Research On Local Government Economy Intervention Powers

Since1978, China has been stepping into an era of social and economic transformation,which is the most significant transformation in history of mankind. After thirty years’development, China’s comprehensive national strength has an unprecedented increase.Meanwhile its political, economic, social, cultural even ideology has undergone a tremendouschange. There is no doubt Chinese government is playing a leading role in this transformation.In terms of economic aspect, the Chinese government led a market-oriented reform andsuccessfully established the basic system of the market economy. In comparison with thecentral government, local governments play a more important and special role in themarket-oriented reforms. By means of voluntary economic intervention, local governmentplays a dominant role in the process of institutional innovation. Economic Law is the basiclegal source which regulates the intervention power to the economy by government. Andgovernment is the subject who exercises intervention powers to economy. Inevitably, thetheory of economic intervention power by government will be mainly focused on thegovernmental activity. In a longitudinal perspective, the government can be divided up intothe central government and local government. However, there is no crystal-clear distinctionbetween them in current theory, instead of which, they were included as an integral part ofcurrent theory. Nevertheless, Local government differs significantly from the centralgovernment. Current theory in terms of government power to intervene economy does notapply to local government. Therefore, the research on general terms and basic terms withrespect to exercisable government powers to intervene economy contemplated within thisthesis will not only be able to help to resolve some of the theoretical difficulties and to answerthe questions regarding reality of China’s transition, but also helps to formulate an in-depthresearch on the basic economic law theory of government economic intervention powerstheory. In this regard, the author attempts to conduct research on China’s basic localgovernment economic intervention power during society-transitional Era.The paper can be divided into three parts and six chapters: Part one: Basictheory(Chapter1,2) Focus on general theory on the powers of local government in terms ofeconomic intervention, which is the key element on research of local government economicintervention powers. It helps to pave a way for putting the theory of economic intervention powers to practice. Part two: positive research (Chapter3,4,5) Focus on the relationshipbetween local government and the central government, other local government and marketeconomic subject. The author attempt to find out how to resolve the social problems arise inSociety-transitional Era. These chapters will illustrate the problems existed when localgovernment exercising its powers to intervene economy and will illustrate the effects the localgovernment may have when exercising its powers to intervene economy, on economic lawlegislation and its implementation. Part three: Legislative proposals (Chapter6)Personalsuggestion and proposals on how to regulate the powers of local government to economicintervention.Chapter one: the author will focus on the basic theory and issues on economic law,economic intervention powers and the local government. Section I, Definition of the localgovernment in the economic law. Logically explain the notion and scope the local governmentwhich is the main object of this thesis. Then the author will define the local government in thecontext of Chinese Economic Law. Here, the people’s committee of local Chinese CommunistParty is also the object of the thesis. At last, it introduces the types of local governments in thecontext of Economic Law Theory in China. Section II, the author will define the powers oflocal government to intervene economy. Therefore, in the first Chapter, the author will discussthe foundation for the theory which concerns powers of local government to interveneeconomy and illustrate the legality of the existence of such powers. Then the author willlogically explain the notion and scope of the rights of local government economicintervention. Finally, the author will illustrate the features of powers of local government tointervene economy.Chapter two: Autonomy of local government and its manifestations, it is core part of thewhole thesis which focuses on the powers of local government in terms of economicintervention. Local government has a close relationship with central government instead ofbeing isolated. Local government has tremendous links with other local government andmarket subject both in the political system and market system. Inevitably, they have deeprestrictive impact on the practice of local government economic intervention. This chapter theauthor will introduce the autonomy theory which will mainly discuss the relationship amongthe local government, the central government, other local government and market economicsubject. Section I the author will introduce the theory of state autonomy, which is origin of theconcept of the autonomy. The purpose of simply introduce and illustrate various scholars’ theory on autonomy will help to prepare minimum basic element for readers to have a betterunderstand of the following discussion. Section II：the author will explain the autonomy of thelocal government in vertical and lateral perspective. Vertical local government autonomymeans the relationship between the local government and central government. Lateral localgovernment autonomy means the relationship among the local government, other localgovernment and market economic subject. Section III the author will explain the role playedby the local government in the practice of Economic Law, which include agent of centralgovernment, representatives of local government’s interests, ally of economic organization,competitors of other local government and some bureaucratic local government.Chapter three: The central government’s impact on the exercise of local governmenteconomic intervention powers. In this chapter, the author begins with the discussion of therelationship between the local governments and the central government, then introduce thecurrent situation of local government economic intervention powers. Section I the author willmainly analyse what stances the central government and local government shall adopt andinsist regarding their relationship during social and economy transition period in China. Thesecond II the author will mainly discuss what role the local governments may take in terms ofeconomic law legislation and how the local government may enlarge and enhance its powersto intervene the economy by way of legislation. Section III the author will mainly discuss howthe local government would utilize its enhanced legal standing and enlarged powers tointervene economy during the realization of economy activities, thus to discuss how economiclaw is implemented.Chapter four: local government competition’s impact on the local government. In thischapter, the author will mainly discuss how the local governments exercise their respectivepowers of economic intervention under the pressure of competition between the localgovernments. Section the author will mainly illustrate the reasons for the existence ofcompetition between local governments. The author will discuss from three folds. The firstfold, namely, the reform of the decentralization of power shall be deemed as intrinsic reason.The second fold, namely, the imbalanced regional development shall be deemed as extrinsicconditions. The third folds, namely the key performance index which has strengthenedcompetition between local governments has acted as an incentive for local governments andgovernment officers to explore and acquire much more economic and political benefits byway of exercising powers to intervene economy. Section II the author will mainly discus the positive impact of local government competition for economic intervention, such as thesystem innovation, avoid the control failure and increase efficiency of exercising governmenteconomic intervention powers. Section III the author will focus on the negative impact oflocal government competition for economic intervention, such as the administrativemonopoly in local economic development. The author will discuss the self-interests orientedstance the local government may take which concerns abusing of economy interventionpowers. This may lead to administrative monopoly.Chapter five: the author mainly discusses the impact of polarization of society. on theexercise of the local government intervention powers. Section I the author will define thepolarization of society. Firstly, the author attempt to find out the reasons for polarization ofsociety. Second, the author attempt to discuss various contradictions of disadvantaged groupbrought by polarization of society. Section II: Positive analyses of social advantaged group’simpact on the powers of local government economic intervention. First the author will discussits impact on legislation of local government,. Second, the author will discuss the its impacton the implementation of local government economic intervention.Chapter Six: Legislative proposals on how to regulate the powers of local governmenteconomic intervention. I this chapter to the author attempt to find out some solutions toregulate the exercise of the powers by local government in terms of economic intervention.And the author attempt to restructure the legality of local government powers in terms ofeconomic intervention. Section I the author illustrates that constitutionalism can offerconstitutional foundation for powers exercised by local government in terms of economicintervention. And the judicial review system of constitution can help to provide a settlementof dispute mechanism in event of any conflicts and disputes. Section II the author attempt toillustrate how to regulate the exercise of local government economic intervention powers byway of introducing economic democracy, thus to restructure the legality of local governmentpowers in terms of economic intervention.