comments and feedback

Properly Solve Key Issues in the Construction of a Modern Economic System

Submit Time:01-08-2018 | Zoom In | Zoom Out

Author:Yao Yang | Source:People’s Daily (June 24, 2018)

Abstract:

During the 40 years of reform and opening up, China made miracles in both economic growth and institutional transition. Even in the most conservative calculation, China's real per capita gross national income has increased by about 20 times, faster than that of all other large countries over the same period. In the same period, the modernization level of various fields in industry, agriculture, national defense, science and technology in China raised rapidly, the superiority of the socialist system with Chinese characteristics has been demonstrated increasingly day by day, and the modernization level of the national governance system and ability ascending steadily. By the middle of this century, China will complete the final spurt towards modernization, which means that in the coming 30 year and more, China will realize the leap-forward from completing the building of a moderately prosperous society in all aspects to basic realization of modernization and further to completing the building of a great modern socialism country in all aspects.  

Building a modernized economic system, is a major decision and deployment made by the Party Central Committee with Comrade Xi Jinping at its core based on the overall situation of the development of the course of the Party and state, aiming at the realization of the Two Centenary Goals and in conforming with the new requirements that the socialism with Chinese characteristics has come to a new era. The modernization processes of countries in the world show that, following the period of rapid growth, whether an economic system that meets the requirements of modernization development can be built up to realize the transition from quantity expansion to quality improvement in economic development, is critical to the realization of modernization. Realizing innovation-driven development and properly handling the relationship between government and market are the two critical issues that must be solved in the building of a modernized economic system. The former provides sufficient motive force for the modernization development, and the latter guarantees the sustained and healthy development of economy and society. Especially, the issue how to handle the relationship between government and market has not been completely solved even in developed countries having already realized modernization, as their economy still fluctuates greatly from time to time. China, although a late-comer on the road of modernization, has obtained achievements of modernization realized in developed countries over centuries in a short period of several decades. On the basis of rich experience in reform and opening up and the advantages of socialist system, China is able to properly solve the two major issues of innovation-driven development and the government-market relations, complete the building of a modernized economic system, realize high-quality development and then complete the building of a great modern socialism country.  

Enhance the strategic supporting role of innovation in building the modernized economic system. Innovation is the primary motive force leading the development, and also the strategic support to building the modernized economic system. A modernized economic system that meets the requirements of building a great modern socialism country is certainly an economic system founded on the advanced science and technology. Since the 18th National Congress of the CPC, we have taken a number of measures to greatly optimize the innovation environment. In the new era, to further enhance the strategic supporting role of innovation in building the modernized economic system, we should, through innovation and strengthening the process and post supervision, enhancing protection of intellectual property right, improving the financial service system, speeding up the marketized reform of factor-based prices, and building a technology conversion system with seamless connection to scientific and technological inventions, promote the autonomous operation and fair competition among enterprises, the free selection and autonomous consumption by consumers, and free flow and equal exchange of commodities and factors, to allow the innovation vigor of the whole society to burst out; and we should, by deeply implementing the innovation-driven development strategy, energetically optimize the innovation ecology, foster more innovation-oriented enterprises with proprietary intellectual property right and core competing power, to mould leading-type development with more reliance on innovation-drive and giving more play to the first mover advantage, consolidate the technical foundation for green development, and push the building of modernized economic system in China to continually achieve new progress and step on new stages in development.  

The relationship between the government and market should be properly handled. Allowing the market to play a decisive role in resource allocation and giving a better play to the role of government is an important principle put forth by the Party Central Committee with Comrade Xi Jinping at its core in handling the relationship between government and market, and is a major theoretical innovation of our Party on the relationship between government and market. To properly handle the relationship between government and market, we must firmly break institutional and mechanism disadvantages that prevent the market from playing a decisive role in resource allocation and better playing the role of the government, correctly and grasp the laws of the market, so that market can play a decisive role in resource allocation via the laws of value, competition and supply and demand, we must speed up transition of governmental functions, strengthen and complete the functions of the government in economic regulation, market supervision, social management, public service and environmental protection, adjust and optimize the functions of the governmental institutions, to build a service-oriented government satisfactory to the people; we should deepen the reform of state-owned enterprises, develop mixed ownership economy and foster world first-rate enterprises with global competing power; and we should optimize the income distribution structure, build an income distribution system enhancing efficiency and promoting equality, to gradually realize rational income distribution, social fairness and justice and common prosperity of all people.  

 (Author entity: National School of Development of Peking University)


Related Articles