why we must adhere to the basic economic system with public ownership as the main body and various forms of ownership developing together, but not engage in privatization and single public ownership reform

is an important issue in China's economic system reform. Since the reform and opening up, many disputes and differences have been related to deepening the reform of ownership. Some people think that the direction of China's reform should be privatization, and advocating privatization is the "right way on earth"; Others say that China's reform is in the wrong direction, mainly because the proportion of the public sector of the economy has decreased and the state-owned economy has weakened, and they advocate returning to the previous economic system. Both of these views are unrealistic and wrong. The practice of reform and development in the past 3 years of reform and opening up has fully proved that in the whole primary stage of socialism, we must adhere to the basic economic system in which public ownership is the mainstay and various forms of ownership develop together, instead of privatization and single public ownership. This is the proper meaning of promoting the further liberation and development of China's productive forces, adhering to and developing Socialism with Chinese characteristics, and is an important institutional basis for adhering to and improving the socialist market economic system.

1. Why should we adhere to the basic economic system

In the primary stage of socialism, why should we adhere to the basic economic system with public ownership as the main body and multiple ownership economies developing together? Why can't we engage in privatization and single public ownership? To answer these questions, we must first make clear what is the connotation of China's basic economic system.

ownership of the means of production is the foundation of a social and economic system and the fundamental factor that determines the basic nature and development direction of a society. Since the reform and opening-up, based on China's basic national conditions, our party has made unremitting explorations around improving the ownership structure in the primary stage of socialism, and established a basic economic system with public ownership as the main body and multiple ownership economies developing together. This basic economic system reveals the essential characteristics of the relations of production in the primary stage of socialism, is a scientific summary of the positive and negative experiences of socialist construction, and also enriches and develops Marxist ownership theory.

to understand the basic economic system in the primary stage of socialism in China, the most important thing is to grasp two points: first, adhere to public ownership as the main body; Second, adhere to the development of diversified ownership economies.

adhering to the dominant position of public ownership is a fundamental principle of socialism. China is a socialist country where the people are the masters of the country, and we must adhere to public ownership as the basis of the socialist economic system. Unswervingly consolidating and developing the public sector of the economy is an important aspect of adhering to and improving the basic economic system. Adhering to public ownership as the main body is of great significance to give full play to the superiority of the socialist system, enhance China's economic strength, national defense strength and national cohesion, prevent polarization, safeguard social fairness and justice, gradually realize prosperity with * * *, provide a strong material foundation for the consolidation of socialist state power, and promote social harmony.

so, how to understand the meaning of public ownership as the main body? Public ownership economy includes not only state-owned economy and collective economy, but also state-owned and collective components in mixed ownership economy. The dominant position of public ownership is mainly reflected in the dominance of public assets in total social assets; The state-owned economy controls the lifeline of the national economy and plays a leading role in economic development. Public assets are dominant, not only in quantity but also in quality. The state-owned economy plays a leading role, which is mainly reflected in its control. The key to insisting on public ownership as the main body is to have a good form of realization of public ownership. Share-holding system, joint-stock cooperative system and leasing and contracting under certain conditions can all be used as forms of realization of public ownership.

why should we encourage, support and guide the development of the non-public sector of the economy if we insist on public ownership as the mainstay? Under the traditional planned economy system, the overemphasis on the single public ownership structure and the exclusion and restriction of the non-public ownership economy are not in line with China's national conditions and reality, which seriously hinders the development of social productive forces. After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, our party conscientiously summed up the past experience and lessons, re-recognized and clarified the position and role of the non-public economy in the primary stage of socialism, and regarded it as an important part of the socialist market economy. This change reflects the basic national conditions of China's primary stage of socialism and the law that relations of production must adapt to the development level of productive forces. It should be noted that it is difficult to solve the problems of food and employment for more than one billion people, increase their income and improve their lives by relying solely on the public sector of the economy, especially state-owned enterprises. Developing the non-public economy is conducive to adjusting and optimizing the ownership structure, promoting economic development to be more dynamic, and at the same time providing various effective forms for the development of public ownership; It is conducive to promoting market competition, promoting the optimization and upgrading of industrial structure, and promoting the rapid development of the national economy; It is conducive to introducing and absorbing advanced technology and management experience and promoting international economic cooperation; It is conducive to mobilizing the enthusiasm of the people and all sectors of society, facilitating people's lives, expanding employment, maintaining social stability, and so on. Unswervingly encouraging, supporting and guiding the non-public economy is another important aspect of adhering to and improving the basic economic system. Vigorously developing and actively guiding the non-public economy conforms to the inherent requirements of China's economic and social development, and is by no means an expedient measure. It must be adhered to for a long time and unswervingly.

