What Is a Planned Economy?
The planned economy is an economic operating system that regulates economic activities in accordance with government plans.
- [jì huà jng jì]
- In the first seven years of the founding of the People's Republic of China, China gradually embarked on the track of a planned economic system. Its basic formation process can be roughly divided into three stages:
- The first stage (October 1949-June 1950) was the nascent stage of the planned economy system. At the end of 1949, we confiscated 2,858 bureaucratic capitalist industrial enterprises, established state-owned industries (accounting for 78.3% of national industrial funds), grasped the lifeblood of the national economy, and began to establish socialist public ownership. Soon, adjustments were made to non-public ownership of private industry and commerce, so that private enterprises were initially included in the planned production track. In terms of organization, the Central Finance and Economic Committee was established in October 1949. Later, other specialized central agencies responsible for plan management were successively established. For example, the National Establishment Committee, the National Warehouse Materials Clearing and Allocation Committee, and the People's Bank of China designated as the head office of the national cash dispatching agency. Through these institutions, the state began to implement direct management of administrative instructions for economic activities.
- In the winter of 1949, the central government decided to implement the unified national fiscal and economic management policy, and through the National Financial Conference held in February 1950, proposed the "six unifications" in a prescriptive manner: unification of fiscal revenue and expenditure, unification of public grain, unification of taxation, Unified establishment, unified trade, unified banking. During this period, certain plans and measures for developing the national economy have begun. Such as grain, lint, coal and other planned indicators for production in 1950. During this period, trial work on some annual plans was also carried out.
- For example, at the end of 1949, the "Draft Estimates of National Fiscal Revenue in 1950" was compiled, and in May 1950, more than 20 contents including agriculture, industry, culture, education, health, etc. were compiled. 2. The long-term national economic plan explored experience. The Third Plenary Session of the Seventh Central Committee of the Communist Party held in June 1950 held that during this period of reorganization of the old socio-economic structure to varying degrees, the old liberated areas "especially in the northeast have begun planned economic construction" . But in the new liberated area "the conditions for planned economic construction have not yet been obtained."
- The second stage (June 1950-August 1952) was the initial stage of the planned economic system. After the Third Plenary Session of the Seventh Central Committee of the Party, it began to create conditions for planned economic construction nationwide. In August 1950, the central government held the first national planning work conference to discuss the preparation of the 1951 plan and the three-year goal. Each department is required to first set a three-year goal and a one-year plan, and then the central government will draw up a comprehensive national plan. After the meeting, although the three-year goal of struggle did not form a plan document, it has initially formed the embryonic form of the hierarchical structure of China's planned economy system. That is, the decision-making power belongs to the state, and the distribution of decision-making power adopts administrative methods to form a hierarchical structure of division.
- The central government first strengthened the planning management of state-owned industrial production and capital construction. "In the factory, the implementation of the production plan is the center, and the unified leadership of the party, government, and industry groups is implemented." In terms of capital construction, the construction unit is divided into two types of specific investment amounts: "above the limit" and "below the limit", and the focus is on the construction of transportation. Secondly, in terms of planning and leadership of agriculture and handicraft industry, at the first mutual assistance and cooperation meeting held in September 1951, it was proposed that in areas where land reform was completed, through the implementation of mutual assistance and cooperation campaigns, the difficulties of decentralized farmers' operations were overcome to ensure that Realization of national agricultural production plan. And actively promote the experience of the "combined contract" system of the production mutual aid group and the supply and marketing cooperatives, so that the mutual aid group can produce and consume in a planned manner, and the supply and marketing cooperatives can achieve planned operation. For the production of rival industries, the central government requires all localities to incorporate and develop plans for handicraft production cooperatives into local industrial plans, and to take orders from the state and superior cooperatives as the key to the development of handicraft production.
- Third, based on the adjustment of private industry and commerce in 1950, it was required that private industry and commerce comply with the production and marketing plan formulated by the government. One of the purposes of the "five anti" struggles at that time was to "thoroughly investigate the situation of private industry and commerce, in order to unite and control the bourgeoisie, and carry out the country's planned economy. The situation is unknown, and the planned economy cannot be carried out."
- Fourth, in terms of market management, state directives require state trading companies to properly implement price policies. In short, after the Third Plenary Session of the Seventh Central Committee of the Communist Party of China, the decision-making structure of China's planned economy system was initially formed. Under the centralized and unified leadership of the country, a comprehensive economic development plan was formulated to implement a comprehensive approach to all aspects of the national economy. Plan management and the planned economic system have taken shape. By August 1952, the tasks proposed by the Third Plenary Session of the Seventh Central Committee had been completed in advance. Mao Zedong announced at the Standing Committee of the First National Committee of the CPPCC: "After two and a half years of struggle, the national economy has now been restored and planned construction has begun."
- The third stage (September 1952-December 1956) was the basic formation stage of the planned economy system. In September 1952, Mao Zedong set the goal of "basically completing socialism in 10 to 15 years." In order to achieve this goal, the planned economic system was further improved and legally confirmed. On the basis of various specialized plan management institutions that had been established, the National Planning Commission was established in November 1952, and the Central Committee was established in April 1954. A working group was prepared to prepare a draft outline of the five-year plan. Based on several trial compilations since 1951, the group guided the transitional general line as the guide to form the first draft (first draft) of the five-year plan. After the statutory approval process, the "One Five-Year Plan" was promulgated by the State Council in the form of an order, requiring all localities and departments to comply with it. In 1954, China enacted and promulgated the first Constitution. Article 15 states: "The state uses the economic plan to guide the development and transformation of the national economy, to continuously increase productivity, to improve the people's material and cultural life, and to consolidate the country's Independence and security. "This shows that the planned economic system has become China's legal economic system.
