A dual-track system is an

economic system An economic system, or economic order, is a system of Production (economics), production, resource allocation and Distribution (economics), distribution of goods and services within a society or a given geographic area. It includes the combinati ...

in which the government controls key sectors of the economy, while allowing

private enterprise A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...

limited control over the other sectors. In China, the government followed dual-track pricing until abolished in November 1989, known as "''shuangguizhi''" in Chinese. State-controlled (planned) prices, which were lower, accompanied the market prices, which were higher. This was done to ensure stability and gradual opening of markets (instead of a "big bang" strategy of sudden transformation to capitalism that was attempted in Eastern Europe and Russia). However, to provide incentive to the State-owned Enterprises, government allowed selling of the products at market prices after the planned targets had been met.Barry Naughton, "The Chinese Economy" (MIT Press, 2007)

References

{{Reflist Economic systems

See also

References