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International Workshop NDRC&DRC Li Xiaoxi September 3rd, 2007 Three Major Driving Forces for Transforming the Government Functions.

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Presentation on theme: "International Workshop NDRC&DRC Li Xiaoxi September 3rd, 2007 Three Major Driving Forces for Transforming the Government Functions."— Presentation transcript:

1 International Workshop NDRC&DRC Li Xiaoxi September 3rd, 2007 Three Major Driving Forces for Transforming the Government Functions

2 2 Introduction: Three Relationships regarding to Transforming the Government Functions (with different opinions)  Big Government and Small Government: which means the management range of government, and what should government do?  Powerful Government and Weak Government: which means how about the management degree of the government and how can government do it.  Good Government and Bad Government: Which relates to how to do it well and make the public satisfied.

3 3 Theories regarding to Relationship between Government and Market ( The key for transforming the government functions is the relationship between government and market )  Adam Smith ---- Government: the “watcher”, safety, justice of the public and the management on public undertakings  Liszt ---- Nationalism: Government intervention and protection  Keynes --- Active intervention and regulation of government  Samuelson ---Integration of government and market

4 4 Three Major Driving Forces for Transforming the Government Functions  Internal driving force--- Marketization  External driving force--- WTO  Technical driving force--- Infomationization (e-government)

5 5 Characteristic of transforming the government functions in China  Old-oriented transformation--- transform the plan-adapted into market-adapted  Perfect-oriented transformation--- transform the government function with immature market economy into normalized market economy  Innovation-oriented transformation--- Examples from advanced countries in terms of government function innovations

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7 7 Marketization reform’s push on transformation of the government functions  Central Government’s decision to restructure the economy in 1984 ——Main functions of the government agency are: draw up strategies, plans, guiding principles and policies; coordinate regions, departments and enterprises; deploy the key projects; master and make use of economic regulation means; manage the communication and cooperation of foreign economic technology, etc.  Central government’s decision on some problems to establish the socialism market economy institution in 1993 ——Functions of the government are: draw up and implement macro control policies, make a good job of infrastructure construction, create a good development environment for the economy. Cultivate market system, monitor market operation and preserve equal competition, manage State-owned assets and monitor its operation, etc.

8 8 Marketization reform’s push on transformation of the government functions  Report of the Sixteenth National Congress of Communist Party in 2006 ——Perfect government functions on economic regulation, market monitoring, society management and public service, reduce and normalize the administrative approval. Take advancement of economic growth, stabilizing prices, maintaining the equilibrium of balance of payment as the main objectives of macro-control.  The Decision on some problems to perfect the socialism market economy system in 2003 ——According to the requirements of the Five Balanced development, develop the market’s fundamental functions in resource allocation, strengthen the vigor and competitiveness of the enterprise, perfect the national macro- control, and perfect government’s functions on society management and public service.

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10 10 Marketization reform’s push on transformation of the government functions  Decision on some key issues to establish socialism harmonious society in 2006 ——According to the requirements on functions transformation, unified rights and liabilities, strengthened service, improved management and advanced efficiency, to deepen the reform of administrative management system, strengthen institutional set up, and pay more attention to implement the functions of society management and public service.

11 11 Summary: the transformation of the government functions mainly includes 4 aspects below  Without a clear line between the functions of the government and enterprises ——> Separate government functions from enterprise management  Set targets, arrange projects, divide investments, goods and materials ——> Mainly draw up the development strategy, long term plan and key guiding principles and polices  High-centralized direct planned management ——> Macro economy regulation system giving priority to indirect regulation  Put administrative measures first ——>Put economic and legal measures first, turn secondary lines into administrative measures

12 12 Dispute: Marketization Reform on the Government self  Marketization reform on the government self will promote the great changes on government functions  (America) Politics expert Guy Peters “Future of Government Administration: Four Models)(1996), which addresses “marketization government”--- Implement administrative management according to the operation model of the enterprise  American government issued a report of “Create a government with low cost and high efficiency” in 1993, which addresses to make use of the market force to perfect the service function of the government ……  Western countries think that, the management model of enterprise is superior to the traditional administrative management measure, as the government can make best use of the market measures of contract, encouragement and taxation regulation. So we should permit the individual department to provide public goods as competitors.

13 13 Dispute: Marketization Reform on the Government self Introduce the market system into government management :  Firstly, establish external market, government can ask the society to do some services such as rubbish management, environment management and even criminal control;  Secondly, establish internal market, the government can ask related agencies to manage some public undertaking through contract, such as media care service and education.  Thirdly, encourage competition in and out of government, to improve the service quality;  Fourthly, make use of the management experience of enterprise on government management. For example, the wage system for public servant decided by their grade can be replaced by their performance.

14 14 External Driving Force: WTO promotes the transformation of government functions The “WTO-entry” can make the world to help and support China to change into a county under the rule of law, so the meaning of it is very great.  The direction of the transformation of government function is much clearer.  The government’s measure on society management is more transparent  Government’s management on enterprise transforms from differed and direct management to fair and indirect management, without discrimination and competition-oriented.  The division between the government and law is much clearer: 1). Reduce administrative intervention, and normalize administration according to the law; 2). Coordination between the government and legislative agencies, revise and clear up related laws and regulations in China; 3). Improve the unity, coherent and transparency in the process of legislation and implementation.  Taking more account of international practices and the economic coordination between China and foreign counties when setting the macro economy policies

15 15 The Third Driving Force: Infomationization Technology (E-government) In fact, e-government is a reconstruction on the present government status in the industrial age.  Key is the e-government--- not equal to a website of government  Market is the driving force——demand-oriented Government is important, but it is not the God.  The public is the basis ——Form and cultivate e-public

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17 17 E-government promote the transformation of government functions (1)  Transformation of the administrative objectives and work style of the government New partner relationship among government, enterprise and the citizens The public’s participation in deliberating and administration of state affairs, and the construction of a clean and honest administration Case: Portal site of American Federal Government FirstGov  Transformation of government’s management model ——From “Authoritative management” to “Modern management based on service” ——More transparent management measures ——The management and service by government on the enterprise (more equal communication measures) ——The management and service by government on the public

18 18 E-government promote the transformation of government functions (2)  Improve the government’s capacity on administration according to law ——Strengthen extensive monitoring on the government administration according to law ——Promote the promulgation and implementation of government’s assisting policies Case: when China Securities Regulatory Commission implemented one program, they received more than 7000 comments from the internet, which were divided into 7 categories.  Improve the work efficiency of the government ——The government is the biggest information possessor and handler and the biggest user of information technology Case: Infomationization of e-port

19 19 E-government promote the transformation of government functions (3)  New division of government function and new adjustment of organizational structure —— Some international experts divide the government business into 9 categories, with 165 items (including resident service, justice and public safety, taxation, national defense, education, administrative management, transportation, regulation and democracy, and post), all of which will be used to evaluate the development degree of e- government in one county.

20 20 E-government promote the transformation of government functions (4) ——New concepts of government service got from applied information technology, such as: “one-stop-service”——The resident or enterprise just need to go to one comprehensive office of the government, then the problem will be solved. “non-stop-service” ——The resident or enterprise just need to go to one government website rather than government office, then the problem will be solved. “24×7”——Service available at any time “citizens-relationship-management” ——Structural adjustment of government agencies, and the interaction between different governments

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