- In short, in the early days of the founding of the country, after the socialist transformation of property rights, the pursuit of the goal of socialist public ownership was basically achieved; in the form of management of economic activities, the first five-year plan for the development of the national economy was formulated and issued by administrative orders And at the end of 1956, most of the targets scheduled in the "One Five-Year Plan" were completed ahead of schedule. This planned economic system, which operates in real economic life, has been explicitly recognized by the Constitution of the People's Republic of China as the national legal economic system. Therefore, by the end of 1956, China's planned economy system had basically formed and had its own characteristics.
- Some people think that the new economic system that our party basically formed during the first seven years of the founding of the People's Republic of China completely copied the Soviet model. This view is not entirely in line with historical reality.
- As we all know,
- The planned economic system with certain Chinese characteristics, which was basically formed in China during the first seven years of the founding of the People's Republic of China, played an important positive role.
- First of all, the use of this new economic system will help heal the vicious economic fluctuations left over from the old China in a short period of time in order to weather the difficult economic times. At the beginning of the founding of the People's Republic of China, in the face of the fiscal exhaustion and inflation left by the KMT government, due to the country's strengthening of centralized management, it took less than a year to basically stop inflation and initially stabilize the economy. The China Finance Committee pointed out in its 1949 summary of the struggle for price stability: The competition on market prices requires not only unified command, but also the ability to ensure the implementation of such unified command intent. That is to say, it is necessary to be able to concentrate the use of power, flexibly dispatch supplies, and comprehensively guide prices. Bo Yibo later summed up this historical experience: "In the past 40 years, we have seen and looked at the past. In a large country like China with a large population but not rich, we must maintain the basic stability of financial prices and the basic stability of the economy for a long time. It is indispensable to maintain the authority of the central government and ensure the necessary centralization and unification of politics and the economy. The central government has strength and all regions will benefit. "
- Secondly, under the conditions of low economic development level, severe shortage of construction funds, and limited national strength, the use of this administratively centralized planning economic system ensures that limited resources are concentrated on key constructions, laying the material foundation for a virtuous cycle of the national economy. In the first five-year plan period after the end of the national economic recovery period, it was precisely because the state used the administrative power in its hands to carry out centralized and unified management of key constructions, and the 694 projects centered on the 156 projects helped by the Soviet Union to build China Large and medium-sized construction projects and some backbone enterprises have enabled China to establish a relatively complete basic industrial system and the framework of the international industrial system, accumulated experience, trained cadres, laid a preliminary foundation for national industrialization, and thus for the long-term development of the national economy Created favorable conditions. In the report of the 14th National Congress of the Communist Party of China, Jiang Zemin once commented on the planned economic system implemented in China in the past, saying: "The original economic system has its historical origin and played an important positive role, but as conditions change, the more More and more they are not able to adapt to the requirements of modernization. "Because the role of state power has a certain limit, beyond this limit, it will have a negative effect.
- First, the state's responsibility for managing the economy is mainly limited to the macroeconomic field; microeconomic activities should fall within the scope of the producer's responsibility, and the biggest disadvantage of using administrative means to allocate resources lies in restricting and excluding the development of the commodity economy and the role of market regulation. To arrange or replace micro operation responsibilities within the power of the market economy subject.
- In the first seven years of the founding of the People's Republic of China, the disadvantages of "over-reliance" have been exposed in economic life.
- Secondly, the basic formation of the planned economy system has also formed an illusion in people's ideology, thinking that a planned economy is socialism. To engage in socialism is to engage in a planned economy; to engage in a market economy is to engage in capitalism, and to engage in capitalism is to engage in a market economy. In short, the planned economy is equated to socialism, the commodity economy is equated to capitalism, and the mandatory plan is equated to the planned economy.
- What kind of target model is determined by the reform of China's economic system is a major issue concerning the overall situation of socialist modernization. The core of this issue is to correctly understand and handle the relationship between plans and the market. Deng Xiaoping pointed out in his speech on inspecting the South in 1992: Plan and market are both economic means. A little more plan or more market is not the essential difference between socialism and capitalism. This has led to a major breakthrough in our understanding of the relationship between plans and markets. In the first seven years of the founding of the People s Republic of China, the historical experience of combining central and local enthusiasm under the principle of centralization and unification, focusing on market management while focusing on market management, implementing multiple plan types in plan management, paying attention to macro control, and comprehensive balance It provides a good idea for exploring the relationship between plans and markets under the socialist economic system. Today, in the process of establishing a socialist market economy system, we are facing the question of how to combine market economy with macroeconomic regulation. In this regard, it is necessary to learn from historical experience, remove disadvantages and save profits, and make bold explorations to promote the smooth progress of economic system transformation.
