The decisive role of the market in resource allocation

During China’s four decades of reform and opening up, the country has gradually deviated from a highly centralized, planned economy to a socialist market economy. The 14th CPC National Congress held in 1992 decided to “let the market play a basic role in allocating resources”; the 16th CPC National Congress in 2002 agreed to “expand the basic role of the market in allocating resources”; the 17th CPC National Congress announced to “develop institutions to give better play to the fundamental role of the market in allocating resources”; and the 18th CPC National Congress in 2012 stated to “leverage to a greater extent and in a wider scope the basic role of the market in allocating resources.” These were all stressing the important role of the market in allocating resources.

At the Third Plenary Session of its 18th CPC Central Committee held in November 2013, the CPC stated that “the market should play a decisive role in resource allocation.”

The idea of letting the market play a decisive role in resource allocation is a continuation and extension of the concept of letting it play a “basic role,” a concept which had been used for the previous 20 years. This new formulation helps the entire Party and entire society to correctly understand the relationship between the government and the market; it helps transform the model of economic development; it helps transform government functions; and it helps constrain negativity and corruption.

The market is, of course, an “invisible hand” as well as a “merciless whip.” It creates competition and initiative in socioeconomic activities, but at the same time, its spontaneity and blindness can result in market failures, making it necessary for the government’s “visible hand” to play a role. The government’s responsibility and function are primarily to maintain macroeconomic stability, to improve and optimize public services, to ensure fair competition, to strengthen market oversight, and to maintain market order, to foster sustainable development, and to promote joint prosperity, thereby compensating for market failures.

市場在資源配置中起決定性作用

改革開放40年來，中國的經濟改革是從高度集中的計劃經濟逐步轉向社會主義市場經濟的。1992年召開的黨的十四大提出“要使市場在資源配置中起基礎性作用”，2002年召開的十六大提出“在更大程度上發揮市場在資源配置中的基礎性作用”，2007年召開的十七大提出“從制度上更好發揮市場在資源配置中的基礎性作用”，2012年召開的十八大提出“更大程度更廣范圍發揮市場在資源配置中的基礎性作用”，都是在強調市場在資源配置中的重要作用。2013年11月召開的黨的十八屆三中全會進而提出，“使市場在資源配置中起決定性作用”。做出“使市場在資源配置中起決定性作用”的定位，是對此前沿用20多年的“基礎性作用”這一提法的繼承和發展，有利于在全黨全社會樹立關于政府和市場關系的正確觀念，有利于轉變經濟發展方式，有利于轉變政府職能，有利于抑制消除腐敗現象。當然，巿場這只“無形的手”又是一條“無情的鞭子”，在使整個社會經濟活動形成你追我趕、奮勇爭先的同時，也會由于其自發性、盲目性帶來市場失靈，需要政府這只“有形的手”來發揮作用，政府的職責和作用主要是保持宏觀經濟穩定，加強和優化公共服務，保障公平競爭，加強市場監管，維護市場秩序，推動可持續發展，促進共同富裕，彌補市場失靈。