Socialism and Private Economy

Socialist society is quite different in concept from socialist relations of production based on public owenership. The status and function of private economy should be understood and evaluated according to the development of the socialist society. Developing private economy is a fundamental requirement of the materialist principle that relation of production should be correspondent to the development of productive forces, expanding our national productive forces and constructing socialist market economy and improving the development of public owned economy. It's necessary that we should insist on historical materialism and understand the historical status and function of the private economy in the right way according to our national conditions. Only in this way can the sound development of private economy and the progress of various social causes be guaranteed.