Some people simply think that public ownership economy and non-public ownership economy are antagonistic and irreconcilable. Practice has proved that this view is incorrect. In the primary stage of socialism, public ownership and non-public ownership are both indispensable forms of ownership for developing social productive forces, and both can and should be used to serve socialism. Public ownership economy is the main body of socialist market economy, and non-public ownership economy is an important part of socialist market economy. Under the condition of socialist market economy, public ownership economy and non-public ownership economy are equal competition and mutual promotion, and they are unified in the process of socialist modernization. The Third Plenary Session of the 16th CPC Central Committee made the Decision of the Central Committee on Several Issues Concerning the Improvement of the Socialist Market Economic System, which pointed out that it is necessary to vigorously develop the mixed ownership economy in which state-owned capital, collective capital and non-public capital participate, so as to make the shareholding system the main form of public ownership. Developing a mixed ownership economy is conducive to giving full play to the leading role of the state-owned economy and adhering to the dominant position of public ownership, and further improving the basic economic system in the primary stage of socialism. Under the condition of socialist market economy, all kinds of ownership economies can fully play their respective advantages in market competition and promote the development of social productive forces. Promoting the simultaneous development of various ownership economies will not only affect the nature of China's socialist state power, but also help promote the development of productive forces and give full play to the superiority of the socialist system.

2. Institutional guarantee for the vigorous development of China's economy

With the development of socialist market economy, especially the deepening of the reform of state-owned enterprises, the proportion of China's public-owned economy has changed. Some people worry that the development of the non-public economy will shake the dominant position of China's public economy.

in fact, in recent years, by deepening the economic system reform, including the ownership reform, the overall strength of China's public sector economy has not been weakened, but the dominant position of the public sector economy has been further consolidated, the vitality and competitiveness of state-owned enterprises have been greatly improved, and the state-owned economy has firmly grasped the lifeline of the national economy. In 1978, the total assets of state-owned enterprises in China were .72 trillion yuan, and by 27, it reached 35.5 trillion yuan; In petroleum and petrochemical, aerospace, electric power, telecommunications, transportation, national defense industry, important resource development, major equipment manufacturing and other important industries and key areas related to national security and the lifeline of the national economy, the total amount of state-owned assets has been increasing, and the control power has been further enhanced, and a large number of highly dynamic state-owned and state-controlled enterprises have emerged. Among the Fortune 5 companies in the world in 28, there are 26 state-owned or state-controlled enterprises in mainland China, many of which are completely competitive, such as COSCO Group, China Minmetals, China Construction, China Railway and China Railway Construction. It can be said that China's relatively strong comprehensive national strength and important international status today, and its sustained and steady development in the fierce international competition are inseparable from the great role played by the public sector of the economy.

so, what about the development of the non-public economy? It should be said that since the reform and opening up, especially since the 199s, the non-public sector of the economy has developed rapidly and has grown into an indispensable part of the development of China's productive forces, forming a vivid situation of "the country advances with the people" and "the country is strong and the people are rich", and the advantages of the basic economic system in the primary stage of socialism have been fully demonstrated.

The proportion of China's non-public economy in GDP has been greatly improved. Over the past 3 years, about 7% of China's technological innovation, 65% of domestic invention patents and more than 8% of new products have come from small and medium-sized enterprises, of which more than 95% are non-public enterprises. Since the mid-199s, more than 7% of new jobs in cities and towns have been provided by non-public enterprises, and more than 7% of the labor force transferred from rural areas have also been employed in non-public enterprises. It can be said that the continuous improvement of the basic economic system has made China's individual, private and other non-public economies develop rapidly and become an important economic growth point in China.

the simultaneous development of public ownership economy and non-public ownership economy has injected great vitality and vitality into China's economic development, which has put us on a track of rapid development. From 1978 to 28, China's economy grew at an average annual rate of 9.8%, which was not only significantly higher than the average annual growth rate of 6.1% from 1953 to 1978, but also slightly higher than the average annual growth rate of 9.2% in Japan's economic take-off stage and 8.5% in South Korea's economic take-off stage. This change in ownership structure has also had a profound impact on our daily life. For example, because of invigorating the economy, the living standards of ordinary people have been greatly improved and enriched. The "three big things" in everyone's mind are no longer bicycles, sewing machines and watches, nor color TVs, refrigerators and washing machines. Now they are houses, cars and computers. For another example, due to the development of enterprises with various ownership, people's employment methods are diversified, and the "iron rice bowl" of state-owned enterprises is no longer the only pursuit of people. Private enterprises, foreign companies, "self-employment" and "personal job selection" have become the choices of many new generations of young people; Another example is that personal property income has increased, and investment and financial management has become a hot topic. Treasury bonds, funds, stocks, futures, foreign exchange and gold have become the investment means of many people.