- In countries that have established socialist planned economic systems, reform is very difficult. Despite the growing economic and technological gap between China and developed countries, the traditional planned economic system can still be maintained as usual. The nature of this system determines that it may persist tenaciously. The reason is that:
- First, the planned economy system puts enterprises in the position of affiliates of the administrative department. Enterprises can neither operate independently nor be self-financing. The enterprise's production quantity, production variety, price, and supply of production factors and sales of production results are under the control of government planning departments and relevant administrative authorities. If the enterprise wants to decide production and operation on its own, it will get rid of the planned arrangements slightly. If you slightly violate the will of the administrative authority, you will be sanctioned until the leader of the company is removed or other sanctions are imposed. Administrative power supports the operation of the entire planned economic system. Therefore, it is very difficult for an enterprise to deviate from the trajectory of the planned economy. By the same token, under the planned economy system, individual residents are actually in the position of administrative subsidiary. As a worker, an individual's employment and work positions are arranged by the labor and personnel agency according to the plan. It is difficult to move as expected. Resisting such an arrangement is equivalent to ruining the opportunity to continue working.
- Individuals as consumers must also be arranged by the planning department. The specific manifestations are that the necessities of life are supplied by tickets, the housing is provided by the unit, and even the children's education and employment are not related to the arrangements of different administrative agencies. Assume that an individual resident wants to leave the place of residence or work place arranged by the planned economy, he will encounter great difficulties in life. In this way, from the perspective of individual residents, the operation of the planned economy can also be considered to be supported by administrative power.
- Second, the planned economy system is composed of several sub-level institutions. For example, planned enterprise system, planned financial and taxation system, planned financial system, planned price system, planned labor system and personnel system, and so on. They are closely integrated with each other. This sub-level system depends on another sub-level system, and the other sub-level system depends on the third sub-level system. This deposit exists, and this loss is lost. Therefore, to break the shackles of the planned economic system, it is simply incredible for any single enterprise or individual resident individual. Moreover, even if an enterprise or an individual resident can, under certain circumstances, violate the rules of the planned economic system and develop his own economic activities, that can only be considered as an accidental and unconventional thing. It may become a regular behavior that others can follow. In this case, most enterprises or individual residents had to adopt a tacit and obedient attitude to the arrangements under the planned economic system. Both enterprises and individuals felt that their strength was too insignificant compared with the powerful planned economic system. Can not break free from the shackles of the planned economic system.
- Third, the planned economic system has a theoretical system of planned economy that is considered to be correct and unquestionable as a pillar. This economic theory defends the planned economic system and describes the establishment of the planned economic system as the only option for a socialist society. Any economic behavior that deviates from the planned economic system is described as revisionist. That is to say, through the explanation of the theory of planned economy, choosing a planned economic system is a natural thing. Even if one or more problems occur under the planned economic system, this is a historically doomed choice and cannot be changed. If you want to leave the track of the planned economy, you are slipping into the evil path of capitalism. The consequences for society, enterprises and individuals are very serious, because this is tantamount to betrayal. The planned economic system has both administrative power as a support and a planned economic theory system to defend and demonstrate it. The difficulty of breaking through the planned economic system can be imagined. Not only that, because the theory of planned economy occupies a dominant position in ideology for a long time, it has been determined as an orthodox economic theory. Any view that doubts or even wants to make amendments to the planned economy is heresy. Because what people read and saw in schools, books, newspapers, movies and television are propaganda of the planned economy, so people consciously or unconsciously want to get rid of the constraints of the planned economy. Acts are condemned and resisted. If an enterprise or an individual resident moves to escape from the planned economic system, he will be trapped in a very isolated situation. People around him despise him, laugh at him, and reprimand him, making him have to submit to the pressure of public opinion, the surrounding Human stress. Although these pressures are often intangible, even later, even those who initially suspected the planned economic system would further suspect that they might be really wrong: their positions were wrong, their views were wrong, so they were correct and innovative. Reform attempts were thus stifled and disappeared.
- From the superstition of the planned economic system to the skeptical planned economic system, and finally to the determination to abandon the planned economic system, it must be attributed to Comrade Deng Xiaoping's guidance on the theory of building socialism with Chinese characteristics, and to the historic Decision-making is attributed to the efforts of theoretical workers and economic practitioners in promoting reform and opening up these years.
- It can be recalled how difficult it was to take the first step in reform and opening up under the rule of "two whatevers". On May 11, 1978, "Guangming Daily" published the article "Practice is the Only Standard for Testing Truth", which triggered a discussion on the standard of truth. This discussion was suppressed by the "left" side. Comrade Deng Xiaoping supported the discussion and led the national liberation movement.
- Comrade Deng Xiaoping made major innovations in socialist economic theory. The China's reform and opening-up under his leadership, the programs and roads he designed to realize China's socialist modernization, and his theoretical research on socialist modernization have filled the gaps in the history of socialist economic development and unveiled a new One page and enriched the treasure trove of socialist economic theory with the practice of Chinese socialist economic construction. Without a doubt, it is assumed that without theoretical guidance and theoretical breakthroughs, China's economic reform cannot make progress, and the planned economic system cannot be gradually broken. In the early days of reform and opening up, from 1979 to the mid-1980s, economic system reforms achieved results in the promotion of the rural household contract system, the rise of township and village enterprises, and the establishment of special economic zones. It is the result of these shocks that led to the gradual loss of positions in the planned economic system and eventually had to disintegrate. You know, rural
- As for the establishment of special economic zones, it is even more impossible. An important difference between the establishment of the special economic zones and the emergence of the rural households 'joint production contract responsibility system and the rise of township and village enterprises is that the emergence of rural households' joint production contract responsibility system and the rise of township and village enterprises were initially purely spontaneous, and It was not consciously advocated by government departments, but only after the government leaders discovered the benefits and significance of the rural households' joint responsibility contract system and the role of township and village enterprises and their irreplaceability in the Chinese economy. After research and even debate Only after a unified understanding was recognized and supported. This is not the case for special economic zones. Under the planned economic system, there is no possibility of spontaneous establishment of special economic zones. The establishment of special economic zones is entirely a conscious action of the government. Only in this way can special economic zones such as Shenzhen appear on this land of China. From the fact of the establishment and development of special economic zones, we can understand more clearly how the planned economic system and administrative power are firmly and closely integrated. Assuming that the government does not take conscious action, it is impossible for a certain region to break through the constraints of the planned economic system and develop the economy in accordance with the rules of the market economy under the condition that the planned economic system and administrative power are firmly combined.
