Experts interpret 'decisive role' of market
- By Zhang Lulu
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E-mail China.org.cn, November 14, 2013
Balance between government and market
Talking about the ideal relationship between the government and the market, Wang said that China should "release to the market what belongs to it, and the government should control what it should control." In other words, the government should not act for the market, nor shirk its duty to the market.
Pan argued that apart from avoiding its interference over the market, the government should also play its role where it is due, for example, in the issues of tackling poisonous milk powder and pollution.
The government should play a role in regulation and implementation to ensure the normal operation of the market economy, which requires clarified laws and rules. The government has too much room for discretion. This should be reduced.
Improving the government's role and energizing the market
Wang believes that government should stick strictly to its role, otherwise it would undermine the diversity of the market and fail to allocate resources properly.
Pan said that all actions taken by the government should be open, transparent, predictable, and abide by the norm, rather than being done in a rather random way as they are now.
Chinese economy has developed significantly since the adoption of the reform and opening-up policy more than three decades ago. But as reform has now entered the deep end, some areas need to be reformed further to unleash the vitality of the market.
Pan recalled that China's steel industry and home appliances industry have achieved great things since state control was called off years ago, demonstrating the effect of market reform. By contrast, the reform in public services such as the educational system, and the protection of ecology and environment, still lag behind. These areas need to be the focus of a deepening market reform.
Wang said that medical care, sports and media can also be opened to the market.