Practice has proved that it is of great practical and far-reaching historical significance for us to establish a sound socialist market economic system, promote the development of productive forces, build a well-off society in an all-round way and accelerate socialist modernization.

3. Why not privatize

Advocating privatization has been a trend of thought since the reform and opening up. Some people think that "man is selfish", and the subject of market economy is selfish individuals, that is, the so-called rational "economic man". Only private ownership can engage in market economy, and only privatization can promote economic development. Others believe that the developed capitalist countries are developed today because of privatization, and developing countries must take this road if they want to be rich and strong.

does privatization necessarily promote economic development?

At present, there are nearly 2 countries and regions that have implemented privatization in the world, of which developed capitalist countries only account for a very small part. The development experience of many countries shows that privatization does not necessarily bring economic development, let alone a panacea for all diseases. A few years ago, some people in the west trumpeted the "liberalization, marketization and privatization" of neoliberalism in Russia, Eastern European countries and third world countries. Russia engaged in the so-called 5-day plan and the privatization movement with "shock therapy", which disintegrated Russia's original economic system, fundamentally changed the face of the whole society, changed the social structure, and gave birth to the formation of private capital, especially large capital, which led to the emergence of financial oligarchs. As a result, the economy declined sharply, the national strength was greatly weakened, wealth was concentrated in the hands of a very small number of people, the gap between the rich and the poor was wide, the poverty rate and unemployment rate rose rapidly, and the ruble depreciated sharply. In Ukraine, during the 1 years of privatization reform, the national economy has regressed by 6%. Argentina carried out the "economic privatization" reform with the support of the West, resulting in a serious recession of the national economy, a national debt of more than 13 billion US dollars, social division and poverty among the people. The poverty rate soared from 7.7% before privatization to 3%, and the unemployment rate exceeded 2%. What privatization has brought to developing countries is not arachis duranensis, but economic depression, poor people and social unrest.

contrary to the privatization economic reform in some developing countries, under the guidance of Socialism with Chinese characteristics's theoretical system, China has adhered to the basic economic system with public ownership as the mainstay and multiple ownership economies developing together, and adhered to the correct direction of socialist market economic reform, which has greatly promoted economic development and achieved great achievements that have attracted worldwide attention. Imagine what would happen if we accepted the privatization prescription prescribed by some people? It is certain that the socialist market economy will turn into a capitalist market economy, and the working class and the majority of working people will basically or completely lose the means of production, which will inevitably lead to a disparity between the rich and the poor, resulting in a few people owning a large amount of capital and real estate, while most people are in abject poverty, social contradictions are unprecedentedly intensified, and it is difficult for the socialist system to continue to exist. In a big developing country like ours, in important industries and key fields related to national security and the lifeline of national economy, without the leading role of state-owned economy, it will be controlled by international monopoly capital sooner or later, and it will be difficult to guarantee national sovereignty and national independence.

At present, on the issue of deepening the reform of rural ownership, some people propose to privatize land and replace the policy of land contractual management right transfer put forward by our party with land privatization. It should be noted that China's two-tier management system, which is based on household contract management and combines unification and separation, has greatly mobilized the enthusiasm of farmers for production and liberated rural productive forces. Since the reform and opening up, China has solved the problem of feeding more than one billion people by arable land with per capita far below the world average, which has fundamentally changed the shortage economy that has plagued us for a long time before the reform and opening up. This is an unprecedented miracle. Over the past 3 years, the per capita net income of rural residents has increased from 134 yuan to 4761 yuan, an increase of more than six times after deducting price factors. Practice has proved that the two-tier management system, which is based on household contract management and combines unification and separation, is a form of ownership that is suitable for China's current reality and conducive to rural economic development. Of course, China's rural reform and development still faces many difficulties and problems, which need to be solved seriously, but land privatization is by no means the way out. China has a large population, a small scale of operation and low labor productivity, and the per capita arable land is only about one acre and eight thirds. If land is allowed to be privatized and traded freely, instead of realizing industrialization and agricultural modernization quickly and at low cost, the result will be polarization in rural areas and economic depression. Land-lost farmers will flood into cities but find it difficult to find jobs, and instead of urbanization, urban slums will be realized, and even the world will be in chaos. At present, there are only less than 1 in the world.