ABSTRACT
In Marxist economics, the theory of resource allocation mainly deals with the value distribution of resources and their categorization. The theory of labor value elaborates on the nature, the representation and operating law of value. Between the 1950s and 1970s, the first generation of development economists advocated that for government to dominate resource allocation through plans and planning guidance. The chapter discusses the three categories of resources that are to be allocated by regional government. Maintaining stability, fostering development and tackling contingencies are the three critical tasks facing countries across the globe. Category A: resources that are pertinent to social welfare, referred to as “non-operational resources” in a market economy. Category B: resources that are pertinent to economic growth, referred to as “operational resources” in a market economy. Category C: resources that are pertinent to urban construction, referred to as “quasi-operational resources” in a market economy. Regional government should make industrial policies that plan and guide use of operational resources.