- By the mid-1980s, China's economy had finally undergone profound changes. The rural households' joint production responsibility system has been promoted, township enterprises have emerged, and special economic zones have been established. The achievements of the rural economic reform give people such an inspiration: as long as they get rid of the rigid control of the planned economic system, so that farmers can operate independently, bear the risks of production and management themselves, and get the part of their labor results that should be attributed to themselves, which is hidden in the vast majority The productive potential in the countryside will be brought into full play, making the rural economy prosperous; the achievements of the construction of special economic zones give people an inspiration that the economic and technological gap between China and developed countries can be greatly reduced through reform and opening up. of. As long as the planned economy is less and the market is more regulated, the economy will grow at a faster rate and the living standards of the people will be improved by a larger extent.
- The power of enlightenment is huge. The achievements of rural economic reform and economic construction of the special zone have conveyed a message to the people throughout the country: Urban economic reform, especially the reform of state-owned enterprises, has lagged behind, and we must seize the opportunity to promote reform. The economic reforms of the early 1980s heralded a deeper and more difficult reform. They are like large stones thrown into the lake of a deadly planned economic system, and they stir up waves. They have broken the long-term and abnormal silence, created an economic pattern that can no longer be calm, and made the Chinese economy irreversibly move towards reform, openness, and market economy.
- Since the founding of the People's Republic of China in 1949, our government has begun to build a social welfare system. After the socialist transformation was completed, after several years of exploration and practice, a fragmented and closed social welfare system was initially formed. The main manifestations are: the state guarantees the welfare of employed workers in the unit through "high employment, low wages, and high welfare"; for those who are not employed and outside the unit, it implements protection through "civilian welfare"; in rural areas Implement the "five guarantees" system. A social welfare system with severe differences between units and non-units and between urban and rural areas was formed.
- (I) Basic establishment of unit welfare
- In 1951, the government promulgated the "Labor Insurance Regulations of the People's Republic of China", which is China's first national unified social insurance law and a sign of the establishment of China's social welfare security system. After that, corresponding social insurance was also implemented for employees of government agencies and institutions. Beginning in 1952, the government successively promulgated the "Law of the People's Republic of China on Trade Unions", the "Joint Notice on the Unified Management of Multi-Children's Allowance and the Welfare of Families," and the "Notice on the Use of Welfare Fees of People's Governments at All Levels , "Regulations on Production and Maternity Leave for Staff of State Organs", "Notice on Medical Issues of Staff of State Organs", "Measures for Employees' Living Difficulties", "Notice on State Subsidiary and Enterprise, Enterprise Units' Subsidy for Heating of Workers' Dormitories in 1956 , Etc., a set of welfare systems have been established in China's urban enterprises, institutions, and institutions to provide employees and their families with housing, child care, canteens, commuting subsidies for commuting, winter heating subsidies, maternity leave, and family living difficulties. treatment. Through the establishment of the above-mentioned urban employee social insurance system and measures to improve employee welfare benefits and levels, by 1956, China had initially established a welfare guarantee system that took the state as the main body of responsibility and covered employees of state agencies and state-owned enterprises.
- (2) The initial formation of civil welfare
- The term "social welfare" was not gradually formed as a theoretical concept in contemporary China, but was gradually established according to the needs of government administrative practice. The social welfare in the early days of the founding of the People's Republic of China was closely integrated with social relief, hence collectively referred to as "relief welfare." Before 1955, it did not become a special "social welfare" concept, nor did the government set up a special social welfare agency. After the Third National Civil Affairs Conference in 1955, the Ministry of Internal Affairs set up a special social welfare business management organization. In 1959, the state formally established a social welfare service agency to adopt orphaned elderly people, dependent children, mentally ill patients, and disabled persons who had no dependability, labor capacity, or normal source of living. The Ministry of Internal Affairs and civil affairs departments at all levels are the main guidance and management departments for this work. This cause was later called "civilian welfare". This concept of social welfare generated from practice has been used continuously, forming a field of "social welfare" with Chinese characteristics. [1]
- (3) Establishment of "Five Guarantees" System in Rural Areas
- During the planned economy period, the social welfare in rural China was mainly the "five guarantees" system. The rise and development of agricultural collectivization has opened a new way to solve rural social welfare in China. Since agricultural production cooperatives implement unified land management and unified labor force allocation, favorable conditions have been created for the weaker rural society to engage in production and improve their lives. In June 1956, the Model Charter of Advanced Agricultural Production Cooperatives adopted at the Third Session of the First National People's Congress stipulated: The members of the community will make proper arrangements and care in production and life, guarantee their supply of food, clothing and firewood, ensure that young children are educated and that they are buried after death. "" The document guarantees eating, wearing, and burning. The young guarantees education and the old guarantees that they will be buried after death, referred to as "five guarantees." The "five guarantees" system has become a long-term policy of the Party in the countryside, and a regular work of governments at all levels and civil affairs departments. The establishment of the "five guarantees" system in rural areas, relying on national aid and collective economy, has ensured the social welfare guarantees for the elderly, the weak, the sick and the disabled in rural areas, and has become a bright spot in rural social welfare in China.
