Abstract

Smooth transformation of Chinese-style system to adjust the ownership structure from the start, however, non-public economy in the former planned economy period is excluded, then why in the early stages of reform of the ownership structure appears on the direction of 180 ° turn it? Detailed study of history, we can find the ownership structure adjustment and reform is under pressure at the time of employment occurred in 1978-1979, the educated youth back to the city to focus on the already grim employment situation more stressful. In order to solve the unemployment problem, the government put forward the "three combinations" of employment policy, the adaptive behavior of policy adjustments initiated the reform of ownership structure, so that cities and towns to the private economy came into being, the ownership structure of the core of the traditional planning system and the most difficult touch made ​​a breakthrough in the field of reform. This case reflects the smooth start-style economics institutional transformation: a breakthrough in the reform of the principles of choice of maximum pressure along the line of least resistance, to promote principles of reform and the marginal benefit to producers quick spot principle. China's smooth economic institutional transformation was initiated by be adjustment of owning system when the non state owned economy was excluded by the planning economy. Then why the 180 ° turn in the owning system happened in this early stage of China's reformation? A close reading to the history shows that the owning system reform occurred under the pressure of employment when across China the "intellectual youth" pour back to the city form countryside. The new employ policy aiming at preventing the potential social and political crisis hastened the owning system reform which in turn advanced the private owned economy-accidentally the owning system, the hard core of traditional planning economic system accomplished its reformation. The paper holds that the above owning system restructure is a typical case of China's smooth economic institutional transformation