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A Study On The Cooperation Dilemma Among Chinese Local Governments And Its Solutions In The Development Of Regional Economy

Posted on:2013-08-08Degree:DoctorType:Dissertation
Country:ChinaCandidate:L N LvFull Text:PDF
GTID:1109330452463407Subject:Public Economics and Management
Abstract/Summary:PDF Full Text Request
Since the reform and opening policy, the cooperation between local governments in development of regional economy is attended by our government and academic circles. The dilemma of cooperation between local governments in the process of regional economic integration constitutes a major problem that is needed to be solved immediately. This paper has combed through the domestic and foreign theories on cooperation among local governments, on the basis of which this paper has investigated the cooperative process among local governments in our country which can be divided into four stages, i.e., the upsurge, the spreading out, the development and the standardization. However, thirty years later, the cooperative effect is not satisfactory at all and the phenomenon of duplication of similar projects, market segmentation, regional protectionism and industry isomorphism in each economic region respectively represented by Yangtze River Delta, Pearl River Delta, and Bohai Economic Zone remains incessant in spite of repeated prohibition. The cause comes from the lack of solutions of the deep-level cooperative predicament resulting from the conflicts between the local interests and the regional common interests.The article considers that the local government’s benefit maximization and limited rationality is the internal cause of the dilemma. As a rational economic entity, the local governments should pursue it’s own maximum interests while the local governments’ interests and the regional common interests are not entirely consistent, both of them have common, but also have the difference, once the local government’s interests and regional interests conflict, the local government will ignore the regional interests, making cooperation difficult to continue. Thus, local government’s interest maximization is the result of local government cooperation predicament arch-criminal. In addition, due to the cognitive level, information and the uncertain decision condition, the local governments’ rationality is limited. Most of the time, the local governments want to maximize their benefits subjectively, but the results of actions are totally opposite. It also further deepened the cooperation dilemma. But they are not generated sufficient conditions of the cooperation dilemma, the current China’s decentralization reform does not reach the designated position, with GDP growth rate at the core of the assessment system of achievement, compartmentalization of the government structure, the horizontal relations among the local governments lack the legal basis, interest allocation and compensation system is unreasonable, cooperation organization is loose and local protectionism, the local consciousness and concept of administrative hierarchy are the external conditions which led to a failure cooperation.This article summaries the advantages and disadvantages of the three existing modes which intends to resolve the cooperation dilemma, i.e., the bureaucracy, market and organizational network. The article analyses the meaning, characteristics, system, advantage and feasibility of the regional synergetic governance. It helps to reduce the local differences of interest, enhances the local government’s responsibility for the regional public demands, and realizes the binding of the social order and dynamic, conduces to alleviate the externality and opportunism behavior, breaks through the limited rationality of single center, and provides a concept guidance to overcome the fragmentation problem in governments. It meets with the current world governance paradigm change of goal orientation, and transcends the bureaucracy and market models.The article points out that regional synergetic governance needs corresponding environmental support, although the shunt of our country economic system, reform of decentralization and government management innovation have created the economic, social and technological conditions for it. But there is a certain gap between the current environment and the ideal one. In view of the reality of the disorder and in reference to successful experiences of foreign regions, this article puts forward that the implementation of our country regional synergetic governance should start with the reasonable configuration of public power, establishing effective administrative organization, perfecting the related security system, building digital management platforms, and nurturing social capital etc.Finally, this paper emphasizes that regional synergetic governance is not a panacea. This theory has some limitations, which may face of the conflicts between the regional interests and the overall interests of the country, the main administrative body’s limited rationality, the conflict between the unity and diversity, openness and closeness, as well as the conflict between responsibility and efficiency. In response to these limitations, the article provides a prescription of introducing the hierarchical authority, which can build up the macrostructure framework to manage the regional synergetic governance.
Keywords/Search Tags:Regional economic, Local government, Cooperation dilemma, Synergetic governance
PDF Full Text Request
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