development, and make the planning system coordinate with the level of socio-economic development and the political and economic system.

(3) It is necessary to highlight and reflect the "systematicness, standardization, usefulness and authority" of the planning

First, systematic. It is necessary to strengthen the functional division and interconnection between different plans, highly integrate the planning system, avoid overlapping or even contradictory plans, and establish a planning system with clear hierarchy, clear boundaries, and coordination. We should adjust and solve the interconnection between economic and social development planning and spatial planning. For example, the urban system planning, land use planning and urban master planning at all levels should be based on the national economic and social development plan approved by the people's congress at the same level. The content of economic and social development planning should be implemented in specific space. It is necessary to adjust and solve the connection between key special plans and industry plans, as well as between industry plans. At the same time, coordination between the central government and local government planning should be well coordinated.

Second, standardization. At present, some of the institutional provisions in China's planning system are stipulated by laws and regulations, and more are unwritten practices and conventional practices. The nonstandard planning work has led to the randomness of planning procedures and planning contents. Therefore, the planning work must be legalized, democratized and scientific, and a planning system that conforms to China's socialist democratic and legal construction and government administration according to law must be established. For this reason, in the long run, the Planning Preparation Law should be formulated.

Third, usefulness. We should effectively cancel a large number of outdated, excessive and excessive plans, especially many industrial plans that have not met the requirements of economic system reform and are no longer the focus and field of government industrial policy adjustment. In view of the similarities and lack of local pertinence in the local plans prepared by local governments at all levels and linked with the national medium and long-term economic and social development program, local governments, especially those below the provincial level, should be adjusted or no longer required to prepare medium and long-term plans. In view of the problems of too strong principle and poor operability of the current planning content, the operability, feasibility and pertinence of the planning should be further improved by improving the planning preparation method.

Fourth, authoritativeness. In view of the current problem that the lower level planning is not connected with the higher level planning, and the higher level planning is difficult to implement in the lower level planning, we should effectively strengthen the supervision of the planning preparation and implementation, use judicial procedures according to law to ensure the implementation and implementation of the planning, and improve the enforcement and binding force of the planning implementation.

(4) The design and implementation of planning system reform should focus on the "four transformations"

First, the planned fields have changed from covering more social and economic fields to focusing on public goods and services and non competitive fields. China's market-oriented reform has expanded the fields in which the market mechanism plays a role, and many industries and fields have basically realized the market-oriented operation of the economy. Therefore, the planning of many competitive fields under the traditional system should be withdrawn, and the content of the planning should be further changed to the field of public policy.

Second, the planning system has changed from an economic and social comprehensive planning as the main body to a combination of economic and social comprehensive planning and spatial planning to gradually strengthen spatial planning. The spatial planning shall include the national comprehensive land spatial development planning, the regional spatial development planning across provincial administrative divisions, the land use planning and urban construction planning of various regions, etc. The spatial planning should focus on the policy orientation of the development and utilization of major resources, infrastructure construction, economic efficiency and social equity, environmental protection and cultural development, and should conform to the policy goal of coordinated development of economy, society, environment and culture.

Chapter 8: Model article on the difference between market economy and planned economy

Establish a new concept of development

Under the shortage economy, people are accustomed to equate development with growth, and pursue economic aggregate and its expansion speed; Under the market economy, more emphasis is placed on the competitiveness of the regional economy and the expectation of market share. There are two keys to development in the buyer's market: first, improve the competitiveness of products through various ways, and increase the share of their own products in the existing market; The second is to develop new products and create new markets in response to potential demand.

Establish a new view of resources

Natural resources such as land, energy and minerals are important material bases for economic development. However, in the era when modern economy, especially the knowledge-based economy, has taken shape, the role of natural resources and general labor resources has declined relatively, while the role of acquired resources and innovative talents such as brands, trademarks, patents, market networks, information, and innovation environment is increasing day by day; In a sense, the latter has a little effect on the former. Haier, Little Swan and other excellent enterprises have merged some factories in the central and western regions. Some of them have not injected much new capital, but just brought brands, new management models, and new business concepts. This has brought some enterprises that have been in existence for many years back to life, which is quite thought-provoking. The shortage of funds is indeed an important factor restricting the development of the western region, but compared with the shortage of funds, the shortage of soft resources and entrepreneurial resources in the western region is more prominent. While promoting the development of material resources, the Western Development should put the development of human resources and the cultivation of soft resources in a more important position.

