Regional Governance During Administrative Area Economics

The economic crisis during the 1930s', which swept the whole capitalist world, made people understand that market is not almighty. Market might failure, it need government intervention. While the disaggregating of the Soviet Union, the great changes in the Eastern Europe in 1990s', as well as the governance crisis in the Western Europe welfare nations showed us that government is also not almighty. Government might failure as well. For the co-existence of the market failure and the government failure, the western countries began to introduce the idea of governance, so as to make up the failures in the market and government, and that gained some effects.Since the found of the Peoples' Republic of China, our government exercised planned economy. All the economical activities and social activities were strictly under the control of the central government. Till the year 1978, the economical system in China was severely demolished, and appeared the phenomenon of government failure. Then, the central government began to exercise the policy of opening up and reform. The economical system in China has changed from planned economy to socialist market economy. As the proceeding of the opening up and reform, China has made great achievement in social and economical development. However, from the 1990s', the overcapacity in producing, the exhausting of the market became the key factors that restricting the further development of Chinese economical development. Although, the central government has taken activities such as adjusting the interest rate, changing the revenue policy to adjust the economy running, and the results is not satisfying. At the same time, the widening of the regional economical gap, the town and countryside gap, the income gap, and some other social issues appeared. The controlling capability of the central government has been greatly restricted. All these showed us that in the process of economical system changing in China, the government failure and market failure both appeared.As the proceeding of the market economy and the development of Chinese economy, regional economy in China has made great achievement. But under the influence of the political administrative area economy, the local government formed a kind of economical system which takes the political administrative boundary of the local government as its economical boundary. The contradictions between natural rules of regional economy (horizontal connection) and political administrative area economy (vertical operation system) are obvious, and which hinders the development of regional economy.In order to solve the contradictions, we must break the existing economy management system, build a new system. And we must refer the experience of the developed countries, so as to solve the contradictions above. These experiences were called regional governance. Regional governance in China was introduced as the regional economical development was constantly affected by the local government intervening, and the need to adjusting the relationship and activities of the local government. This paper takes the Beijing, Tianjing and Hebei as a case. By analyzing the developing course of this area, and summing up the developing rules and restricting factors, the author builds a regional governance system, designed an organizing system, running mechanism and the spatial integration tactics. The whole article is composed of seven chapters as bellow:Chapter 1: this part introduces the subject of the thesis, points out the theoretical and practical sense of this study and summarizes the train of thought and methodology.Chapter 2: this part defines relevant concepts, makes a literature review, and analyzes the existing domestic and abroad research to build theoretical basis for further research.Chapter 3: this part focuses on the path and trend of regional governance. The evolution path of economy basis is from traditional administrative area economy to transformation administrative area economy and then to economic area economy. The evolution path of superstructure is from administrative area administration to regional administration and then to regional governance.Chapter 4: this part first analyzes the historical stage of regional governance of Beijing, Tianjin and Hebei area, then summarizes up its rules and makes clear the factors which constrained regional governance.Chapter 5: this part points out the structure system of regional governance, including government system, market system and social system. Then the framework of regional governance is proposed, including the sbujective, object and vector of regional governance.Chapter 6: this part first discusses the regional governance model of ABAG and EU, then the regional governance model of Beijing, Tianjin and Hebei area and implementation steps are carried out. In the end argues that organization arrangement and some political advice.Chapter 7: this part summarizes major points and conclusions, and then debates some relevant concept, finally points out defects of the thesis and the direction to forward efforts.