Analyze Effectiveness of Different Economic Systems In China

Topics: Planned economy, Economic system, Economics Pages: 20 (3343 words) Published: May 8, 2014

I. Table of contents

II. Introduction
China, as one of the most important economic entities in the world, plays a pivotal role. Because of its special economic system form and its creative economic system transition, China gets an impressive economic growth. China fixes whole worlds’ people’s eyes upon it. As we all know that, from 1970’s to 1980’s there was a significant change in Chinese economic history. The economic system changed from socialist planned economy to socialist market economy. This paper is aim at to introduce different type of economic systems exist or existed in China and evaluate how they performance. There will be 2 main parts in this essay which are performance description and evaluation. In this essay, we will discuss following questions. What are socialist planned economy and socialist market economy? Is there and relationship between these two kinds of economic system, and what are their characters? Did these two economic systems affect people’s life? And did they work well? Is there any benefits or drawbacks? III. Background

Socialism means a system for both economy and society. But in this paper, we just talk about economic area. Socialism is a term refers to public rather than private ownership or control of property and natural resources (socialism). This concept was getting mature in 2 stages. The first stage is called “Utopian Socialism”. In 1515-1516, Sir Thomas More wrote a book which is named as “Utopia”. In this book, Thomas More described a perfect country which will never exist. People share all resources; distribute all products as people needed; everybody participate in production (Baidu Baike). Based on this idea, the idea of socialism came up in early 19th century in Europe (Newman, 2005). Socialist wanted to change social system base on this theory. But they have to end up social transformation with fail. The second stage is a scientific stage. In this period, people tried to use scientific method to improve socialism is the necessary of history. In 1848, Karl Marx and Engle published the political slogan “Working men of all countries, unite!” in “The Communist Manifesto” which is a very important document in socialist history (Newman, 2005) (Marx & Engels, 1848). After that, Karl Marx published his grate work “Capital” in 1867. As a philosopher and economist, Karl Marx toke the significant position in human history because he was the first person who analyze the cause-effect on history and its effects on economic. He adopted dialectics method, which Hegel was first use it, to analyze human history. In his theory, there are stages in human history which are primitive, slavery, feudal, capitalism, socialism and communism. The theory, another important concept is structure. Economic structure is the core, and superstructure, which contains customs, laws, politics, is affected by economic structure. Under this theory, there are two kinds of socialism economic systems, which are socialist planned economy and socialist market economy. Socialist planned economy also called as command economic, base on this economic model, produce activities, resources allocation and production distribution will be planned by government (Planned Economy) (Nove, 1987). However, socialist market economy is mixed both socialist economy and capitalism. Base on this economic system, the price of procdtion and service are controlled by the market instead of which controlled by government in socialist planned economy. IV. Characteristics

Both of socialist planned economy and socialist market economy are socialist economy. They have common things. Socialist economy usually refers to a centrally planned economy (command economy). In this way, by gathering all information together, the planer can make advance decision in advance to improve productivity (Planned Economy). As socialist market economy is invited by Chinese, and we are focus on China, there is also a common thing:...
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