从“双重创造”到“双向塑造”

周黎安

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Volume 55 Issue 3

May 2023

Article Contents

Citation: Li’an ZHOU. From Double Creation to Mutual Configuration[J]. Academic Monthly, 2023, 55(3): 5-21. shu

From Double Creation to Mutual Configuration

Li’an ZHOU

Abstract

The Neoclassical economic approach to government-market relations has a set of implicit assumptions about supporting institutions (e.g., relatively complete markets and a limited and effective government) which are virtually non-existent in most developing and transition economies. In the past decades China has succeeded in getting around the potential traps of neoclassical government-market doctrine (e.g., the Washington Consensus) by taking a programmatic and gradualist reform strategy. More specifically, China started with administrative and fiscal decentralization and reforms inpromotion evaluations for local officials to encourage regional competition for economic growth and create an incentivized local government which in turn was motivated to support non-state sectors and nurture local markets. We call this as the process of “double creation” of both markets and market-friendly local governments which was critical for China to get out of the planned economy in the early stage of economic reforms. When China’s marketization speeded up after the early 2000s, a dual competition model took the full shape: local officials competed for regional economic development in political market and local firms competed in economic markets, which triggered an interesting process of “mutual configuration” of government and market to overcome both market failures and government failures. Chinese central government has played a vital role in correcting the distortions arising from the reform process and shaping a well-functioning relationship between government and market.
- government-market relations,
- economic transition,
- Chinese experience,
- regional competition
References
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  ZHANG Jun , FANG Hongsheng . Intergovernmental Fiscal Relations and Economic Growth. Academic Monthly, 2026, 58(8): 70-90.
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  SHEN Yifei . Theoretical Genealogies of the Emotional Economy and the Chinese Context. Academic Monthly, 2026, 58(7): 129-142.
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  ZHAO Lin , ZHANG Boyu , LIANG Hua . The Relationship Between Monopoly and Innovation in Information Product Markets——A Growth Network Perspective. Academic Monthly, 2026, 58(7): 64-76.
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  YANG Dian , DONG Shuhao . The Social Construction of Economic Value——Evidence from Financial Markets, with a Discussion on Building a Valuation System with Chinese Characteristics. Academic Monthly, 2026, 58(1): 131-146.
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  WANG Qi . From Individual Experience to “Inner Experience”——Focusing on Bog om Adler. Academic Monthly, 2026, 58(7): 32-40.
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  LIAO Han . Popular Religion and the Formation of Local Culture——Research on the Belief in Ge Xian'gong in Northeastern Jiangxi since the Song and Yuan Dynasties. Academic Monthly, 2026, 58(7): 195-205.
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  ZHANG Yi . Cognitive Transformation in Historical Research in the Age of AI——“Fluency-Induced Occlusion” in LLM-Assisted Reading of Diplomatic Manuscripts. Academic Monthly, 2026, 58(8): 29-40.
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  ZHOU Mujun . Between Theory and Empirical Facts: Habermas and the Sociological Debate on the Public Sphere. Academic Monthly, 2026, 58(8): 157-170.
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  DING Huiping . Invisible Governance and the Rebuilding of Local Social Order: A Historical Sociology Analysis of Qi Biaojia's Famine Relief Action in Late Ming Dynasty. Academic Monthly, 2026, 58(3): 143-154.
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  HE Jun . Confucius's Paradigm Shaping of Chinese Philosophy. Academic Monthly, 2026, 58(8): 56-69.
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  LI Ting . From The Reproductive Institution to the Fertility Transition in Contemporary China. Academic Monthly, 2026, 58(7): 143-156.
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  LIU Wei . Several Important Theoretical Issues Needing Further Clarification for the Growth and Expansion of the Private Economy. Academic Monthly, 2026, 58(7): 41-53.
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  LIN Shangli . China's Mission in Constructing Original Theories and Its Methodological Foundation. Academic Monthly, 2026, 58(7): 5-11.
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  ZHAN Ling . Adolescent Narratives and the Poetic Evolution of Contemporary Chinese Science Fiction. Academic Monthly, 2026, 58(3): 166-175.
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  HE Yuhong , ZHANG Chen . The Transformation of Han Territories' Rule Strategy in the Jin Dynasty and the Identification of China. Academic Monthly, 2026, 58(1): 205-216.
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  XIONG Changkun , ZHANG Ziyuan . Multi-party Game and Informal Governance in Central-Local Fiscal Relations——Focusing on the Yinhao Reform of Guangdong Salt Tax in the Early Republic of China. Academic Monthly, 2026, 58(5): 198-210.

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沈阳化工大学材料科学与工程学院沈阳 110142

From Double Creation to Mutual Configuration

Li’an ZHOU

Available Online: 2023-03-20

Abstract: The Neoclassical economic approach to government-market relations has a set of implicit assumptions about supporting institutions (e.g., relatively complete markets and a limited and effective government) which are virtually non-existent in most developing and transition economies. In the past decades China has succeeded in getting around the potential traps of neoclassical government-market doctrine (e.g., the Washington Consensus) by taking a programmatic and gradualist reform strategy. More specifically, China started with administrative and fiscal decentralization and reforms inpromotion evaluations for local officials to encourage regional competition for economic growth and create an incentivized local government which in turn was motivated to support non-state sectors and nurture local markets. We call this as the process of “double creation” of both markets and market-friendly local governments which was critical for China to get out of the planned economy in the early stage of economic reforms. When China’s marketization speeded up after the early 2000s, a dual competition model took the full shape: local officials competed for regional economic development in political market and local firms competed in economic markets, which triggered an interesting process of “mutual configuration” of government and market to overcome both market failures and government failures. Chinese central government has played a vital role in correcting the distortions arising from the reform process and shaping a well-functioning relationship between government and market.

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