The Chinese way the problem of the accumulation of capital Thinking of the Transitional Period

Summary: after the country's capital accumulation has its own characteristics on China's view, the accumulation of capital is transformed from a single to multiple ways, the economy has made rapid development, however, this high-speed growth masks during the transition period of capital accumulation. issue paper by the characteristics of the Chinese way of capital accumulation in the analysis since the reform, from the point of view of the system to reflect the problems that exist in the current Chinese capital accumulation, stressed to deepen the reform of importance.

Keywords: accumulation of capital market economic system defects define property rights

By leaps and bounds since Adam Smith, the theory of economic growth, economists have been exploring the reasons of economic growth, specialization and division of labor, development, production and technological progress, and the resulting expansion of market scale is used to explain economic growth, but also for the economic development of countries to provide a theoretical basis for the modern theory of economic growth began in the Keynesian revolution, such as the 1940s, Harold and Sodom build theoretical models of economic growth, and later constructed on the basis of this fix the Solow Swan model, to the mid-1980s, Paul Romer and Lucas, the new growth theory, the theory of economic growth transformed by exogenous growth theory inward endogenous growth. although the contemporary theory of economic growth there is no unified model, but without exception, all the titles of papers capital investment as a key factor of economic growth.

China, as the largest developing country in the world today, the same faces the problem of the accumulation of capital with the deepening of reform, China's economic system by a single public ownership to public ownership is dominant and diverse forms of ownership and common development changes planned economy to gradually transition to market economy compared with most other developing country, contemporary Chinese capital accumulation has been rapid growth in a short period of time, Chinese and foreign give full recognition to China's economic miracle, but the high-speed economic growth masked the accumulation of capital in many of the problems caused by the Transitional Period of economic and social contradictions, which also worth thinking about.

Contemporary Chinese capital accumulation problem

The achievements of China's reform and opening up to prove the superiority of the market economy, but due to a number of institutional reforms lag, so during the transition period, the Chinese economy has not reached the universal right to define and protect the way of capital accumulation also differs from the traditional market economy.

A variety of enterprises owned by the rapid development since the reform and opening up, compared to the state-owned enterprises, the degree of capital accumulation is still at a low level. Mainly to differences in financing capacity. Contemporary, of Banking development, especially in the credit business, but in quite a long period of time, bank credit is biased in favor of the state-owned economy. According to statistics, the non-state-owned enterprises only 16,5% of the proportion of loans from commercial banks, which makes many small and medium enterprises to rely on The circulation of capital or other non-formal financial channels get temporary accumulation.
From the residents, the accumulation of capital sources restrictions. Pathways are more single people's incomes can be found, assets growing wealth of the American people and the labor income ratio of 22:1, which is why the high-income Americans, the tendency consumption rather than savings reasons, mainly because the incomes of Americans from the capital. while China is not the source of the accumulation of the broad masses of the people rely solely on the meager wages, little other capital income. based on Friedman's life cycle theory, caused by the current low-income people more original intent of the savings to be used to meet future demand for retirement consumption, the resulting high savings rate in China. due to the bank's long-term deposit interest rate lower than the growth rate of the CPI, the residents own The capital is the continuous depreciation of the process. therefore, an important reason for the limited sources of capital accumulation is unable to raise the Chinese public revenue.

In the economic transition of China, illegal accumulation of capital there are some officials take advantage of the rights conferred by the people, the rights of capital, making it the development of the market economy must factor inputs form equivalent to the state monopoly of force to improve market access barriers to entry and operation of the threshold of a simple example, the person in charge of some state-owned enterprises in the use of power in the hands of state-owned assets, by depress contracted indicators lease price, or through illegal financial means underestimate the loss of state assets into the hands of rent-seekers prejudice the interests of the country and the people. posted in the free papers Download Center

two contemporary Chinese capital accumulation system analysis

The facts show that much of the reason is that the reform of the system of capital accumulation distorted lagged behind the economic reforms, resulting in the accumulation of capital in China differs from traditional developed market economy countries, which is the transition period imperfect state system. and property rights from government constraints starting to explore China's capital accumulation distorted situation.

(A) from the point of view of the establishment of the socialist legal system and market economy, the first step is to prevent any intervention of the government on economic activity
More prominent problem is the changing national policy, the decree has any, to use the words of Professor Zhang Wuchang, China policy and to put it nicely elasticity, swearing is a frequent change of state administrative intervention in micro-economic activities very common, such as the name of the "macro" or "market adjustment" in the name of, and instructed the relevant departments of the main micro administrative intervention. caused by the uncertainty of the market rules can not be a good predictor of the next phase of the economic situation the main micro part of the accumulation of capital is the need to guard against risk, and can not be put into production at the same time, the national policy-making is not binding, may result in the accumulation of capital deviate as China-led industrial development in the long stage, to the neglect of agriculture and services accumulation, caused by the irrational industrial structure.

(B) from the the market microstructure main angle of view, the equality of the market need for the state as a supervisor. Instead participants
Contemporary China, a variety of ownership enterprises With the rapid development plays a huge role in addressing residents' employment and the accumulation of social capital, however, the market economy has a greater proportion of state-owned enterprises involved in the market under such conditions can hardly be the right to equality, it is difficult to rule of law state-owned enterprises and national are inextricably linked, the state as a state-owned shareholders, more inclined to give the "green light" for their own businesses, through direct intervention in economic activity over the legal shackles, the state-owned capital accumulation is not bound such as the the nearest Agricultural Bank of China share reform, the state of its bad debt pay; IPO issued shares many state-owned enterprises. approval of the listing of companies, mostly state-owned enterprises, private enterprises in order to be difficult to get the same treatment with visible enterprise of the word "country" in respect of the same has a market privileges, under conditions of SBC, the state-owned enterprises can not only rely on their own capital accumulation can also rely on privileged access to additional capital accumulation, government background so that they become the market powerful players. weak private enterprises, regardless of the financing capacity enterprise scale and state-owned enterprises can not compete. scale effect prompted many private enterprises must obtain the protection of the market through rent-seeking bribes continuous variation of capital accumulation in the role of path dependence. Finally, damage to the interests of society as a whole.

(C) the system defects causing property rights are unclear, limiting the value of the capital should

Such as the system of agricultural land, even though China has legally identified three powers, the right to use, usufruct, and the transfer of the right, but has yet to solve the problem of farmland to non-agricultural land, limiting the land as the source of the income of farmers assets capital accumulation restricted.

The definition of property rights to scarce resources exclusive arrangements, is a prerequisite for market economy pricing. Seen by the following table, China's mineral resources are particularly scarce in China, governments at all levels to master some important rights of resource allocation, twisted resources into the production value, and can not reflect the scarcity of resources, resulting in resources at below market price to sell and reduce the real value of mineral resources in capital accumulation of a lot of waste of resources and ecological destruction makes the original resource scarcity worse, caught in a vicious cycle of capital accumulation.

III Summary

China's reform is a gradual reform. Achieve great results at the same time also left many questions, especially institutional shortcomings, reform a long way to go at this stage the legal system is not in place, the lack of clarity of property rights and China's thousands of years of the traditional feudal ideology and path dependence caused by the long-term practice of planned economy has a direct relationship between China's rapid economic development has benefited from the rapid accumulation of capital, but we must guard against the harm caused by the poor capital accumulation of social welfare. therefore, changes in the way of capital accumulation to achieve The capital price determined by the market, and is the only way for the development of long-term health of our economy.


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