Establish a new development model

Regional economics has summarized the regional economic development into two modes: top-down and bottom-up. 5、 The development of embedded system in the 1960s was from top to bottom; Since the 1980s, the authority of the local government has expanded, so that "the secretary focuses on projects and the county runs for loans", which is still a top-down development. The real market economy is the leading role of all kinds of market players and the development from bottom to top. It is clear in Zhejiang, especially in Wenzhou, Taizhou and other places that no matter what kind of obstacles they can overcome during the period of economic boom or market downturn, it is not that there are no losses and bankruptcies of enterprises there, but that they have failed, Another group of more competitive enterprises have sprung up again, and the vitality, resilience and self-development ability of the regional economy have also been achieved.

How to form the market subject. First of all, in realizing the goal of enriching people and prospering the district, we should adhere to the principle of enriching people first and foremost. Only by light corvee and meager taxes, people can not only have the production of living resources, but also the production of capital to generate wealth, which can accelerate the formation of tens of millions of market subjects. Secondly, the real "four selfs" (independent operation, self financing, self-development, self-restraint) of the market subject is the result of market transactions. For example, engineering technology experts with technology, especially patented technology, can form market units by trading with the holders of land, factory buildings and funds with their "knowledge base". With the formation of a large number of market units, many seemingly intractable problems will be easier to solve, such as unemployment and layoff. One market unit provides 20 jobs, and 10000 market units can solve the employment problem of 200000 people.

Establish a new concept of superiority

Advantage (inferiority) is the most frequently used word in regional economic development strategies or plans, but in economics and everyday terms, the connotation of this word is different; In economics, there are also differences between absolute advantage (Adam Smith), relative advantage (Ricardo), factor endowment advantage (Orin), competitive advantage (Porter) and core competitiveness advantage. The development and evolution of the above theoretical categories is not only the deepening of theoretical cognition, but also reflects the development and evolution of regional division of labor patterns in market competition. As we all know, Xinjiang is rich in cotton and oil, and has a "white" and "black" advantageous resources. Last year, I went there to investigate, and saw that many textile enterprises were in trouble, while several enterprises with very successful production and operation -- Xinjiang TBEA Co., Ltd., Xinjiang Tire Factory, etc., were not closely related to "one white and one black", relying on the establishment of competitive advantages. Practice is the only criterion to test the truth. The above facts not only challenge the outdated theories in regional economics, but also enlighten the adjustment and selection of industrial structure in the western region in the future.

In the 1950s and 1960s, under the policy of "one game for all", the industrial layout in the west was arranged. In the 1980s and 1990s, the development under the guidance of the strategy of giving full play to resource advantages made the mining industry and raw material industry take a large share in the industrial structure in the west. The development of these industries has made historic contributions to promoting industrialization in the west and supporting the national economic construction, The question is whether such structural features will be maintained in the future? I am skeptical. This is because the mining industry has a problem of mining deeper and deeper, increasing costs and even resource depletion; Secondly, the mining conditions of quite a number of mineral deposits in China are complex and the content is not high. Under the new environment of opening up, they are extremely vulnerable to the impact of the international market. All these impacts will also be transferred to the raw material industry; Moreover, the comparative labor productivity and earnings of upstream industries are also far lower than those of downstream industries. If the existing structural pattern is maintained, the best outcome can only be to maintain an equal distance from developed regions. For this reason, in terms of structural adjustment and selection in the western region, I advocate eight words: "seeking common ground in differences, seeking differences in similarities". "Seeking common ground from differences" means that the western region should not stick to the principle of focusing on upstream industries, and should follow the same path of industrial upgrading as the developed regions to develop downstream industries and high-tech industries; "Seeking differences in the same" means that in the process of implementing industrial upgrading, the west should start from the reality of relatively weak competitiveness, and adopt "differentiation strategy", "dislocation management", "hierarchical competition strategy", etc. as far as possible in strategy to reduce risks and improve the success rate.

Establish a new concept of planning

The development of the western region is a grand and complex systematic project, which needs unified planning, step-by-step and focused promotion. The change of the system background requires the corresponding changes in the content, objectives, basis and compilation methods of the development plan.

In the past, development goals were mainly value indicators such as GDP and physical indicators of major industrial and agricultural products. In order to reflect the people-oriented development, increase employment, reduce unemployment, and accelerate the pace of agricultural labor transfer, indicators reflecting human capital development and environmental ecology should be taken as important development target indicators. Secondly, the past planning was very specific in the development of the industry, extending to specific projects. In the future, these contents will belong to the independent decision-making scope of the market subject. The government is mainly to formulate the development direction of industries that are encouraged and supported, make institutional arrangements for the development of these industries (such as venture capital funds, SME guarantee funds, etc.), build organizations (such as establishing private science and technology enterprise incubators, etc.), and formulate competition rules.

