China's Approach to Social Market Economics: The Chinese variant of Market Socialism Seeks to Escape from the Difficulties of Central Command Planning |
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| Authors: | Siegfried G. Karsten |
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| Affiliation: | Siegfried G. Karsten, Ph.D., is professor of economics at West Georgia College, Carrollton, GA 30118. He is indebted to West Georgia College for a grant supporting this research. He spent the academic year 1986-87 teaching in mainland China on a Fulbright exchange professorship, in the department of international economics at Jilin University. He thanks several Chinese officials and his Chinese hosts for their hospitality and for the aid given his field research and his Chinese students for their help. He also hanks several colleagues at West Georgia College for useful suggestions and encouragement. |
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| Abstract: | Abstract . The paradigm of a social market economy provides a rational basis for resolving structural socioeconomic changes, as presently evidenced in the People's Republic of China. China's approach to socioeconomic change, labeled as “Socialism with Chinese Characteristics,” resembles a modified version of Eucken's paradigm of a social market economy.1 The Chinese paradigm, leaning on that of Walter Eucken, provides for a “limited”free market, which not only accommodates economic growth and change, but which also makes allowance for some degree of human, especially economic freedom, and dignity. Eucken's model is based on a sound institutional and legal framework which he considered to be essential for a viable modern market economy. China's new socioeconomic program is moving the country in this direction. It takes into account people's desire for a useful and Just socioeconomic order (however defined), characterized by stable socioeconomic and political policies and by a flexible price mechanism, to enable them to live a life in dignity, free of economic deprivation. |
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