Keynote Speaker: Zhou Linjun
Discussants: Shi Shiwei, Liu Haibo, Qiu Feng

Centering on the 'Coasain Theory and Perspective of Economic Institution in China', Dr. Zhou's lecture analyzed the relationship between economic institution, government as well as market in China.

Compared with big market and small government in western countries, economic institution in China demonstrates the integration of big market and big government. That means we have powerful government at the same time we also have a fully competed market. Firm theory of Coase tries to explain the authority existing in a firm and its existence proves the conception of omnipotent market is very simple. The development of China is promoted both by free competition and authority.

PhD. Zhou pointed out that the key is not the strength of authority but the bound of its existence. The success of institution system in China can be explained by compare between total benefits and total costs during the reform. Although the result is good, but involuntary wealth transfer and unnecessary cost happens now and then. He thinks that there are three flaws in China's economic institution: firstly, the overall planning still concentrates on resource allocation; secondly, the overall planning ignores the allocation of social cost; thirdly, unequal allocation of social welfare among different areas, flocks and imbalance between rural and urban.
In order to solve these problems, PhD. Zhou pointed out some remedies: improve public governance; integrate the overall planning of resource and costs; improve the efficiency of governance; decrease corruption and reform the allocation of social wealth; optimize administrative means and strengthen economic means etc.

December 24th, 2010