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The Government's Role in China's Market Economy

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  • Guo Shuqing
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    Abstract

    The government has played an extremely important role in the processes of transitioning the economic system from one track to another over the past twenty years; this is because, on the one hand, while the traditional planned economic system had been completely dominated by the government, on the other hand, reform and opening up had also been initiated and propelled by the government. In addition, in regard to the objectives and modes of reform, the overwhelming majority also believes that we should adopt a mode of reform that will produce a kind of market economic system in which the government will play a very positive role. In the wake of the Asian financial crisis, however, there has been a major change in people's understanding in regard to this particular point. People seem to have begun harboring doubts about others, and, at the same time, their self-confidence has begun to be shaken, and even the very existence of a so-called Asian miracle has been brought into question. What remains certain and has not changed is the affirmation that further steps should be taken to marketize and monetize the national economy, to further standardize and control the government's and the enterprises' behavior, and to continue to enhance the degree of openness to the outside world. Nonetheless, all these are matters of the most general principles, and how to bring these principles to concrete realization remains a matter of a great deal of discussion, debate, and definition. This article is an attempt precisely in this regard.

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    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Chinese Economy.

    Volume (Year): 32 (1999)
    Issue (Month): 5 (September)
    Pages: 26-68

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    Handle: RePEc:mes:chinec:v:32:y:1999:i:5:p:26-68

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    Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901

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