■ The focus of the so-called "stagnant" economic reform process is not "government-led"
"Government-led" is a major driving force for China's reform and opening up and economic development, and it is also a major feature of the "rise" of East Asian economy. The so-called "government-led" means that the government takes the initiative to innovate the system, cultivate the market system, improve the market legal system, promote the process of industrialization and urbanization, and ensure the rapid, stable and balanced economic development.
The so-called "stagnation" process of China's economic reform is not "government-led", but "separation of government from enterprise", and the government has not "slimmed down". As for "market leading", it should not be a desirable choice. China's only correct choice is to implement the "combination of the basic socialist system and the market economy" proposed in the report of the 17th National Congress. In order to realize this "combination", the government must dominate, but not everything, but there are boundaries.
Although "government-led" highlights the initiative, dominance and service of the government, it is still limited to providing public products and services, and does not involve any commercial field, which is very important and required in any market economy system. It can make up for the "market failure", but it does not harm the market mechanism to play its basic role in rational allocation of social resources. Some people accuse that "the government dominates the allocation of social resources", which is indeed the actual situation we are facing at present and a serious obstacle to the construction of market economy. However, the problem lies not in "the government dominates", but in the government's "offside" and "ultra vires" and the "separation of government from enterprise" has not been completely implemented. The government must reluctantly give up what one favours and implement the "slimming" plan, which is the requirement of speeding up the construction and improvement of the socialist market economic system.
■ "Government-led" is generally a development model adopted by relatively backward countries to catch up with advanced countries.
"Government-led" is generally a strategic idea and development model put forward by relatively backward countries to catch up with advanced countries with the help of government power. Germany started industrialization at the beginning of19th century, nearly a hundred years later than Britain, France and other countries. In order to catch up with Britain and France, Liszt, a representative of the German historical school, put forward the theory of nationalism, responded to the cosmopolitanism promoted by the British and French classicists with the concept of laissez-faire, and advocated political unity to establish a unified domestic market. After World War II, Japan, the defeated country, and the underdeveloped areas in East Asia mostly adopted the "government-led" economic development strategy. First, the Japanese economy rose, then the "Four Little Dragons" took off, and then China and ASEAN countries also adopted the strategy of "government-led" to promote the construction of market economy. The international community calls East Asian economy "government-led market economy", and "government-led" has become one of the "secrets" of East Asian economic success. In the research report "Miracle of East Asian Economy" published in 1993, the World Bank attributed the rise of East Asian economy to the flexibility and dominance of government economic policies. Aoki Masahiko, a famous Japanese economist, put forward the so-called "market enhancement theory" in his book The Role of Government in East Asian Economic Development. He did not regard the government and the market as mutually exclusive substitutes, but thought that the role of the government was to promote or supplement the coordination function of the private sector, but it was not to replace the private sector. The rise of East Asian economy shows that government-led and market economy are not incompatible, and if properly used, it will become a huge driving force for the construction and development of market economy.
China's reform and opening up is led, initiated and implemented by the government. In the late 1970s, China's economy was on the verge of collapse. It is impossible not to reform, but how to reform? Where are you going? We should turn to the market economy. But how to establish a market economy? China people have no experience. From the history of developed countries, it has gone through about two or three hundred years from commodity market, money market, bond market, securities market, futures market to derivative market. Every market, every mechanism and every institutional tool is not designed and born by a genius, but millions of people form agreements and abide by them according to the needs of activities in economic practice, and then form regulations or legislation. The world-famous New York stock market began 200 years ago, when 24 businessmen signed an agreement to regularly exchange bonds issued by the state government under a buttonwood tree at the southern tip of Manhattan. After thousands of people's long-term practice, it has gradually formed a relatively standardized operation and supervision mechanism, system and rules. Nowadays, the development of economic globalization does not allow developing countries to establish a relatively mature and standardized market economy before integrating into the world economy. Developing countries need the government to play a "leading" role and lead institutional innovation if they want to accomplish what developed countries have done in two or three hundred years in just a few decades. In China, when the process of economic monetization has not been completed, securities and tickets began; Futures and derivatives markets started when the securities and ticket systems were underdeveloped and even the relevant operating regulations were not perfect-all these appeared almost simultaneously in just a few decades. Without government-led system reform, it is impossible for China to realize leap-forward system innovation and establish the basic framework of socialist market economy in just a few decades.
■ The leading role of the government should be mainly manifested in foresight, strategy, planning and guidance.
According to the experience of East Asian countries, once "government-led" is combined with market economy, it must follow the principle of "taking market mechanism as the basic means to allocate social resources", and the play of government-led role must be clear or defined. Under the market economy system, the leading role of the government should be mainly manifested in foresight, strategy, planning and guidance, specifically:
First of all, the government's primary task is to formulate and firmly grasp the development strategy. According to the experience of many countries in East Asia, their "take-off" should be attributed to the foresight of the government, sizing up the situation, formulating correct development strategies according to the actual situation of their own countries and the international environment at that time, and striving to implement them. In 1950s, the Japanese government formulated the strategy of "building a country through trade". In 1960s, South Korea formulated an "export-oriented" strategy. At the end of 1970s, China formulated the strategies of "reform and opening up" and "using two markets and two resources".
Second, based on its foresight, the government should devote itself to formulating medium and long-term plans. Medium-and long-term planning is instructive, not planned, nor "mandatory". For example, the Twelfth Five-Year Plan points out that changing the mode of economic development, optimizing the economic structure, narrowing the income gap and expanding the proportion of middle-income groups are the key contents of the medium-and long-term plan in the future. These plans are put forward according to the development reality of China, the long-term interests of the people and the requirements of the sustainability of national economic development. This kind of planning can only be put forward by the government and promoted by the people of the whole country.
Third, macro-control is an unshirkable task of the government. Since the Great Crisis in 1930s, the state intervention of western developed countries has been integrated with the market economy. The government's use of fiscal and monetary policies to regulate the economy is the main manifestation of "state intervention". What's more, in emerging economies such as China, the market mechanism is far from perfect, and "market failure" occurs from time to time, which requires macro-control by the government. Although macro-control is short-term, it is necessary to ensure rapid, stable and sustained economic development. It should be emphasized that the power of macro-control belongs to the central government.
Fourth, formulate and implement "industrial policy", focusing on technological innovation and industrial innovation. East Asian countries, including Japan, attach great importance to industrial policies. They use industrial policies to guide and support some big consortia and private enterprises to develop key industries such as home appliances, electronics, automobiles and shipbuilding, and constantly promote technological innovation, thus leading the whole economy to take off. The government only provides policy guidance and support, never manages industries, and industrial policies must focus on technological innovation, industrial innovation or upgrading. Some major scientific and technological developments have great risks, and the government can undertake venture capital. Once the development is successful, the government can transfer new technology to enterprises (state-owned or private enterprises) at reasonable prices.
Fifth, the government must vigorously build public facilities and provide all kinds of public services, which is the so-called "nesting to attract phoenix", so as to provide a safe, convenient, fair competition and sustainable development environment and platform for attracting enterprises from all sides (local enterprises and foreign-funded enterprises). Especially under the leadership of the government, the government, enterprises and individuals are working together to establish a social security system covering the whole society.