Uphold the Combination of an Effective Market and a Proactive Government

The Fourth Plenary Session of the 20th Central Committee of the CPC [1]1 The Fourth Plenary Session of the 20th Central Committee of the CPC: A meeting of the Communist Party of China's top leadership, held in 2024, focused on comprehensively deepening reform and advancing Chinese modernization. pointed out that the economic and social development during the period of the 15th Five-Year Plan [2]2 The 15th Five-Year Plan: China's national economic and social development plan for the 2026–2030 period, currently in its formulation stage. must follow the principle of combining an effective market with a proactive government. This is a successful experience in conducting economic work and also an important method for doing so. Promoting the better integration of an effective market and a proactive government, organically combining the "invisible hand" with the "visible hand," means firmly grasping the key link in correctly handling the relationship between the government and the market.

党的二十届四中全会指出，“十五五”时期经济社会发展必须遵循有效市场和有为政府相结合的原则。这是做好经济工作的一条成功经验，也是做好经济工作的一个重要方法。推动有效市场和有为政府更好结合，将“无形之手”和“有形之手”有机结合，就紧紧牵住了正确处理政府和市场关系的“牛鼻子”。

To strengthen the construction of an effective market, it is necessary to let the market decide the allocation of resources. Strengthening the construction of an effective market and letting the market play a decisive role in resource allocation is determined by a combination of multiple factors. First, it is a requirement of following the general laws of the market economy. "Market determination of resource allocation is a general law of the market economy." The socialist market economy has socialist attributes and can leverage the superiority of the socialist system, while also encompassing the universal attributes of a market economy, meaning that the socialist market economy must follow the role of the law of value and other laws within the market economy, allowing the market to play a decisive role in resource allocation. Second, it is a need for efficient resource allocation. "Both theory and practice have proven that market allocation of resources is the most efficient form." A fundamental contradiction that human economic activity always faces is the contradiction between the scarcity and finiteness of resources and the diversity and infinity of human needs. Practice up to the present shows that when economic relations are relatively simple and people's needs are relatively singular, allocating resources through government planning is more efficient; when economic relations are more complex and people's needs become increasingly complex and diverse, allocating resources through market regulation is more efficient. Third, the conditions for market determination of resource allocation are already mature. Objectively, after more than 40 years of unremitting exploration since reform and opening up, China's socialist market economy system, mechanisms, framework, laws, regulations, and other supporting measures have been increasingly perfected, and resource allocation can be handed over to the market. Subjectively, the Party and the government's ability to manage the modern market economy has been unprecedentedly enhanced, and rich experience has been accumulated, ensuring that the great ship of the socialist market economy can sail steadily and far, overcome stormy waves, and prevent major economic fluctuations. Fourth, it is a requirement for further comprehensively deepening reform. To resolve the deep-seated contradictions in economic and social development in the New Era [3]3 The New Era: A political designation for the period beginning with the 19th National Congress of the CPC in 2017, marking a new stage in the development of socialism with Chinese characteristics under Xi Jinping's leadership. and to remove all institutional and mechanistic obstacles constraining economic and social development, further comprehensively deepening reform is needed. To this end, it is necessary to take economic system reform as the driving force, highlight this key point of economic system reform, and thereby drive reforms in politics, culture, society, and many other fields. In advancing economic system reform, the most fundamental thing is to let the market play a decisive role in resource allocation, stimulate the vitality of various business entities, and accelerate the formation of an institutional mechanism conducive to high-quality development.