Basic Features of Planned Economy
- After China's basic establishment of the social welfare system in the 1950s, after years of development, China's social welfare system during the planned economy period has shown very distinctive characteristics.
- (A) the distinctive brand of public ownership and planned economy
- The theoretical basis of China's social welfare thoughts during the planned economy period was Marxist economic theory. The Marxist theory of the socialist country, the theory of the socialist public ownership, the theory of the planned economy, and the theory of distribution under the socialist system were all important foundations of our country's social welfare ideas at that time. In practice, our strengthening of the public ownership and the planned economy system has made the social welfare policies of the planned economy period deeply imprinted by the public ownership and the planned economy.
- 1. Public ownership is the institutional foundation of the social welfare system
- Under the premise of vigorously advocating public ownership, our understanding of social welfare is that only under the conditions of public ownership can we implement a truly meaningful social welfare system. The social welfare system in China's planned economy period was completely based on public ownership and became an appendage to public ownership, so that all welfare systems and policies in China at that time were closely linked to public ownership.
- Under the conditions of public ownership, all means of production are owned by the people, and social welfare service products should also be jointly owned by the people. The state, as a representative of the proletariat and the masses, has the right to formulate rules and plans for the distribution of social wealth in accordance with the long-term interests of the masses, and to determine welfare distribution methods in accordance with this rule and plan, which undoubtedly strengthens the state's social welfare system Decisive subject status in
- Under public ownership, the provision of social welfare at that time was closely related to the form of ownership of the means of production. The higher the level of public ownership, the higher the level of national benefits. Therefore, China's initial social welfare system was first established in the public sector, and since then the state welfare level of the public sector has always been higher than that of the private sector, and the sector of ownership by the whole people is higher than that of the collective sector.
- 2. The planned economic system is the basic background of the social welfare system
- China's social welfare system under the planned economy has two important characteristics. The first is to emphasize the state's "planning" function. The state and the government allocate social welfare resources, which guarantees the state's power in the allocation of social welfare resources and enables the state to maintain social welfare under difficult economic conditions. The second is that egalitarianism has become the guiding ideology of social welfare system arrangements. The social welfare of any country is based on a certain concept of social equity. The concept of social equity that dominates during the planned economy period is egalitarianism. This egalitarianism infiltrates a great egalitarian element, so that social welfare is no longer a synonym for the concept of social equity and equality, and ignores the difference between different individuals. The differential demand for social welfare ignores the higher-level welfare needs of members of the society, thereby deepening it into an inevitable material treatment that everyone has a share and that everyone enjoys on average, although the degree of benefit is not high, which also makes social welfare It is limited to providing people with the most basic living conditions and the most basic guarantee of survival, but it cannot provide higher-level public needs.
- (II) A fragmented and closed system
- China's social welfare system during the planned economy period is divided into three parts: First, the unit welfare of urban employees, which serves employees in this unit, including labor insurance, life services, cultural entertainment and welfare subsidies, etc., provided by state agencies and Enterprises and institutions; Second, the civil welfare is targeted at special groups such as the elderly, the disabled and orphans who have no economic income and no care in cities and towns, including living support, disease rehabilitation and cultural education. Provided and managed by the civil affairs department. The third is social welfare in rural areas, which is mainly targeted at special groups of "five guarantees" and is based on collective economy and managed by rural collective organizations. These are three parts that operate independently, with little overlap between them. Under the planned economy system, the welfare systems of different departments basically meet the welfare needs of different groups, and people in different parts can only enjoy corresponding benefits within the scope of their respective sections.
- 1. The welfare of urban employee units is relatively sound and complete
- Unit welfare is organized and implemented by government agencies, enterprises, and institutions, and is in a self-closed state. Unit benefits enable employees employed in their own units to obtain not only relatively sound labor insurance benefits, but also preferential living benefits represented by housing benefits, and even higher-level welfare needs such as medical care and education can be met. It can also enable their families to enjoy corresponding benefits, and the employment issues of employees' children can also be resettled. The unit welfare has the following characteristics: First, the organization of the unit's welfare facilities and welfare items and subsidies are arranged by the units under the unified national regulations, and they have a certain degree of autonomy. Due to the different nature and economic conditions, the welfare benefits between units There are large differences in standards; the second is that the unit benefits are based on this dependency relationship between employees and units. Only the employees of the unit can enjoy the benefits of the unit. After leaving the unit, the corresponding benefits will follow. Disappeared; Third, the unit's welfare items and facilities only face the interior of the unit, regardless of the size of the unit, have the characteristics of "small and complete", "big and complete".
- 2. The narrow sense of civil welfare is outstanding
- The initial establishment of the social welfare system in New China was dedicated to solving the problems of disaster relief and unemployment difficulties. At that time, a large number of refugees, disaster victims, nomads, beggars, and unemployed were left over from the old society. The problem of urban poverty was extremely prominent. The successive years of war made the rural self-help capacity very weak. Therefore, social relief and social welfare services for the needy became the regular system at the time. However, due to the limited financial resources of the country, other vulnerable groups such as the urban poor are excluded from the scope of welfare relief. Only those "three-none" widows, orphans, orphans and disabled children, the disabled and mentally ill who are helpless, homeless, and have no source of livelihood can be the target of civil welfare services. The social welfare of these special groups is completely covered by the state . Due to funding constraints, the number of service agencies at that time was small, the scale was small, and the quality of services was poor, and the overall state of operation was low.
