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 Opinions & Comments

Enriching theoretical setup of socialist economy with Chinese characteristics

17:07, October 17, 2007

The theoretical setup of socialist economy with Chinese characteristics represents a product of the integration of Marxism with China's reality and a hallmark of the present era. It can be traced to the same origin of founders or authors of classic Marxism and also keep pace with the times; it has gone on developing and enriching. Its main connotations can be summarized as follows:

Theory concerning the essence of socialist economy

The Communist Party of China (CPC) has, proceeding from the nation's specific national conditions, increased its understanding of the cream of socialist economy since it launched a drive of reform and opening to the outside in the late 70s of the last century. And this is shown in the three following aspects:

First, deepening in a penetrating way the awareness from an angle of the objective. "The essence of socialism is liberation and development of the productive forces, elimination of exploitation and polarization, and the ultimate achievement of prosperity for all," said late senior leader Deng Xiaoping in 1992.

Second, deepening in a penetrating way the awareness from an angle of the system. A full, intact setup of socialist economic system has take shape with public ownership playing a dominant role and along with the existence of diverse forms of economic ownership, with a socialist market economic structure being built or improved, and with the practice of distribution according to work being carried out as the mainstay alongside other forms of distribution.

Third, deepening in a penetrating the awareness from the character and demands. A series of important theses have been proposed or established, including those on the intrinsic quality of socialism with Chinese characteristics", "socialist market economy", "safeguarding and realizing the fairness and justice representing the essential demand of socialism" as well as "an all-round, coordinated and sustainable development" and "making all-round plan (or programs) by taking all factors into consideration".

Theory on basic economic system in primary stage of socialism

Upholding the public-ownership economy with the common development of other types of economy represents a basic economic system in the primary stage of socialism, the Report to the 15th CPC National Congress convened in 1987 explicitly stipulated. Meanwhile, it proposed that the forms of ownership can and should also be diversified.

The Party's 16th National Congress called for keeping to and further improving two cardinal principles for the socialist basic economic system, namely, one is to unswervingly persevere in strengthening and developing the economy of public ownership and to persistently encourage, support and guide the growth of the economy of non-public ownerships.

The theory of socialist distribution

This theory is made up mainly of two aspects. One is to keep to the principle "to each according to work" as the mainstay with the coexistence of other forms of distribution in a bid to involve such production elements as labor, capital, technology and management to the distribution in term of their contributions. The other is to adhere to the unity of efficiency and fairness against equalitarianism and the excessive disparity of income, so as to inspire some people to get rich first and eventually achieve common prosperity; and the third, to give much heed to social justice on the basis of economic growth and strive to raise the salaries of those lowly paid, regulate high salaries more effectively and outlaw illegal income resolutely.

Theory of socialist market economy

The basic frames of the socialist market economy are, among others, to persist in the basic economic system of taking public ownership as the main body with the joint development of other forms of ownership, to set up a market-oriented modern enterprise system, a distribution system chiefly with the practice of distribution according to work, along with the improvement of the government regulation over the economy, market monitoring and social management in a bid to set up and improve a social security system in order to keep abreast with the economic growth level and to permanently stabilize and go on improving the double-tier rural economic management mechanism, which has been built on the household-contract-responsibility system.

Theory of economic development with Chinese characteristics

Development poses the theme of China in the new era as well as the primary task for the CPC to wield power and invigorate the Chinese nation. Both ideas and theses with regard to the theory of socialist economy with Chinese characteristics are very rich and varied indeed. Since the Party's 16th National Congress held in late 2002, Party central authority with Hu Jintao as the general secretary has inherited and developed the important thought of three-generation collective leadership and set forth the outlook on scientific development of "putting people first" and the "all-round, coordinated and sustainable growth," which has given answers to such vital issues as "what the development means, what is the development for and how to develop or build up China".

Theory on economic globalization and opening to the world

An endeavor to open China to the outside world and to integrate it in the process of economic globalization represents crucial contents for the theory of its socialist economy with Chinese characteristics. It comprises, firstly, integrating the "bringing in" and "going out" approaches, taking the advantages of both domestic and overseas markets and the two types of resources to spur the reform and development, secondly, underlining economic globalization as an objective process with a dual character and, thirdly, handling properly the relationships between the opening-up and an independent, self-reliant endeavor for beefing up the security of national economy.

By People's Daily Online



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