An Institutional Analysis On State Plan

This dissertation study institutional arrangement, institutional foundation and institutional function of state plan in market economy regarded as a kind of institution by institutional method.The essence of the state plan is an optimum institutional arrangement to future development of economy and society. The institutional method used for studying the plan is a general one based on the general characteristic that exist among institutional school, new institutional economics and Marxism economics. This method use structural, historical and social cultural analytic approach to study the economic problem, and announce the position and function of the institution in the economic system and its impact on social economic development. The analytical method has several characteristics such as dynamic," non- pure economic analysis " and collectivism, etc.The development of state plan has gone through such a course: Having no state plan in classical market economy—anti-market state plan—state plan in market economy —market-oriented reform in planned economy country. In this course, two kinds of the state plan (in planned economy and in market economy) successively formed, both of them possessing its own specific institutional foundation and institutional arrangement. Planned economy is a complex system of trinity of state power, economic system and ideology, while the state plan in market economy is the supplementary and correction to the market mechanism, and its tendency is toward strategy and policy.The institutional foundation of planning determines the concrete institutional arrangement of planning. In economic system aspect, ownership makes up the interested foundation of the state plan, the property right determines regular structure of planning, and the way of allocation of resource is an operational foundation to planning. The democratic condition in political institution is an important factor in formulating plan and implementing plan. In addition, the culture, namely man's reason and spirit, influence also the planning. Institutional arrangement of planning is formed by planning organization, planning scheme and management institution to implement planning.Deep economic origin of the state planning lies in the uncertainty of the economic activity. The planning is an institutional arrangement to eliminate uncertainty. The essence of the state plan is to prevent adjustment afterwards with prearranged institution. Under the market economy, consumer and manufacturer are the subject overcoming uncertainty, and planning should assist them to improve their capacity to cope with uncertainty. For this reason, planning need to carry on three " construction", namely information service, economic forecasting and risk management.The aim of the state plan lies in promoting the development of economy and society, and it displays on the function of the planning. To put it briefly, main goal of state plan is as follows: Optimum economic growth, overall balance and structure balanced, scientific and technological progress, and balance between equity with efficiency. The function of the state.plan is realized through cooperating with planned target and planned tool, including coordination of sub-targets and varying tools.In China, historical origin of planned economy was mainly " semi-natural economy " system and centralization political system, and its realistic economic origin lies in China's modern economybeing a kind of backward economy , simple economy , shortage economy and administrative economy. It is a course of transplantation and localization to set up planned economy. Planned economy gave play to historical great function, but finally have to make way for market economy. The institutional changes are the comprehensive changes on institutional foundation, institutional arrangement, concrete operating mechanism and even ideology of planned economy.