- 3. Low level of rural social welfare
- In the early days of the founding of the People's Republic of China, rural social welfare resources mainly came from families. After the completion of agricultural co-operation, the rural areas gradually established a social welfare system based on collective economics, combining collective welfare, family self-care, and state welfare relief. Social welfare based on the collective economy is a low-level welfare of a unit nature. Like the unit welfare in the city, the collective welfare in the countryside is essentially the unit welfare, not the social welfare. The collective economic situation directly determines the farmers' welfare benefits. In addition, rural social welfare is limited to the level of basic assistance, and housing, education, and public facilities are seriously lacking. Only after the crops fail and the natural disasters occur will farmers be able to receive state welfare assistance. At other times, only rural "five guarantees" can enjoy social benefits.
- (3) Presenting the operation mode of "State-Enterprise"
- The state uses administrative power to implement a top-down mandated allocation of social welfare resources, and becomes the responsible body of the welfare system. The implementation of this welfare system depends mainly on enterprises to complete it, thereby forming a "state-enterprise" Welfare operation model.
- 1. The state is the most basic social welfare responsibility subject
- The centrally planned economic system has led to a high degree of integration between the state and society, and social development is completely dependent on state control. [3] In the field of social welfare, the central government, as the main body responsible for implementing the social welfare system, uses the central government as the source of funds to provide relevant welfare benefits to relevant members of society.
- The welfare guarantee with the state as the main body of responsibility fully reflects that the social welfare system is an important part of the distribution system and an important social public policy. The state provides welfare funds and welfare services within the scope prescribed by laws and policies, meets the welfare needs of some special populations, and solves its basic survival and development issues, with strong public welfare. In addition to the "five guarantees" in rural areas, the government is directly responsible for the welfare guarantees of personnel of state agencies and enterprises and institutions through financial appropriations. It also urges enterprises to implement welfare guarantees for employees through the organization of worker welfare matters.
- 2. The unit assumes management responsibility for social welfare
- In cities, the government gives social welfare guarantees to enterprises and institutions for implementation. The government formulates basic regulations and policies, and enterprises implement various welfare guarantee systems such as employment, housing, medical care, and education for employees in accordance with government regulations. The government provides and allocates funds to businesses. American sociologist Andrew G Walder elaborated on the state of workers receiving social benefits from enterprises during the planned economy: the importance of obtaining employment opportunities in state-owned units was not measured by money. In China, people's access to material and social serviceshow much they determine the standard of living of everyoneis largely not through money transactions on the market, but directly through official agencies or through regulations. Decide. Housing, quantitative durable consumer goods, daily necessities, subsidized food, various goods, important social services, medical care, etc. are mainly provided by units through their administrative departments and unions in their units. Enterprises are also responsible for managing labor insurance, benefits, and social insurance provided by the state, and provide various subsidies, subsidies, and loans. Like the welfare system in the Soviet Union, China's welfare system is completely managed by the unit, and the beneficiaries include only the unit's employees. Being a formal employee of a state-owned enterprise is more important to a person's standard of living than the difference shown in wages.
- The state provides various living benefits, wage subsidies, government subsidies, social services, welfare and insurance to employees through units. According to 1978 figures, all benefits add up to an average of 527 yuan per person (equivalent to an increase of 82% in wages). All benefits are available, including work injury or occupational illness, disability due to work injury, non-work injury or illness, disability due to non-work injury, family injury or illness, death benefit, death benefit for minor children, maternity leave, retirement, retirement Subsidies, living allowances, subsidies for changing jobs, food subsidies, family visit leave and its subsidies, transportation subsidies, workers 'family funeral subsidies, breastfeeding women workers' quantitative food subsidies, temporary difficulties for families, housing, children's education, kindergartens and nurseries, employee cafeteria , Staff hospitals, cultural and sports facilities, etc., forming a social distribution pattern centered on enterprises. This kind of welfare, which is mainly enterprise-centered rather than community-centered, has been called "wide social and cultural welfare" by foreign scholars. [4]
- In rural areas, the government entrusts social welfare security systems to rural collective economic organizations for implementation and implementation. It is also the government to formulate the rules, and the rural collective economic organizations shall bear the elderly, the disabled who have no working ability, no source of living, cannot support the obligor or have legal legal obligations, but the obligor cannot support Provide "five guarantees" support to minors. Rural collective economic organizations are also responsible for supporting and caring for the poor households of the club. On the basis of the collective economy, a rural basic education system and a rural public medical and health (cooperative medical care) system have been established. Among them, the rural cooperative medical system ("barefoot doctor" system), which is based on social teams for fundraising and organization, is an initiative of China's rural social welfare system.
Evaluation of planned economy
- At present, although China's economic system has achieved a transition from planning to the market, the impact of the social welfare system during the planned economy period is deeply entrenched. Therefore, an objective evaluation of the social welfare system in the planned economy period, and analysis of its positive contributions and negative effects, is of great significance for deepening China's social welfare reform and building a social welfare system with Chinese characteristics.