加强有效市场建设，要让市场决定资源配置。加强有效市场建设，让市场在资源配置中发挥决定性作用，这是由多方面因素综合决定的。首先是遵循市场经济的一般规律的要求。“市场决定资源配置是市场经济的一般规律。”社会主义市场经济具有社会主义属性，可以发挥社会主义制度的优越性，同时也包含着市场经济的普遍属性，即社会主义市场经济必须遵循市场经济中的价值规律等作用，让市场在资源配置中发挥决定性作用。其次是高效率配置资源的需要。“理论和实践都证明，市场配置资源是最有效率的形式。”人类的经济活动始终面临的一个基本矛盾是资源的稀缺有限性与人类需求的多样无限性之间的矛盾。人类迄今为止的实践表明，当经济关系比较简单、人们的需求较为单一时，通过政府的计划调节配置资源较为有效率；当经济关系比较复杂、人们的需求日益复杂多样时，通过市场的调节配置资源具有更高的效率。再次是市场决定资源配置的条件已经成熟。从客观上看，经过改革开放40多年来的不懈探索，我国社会主义市场经济体制、机制、框架、法律法规等配套措施日臻完善，资源配置可以交由市场配置；从主观上看，党和政府驾驭现代市场经济的能力得到空前提升，积累了丰富的经验，可以确保社会主义市场经济的巍巍巨轮行稳致远，可以战胜惊涛骇浪、防止经济大起大落。最后是进一步全面深化改革的要求。破解新时代经济社会发展的深层次矛盾，破除一切制约经济社会发展的体制机制障碍，需要进一步全面深化改革。为此，要以经济体制改革为牵引，突出经济体制改革这一重点，以此带动政治、文化、社会等诸多领域的改革。而推进经济体制改革，最根本的是要让市场在资源配置中起决定性作用，激发各类经营主体活力，加快形成有利于高质量发展的体制机制。

To give play to the role of a proactive government, it is necessary to accelerate the transformation of government functions. "Scientific macro-regulation and effective government governance are inherent requirements for leveraging the advantages of the socialist market economy system." It is necessary to actively adapt to the requirements of a modern market economy and actively transform government functions. First, the role of a proactive government is indispensable; it must both "enliven" and "manage well." Whether from the practice of the capitalist world in responding to multiple economic crises or from the course of China's socialist market economy development, under the conditions of a modern market economy, the role of a proactive government is indispensable. We must not artificially and absolutely oppose the government and the market, and we must resolutely oppose and be vigilant against the clamor of de-governmentalization, market absolutization, privatization, and liberalization advocated by neoliberalism. Second, the roles of a proactive government and an effective market are, after all, different. "The more standardized government behavior is, the more effective the market's role will be." The roles of a proactive government and the regulatory role of an effective market have completely different responsibilities and functions, with different powers, responsibilities, and boundaries. The two must neither be misplaced nor overstepped, nor can they replace each other. The regulatory role of an effective market is mainly reflected in the allocation of economic resources in the micro sphere; the regulatory role of a proactive government is mainly reflected in the macro sphere, escorting market resource allocation and creating favorable conditions. Finally, for the role of a proactive government to be better played, it is necessary to accelerate the transformation of government functions. "The government must do what it should and refrain from doing what it should not, solving problems of absence and overstepping." It goes without saying that in some aspects, the current functions of China's government still bear certain traces of the planned economy and cannot fully adapt to the requirements of a modern market economy. To this end, it is necessary to promote the transformation of government functions centered on streamlining administration and delegating power, and to promote the transformation of a proactive government towards perfecting market rules, optimizing the market environment, correcting market failures, and standardizing the order of competition.

发挥有为政府作用，必须加快政府职能转变。“科学的宏观调控、有效的政府治理，是发挥社会主义市场经济体制优势的内在要求。”要主动适应现代市场经济要求，积极转变政府职能。首先，有为政府的作用不可或缺，既要“放得活”，又要“管得好”。无论是从资本主义世界应对多次经济危机的实践，还是从我国社会主义市场经济发展的历程看，在现代市场经济条件下，有为政府的作用不可或缺。我们不能人为地将政府与市场截然对立起来，要坚决反对和警惕新自由主义鼓吹的去政府化、市场绝对化、私有化、自由化的叫嚣。其次，有为政府与有效市场的作用毕竟是不同的。“政府行为越规范，市场作用就越有效”。有为政府的作用和有效市场的调节作用，职责和功能是完全不同的，具有不同的权责和边界。二者之间既不能错位，也不能越位，更不能相互取代。有效市场的调节作用主要体现在对微观领域经济资源的配置；有为政府的调控作用主要体现在宏观领域，为市场配置资源保驾护航，创造良好的条件。最后，有为政府作用更好地发挥，需要加快转变政府职能。“政府要有所为、有所不为，解决好缺位、越位问题。”毋庸讳言，我国政府现有职能在某些方面依然带有一定的计划经济痕迹，还不能完全适应现代市场经济的要求。为此，必须推动以简政放权为核心的政府职能转变，推动有为政府朝着完善市场规则、优化市场环境、矫正市场失灵、规范竞争秩序方向转变。