Chapter 9: Model article on the difference between market economy and planned economy

Abstract: Reform is the liberation and development of productive forces, and the self-improvement and development of the socialist system. The reform has brought about earth shaking changes in China. The 1.3 billion Chinese people have gone from poverty to prosperity, and the system that constrains the development of productive forces has been broken. The dynamic, more open and efficient system and mechanism have been basically established, and socialism has been revitalized, The competition in the world today is the competition of comprehensive national strength. Science and technology are the main factors that affect the development of the world economy. Countries have turned from confrontation to development and cooperation. Under the circumstances of economic globalization and world multipolarization, China can base on its national conditions, grasp the development and changes of the world, and implement the development strategy of reform and opening up. China's development cannot be separated from the world, China's prosperity has made great contributions to the development of the world economy.

Key words: reform and opening up; Science and technology; economic development

Reform and opening up is a great revolution carried out by the Chinese people under the leadership of the Communist Party of China in the new historical period. The purpose is to shift the focus of the Party's work from class struggle to economic construction. Reform is the liberation and development of productive forces, the self-improvement and development of the socialist system. Reform has brought about earth shaking changes in China, The 1.3 billion Chinese people have gone from poverty to prosperity. The system that constrains the development of productive forces has been broken. The dynamic, more open and more efficient system and mechanism have been basically established. Socialism is full of vitality. Today's world competition is the competition of comprehensive national strength. Science and technology are the main factors that affect the development of the world economy, From mutual confrontation to development and cooperation among countries, in the context of economic globalization and world multipolarization, China can base on its national conditions, grasp the development and changes of the world, and implement the development strategy of reform and opening up. China's development cannot be separated from the world, and China's prosperity has made a significant contribution to the development of the world economy. Since the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, China's major achievements have been inseparable from reform and opening up. The reform has stimulated the enthusiasm and creativity of the people. "What we are doing now is a new cause," and "What we are doing now is trying to turn China into a modern socialist country." Comrade Deng Xiaoping pointed out that "China is deepening reform and creating better conditions for future development. We are not only focusing on this century, but more on the next century." China regards its development as a matter of contribution to mankind.

1、 Understanding of the relationship between the socialist market economy and the socialist system. What we have done is something that our predecessors have not done, nor have other socialist countries done, so we have no ready experience to learn from. We can only learn by doing and explore in practice. This year, Comrade Deng Xiaoping made a 20 year tour talk to the south. Looking back on the 20 years of reform and opening up, market-oriented reform was the beginning and played a major role in the development of the socialist economy. In particular, on the understanding of the market economy and the socialist system, the second generation of collective leadership of the Party with Comrade Deng Xiaoping at the core was able to combine the market economy with the socialist system, To enable the development of the socialist economy to follow the requirements of the economic law, Comrade Xiaoping pointed out that "we must understand theoretically that the difference between imperialism and socialism does not lie in such issues as planning or the market. Socialism also has a market economy, and capitalism also has planned control. Both planning and marketing are necessary. "The basic task of the reform of the socialist economic system is to establish a socialist economic system full of vitality. It is proposed to enhance the vitality of enterprises. In the understanding of planning and the market, many comrades at that time opposed the planned economy to the commodity economy. The socialist economy should be a planned commodity economy based on public ownership It was pointed out in the southern tour talk that some comrades are afraid of capitalism, and the key is whether the surname is "capital" or "society". The criteria for judging should mainly be whether it is conducive to the development of the productive forces of socialist society, whether it is conducive to enhancing the comprehensive national strength of the socialist country, and whether it is conducive to improving the living standards of the people. Comrade Xiaoping pointed out: "More planning or more markets is not the essential difference between socialism and capitalism. Planned economy is not equal to socialism, and capitalism also has plans; market economy is not equal to capitalism, and socialism also has markets. Both planning and markets are economic means." The socialist market economy system realizes the effective allocation of resources through the market. It is to make socialist economic activities follow the law of value, and adjust economic activities through the use of economic laws, economic levers, and competition mechanisms. The establishment of the socialist market economy system has strengthened the vitality of enterprises, improved the efficiency of enterprises, and increased the efficiency of enterprises. The reform has improved the overall quality of our economy and international competitiveness. China's GDP has continued to grow, people's living standards have significantly improved, economic structure has been optimized, and the socialist capacity for independent innovation has continued to increase.