System Of Supply And Economic Development

Since implementing the policy of reform and open-up to the world outside, the economy of Zhejiang Province of China has been developing rapidly with its own features and has shaped the distinguished "Zhejiang Phenomena". The author is about to expound the "Zhejiang Phenomena" in the light of the government factor. It is indicated that, for a country like China that has been experiencing the transition from the planned economy to the market economy, the government has been playing a non-replaceable part in the economic development. The role the government plays, however, is no longer to take a direct intervention into the economic affairs, but rather to provide effective rules and systems so as to protect the development of market economy. The government of each level of Zhejiang Province has been engaged in and put into effect a large amount of system innovations concerning the social management, the government management of multi-levels, the self-management of government organs and so on, which has exerted a very positive function in decreasing the market costs, revitalizing the governments and standardizing the governmental actions, and has become a essential drive to the rapid and sound economic development of Zhejiang Province. By means of exploring the governmental factor that has made possible the rapid economic development of Zhejiang Province, we can probably reveal certain interrelations and inner laws between the governmental systems-provision and the economic development; this exploration will not only suggest a valuable analysis-route for the successive rapid economic development of the past over 20 years in Zhejiang and in the whole country, but also offer a even more larger imagination room for the further reform of Chinese market economy.This article consists of an exordium and six chapters. The exordium is mainly to introduce the background and motivation of this selected topic, the theoretical instrument of analysis, and the presentation of the research orientation and research method. Applying the theory of new system economics put forward by Douglass C. North, we set forth the general influence of the governmental systems-provision on the economic development, and think that only through making most of the leading role of the governments in providing systems, that is, to constitute a set of competitive rules and systems for an open and equitable market, to set up a series of behavioral regulations of the governments for the purpose of preventing the governments from seeking rent and abusing powers for their own benefits, and to create an environment with a just and reasonable mechanism, can we probably realize a sustainable and sound economic development.In the first chapter, while making an analysis of the system factor that has sculptured the "Zhejiang Phenomena", the author observes the process of system transition and system innovation of Zhejiang governmental management, and itsinfluence on Zhejiang economic development, its social historical background, and in particular its history, its effects and its characteristics.In the second chapter, from the function of social management performed by the governments, the author analyses the influence of the governmental systems-provision upon the market cost. The effect the system factor has caused on economic development will finally embody the market cost; providing effective and just systems will regulate the market order and reduce the market grating and decrease the market cost, and consequently lift up the efficiency of economic operation, and vice versa. Zhejiang economy has been taking the lead in the market degree and market efficiency in the country, which has much to do with the factor of the governmental systems-provision. Thus, the reform of the examining and approving system, the formation of the convenience centers and of the cooperation between the governments and the medium agencies and the like are taken into specific analysis in this chapter.In the third chapter, with regard to the government management of multi-levels, the author expounds the influence of the governmental systems-provision upon the economic development. The division of the administrative multi-levels and the management system of the multi-levels has set great limits to management efficiency and to vitality of local governments; and yet the vitality and initiative of the local governments is essential to the local economic development. The government of Zhejiang Province has managed to take into effect some system innovations such as the system of financial management of county-level under the direct control of province-level and the system of target management of scientific and technological progress, all of which has boosted the local economic vitality of county-level.In the fourth chapter, from the self-management of the governments, the author analyzes the influence of the governmental systems-provision upon the economic development. The administrative power of the governments has twofoldness, that is, it can do good and it can do evil. In order to make sure that the government will take a positive part in the economic development all the time, the key is how to improve the self-management of the governments, and how to normalize and supervise the power of the governments. The government of each level of Zhejiang Province has carried out lots of explorations in this field, including rational setup of the government organs, optimization of the organs' efficient capability, scientific evaluation of the governmental efficiency and so on; it is these explorations and efforts the governments have made that sustain the high efficiency of the market and the vitality of the governments in Zhejiang Province.In the fifth chapter, the author compares the several modes of local governmental systems- provision through somewhat successful development of the private or collective economy. Along with the further reform of our market, private or collective economy has been and will be getting more and more important in the nation's economic prosperity; so local governments have been striving to play a more active role in promoting private or collective economy. However, there is something different in the functions and ways when local governments deal with the economic issues; now it is necessary for us to make a more profound and more concrete comparing analysis of the influence of local governmental systems-provision upon themodes of private or collective economy. Through comparing two different development modes of private or collective economy, the author hopes to unveil the inner law concerning the influence of governmental systems- provision upon private or collective economy.In the sixth chapter, in the light of the construction of service-oriented government, the author puts forward the target choices of improving governmental systems-provision. In the process of driving the economic development, governmental systems-provision is just a service that the governments are supposed to be responsible for and to be their duty as well. If this duty or responsibility has not been consciously recognized by the governments in the past, now in the present, while the construction of a service-oriented government is a common demand by the whole society, we are never able to lay too much emphasis on the system innovations of government management because effective governmental systems-provision is turning out to be more and more important and more and more urgent for a sustainable and successful market economy.