On The Transformation Of Local Government Public Management Practices

The 25 years of carrying out open policy in china are the years when China transformed from planned economy to market economy, and also are the years of fast and constant developing of Chinese economy. It is a great challenge to explain the system transform and economy growth in the past 25 years. This dissertation analyses the public-administration behaviors of the local governments and tries to introduce a theory to explain the system transform and economy growth of China.The research in the dissertation shows that the behavior model of government officials submitted by the theory of public choice cannot be applied to the Chinese local government officials because of the great distinction in division rules, promoting rules, financial budget rules. So it is essential to build up a new behavior model for the officers of Chinese local government. In this dissertation, a conception of political entrepreneur is submitted. A political entrepreneur is a person who can achieve the economic goal creatively with the applying of political methods and political resources. Political entrepreneur is a compound of a politician and a entrepreneur. Being a political entrepreneur, the objective function of the Chinese local government officials is not pursuing the goal of the vote maximization, but the political support maximization, and the political control maximization. The political support is the function of the supports from the leaders and the mass. The political control is the function of the political supports.The role of government in market economy is the focus of argumentation in economic fields. One point of view is the view of liberty and the other is the view of intervention. The both points of view look the state and the government as a whole and can't explain the motion of expanding financial expenditure by the state of the government. In 1956, Tibout submitted that there is no principal difference between a government and a normal company. However, China is a country of the unitarysystem and voting by hand or by toe can't produce effective motivation and constraints to the Chinese local government. Then what is the similarity between the Chinese local government and the local government of Tibout ? To answer this question, the author puts forward the conception of Entrepreneur Government. In this conception, the government also can measure the profit and loss and pursue the profit maximization. Entrepreneur Government in this dissertation is the government of operation, profitability, marketing innovation and development which lively contrasts to the traditional one of management, commonweal, controlling, maintenance and stability.The following factors demonstrate why the Chinese local governments (CLG) appeared the characteristics of the Entrepreneur Government(EG). Firstly, the CLG have faced the financial stress since the Open Policy started. This pushed them to learn to operate like entrepreneur. Secondly, the administration decentralization, especially the right of claims for surplus offered to the CLG, has made them the main benefit and development body locally. Thirdly, the change of the political systems arises 3 main contradictions ?Over-provided affair power and limited financial power; assessment reinforcement and covert affair power; "Party cadres" reinforcement and perfected local election systems. These contradictions eventually urge the CLG change their goals to accelerate the economic development, increase the financial income and enlarge the employment. Finally, CLG as the main benefit and development body locally have to become the umpire, coach, team leader and athlete of the local enterprises and form the mutual benefit relationship similar to the super enterprise groups. CLG then will be at the board of directors and management 'level while the local enterprises act as the main operation body and profit center of the enterprise groups.The dissertation analyses the objective functions of the EG, which is local financial income maximisation, local integration strength maxi...