The difference between enterprise procurement under the planned economy and the market economy

Under the planned economic system and the market economic system, the main difference between enterprise procurement lies in the difference in decision-making methods and market competition mechanisms.

Under the planned economic system, the procurement activities of enterprises are usually arranged by the planning department or the organization, and the autonomy of the enterprise itself is greatly restricted. In this case, the procurement decision of the enterprise is often affected by policy factors, such as the best guide price, unified procurement policy, etc. Therefore, the procurement of enterprises under the planned economic system pays more attention to administrative instructions and regulation and control.

Under the market economy system, the procurement activities of enterprises depend more on their own needs and market conditions. Under the market competition mechanism, enterprises will pay more attention to market trends, market demand and the quality and service of leading merchants. At the same time, enterprise procurement under the market economy system also pays more attention to the standardization and legitimacy of the procurement process, such as procurement through bidding, competitive negotiation and other means to ensure the fairness, transparency and legality of the procurement process.

The difference lies between the words plan and market, under the market economy, enterprises consider the needs of the market, everything is market-oriented, pay attention to customer needs, and under the planned economy, it is not the same. Oh.

First, the mechanism of economic operation is different. The planned economy is an all-encompassing state plan, and the market economy is a market mechanism, that is, the competition between supply and demand, interest rates, etc.

Second, the means of regulating the economy are different. The former is mainly an administrative means, while the latter is mainly an economic and legal means.

Third, there are different ways to regulate the economy. The former is directly regulated by the state, and the latter is regulated by the state, and the market guides the enterprise.

Fourth, the ownership structure is different. The former has a single ownership structure, while the latter has a pluralistic ownership structure.

Fifth, the distribution of benefits is different. The former is highly egalitarian, and the latter focuses on efficiency.

The differences between the two in terms of resource allocation, resource allocation influencing factors, and characteristics are as follows:

1. The configuration subject of resources is different

Under the planned economic system, the allocation of factor resources is determined by the planning work presided over by **; Under the market economy system, the allocation of factor resources is determined under the mode of full participation and orderly competition of multiple market players.

2. The influencing factors of resource allocation are different

Under the market economy system, the allocation of resources is constrained by the sovereignty of consumers, what is produced depends on the needs of consumers (market demand), and how much is produced depends on the level of demand of consumers' ability to pay.

What to produce, how to produce, and for whom. Most of these resources are owned by **, and the allocation of resources by ** is not affected by the market.

3. Different characteristics:

The planned economy is highly centralized, and in practice, an inefficient social and economic system can avoid the blindness and uncertainty of the development of the market economy, and the harm caused to social and economic development.

The characteristics of the market economy are the commodification of economic resources, the monetization of economic relations, the liberalization of the market, and the opening of the economic system.

The main disadvantage of the planned economic system is that the formation of values is not natural and is artificially determined, so that there will be many incorrect phenomena in the long run, and it is easy to form strong and weak points. It is not conducive to the sustainable development of society. It is mainly manifested in the fact that the macro is better than the micro one, and it is not sustainable when the competitive pressure is high.

The market economy system has a good foundation, but it will cause many problems due to disorder, and it is cyclical. It is self-regulating, but the damage to society and nature is also enormous and sometimes unbearable. It belongs to the economy that follows the feelings, and its crisis is often manifested in one sentence:

But when you reach the Yellow River, you don't give up. The same is unsustainable.

The planned economy completely relies on the allocation of supply and demand.

The market economy mainly relies on the market itself to allocate supply and demand.

The former is the visible hand, and the latter is the invisible hand.

The economy that mainly relies on state control is a planned economy and an economy that is mainly regulated by the market. For example, the fundamental difference between the state and the market economy through financial means is the difference in the process of managing economic activities. The basis of planned economic management is the ownership of the state or the whole people, and the institutional basis of the market economy is formed by the collective of people after a long period of interaction and mutual games.

The second difference between a planned economy and a market economy is the difference in the means of management. The means of planned economic management is planning, and the means of market economic management is **. From the viewpoint of historical materialism, proceeding from China's reality, we cannot simply deny the achievements and role of the planned economy.

After the founding of the People's Republic of China, the economic foundation was extremely weak, and everything was waiting to be rebuilt. In this case, only the concentration of economic forces can develop industrial projects that are urgently needed in some countries. Although the planned economy was based on learning from the experience of the former Soviet Union, it was also adapted to the actual situation in China at that time.

In particular, it rejects the role of the market mechanism, fails to sensitively reflect market demand, suppresses people's enthusiasm for production, and inhibits economic vitality. As a result, there is a shortage of **, and productivity cannot be fully developed. In order to adapt to the new situation of the world's new technological revolution and economic globalization, further accelerate economic development, and achieve the goal of China's modernization, it is necessary to carry out reforms.

China has experienced a planned economic system and has also witnessed a socialist market economic system, and this great change is a wise policy decision made by our party in line with the trend. The advantage of the market economy is that the market plays a fundamental role in the allocation of resources. The market mechanism can sensitively reflect social needs and fully mobilize the enthusiasm of producers and operators, thus greatly enhancing the vitality of economic development.