- (I) Establish the premise and basis of evaluation scientifically
- 1. Premise of evaluation: the planned economic system has its historical contribution
- The affirmation of the socialist market economy does not mean a complete negation of the planned economy. As some scholars pointed out: "Any idea of nostalgia for the planned economy system lacks theoretical and factual basis, and any attempt to restore the planned economy system is against the will of the vast majority of the people. But this does not mean that we choose a planned economy system in the early days of the founding of our country. It is wrong. The exploration of the planned economy for decades has no meaning; it does not mean that the planned economy only has the disadvantages of constraining economic vitality without changing the great role of the country's backwardness. Successful experience in acting according to objective economic laws. "[5] Evaluation of the original planned economic system should not simply be" affirmative "and" negative ", but should adhere to the scientific attitude of historical materialism and be objective in both positive and negative A local analysis of the economic system at that time can make an objective historical evaluation of China's economic, political, and social issues at the time, including the social welfare system of the time. Practice has proved that the socialist planned economy system based on the public ownership of the means of production enabled the people's livelihood issues to be initially resolved, and also established the prerequisites for the development of social welfare at that time. The needs of the people in pursuit of well-being have been fundamentally guaranteed by the system and institutions .
- 2. Basis for evaluation: The social welfare system at that time was compatible with the economic system
- Western economists described China's social welfare during the planned economy period as follows: "(1) All workers' wages are the same and very low; (2) The wages are full of generous benefits such as pensions Insurance, food subsidies, housing and even heating costs are usually provided by enterprises; (3) jobs are guaranteed, in fact occupations are lifelong. "[6] This description fully shows that the social welfare system at that time had become an economy An important part of the system, it also shows that the social welfare system at that time was adapted to the planned economic system, and was a "systematic necessity produced under the economic order" at the time. [6] Because under the planned economy system, resources such as social production and consumption are completely allocated by the state, and employment and welfare guarantees for laborers are also managed by the state. On the one hand, this "planned" system in which the state exercises the function of allocating resources uniformly enables the state to be the responsible body of welfare, and through the joint role of the government and enterprises, the welfare of workers is guaranteed; on the other hand, this This relatively common welfare system, which gives full attention and attention to the welfare of workers, has escorted the economic development of New China. A relatively sound welfare system and policies also became an important cause of people's support and dependence on the economic system of the time. Therefore, the welfare system at that time was compatible with the planned economy system, and it served as a stabilizer and balancer for the then planned economy system. The social welfare security system at that time was the best choice relative to the economic system at that time.
- (2) China's social welfare system during the planned economy period has an indelible positive contribution
- In the past two decades, the theoretical circles have had a lot of criticisms about the social welfare system and policies in the planned economy period, but the author believes that, from the overall perspective, China's social welfare system and policies in the planned economy period have made indelible positive contributions.
- 1. For the first time in Chinese history, a relatively stable and institutionalized national social welfare system
- China is an ancient civilization with a history of thousands of years. It has long been concerned about social welfare issues. In modern times, in Sun Yat-sen's "Three People's Principles" program, "people's livelihood" has become an important embodiment and pursuit of social welfare ideas. After the founding of New China, it established its own social welfare system. Although the social welfare system at that time had the obvious mark of the planned economic system, it was the first time in Chinese history to establish a relatively sound system, a more reasonable structure, and a social welfare system that was in line with China's actual conditions at that time and tended to be institutionalized. And system. Through social welfare guarantees for urban workers, rural welfare guarantees based on the collective economy, and welfare relief policies that benefit special social groups, socialist China has basically achieved a relatively extensive social welfare system arrangement. The establishment of this welfare system and institutional arrangements played a positive role in promoting economic development and social stability at the time.
- 2. Played an important role in promoting social stability
- In the early days of the founding of the People's Republic of China, the unemployed population, nomads, orphans and disabled children in need of assistance, and farmers affected by disasters accounted for a considerable proportion of our total population. Without addressing the basic needs of these members of society, it is difficult to consolidate the new state power, and the social welfare system has played an important role in social stability. According to statistics, in 1949, the area affected was about 140 million mu, and the number of people affected was about 45.55 million. [7] In the following years, floods continued, and the lives of the affected farmers were extremely difficult, and basic food problems were not guaranteed. The number of unemployed in the city is also increasing. From 1950 to 1951, the emergency relief population in 14 cities including Wuhan, Guangzhou, Changsha, Xi'an, and Tianjin reached more than one million people. In 1952, there were more than 1.2 million people receiving regular relief in 152 cities throughout the country, and about 1.5 million people receiving winter relief. Some cities enjoyed social relief of 20% to 40%. [8] This is only one aspect of social welfare relief in the early days of the People's Republic of China. It is precisely because of the establishment of a social welfare system in urban and rural areas that certain problems such as food, pensions, and medical care for the victims, the disadvantaged, and the disadvantaged have been guaranteed, which has completely changed the polarization between the rich and the poor in the old China and the majority of social members were at the death line The tragic situation struggling on. Therefore, although the social welfare system in the planned economy period still has disadvantages such as low level and incomplete operating mechanism, we must see that this welfare system can better solve the basic living security problems of all members of society and help urban and rural residents Vulnerable members of society have escaped the crisis of existence and maintained social stability.
- 3. Provide positive experience for building a future social welfare system
- Social welfare under the planned economy system is a valuable legacy of China's social welfare system, and it is worth seriously summarizing. Under the planned economy system, in addition to providing special relief to vulnerable groups in distress, the state also generally paid more attention to the people. This was the advantage of the social welfare system at that time. Employees of enterprises have enjoyed relatively comprehensive welfare programs and guarantees such as living, housing, labor insurance, education, and medical care. These benefits are for all employees of the enterprise, not for special groups. It pays attention to and guarantees the survival and development rights of all employees of the enterprise, which not only conforms to the ideas of modern social welfare ideas and systems, but also builds a social welfare system under the conditions of a market economy in China. Important reference and inspiration.
