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What is the theory of bird cages
- Aug 28, 2018 -

What is the theory of bird cages?

On December 2, 1982, Chen Yun believed that the relationship between “market regulation and planning guidance” was like “birds and cages”. Engage in the economy "always have cages", or the birds will fly away.

When Chen Yun talked with the Shanghai delegation at the Fifth Session of the Fifth National People's Congress, he expressed his views. He said: Invigorating the economy is to invigorate under the guidance of the plan, not to leave the plan to invigorate. It's like the relationship between a bird and a cage. The bird can't be pinched in the hand, pinching it in your hand will die, let it fly, but only let it fly in the cage. Without a cage, it flew away. If the bird is to invigorate the economy, then the cage is the national plan. Of course, the size of the "cage" should be appropriate, and how big it is. In addition, the "cage" itself has to be adjusted, such as the five-year plan. But in any case, there must be a cage. That is to say, invigorating the economy and regulating the market, these can only be carried out within the scope of the plan, but cannot be separated from the macro guidance of the plan.

Zhu Jiamu wrote about the source of the famous metaphor of "birdcage economy": the analogy between "bird" and "cage" was first proposed by Huang Kecheng on the eve of the party's 12th National Congress. He reported to Chen Yun about smuggling, tax evasion and chaos. After the economic crimes such as chaotic price increases and the chaotic economic order, he said: "We must invigorate the economy, ... but we must not be in order to invigorate. This is like a bird, can’t hold it in its hands, it’s in its hands. Dead, let it fly. But let it fly in the cage, otherwise it will fly." Two months later, Chen Yun used this metaphor. The starting point and destination of this metaphor are to invigorate the economy.

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