Socialist market economy
The socialist market economy is seen by the Communist Party of China as an early stage in the development of socialism (this stage is variously called the "primary" or "preliminary" stage of socialism), where public ownership coexists alongside a diverse range of non-public forms of ownership. The Communist Party of China maintains that despite the co-existence of private capitalists and entrepreneurs with public and collective enterprise, China is not a capitalist country because the party retains control over the direction of the country, maintaining its course of socialist development. Proponents of this economic model distinguish it from market socialism as market socialists believe that economic planning is unattainable, undesirable or ineffective and thus view the market as an integral part of socialism whereas proponents of the socialist market economy view markets as a temporary phase in development of a fully planned economy.
Types of socialism
With the Soviet Union's creation after the end of Russian Civil War that followed to initial success of Red October Revolution in Russia, other socialist parties in other countries and the Bolshevik party itself became Communist parties, owing allegiance of varying degrees to the Communist Party of the Soviet Union (see Communist International). After World War II, regimes calling themselves Communist took power in Eastern Europe. In 1949, the Communists in China, supported by Soviet Union and led by Mao Zedong, came to power and established the People's Republic of China. Among the other countries in the Third World that adopted a bureaucratic Communist state as form of government at some point were Cuba, North Korea, Vietnam, Laos, Angola and Mozambique. By the early 1980s, almost one third of the world's population lived under Communist states.