Economic Analysis On Social Regulation

It is necessary to perfect government's function of micro-regulation in order to correctly deal with the relationship between government and market. Government regulation refers to a kind of mandatory intervention that the government carries out in behaviors of subject of micro-economy according to certain legal rules and regulations under the market-oriented economy, with the purpose of achieving the balance that the market-oriented economy can not realize by itself. Government regulation can generally be divided to direct regulation and indirect regulation in term of the difference of the aim and means of policies. The main object of the research of this paper is social regulation which belongs to direct regulation. The social regulation formulate certain standards for the quality of products and services and various activities coming up with the offer of them as well as inhibit and limit certain behaviors, with the aim of guaranteeing the people's safety, health, sanitation, protecting environment and preventing disasters. The main theoretical bases for the government's social regulation are: externality; non-symmetry of the information; sufficient supply of public properties and non-valuable goods, etc. The regulation mainly reflects the government's determination and surely will be influenced by the State's political, economic and legal systems, even will be influenced by the history and culture. In its essence, the regulation is not a kind of objective reality, but a kind of system regulations. Regulation activities generally include three key factors: (1) Subjects of the regulation----government administrative bodies, usually referred as the determiner of the regulation. (2) Objects of the regulation---various micro economic subjects (enterprises and individuals), usually referred as the determined of the regulation. (3) Main bases and means of the regulation---various regulations (or systems). As a kind of system regulations, the regulation can be explained by the concept of agreement or contract. The contract is a kind of agreement achieved among related parties of the regulation on how to rule and regulate. As for the complexity of the relations among each party, when the information is not symmetric, the regulation can be analyzed using the relation of principal and agent. Three layers of principal and agent relations exist among the parties involved in the process of regulation. Realizing efficient regulation must start from the government's self construction. As the subject of regulation, both the government's understanding to the nature of the problem and the government's choice of the design and realizing means of the systems would determine whether this economic function can be truly utilized reasonably in its essence. The government, as the supplier of systems, is a system itself, is a special system that can determine general systems, so it is the most important system that should be established primarily. The reform of the government's regulation bodies must aim at establishing "responsible government". Here, "responsible"means that the administrative subjects must response to the public's demands actively and adopt active actions to satisfy the public's demand. To perfect the regulation to the determiner of it, firstly, the people's congress and its standing committee must strengthen their supervision to the regulation organizations. Secondly, bring social public opinion's supervision function into full play, call the citizens'self management consciousness, transform from the government's single management to multi-management performed by the society, the public and the government. The reform of the government's regulation function also demands to establish "limited government". Confine the government's power limits strictly in the process of regulation, especially when firming believing that a certain department is influenced greatly by a particular interests group, the government's intervention should be limited. Basis of the regulation is one of the three key factors in the process of regulation. Researches to the regulation must start from the researches to themarket rules, which is the connecting part of the science of law and the economics. Through the researches to the system frame in which the market operates, we can describe the effects of particular regulation system better, we can evaluate whether the regulation can promote market distribution, and can decide which form of regulation should be adopted. The main problems in our country's social regulation and its implementing include: the government's regulation ability is weak; the regulation legal system is very imperfect; the legislative procedure of the social regulation is not standard; the independent position of the regulation organizations in law is not fully reflected. Realizing legal regulation primarily demand us transform from all-round nation to supervision nation; rule and regulate the regulation determiner according to the law; establish efficient government organizing order. Adopting the principle of "guiding by law", first draft a Regulation Basic Law, realizing the legalizing of the regulation. There must be legal basis when the government drafts regulation rules. The administrative organs cannot limit concerned person's rights or increasing concerned person's obligations using rules and regulations without legal basis. The reasons why the government implements social regulation include external reason, out of control of the market for the non-symmetry of the information and it seems that does not include the problem of whether bring in competition or not. In fact, a social regulation system that separates completely from the market and only depends on government laws and administrative orders to perform can not realize its expected social-economic objects effectively. Too many rules and regulations will obstruct enterprises'technological innovation, while bring in appropriate competition would raise public service's operating efficiency. Competitive mechanism, interacting with other market mechanism, would realize the market economic order's automatic adjustment. For the above reason, in the process of social regulation, we should make use of some market mechanisms reasonably, for example, competition, to reduce management cost and raise management efficiency. At present, present situations of the functions of our country's government social regulation are: "over ruling"and "no ruling"existsimultaneously, "too much"and "too little"happens together. For the above reason, we propose to establish "appropriate"social regulation mode, rectifying "over ruling"and "too much", remedying "no ruling"and "too little". The establishment of such regulation mode must conform to the following demands: (1) the function range of the subjects of the regulation must be appropriate. Multi-management theory acknowledges the government's priority as the subject of public management and emphasizes the harm of depending on the government only. Realizing social public interests is not only the government's obligation, while other social organizations also have the same obligations. For the above reason, the cost of realizing social public interests should not only be taken by the government, but also be taken partially by the market and other social organizations. The government should decreases social regulation activities, reducing administrating costs; narrow primary administrative power ranges, scatter social management power, so as to restrain the expanding of finding rent behavior, to reduce the social risk of regulation behavior. (2) Draft procedure of the regulation rules must be standard. In essence, the draft procedure of the social regulation rules is a chess playing process among different interests groups. Related laws and regulations are the products of each party's compromises. In the draft procedure of the process, if neglect the participation of the public and fully depend on the leading departments of the government, the process surely will be influenced and controlled by certain particular interests groups. For the above reason, an important aspect of realizing effective regulation mode is to realize the standardization of the draft procedure of the regulation rules. Further strengthen law drafting consulting as well as perfect price consulting; establish the consulting president's independent and legal position; raise the participation of the public in the process of consulting. We can gain a good deal of revelation from the experience of the U.S.A and Japan and some other western countries in the reform of our country's social regulation. They have perfect regulation laws and regulating, complete cost calculating system and particular laws implementing organization of strong independence. At the same time, full expression of the public's wishesand good social supervision system also have pushed forward and promote the construction of social regulation compulsorily. Applying "appropriate"regulation mode, drawing on the experiences of other countries fro reference, we make concrete analysis to the "education regulation", "sports regulation"and "laborers'safety regulation"which are very common in social regulation. The main problem in our country's education regulation is that the government confuses the double functions as pubic affairs manager and goods producer. On one hand, making use the position as manager, the government monopolizes the education products market, making certain local parts and certain interests groups make profits; on the other hand, the government can not fulfill its function as provider of fundamental education, making the education field lack social fairness. Perfect the government's education function demands that the government not play the role of provider of non-fundamental education, but save money and materials to perfect fundamental education, so as to realize social fairness. At the same time, the government should strengthen its function as manager, by the means of perfecting laws making and strengthening laws implementing, etc., so as to realize effective regulation to social educating activities. Break the educational monopoly, making more parties involved in the education; quicken the democratic process of educational laws making; laws should be used in an even wider range. The problems in the supervision to the sport market include: the government's function is not clear, the laws and regulations aiming at sport market is not sound and perfect, the stipulation to the range of the objects of regulation is not explicit, etc.. In order to solve these problems, social sport management micro subjects should be established under the direction of the government; strengthen the establishment of laws, so as to regulate sport market. The main problems in our country's labor safety include: safety production lags behind the development of economic construction, labor disaster causes big economic losses. The main measures that should be taken...