Wu Jinglian's approval of the socialist market economy is contradictory

The 13th Annual Meeting of the 2013 Yabuli China Entrepreneur Forum was held in Yabuli, Heilongjiang Province from February 22nd to 24th, 2013. The famous economist Wu Jinglian said in his speech that the socialist market economy is contradictory.

Wu Jinglian said that he did not know from what time, the expression "our market is a socialist market economy" appeared in the literature. He believed that this "market system" was under the leadership of party and government leaders, so that it appeared Contradictory words, such as the market economy controlled by power. “Is the market economy controlled by power still called the market economy? It is not called the market economy,” Wu Jinglian said. "Because its price signal is distorted, it is impossible to allocate resources efficiently and it is impossible to form a compatible incentive mechanism."

The following is a speech record:

Wu Jinglian: Thank you, Tian Yuan. Some of them have been acclaimed. Our reforms have not yet passed. The tasks ahead of us are still very heavy and still very difficult. I want to talk about a topic that is different from the previous one. It may be boring, but a comparison. Serious issues, I think it is very important, that is, we must start a new bureau in reform. I want to open a new bureau. There is an important issue, how to establish a competitive market system and talk about such a problem. Since the "Twelfth Five-Year Plan" proposed to pay more attention to top-level design and overall planning, last year's Central Economic Work Conference asked that at a later time, people speculated that at the time of the Third Plenary Session, they could propose a clear reform of the overall plan, road map and Timetable, since the "Twelfth Five-Year Plan" proposed this task and the Central Economic Work Conference determined that the overall planning roadmap and timetable should be proposed in 2013, both the official and the private sector are in a heated discussion, which should be included in our master plan. Reform project.

Take the "50-member economic forum", the meeting at the previous time probably mentioned twenty or thirty projects. Of course, the next 50 economic forums should be further sorted out, and some of these dozens of projects should be selected. Reform cannot be promoted in one direction, so it needs to be matched. However, we have accumulated a lot of problems now. It is impossible to attack on all sides and everything comes, so we need to select some of the most important interrelated ones here. The idea of ​​designing the master plan for the year is called finding the smallest package of reforms and which projects.

What is the way to study? One way that everyone prefers is to start from the problem, look at the important economic problems in our society, and then pursue the institutional reasons for these important issues, then determine which reforms we want to take, and then gather these reforms. Get up and screen to make a minimal package of reforms. The result of the last time, the reforms that have been promoted since 1994, should be said to have achieved great results. We may still be eating 1994-2002 until now. The result of the reform package that time.

In this discussion, there is a problem that has entered our eyes. It is that our current system still has considerable defects. It cannot be called a modern market economy system. Then when we talked about the shortcomings of the current system, everyone realized that there are probably three major defects, or three shortcomings. The first is that the market is not completely formed. It has a basic problem, and everyone recognizes this. Is its property rights foundation, it is vague, unclear, and cannot be protected by law. Like our land property rights, it is the root of many problems, and there is lack of competition. This is often overlooked by people, many people It is very important to think that we should establish this market and establish a clear property rights protection system. We must do it, but often overlook the market's soul lies in competition.

Speaking of this issue, I remembered Friedman, who had a passage when he visited China in 1988. On that day, several members of our forum brought me a book when I went to see my family, called "The Power of the Market". Let me write two sentences. I immediately wrote two sentences: "Market Empowering, competition brings prosperity." Why do I write these two sentences? It was because I remembered what Friedman said in 1988. Friedman first went to Shanghai in 1988, and then went to Beijing to visit a series of activities, including talks with Chinese leaders. I participated in these activities. I especially think that he not only talks with our national leaders. Moreover, he had a written memo to the then General Secretary of the CPC Central Committee. He explained this memo when he was talking to Comrade Zhao Ziyang. This is a very brilliant highlight. It is a pity that people who recall this history often Ignore this memo. Later, the autobiography of the two of them was published as an appendix. His autobiography is called "Two Happy People." This passage is related to the theme we are talking about now, that is to say, he said four sentences when he was in Shanghai. When he was in Beijing, everyone was more enthusiastic about discussing the issue of privatization.

However, he explained in the memo and the General Secretary of the CPC Central Committee that in such a passage, it is not enough to use the market alone. It is not enough to privatize alone. What is really needed is a free private market. The meaning of freedom here is at home and abroad. The resources for open competition, he then said in the explanation, he used to be the adviser of the Indian Finance Minister, India has privatization, but there is no competition, so the Indian economy developed very unsatisfactorily at that time, we know India’s reforms began only in 1990. So I want a master like Friedman who analyzes the problem from some of the most basic economic principles, so he can see it deeply and look at it deeply.

But there is indeed a problem in us now that even those who are in favor of market-oriented reforms often have misunderstandings about what is market and market economy. For example, a common misunderstanding is that as long as things are bought and sold in the market, this is called the market. The economy is here, and this is called the market mechanism.

