Hongjun Yu

Faculty of Economics and Management, Peking University, Beijing, China

ABSTRACT

Most people in academia conclude that the market economic system is superior to the planned economic system when arguing about the relative advantages of the two economic systems. The experiences of China before the reform and opening-up and of the former Soviet Union, however, demonstrate that the planned economic system has shown great advantages in the economic development of these two countries, playing irreplaceable roles in the industrialization processes of these two countries and creating unique miracles. The main views of this article are as follows: (a) Both the planned and the market economic systems have their advantages and disadvantages in improving the efficiency of resource allocation and promoting economic and social development. The advantages and disadvantages of the market economic system are precisely the opposite of those of the planned economic system; (b) The selection of the economic system can be effectively carried out in accordance with the principle of making good use of strengths and bypassing weaknesses given the stages of economic development; (c) Socialist countries should promptly advance the transition from a planned economic system to a market economic system after completing the tasks of the initial stage of industrialization.

KEYWORDS

Planned economic system; market economic system; economic system reform; two miracles of the new China

From: International Critical Thought 2020 10 (3)

Editor: Wang Yi