| Until present time, market economy has experienced two major phases, one is free competition market economy, and the other involves governmental intervention. The indicator that clearly divides these two forms of market economy is the radical and fundamental changes of the governmental body's position and role in the progress of economy. In the early time of market economy, government was only like "night watchman" and had little influence on economy. But when the world went through the Great Depression during the period from 1929 to 1933, with the implementation of the New Deal and the publishing of John Maynard Keynes' The General Theory of Employment, Interest and Money, government changed its role to become one of the most important economic bodies, which had indiscerptible relation with market economy, getting directly involved in the operation of the market economy and taking on the responsibility of intervening in the adjustment of the economy and the progress of the social development at all fronts. To some extent, we can say that the key factor that decides the performance of a nation or a region's economy is how well this nation or region improves the quality of its governmental management and deals with the relationship between government and market to make a harmonious system of cooperation between the "visible hand" of the government and the "invisible hand" of the market mechanism in the interest of social development. Therefore, how the government can perform better and what type of government can perform better, becomes a critical subject that all nations worldwide concern and study. We can still recognize great distinction of the roles and performances among different nations in economic development.At present, our nation is going through a crucial time of setting up and consummating the system of market economy with the greatest but arduous mission of building up China's characterized socialism. Meanwhile, economic globalization and the rapid development of the science and technology have created austere challenge to test our government. What's more is China's common condition has forced us to choose a government-led path of developing socialist market economy. Therefore, the management quality of our government and how well it influences the society have become the most important factor deciding China's future development.To study and solve the problems of the relationship between the management quality of the government and the economic efficiency, is not only a general academic subject, but also a practical question with each nation's unique social condition (nations differ in their historical and cultural background). Ever since the beginning of the progress of China's market economy, we are looking for the solution of the problems of governmental reform and optimization .The stones of other hills may polish the jade. This paper will first introduce the definition and assessment criteria by scholars from domestic and abroad, then deliver the writer's own opinions on these issues. It will also expatiate the challenge faced by all nations under economic globalization and possible solutions as well as the relation between government quality and economic efficiency of typical countries categorized by developed countries (US, Japan and Germany), developing countries (Korea, Argentina), and economic transition countries (Russia). The final part of this paper will be based on the discussion of the problems of China's government quality such as the misunderstanding of the role of the government, transformation government function, optimization of government structure and the improvement of the quality, low influence of the government on the economy with inflexible mechanism and incomplete system, high management cost and low efficiency, lack of authority in public affairs, serious corruption and will go in depth to discover the general law that other nations intervene their economic progress. This part also intends to learn from the experiences of the Europea...
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