Study On Chinese Contemporary Government Cooperation Of The Economic Circle

The growing international competition and market economy has quickened the pace of globalization and regional economic integration. Economic circles targeting at the integral regional development have mushroomed and sprung into existence, especially in opening China. Development of regional integration needs the co-work of administrative regions, particularly in terms of effectually dealing with trans-boundary public issues. The significance of studying principles of government cooperation in economic circles has been widely recognized both home and aboard, generating an amount of fruitful study results overseas. The discrepancy of political and economic systems between China and other countries, nevertheless, makes it necessary that we explore models and approaches with Chinese characteristic based on our actual situation as well as the experiences of our peers.Since the new millennium, Pearl River Delta, Yangtze River Delta and Beijing-Tianjin-Hebei Area have been keeping strong economic momentum, making them the pace settler of Chinese core growth pole and integration of regional economy. Consequentially, a number of economic circles of various sizes have grown in both eastern and western areas as well as midlands, giving rise to a healthy environment for regional governments adopting framework agreement to strengthen regional economic integration. However, the existing conceptual, systematic and institutional obstacles, particularly those existing in adjusting the interest relationship between member governments, have constrained the effective interaction of related governments. It has been proved by the practice of building and developing economic circles that promoting the overall regional competiveness always foster a positive impact on member administrative regions. Governments’ joint effort on handling regional public issues, producing public goods and providing public service would be the underpinning of developing economic circles. It is stated in this paper that as the market entity, a government is always in the pursuit of certain interests; hence, to maximize the interests, both for its own good and for the good of social public, with the limited resources, becoming its goal. The collision in the process of pursuing interests between member governments is inevitable, resulting in serial competitions within the circle. A government would prefer competition to cooperation if the former brings in more profits, and vice versa. In order to develop economic circles and integrate regional economies, we should highlight strengthening government cooperation, breaking down administrative barriers, giving up local protectionism, unifying regional markets, optimizing industrial structure, preventing redundant infrastructure construction, facilitating factor mobility, and finally, adopting "regional economy" rather than " administrative region dominant economy" to guide the overall development of the economic circle.Strengthening government cooperation within the economic circle should help China meet the practical need of complying with the world trend of developing city agglomeration, furthering the integration of regional economy and building the well-off-society. To foster collaboration of governments in the economic circle would entail a range of objective basis from natural, marketing, economic to cultural ones. Meanwhile it is theories being tested and revised that should be served as the guideline in the practice of government collaboration. With such a wide range of collaborative activities, governments should give priority to co-planning, policy cohesiveness, goal setting, optimization of industrial distribution, unifying market rules, co-progress of science&technology, infrastructure construction and coordination of building, managing and enjoying the ecological environment. It is important to stick to the principle of scientific planning, rational division and cooperation, equal participation, mutual benefit and reciprocity, and standard management. Both system innovation and the dominance of market upon resource distribution should be guaranteed so that governments fully play their role, rendering a state of affairs interactive, complementary, mutually beneficial and progressing, and ensuring the healthy, coordinative and sustainable development of the economic circle. Taking governments cooperation within the economic circle as the research subject, author of this paper focuses on studying lateral relationship of regional governments from the perspective of economics and public administration. Research methods including literature reviewing, empirical study comparative study and game theory analysis are used to draw an analysis of the status quo, precondition, dilemma and motive of government collaboration within the economic circle. Based on findings of the empirical study on Mid-Yunnan Economic Circle, a list of suggestions on enhancing governments cooperation are given, including how to coordinate the relationship between economy within administrative boundary and regional economy, the relationship between government and market, and the relationship between individual governments; the transforming of mono-functional government into regional government which legally coordinate government cooperation within the economic circle; and measures to further develop institutionalization and supporting mechanism. It is found that government cooperation within the economic circle presents the coordination of government power and interest, yet it reflects the sophisticated problems of balancing the relationship between government and market arising in the process of regional economy integration. To summarize, collaboration between governments within the economic circle plays a positive role in fostering the regional common market coming into being and improving the overall regional competiveness, hence boosting the integration of regional economy with the foundation of a harmonious relationship between government and market.