The Third Allocation And The Development Of Contemporary China's Non-state Owned Economy

Government and market are two kinds of mechanism which can allocate resources and coordinate social economic activities, among them, the market mechanism is called"the visible hand", and regulation and control by government is called"the visible hand". But both ways of resource allocation have flaws that themselves can't overcome. In practical economic movement, there exist other ways and methods by which social resources are allocated, such as ideology, ethics morals, custom, convention, traditional culture, social organization standard. We call the mechanism behind resources allocation by such ways and methods"The Third Allocation".During the course of development of contemporary China's non-state-owned economy, The Third Allocation has important and even prominent effect on it. This effect has passed through the entire process: the non-state-owned economy's seed, its birth, its development and its expansion. Moreover, this effect is similar to the coin which has two sides. That to say, The Third Allocation optimized the resource allocation, thus promoted the development of contemporary China's non-state-owned economy, but also twist the resource allocation to some extend, thus hindered China's non-state-owned economy to grow greater and stronger. Under the current ground that market mechanism is not perfect and the government control mechanism is not mature, making good use of The Third Allocation is an important way to promote the healthy and sustained development of contemporary China's non-state-owned economy.Therefore, the systematic and comprehensive study on The Third Allocation accompanying the development of contemporary China's non-state-owned economy has great theoretic significance and practical significance.The introduction of the thesis mainly remarked the background and significance to choose this topic, then summarized the current researches on the same topic from domestic and foreign. The main body of the thesis is divided into seven chapters. Chapter 1 reviewed the development course of contemporary China's non-state-owned economy, elaborated the concept and the characteristics of non-state-owned economy, revealed the status and the function of non-state-owned economy in national economy ,including its contribution to entity economy and the institutional demonstration effect, by this means, this part provided realistic background for the study. At the same time, this chapter also studied and reviewed on the performance of government behavior and market mechanism during the development of contemporary China's non-state-owned economy, making a upholstery for the following introduction of the theory and practice of The Third Allocation.Chapter 2 firstly elaborated the basic principles of The Third Allocation, including its connotation and characteristic and so on. Further, the thesis divided The Third Allocation power into the social spiritual power, the social institutional power as well as the social organizational power, separately studied the concrete mechanism and the function of them in allocating social resources. All these provided theoretical basis for the study on China's non-state-owned economy. At the same time, this chapter carried on a brief historical inspection on The Third Allocation accompanying the development of contemporary China's non-state-owned economy, summarized five aspects: Ideology vicissitude, social network, relational rule, family ethics, local, then taking"the second undertaking"in Wenzhou as example to prove the great practical significance of The Third Allocation in the development of China's non-state-owned economy.Chapter 3 inspected the influence of The Third Allocation upon the forming of overall characteristic, the developing path and pattern of China's non-state-owned economy.First, as an important attribute embedded in economic development, China's traditional culture which is dominated by Confucianism, together with the network social structure, has played a role in the casting of the"cultural gene"of China's non-state-owned economy, such as enterprising, innovation, harmony. But at the same time, some dross of traditional culture also greatly hindered the healthy development of contemporary China's non-state-owned economy. Second, the suspicion and discrimination upon the non-state-owned economy in the social concept forced China's non-state-owned economy to go a tortuous development path- wearing"the red cap", dodge political risk by means of confusing the property right. At last, due to the differences among sub-culture, the development patterns of non-state-owned economy in various regions assumed some diversity. Among them, Wenzhou pattern, Southern Jiangsu pattern, Pearl River pattern are typical.Chapter 4 discussed the effect of The Third Allocation on capital accumulation of China's non-state-owned economy. Through a contrast between China's non-state-owned economy and Western capitalist economies upon primitive accumulation of capital, section 1 pointed out that by the full use of"the three relationships", China's non-state-owned economy can avoid all sorts of brutal and barbaric phenomena in capitalist nations during the course of primitive capital accumulation, thus successfully and peacefully accumulate material base for its development. Section 2 made a quantitative investigation on the financial difficulty that China's non-state-owned economy are facing as well as on folk loans derived from it, attempting to seek a theoretical explanation for the folk low interest and non-interest loan from the angle of The Third Angle.Chapter 5 researched the relation between The Third Allocation and the enterprise's inner governance of China's non-state-owned economy. Section 1 promulgated the family characteristic of China's non-state-owned enterprises, revealing the cause of such characteristic - China's thick"family culture"and"the difference sequence relation". Section 2 explored the inner-control mechanism and the delivery of ownership to next generation in China's non-state-owned family enterprises, drawing the conclusion that China's non-state-owned family enterprises have been adopting a purely profit-making management way which is oriented by the difference sequence relation. Furthermore, the control right and ownership of the enterprise are delivered according to the degree of intimacy. Section 3 established a game model between the entrepreneur and professional manager, still explain the"trust difficulty"between them from the angle of The Third Allocation.Chapter 6 elaborated the relation between The Third Allocation and the exterior governance of China's non-state-owned economy. Section 1 introduced the historical origin and development, the characteristics and functions of the chamber of commerce as a social organization between government and market. Moreover, this section analyzed its mechanism and validity in resource allocation and economic activity coordination from various theoretical angles of view. Section 2 proved the necessity to develop and normalize China's chamber of commerce further through the inspection on the practical effect that chamber of commerce have on the development of contemporary China's non-state-owned economy.Above four chapters intrinsic have contained experience summary upon the influence of The Third Allocation on the development of China's non-state-owned economy. In this foundation, chapter 7 proposed suggestions and countermeasures from three layers: the government, the society, the enterprises themselves, in order to provide guidance for the further development of China's non-state-owned economy.