The key to correctly handling the relationship between an effective market and a proactive government lies in doing a good job on the word "combination"; to further handle the relationship between the government and the market, it is also necessary to promote the better integration of an effective market and a proactive government. First, the roles of a proactive government and an effective market must be viewed equally. In dealing with the roles of a proactive government and an effective market, one must absolutely not favor one over the other, or even simply oppose the two. It is necessary to oppose both the erroneous understanding that only the role of a proactive government is needed and not the role of an effective market, and the erroneous view that only the role of an effective market is needed and not the role of a proactive government. It is necessary to firmly establish the concept that a proactive government and an effective market are equally important, and deeply recognize that the two are indispensable. Second, a proactive government and an effective market need to cooperate with each other. The roles and methods of resource allocation of a proactive government and an effective market are different, each having its own characteristics and advantages, as well as shortcomings and deficiencies. A proactive government and an effective market have different scopes and boundaries in terms of function, so it is necessary to give play to the initiative of both a proactive government and an effective market, and promote their coordination and cooperation to form a synergy. On the one hand, it is necessary to be good at leveraging the role of a proactive government, managing those things that the market cannot manage or cannot manage well, under the premise of ensuring that resources are allocated by the market. On the other hand, it is necessary to be good at utilizing the role of an effective market; all economic activities that the market can effectively regulate should be handed over to the market, and the government should not intervene arbitrarily, ensuring the maximization of benefits and optimization of efficiency in resource allocation. Finally, achieve complementarity between a proactive government and an effective market. The macro-regulation of a proactive government has consciousness, targeting, and foresight, but its timeliness is not strong, making it difficult to reflect complex and changing social needs. Although the regulatory mechanism of an effective market has the characteristics of timeliness, accuracy, and flexibility, it has shortcomings such as spontaneity, blindness, and lag. The macro-regulation of a proactive government can make up for the deficiencies of effective market regulation, while the regulatory mechanism of an effective market can make up for the shortcomings of government macro-regulation. It can be seen that a proactive government and an effective market can achieve complementary advantages and form a synergy.

正确处理有效市场和有为政府的关系，关键在于做好“合”字文章；进一步处理好政府与市场关系，还必须推动有效市场和有为政府更好结合。首先，要同等看待有为政府与有效市场的作用。在对待有为政府与有效市场作用上，绝不能厚此薄彼，甚至人为将二者简单对立起来。既要反对只要有为政府作用而不要有效市场作用的错误认识，也要反对只要有效市场作用而不要有为政府作用的错误观点。要牢固树立有为政府与有效市场同等重要的观念，深刻认识到二者之间缺一不可。其次，有为政府与有效市场需要相互配合。有为政府与有效市场配置资源的作用和方式不同，既有各自的特点和优势，又有缺点和不足。有为政府与有效市场在功能上有着不同的范围和边界，故而要发挥有为政府与有效市场两个方面的积极性，推动二者协同配合形成合力。一方面，要善于发挥有为政府的作用，在确保资源由市场配置的前提下，管好那些市场管不了或管不好的事情；另一方面，要善于利用有效市场的作用，凡是市场可以有效调节的经济活动全部交给市场，政府不随意干预，确保资源配置的效益最大化和效率最优化。最后，实现有为政府与有效市场之间的互补。有为政府的宏观调控具有自觉性、针对性、前瞻性，但及时性不强，难以反映复杂多变的社会需求；有效市场的调节机制虽具有及时性、准确性、灵活性等特点，但存在自发性、盲目性、滞后性等不足。有为政府的宏观调控可以弥补有效市场调节的不足，而有效市场的调节机制又可以弥补政府宏观调控的短板。可见，有为政府和有效市场二者之间能够实现优势互补，形成合力。

In summary, upholding the combination of an effective market and a proactive government, giving play to both the strengths of the market economy and the superiority of the socialist system, can organically integrate the "invisible hand" of market regulation with the "visible hand" of government regulation, forming a synergy for resource allocation.

总之，坚持有效市场和有为政府相结合，既发挥市场经济的长处，又发挥社会主义制度的优越性，可以将市场调节“无形之手”和政府调控“有形之手”有机结合起来，形成资源配置的合力。

(The author is a professor at the Anhui Normal University Research Base of the Anhui Provincial Research Center for the Theoretical System of Socialism with Chinese Characteristics)

（作者系安徽省中国特色社会主义理论体系研究中心安徽师范大学研究基地教授）