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How to understand that the market plays a decisive role in the allocation of resources and better plays the role of the government?

author:Lightning News
How to understand that the market plays a decisive role in the allocation of resources and better plays the role of the government?

Editor's note: The anchor reads the classics and accompanies you to say good night. Hello everyone, this is a lightning night read. In order to further publicize, study and implement the theme education of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Lightning News Night Reading Column linked with the financial media anchors of Shandong District and County to launch the theme planning activity of "New Thoughts, Read Together", through reading Xi Jinping's theoretical monographs on socialism with Chinese characteristics in the new era, learning and understanding articles, and learning the original text and understanding the principle with the majority of party members and cadres.

New Thoughts, Read Together, Today, Jiang Meng, the anchor of Jimo Rong Media, will study with you the "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" of "How to understand that the market plays a decisive role in the allocation of resources and better play the role of the government?"

How to understand that the market plays a decisive role in the allocation of resources and better plays the role of the government?

95:5! This is the most intuitive comparison brought about by the launch of the "one industry, one certificate" reform in Shanghai Pudong New Area in July 2019. In the past, to open a convenience store, you had to fill out 9 forms, apply for 5 certificates, and the processing time was 95 working days, but now you only need 1 form and 1 certificate, and it can be done in 5 working days. The reform of "one industry, one certificate" has promoted the transformation of approval management services from "supply-centered government departments" to "centered on the needs of market entities", greatly reducing industry access costs and effectively stimulating market vitality. This is a vivid testimony of our party's efforts to promote the reform of the market economic system, to consciously manage the "visible hand" well, and to properly handle the relationship with the "invisible hand." General Secretary Xi Jinping pointed out that the core issue of adhering to the direction of socialist market economy reform is to handle the relationship between the government and the market, so that the market can play a decisive role in the allocation of resources and better play the role of the government, which is another major advance in theory and practice of our party.

Our party's understanding of the relationship between the government and the market has undergone a process of constant deepening. As early as the beginning of reform and opening up, we were exploring the integration of the socialist system and the commodity economy. The 14 th National Congress of the Communist Party of China (CPC) set the goal of the reform of the mainland's economic system as the goal of establishing a socialist market economic system, and proposed that the market should play a fundamental role in the allocation of resources under the macroeconomic regulation and control of the socialist countries. This major theoretical breakthrough has played an extremely important role in the mainland's reform, opening up, and economic and social development. Since then, our party has been looking for a new scientific orientation for the relationship between the government and the market in accordance with the expansion of practice and the deepening of understanding. The 18th National Congress of the Communist Party of China proposed to "give full play to the basic role of the market in the allocation of resources to a greater extent and on a wider scale". The Third Plenary Session of the 18th Central Committee of the Communist Party of China revised the "basic role" of the market in the allocation of resources to "decisive role". The 19th National Congress of the Communist Party of China once again emphasized that "the market should play a decisive role in the allocation of resources". This positioning is a new breakthrough in our party's understanding of the laws governing the construction of socialism with Chinese characteristics, and marks that the development of the socialist market economy has entered a new stage.

It is the general law of the market economy that the market determines the allocation of resources, and the market economy is essentially the economy in which the market determines the allocation of resources. To improve the socialist market economic system, we must follow this law, focus on solving the problems of an imperfect market system, excessive government intervention, and inadequate supervision, and give full play to the decisive role of the market in the allocation of resources. This requires actively and prudently promoting market-oriented reforms in breadth and depth, reducing the government's direct allocation of resources, reducing the government's direct intervention in microeconomic activities, handing over to the market economic activities that can be effectively regulated by the market mechanism, and handing over to the market what the government should not be responsible for, so that the market can play a full role in all areas that can play a role, and promoting the allocation of resources to achieve maximum benefits and optimize efficiency, so that enterprises and individuals can have more vitality and more space to develop the economy and create wealth.

The market plays a decisive role in the allocation of resources, but it does not play all the roles. The mainland practices a socialist market economic system, and it is necessary to bring into play the superiority of the socialist system and the positive role of the party and the government. The decisive role of the market is generally speaking, and we cannot blindly and absolutely say that the market plays a decisive role, and in some fields, such as national defense construction, it is the government that plays a decisive role. Some strategic energy resources should be firmly controlled by the government, but they can be done through market mechanisms. The responsibilities and roles of the government are mainly to maintain macroeconomic stability, strengthen and optimize public services, ensure fair competition, strengthen market supervision, maintain market order, promote sustainable development, promote common prosperity, and make up for market failures. To give better play to the role of the government, it is not necessary to give more play to the role of the government, nor is it simply to issue administrative orders, but to properly manage those things that the market cannot or cannot manage well on the premise of ensuring that the market plays a decisive role.

Enabling the market to play a decisive role in the allocation of resources and giving better play to the role of the government are organically unified and do not negate each other. On the issue of the role of the market and the role of the government, it is necessary to stress dialectics and the two-point theory, and we must not separate or oppose the two. General Secretary Xi Jinping stressed: "The decisive role of the market in the allocation of resources can not be replaced or even negated by the decisive role of the government, nor can the role of the government be better replaced or even negated to make the market play a decisive role in the allocation of resources." "Only by enabling the market and the government to take their place and give full play to their strengths can we promote the formation of a pattern in which the role of the market and the government are organically unified, complementary, coordinated and mutually promoted, and promote the sustained and healthy development of the economy and society.

Whether it is to make the market play a decisive role in the allocation of resources or to give better play to the role of the government, we must always adhere to the correct direction of the socialist market economy and promote the comprehensive deepening of reform. Since the beginning of reform and opening up, the mainland has successfully embarked on a road of socialist market economy, from the traditional planned economic system to the unprecedented socialist market economic system, to the enabling the market to play a decisive role in the allocation of resources and to giving better play to the role of the government. To build a high-level socialist market economic system, it is necessary to further promote the coordinated efforts of the "invisible hand" and the "visible hand", so that the effective market and the promising government can be better integrated, and strive to solve this global problem in economics in practice.

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How to understand that the market plays a decisive role in the allocation of resources and better plays the role of the government?

Anchor of Jimo District Financial Media Center

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