The advantage of the market economy is that the market plays a fundamental role in the allocation of resources. The market mechanism can sensitively reflect social needs and fully mobilize the enthusiasm of producers and operators, thus greatly enhancing the vitality of economic development. The transition from a planned economy to a socialist market economy is a gradual process that cannot be completed overnight.

To realize this great change, we must correctly handle the relationship between reform, development and stability in accordance with the best arrangements, and work in a down-to-earth manner step by step. Our cause will surely flourish day by day and create greater achievements in the new century.

Planned economy is an economic system, and in this system, the state in terms of production, resource distribution and product consumption, all aspects are planned in advance by ** or consortium. Since almost all planned economic systems rely on the command plan of the first place, the planned economy is also called the "command economy". A market economy (also known as a free market economy or free enterprise economy) is an economic system in which the production and sale of goods and services are guided entirely by the free mechanisms of the free market, rather than by the state as in the case of a planned economy.

Market economy is also used as a synonym for capitalism. In the market economy, there is no coordinated system to guide its operation, but in theory, the market will produce a complex interaction between the supply and demand of products and services, and then achieve the effect of self-organization. Proponents of the market economy often argue that the self-interest pursued by people is in fact the best interest of society.

The relationship between the two is interchangeable. Due to the variety of ways and degrees of providing policies and order and participating in the allocation of resources, the specific forms and degrees of mutual substitution and complementarity are also different, forming a series of mutual substitution and complementarity, from the weakest recognition of the trade association to the strongest monopoly operation, the intermediate forms are: more stringent industrial and commercial registration and registration conditions, public bidding to operate concessions, administrative concessions, competitive operations, etc., these different forms are different institutional arrangements, Their different combinations form different market structures and institutional structures.

In the actual economic operation and development, the market field is the main stage for the activities of various economic entities, and market transactions and intra-enterprise transactions are the main modes of their activities. In the market, the rights and obligations, benefits and costs, incentives and constraints of each subject are clear and corresponding, therefore, the market has obvious comparative advantages, it can not only provide appropriate incentives, but also deal with locally obtained information, but also use the practical knowledge scattered in countless personal habits and tendencies, therefore, efficient market operation is the basic condition for the smooth operation and sustainable development of the social economy.

The main difference is the administrative intervention in the planned economy countries, and everything in the market economy is determined by the market, and there is very little administrative intervention. It is impossible for a country to have these two economic systems, and China is not yet completely a market economy, and has changed from a planned economy to a market economy.

Our country was founded with a planned economy, and later General Secretary Jiang proposed the establishment of a market economy. Yes, as long as it is conducive to economic development.

It can exist, mixed economy.

Right. Under the planned economic system, state-owned enterprises from raw materials, employees, product production plans to sales are according to the national plan, enterprises have no autonomy at all, enterprises only according to the national plan of production, do not have to worry about poor sales, at that time not allowed to have a market, enterprises are most worried about the raw material plan is not enough, not sales. If the raw materials are not enough, report to the national (provincial, county and municipal) planning department (according to whether you are a national or provincial, county or municipal enterprise) to apply, and the employees are also strictly in accordance with the national plan to apply for distribution, can not be more than one person (I was based on the enterprise has a retired worker shortage 1 to be fortunate enough to enter the factory), the wage of workers is strictly 8 levels of wage system, and the regional classification is slightly high.

Therefore, the employees of this kind of enterprise do more and do less, and the cadres do not have the spirit of innovation, because they are appointed by the superiors, and the superiors can also transfer cadres across the country at will.

This kind of enterprise basically does not exist now, so if it is still like this, this kind of enterprise is not dead? I'm from the past, and I know it very well.

This sentence belongs to the ignorance of the planned economy. In fact, until now, state-owned enterprises and state-owned enterprises and foreign enterprises are still operating in the market economy.

A business is an economic entity that aims to make a profit.

Under the planned economic system, sales** is set by the state.

That is to say, both the bid price and the bid price are ** pricing.

In addition, the output is also certain.

Enterprises are just producing, the buying price is not worried about the selling price, and the production is set by the country.

The main reason is that although the planned economy has had some results, there are some drawbacks that have gradually emerged over time: the responsibilities of government and enterprises are not divided into sections and blocks, the state is to the death of enterprise unification, the law of value and the role of the market from 1979 to 1979 to 1992 to 1992 to unify the market and the plan, the 14th National Congress of the Communist Party of China, Formally put forward the reform of the planned economy to the socialist market economic system, the socialist market economic system has its own characteristics: 1. In terms of the form of ownership, with public ownership as the main body and the common development of the economy under various forms of ownership, 2. In the distribution system, we should adhere to the principle of distribution according to work, and the coexistence of various distribution systems, and 3. In terms of macroeconomic regulation and control, we can combine the people's immediate interests with long-term interests, local interests and overall interests, and give better play to the advantages of the two means, so the market economy system adheres to socialism on the one hand. On the one hand, it is also the improvement of the original economic system, and it is all about striving to build a moderately prosperous society.

Under the planned economic system.

All resources are to be shouted and obeyed, and the country is pure and the wild family is dispatched.

There is nothing personal about it.

under the market economy system.

The market determines the allocation of resources.