Socialist Market Economy

A Socialist Market Economy is a system that combines government planning and social ownership with market-based practices. The government plays a key role in guiding economic development, ensuring social welfare, and maintaining stability. Meanwhile, businesses operate in a competitive market environment, encouraging innovation and efficiency. This approach aims to balance socialist ideals of equality and public interest with the advantages of market-driven growth, allowing resources and enterprises to be managed collectively while still benefiting from market mechanisms. It’s a model used by countries like China to promote sustainable economic development within a social framework.