In fact, economics is very clear about what is called a market economy. Why is the market mechanism able to allocate resources effectively, and why can the market mechanism form a so-called compatible incentive mechanism? The fundamental reason is that the price formed through market competition can reflect supply and demand, that is, reflect the scarcity of resources. Therefore, only through the free competition of the market to form this price signal, can we achieve all the effective mechanisms of the market in order to complete its functions, but we do not know from what time on the beginning of the text in the literature, that is, we The market is the so-called socialist market economy. This market system is under the control of the party and government leaders, so that there are such contradictory words, such as the market economy controlled by power, and the market economy controlled by power is also called the market economy? ? It is not called a market economy. Because its price signal is distorted, it is impossible to allocate resources efficiently, and it is impossible to form a compatible incentive mechanism. The so-called compatibility means that each economic actor's contribution to society is consistent with his reward. This is compatible, otherwise it becomes incompatible.

Then there will be many distortions. So in the mid-1990s, after our reforms made great progress, many bad phenomena also appeared. Some people explained it to the bad phenomenon because it was caused by marketization. Actually. This is not because of marketization, but because power controls the distortions caused by market transactions, but there are many controversies in thought. This debate has continued until the recent big debates in China. Whether it is because of marketization or because of anti-market. So that it should be developed to support the development of China's private economy, or should the implementation of the national advancement and retreat, let the state-owned economy to control the national economic lifeline to argue, and continue to occur after 30 years of reform, so I said at the time Then, with Professor Xu Chenggang, he returned to China and discussed with me the progress of our reform. I said a word. I said that the market without competition is more terrible than the lack of market. Xu Chenggang told this to his father, Professor Xu Liangying. He is greatly appreciated. We all know that Professor Xu Liangying, regardless of his time in the underground party era or in the later struggle for liberal democracy, is a very strict person, too strict person. So his praise of this sentence made me smug.

Later, I read Professor John McMillan's "The Story of Market Evolution", which has been written for a long time. What is the market? What is the market economy? I think that I am stuck in a feeling, and he said the essence of one thing is that any transaction that takes place under the power position will be other forms of trading and never a market transaction, he said that both buyers and sellers There is administrative control, or both buyers and sellers are controlled by a higher administrative power, not called market transactions, so the power market dominates the loss of a competitive market, just a fake market that looks like a market, or Professor Zhang Weiying In the early part of this century, we discussed the Chinese stock market saying that it is a rent-seeking house, it is not a market.

Then we are going back to the forum where we are an entrepreneur. We talked about entrepreneurs on this issue. I think because China is a country with a deep historical background of official culture, the reality is that the government is Under the circumstances, many entrepreneurs have been forced, or consciously embarked on a road to pay rent to the government.

But we must ensure that our country can continue such a flourishing development in the past three decades. We must promote our reform. Our entrepreneurs, as the backbone of society, must resist this bad and corrupt business culture. The atmosphere, dedicated to the reform of the market. Therefore, I appeal to our entrepreneurs not to seek special policy concessions, but to strive for the establishment of an institutional environment for equal competition.

Such a problem, in fact, people from all walks of life in the community, including entrepreneurs, have made a lot of efforts, so some of the correct directions are reflected in some documents of the party and the government. For example, let me give an example. The Fifth Congress of the Communist Party of China proposed to adjust and improve the ownership structure. The state-owned economy must undergo advance and retreat, and some adjustments should be made. The private economy is an integral part of the socialist market economy.

The 16th Congress has a new formulation, that is, two unwavering and unwavering consolidation and development of the state-owned economy, unswervingly encourage, support and guide the development of the non-public economy, and some believe that the state must be People who maintain their controlling position in the economy often quote these two unscrupulously to show that, for example, the national advancement and retreat is the correct policy, so this causes some ideological confusion and even ideological confusion.

Then, people from all walks of life hope to further clarify what kind of policy we should adhere to to treat state-owned enterprises and treat private enterprises, so no matter whether it is the 17th Congress and the 18th Congress, in the process of brewing, In the process of soliciting opinions from the main documents, people in the academic circles have put forward some requirements for this. Then we look at the report of the Central Committee of the 17th Congress, and add two sentences after the two unshakable, one is called Adhere to the equal protection of property rights, a new pattern called the formation of equality and competition among various ownership economies. The 18th Congress has such a sentence after these two sentences, that is, to ensure that all forms of ownership economy use production factors equally according to law. Fair participation in market competition is equally protected by law.

Obviously, the party and government documents have been further clarified, but has this been achieved? It doesn't look like it's not fully realized or even realized. Then we are facing the beginning of a new stage, that is, reform must start a new situation. When we start the innovation bureau, I think we all have to work together to build this competition. The sex market system will be placed in the overall planning roadmap to be developed by the Third Plenary Session of the 18th CPC Central Committee. In my opinion, the core task of comprehensively deepening reform is to build a competitive market system. To improve China's market system, we should focus on the following reforms.

1. It is to establish the basis of the property rights system of the market.

2. It is to release the prices of various products and various production factors.

3. To clarify the rules of competition in the market.

4. Oppose monopoly and strengthen competition.

5. To achieve judicial justice and strengthen compliance supervision.

These comments are provided for your reference.

thank you all!

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