Quote Chinese experience for the transition to a market economy

3/7/2016 0:00

 BAGHDAD - Imad Emirate
Economic Academy d said. Wafa James Baldwin: The previous experiences of Iraq prompted a search of economic patterns adapted from close to the reality of the country's economic and international experiences to be applied in order to move to a real market economy and create fair competition between domestic production and imports.

It is these experiences that can be replicated is the Chinese experience reported by James Baldwin »Sabah»: China has pursued a path of economic reform to search for effective ways to achieve its goals in development

A vision

She explained that the dimensions of the Chinese experience in the transition towards a market economy, grew out of a vision different from the vision of institutions (IMF and World Bank) centered around the shift shock, and interact within this experience elements of ancient culture of China with elements of Western culture.

And showed China has maintained its heritage of civilization, and chose the transformation model their own economic development, stemming from the conditions of the real conditions, all of that produced the removal of many restrictions on Chinese thinking in multiple areas, what led the Chinese economists to look to their own realistic and serious look, In 1979 economic reform began in China through the gradual transition from centrally directed by the state economy to a market economy.

Positive interaction

She Mehdawi Chinese decision came the shift towards a market economy and positive interaction with the global economy, according to minutes of the plan based on the progressive principle, so as not based on jumping over stages and reduced, but this process is led by the state, according to the strategy of deliberate and programs are clear.

She China launched its own model in the transition towards a market economy away from the experiences of other trans countries, which came in a private equation incorporated between the plan and the market, called the equation (market socialism), which reflected a new vision lies the philosophy that the market is a general recipe can be attached to a totalitarian or capitalist, to take the pattern of the privacy of any of them, and the economy coder does not mean totalitarian because some capitalist countries concerned with planning, such as Japan and France, as well as a market economy does not mean capitalism because totalitarianism need to market economy as well, and as a result, the planning or the market are both a way to coordinate the economy.

D.mahdaoa He noted that the market socialism formula consisting of the first two parties regard to adoption of the principles of the market economy and carries it with it a re to be regarded as the principle of consumer sovereignty and an end to the policy of being sidelined, as direct links between enterprises and production units will be created, on the one hand and with the presence of consumer units Meanwhile, to be more sensitive to market signals, and without reference to the central authorities, and in accordance with the system of economic management, which is based on the mandate of the resolution and to give freedom of movement in the field of the use of resources and production requirements are available.

Supply and demand

And it confirmed the adoption of a market economy requires the creation of markets subject to the laws of supply and demand, working as a market and a market for goods and services and the capital market and others, while the second side of the equation relates to reconsider the degree of central planning.

And it went Mehdawi The second side of the equation relates to reconsider guideline plan, which mediates between the extreme forced to cram central planning and planning indicative, as it can through the guideline planning correct deviations of the performance market with the resulting harmful effects distributional or negative, as well as the tax system will play an important role in fine tune the distribution of income, which can be produced by the market pattern, and then the planning guideline will play the role of rhythm officer total balances in the Chinese economy.

She noted that the transformation of the economy-oriented market economy was notable for the eyes, and it happened without the disorder, and then there was a shift economic approach without a political re-structuring.

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