Understanding the Establishment of Market Order

Abstract

The modern market economy is neither an uncontrollable monster nor a tame lamb, but rather a creature that needs to be fully developed and effectively harnessed in China. The management of a market economy depends on market institutions and order rather than particular individuals or certain organizations. The study of market institutions and market order must consider the peculiarities of China’s current developmental stage. At present, there are two major issues concerning market order. First, one must examine the market disorder arising from an incomplete market transition and ill-regulated market institutions, conducting research on rules and institutional arrangements that can restore and regulate market order. Next, with the goals of the economic transition in mind, we should study various aspects of the market economy’s institutional development to establish effective regulations and market order, with the aim of controlling and managing this new Chinese economy.

This article is the summary report for the key project “A Study of Socialist Integrated Market and Market Order,” sponsored by the National Social Science Foundation of China. First published under the title “Establishing Market Order during Economic Transition” in Economic Theories and Economic Management, 1 (2005), pp. 5–11, it was reprinted in Socialist Economic Theories and Practices, 4 (2005) by China Renmin University Press. It has been revised and updated for this volume.