2003Journal of Hubei University of EconomicsRequires access

Planned - mechanism, Market - mechanism and Decentralization

Wei Wang

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Abstract

Decentralization dose not connect with certain economic system simply. As far as its nature is concerned, decentralization is negated by planned - mechanism, which leads to the failure of decentralization reform under planned economic system. Decentralization is compatible with market - mechanism, which also makes decentralization reform possible theoretically under market economy. In the transition period, China should pay attention to deal with the mutual relation between plans, markets and decentralized control in order to achieve the reform of the decentralized control successfully.

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What this paper is about

Decentralization dose not connect with certain economic system simply. As far as its nature is concerned, decentralization is negated by planned - mechanism, which leads to the failure of decentralization reform under planned economic system. Decentralization is compatible with market - mechanism, which also makes decentralization reform possible theoretically under market economy. In the transition period, China should pay attention to deal with the mutual relation between plans, markets and decentralized control in order to achieve the reform of the decentralized control successfully.

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Available abstract

Decentralization dose not connect with certain economic system simply. As far as its nature is concerned, decentralization is negated by planned - mechanism, which leads to the failure of decentralization reform under planned economic system. Decentralization is compatible with market - mechanism, which also makes decentralization reform possible theoretically under market economy. In the transition period, China should pay attention to deal with the mutual relation between plans, markets and decentralized control in order to achieve the reform of the decentralized control successfully.

Key concepts: Decentralization, Economic system, China, Mechanism (biology), Planned economy, Market mechanism, Order (exchange), Market economy

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