- During the planned economy period, China's social welfare was marked by the "General System of Preferences". This welfare system is devoted to the attention and protection of the right to survival and development of people. Taking this as a starting point to construct our future social welfare system is also in line with the "developmental social welfare" orientation.
- (3) China's social welfare system during the planned economy period has great historical limitations
- While affirming the positive role of China's social welfare system in the planned economy period, we must also clearly see that the social welfare system in this period still has great historical limitations.
- 1. There are serious stepwise differences in the "state-unit" welfare model
- During the planned economy period, China's social welfare system was a "state-unit" operating model. This kind of social welfare system, in which the state bears the main responsibility of the welfare guarantee system and is implemented and managed by the unit in which it belongs, is highly closed and it also increases people's dependence on the unit. Because people's various welfare treatments are mainly done by the units where they work, different enterprise benefits and different rural collective incomes have led to unequal benefits for different enterprises and different social team members. In particular, the severe differences between urban and rural areas have formed a welfare system with a dual structure. There are serious differences in welfare guarantees between urban and rural areas and between workers and peasants.
- 2. The "socialized" nature of the social welfare system is barely visible
- During the planned economy, differences in treatment between urban residents and rural residents, cadres and employees, and employees of different ownership severely hindered personnel exchanges. The welfare recipients are first of all unit people rather than social people. They do not overlap with each other, which seriously affects the normal flow of labor between enterprises of different ownerships, departments and regions, hinders the socialization of production, and hinders the formation of the labor market. In addition, social welfare during the planned economy simply emphasized the public welfare of social welfare and neglected efficiency; the simple emphasis on the role of the state's main responsibility for social welfare caused the government and enterprises to completely contract social welfare, which seriously deficient social mobilization. Intermediary organizations such as organizations and non-governmental organizations are lacking, and the "social nature" of social welfare has not appeared.
- 3. Social welfare is closely attached to the government and enterprises, causing a heavy burden on the government and enterprises
- Social welfare under the planned economy system is closely linked to the state and enterprises, and the state has become the only welfare provider. The monopoly of social welfare resources is prominently manifested in the "direct management, direct management and direct management" of social welfare by civil affairs departments. The government has arranged almost all the economic and service supply responsibilities of social welfare. The maintenance and development of welfare institutions depend entirely on government funding, and the system and mechanism are relatively single.
- Welfare expenditure is a heavy burden on the development of enterprises in the planned economy period, and employee benefits are important factors that determine the living standards of employees. This has continued to the beginning of reform and opening up. In 1982, 92% of workers' household expenditures were spent on consumer goods and necessities, of which food alone accounted for 58%. 5.2% of household expenses were used for housing, water, electricity, transportation, and medical care. These items account for 45% of household expenditures in the United States and 21% in Japan. The proportion of household expenditure reflects the state's high subsidies for employees of state-owned enterprises. By the early 1980s, these subsidies exceeded total wages. In other words, more than a third of the living costs of state-owned workers come from direct distribution or subsidies. [4] (pp. 65, 68) 4. Social welfare gifts are rich in color, ignoring the concern for civil rights
- Welfare institutions such as child welfare homes and elderly welfare homes during the planned economy period demonstrated the party and government's concern for special groups of people and were regarded as the embodiment of "socialist superiority." The adopters thank the party and the government for their care and gratitude, but the "welfare character" is relatively weak. Social welfare is a fundamental right of citizens. China s constitution clearly states that Citizens of the People s Republic of China have the right to receive material help from the state and society in the event of old age, illness, or incapacity. To protect these basic rights of citizens, the state must develop social welfare services. Otherwise, the separation of social welfare from the rights of people will easily lead to inaccurate positioning of social welfare policies, which will affect the sustainable development of social welfare.
Countries implementing the planned economy
- Union of Soviet Socialist Republics: 1928-1990
- Socialist Federal Republic of Yugoslavia: 1947 ~ 1990
- Democratic People's Republic of Korea: 1947 to present
- Mongolian People's Republic: 1948 ~ 1990
- Hungarian People's Republic: 1949 ~ 1989
- Bulgarian People's Republic: 1949 ~ 1990
- Polish People's Republic: 1950 ~ 1989
- Romanian Socialist Republic: 1950 ~ 1989
- People's Republic of Albania: 1950 ~ 1991
- German Democratic Republic: 1951 ~ 1990
- Czechoslovak Socialist Republic: 1951 ~ 1992
- People's Republic of China: 1953 ~ 1992 (the goal of establishing a socialist market economy system was established in 1992)
- Democratic Cambodia (Cambodian People's Republic): 1953 ~ 1992 (turned into a market economy in 1992)
- People's Republic of Afghanistan: 1956 ~ 1992 (Afghan Socialist Regime was established in 1978)
- Socialist Republic of Vietnam: 1960 ~ 2001 (established in 2001 to establish a socialist market economy system)
- People's Democratic Republic of Ethiopia: 1974 ~ 1991
- People's Republic of Angola: 1975 ~ 1992
- Mozambique's People's Republic: 1975-1986 (gradual transition to a market economy after 1986)
- Republic of Cuba: 1976 to present
- Lao People's Democratic Republic: 1978 ~ 1986 (gradual transition to a market economy after 1986)
- Congo People's Republic: 1982-1990