From The Perspective Of Finance: Research On The Improvement Of National Governance Capacity In The New Era

The prerequisite for the development of a state is good governance capacity.As a trend change,"governance" has become an important perspective of current state reform,the essence of which is to base cooperation on market rules,public interests,and wide recognition."A state's fiscal history is usually breath-taking." financial prosperity leads to prosperity of a state and its financial capacity is the material basis of its own capacities.As China's market economy develops,the original interest structure and social classes begin to differentiate and there are more likely to be more contradictions.As a result,the traditional state governance begins to lag behind,unable to coordinate the interests and appeals of different classes.In view of this,there is ever increasing demand for the establishment of a governance system which can serve modern market economy and social structure well.There is a need to enhance a state's governance capacity to ensure orderly development of economy and society.In this context,the Third Plenary Session of the 18th CPC Central Committee passed the Decision on Major Issues Concerning Comprehensively Deepening Reforms,which proposes that the ultimate goal of comprehensively deepening reforms is to modernize China's governance system and capacity and emphasizes that the financial and taxation system is the basis and major support of state governance.This is the most significant ideological positioning of financial function since the establishment of the People's Republic of China.It is stated in the report of the 19th National Congress of CPC that socialist modernization will be basically realized by 2035 and China's governance system and capacity will be basically modernized;by the middle of the 21st century,we will develop China into a great modern socialist country that is prosperous,strong,democratic,culturally advanced,harmonious,and beautiful and accomplish the modernization of governance system and capacity.The report also emphasized that the purpose of speeding up the establishment of a modern financial system is to give full play to the role finance as the basis and support in state governance.The Decision on Deepening the Reform of Party and State Institutions,adopted at the Third Plenary Session of the 19th National Congress of CPC,reiterated the need to enhance and improve the financial and taxation function of the government and to consolidate the important basis of state governance.Therefore,it is not hard to find out that finance is at essence a tool of state governance and financing the core issue of state governance.In view of this Marx had pointed out that it is taxation that feeds government and the economic reflection of a state's existence is taxation.A country's history of finance is usually thrilling.In the history a country or society's changes were often induced by financial reasons.Inadequate financial capacity will definitely weaken state governance.Without finance,a country's existence would be uncertain.The thriving of finance usually translates into a country's prosperity and financial capacity is the material basis of state capacity.The exercise of financial power concerns many significant factors such as economic and social development and social welfare.The theory of "basis and support" is for state governance,the two of which are interconnected with and complementary to each other.This marks that government finance is separated from the original category of economy and economic factors,elevated to the level of state governance,and redefined in the context of state governance.This fully expands the roles of government finance in state governance.This is fair to say that this change bears great significance in view of history and theoretical study and gives government finance an appropriate role.This also means that government finance has surpassed the domain of state revenue and expenditure and involves fields of economy,politics,culture,society,and ecological conservation,redirecting it to its original sphere.This dissertation consists of introduction,five chapters and conclusion.The introduction part focuses on the research background and significance of the dissertation,and related research situation both home and abroad.In this part,the author thinks that the inherent functions of finance will be weakened if limited to the economic level,and understanding finance from the state governance level does accord with the trend and logic of development of theory and practice.It also includes the theoretical tools,research methods and analysis perspectives of the dissertation,and summarizes its basic logic and structure.The body part is divided into five chapters:In chapter one,the author analyzes the financial basis of state governance capacity.Through sorting out the concept of Marxist state capacity,the concept of state governance and the thought of finance,the author thinks that although there is no thematic and systematic discussion from Karl Marx about financial issues,his opinions on financial issues can be found in his papers,manuscripts,letters and commentaries.Moreover,the author explores the inner link between state capacity and state governance capacity from the research overview and component elements of state capacity,the characteristics and realization route of state governance capacity,and the importance of financial extractive capacity.In addition,the institutional arrangements related to people's living in a country,the main clues linking all the subjects in the plural society,and the important tools determining the government's macro-control ability are discussed in this chapter,through which the author emphasizes that finance is the cornerstone of state governance capacity,and financial system is a core element affecting state governance capacity and its importance has been increasingly recognized.In chapter two,financial guarantee under state governance capacity is reviewed historically.In fact,the operation model and effect of finance is often determined by specific environmental factors like politics,economy and society,and must match the overall goal of state development.In particular,different state governance systems have shaped different financial guarantee methods and demonstrated different levels of state governance.The main content is divided into three parts:the first one is finance-guarantee-oriented governance,adapted to selective coverage,differentiated treatment between urban and rural areas,and focus on investment in production and construction;the second one is economy-oriented governance,matched with two measures,namely stimulating the market vitality by "power decentralization and profit sharing" and strengthening government power through "tax-sharing reform";the third one is fiance-service-oriented governance,corresponding to three aspects,i.e.ensuring the supply of public goods,promoting the equalization of basic public services and responding to the interest demand of the disadvantaged groups.In chapter three,the author analyzes the noncompliance of financial system affects the improvement of state governance capacity.This chapter argues that there is still a certain gap between existing financial system and the improvement of state governance capacity in practice,and there are various kinds of noncompliance.It analyzes the noncompliance of financial system under the context of state governance from four levels including the loosen budget constraint,inadequate performance of taxation system,the unsuitability between financial power and expenditure responsibilities and the prominent contradiction in financial revenue and expenditure.It analyzes the prominent problems impeding state governance capacity improvement from three aspects of digital finance,high debt risks of local governments,and generalization and alienation of transfer payment.It also illustrates on the modest shift of finance and financial system from three levels,namely the shift from government balance platform to state governance platform,the shift from pure economic tool to fundamental institutional arrangements and the shift of the country's role from performing functions to establishing state governance system pillar.In chapter four,the author sorts out the reshaping of financial value of state governance capacity improvement.This chapter is the extension of the previous chapter,which is also the core part of the dissertation.This chapter includes three parts.The first part demonstrates the basic positioning of the modern financial system from four aspects ranging from optimizing resources allocation,safeguarding market unity,promoting social fairness and justice,to safeguarding the orderly operation of the society.The second part demonstrates the value remodeling of modern finance from five facets of democratic finance,service finance,judicial finance,transparent finance,and public finance.The third part analyzes the Chinese characteristics in financial value reshaping from two levels of returning to the original role of finance and the pursuit of big country's finance.In chapter five,the author deals with the mechanism and financial system of state governance capacity.It argues that as an important part of modern governance system,modern financial system is a set of strict ones including modern budget,modern tax,the centralized collection of the modern treasury and modern government debt management.Modern financial system plays a fundamental and pillar role and is essential to realize the goal of state governance and modern nation shaping.This chapter has three aspects:first,it demonstrates the significance of the modern financial system to state governance from five levels:realizing the all-rounded and free development of people,implementing the principle of people's sovereignty,consolidating the legitimacy foundation of the CPC's governance,coordinating political,cultural,social and ecological civilization development,as well as fostering a stable middle-income group.The second aspect illustrates the four principles must be adhered to,namely:non-profit,rule-based,benefit-oriented and transparent operation.The third aspect illustrates the framework and path of the construction of the modem financial system from three levels:the rule-based governance and modern financial system construction,democratic consultation and modern financial system,fairness and justice and the construction of the modern financial system.Finally,in the conclusion part,the author summarizes the whole paper and concludes that the theory of "basis and support" constitutes the background of our country's financial operation and play a "fundamental" role in the overall state governance.This is the top priority for building a modern financial system.All in all,this dissertation only discusses from the academic point of view.There is certainly a big gap between "vision" and "reality",and "input" and "output." It emphasizes the significance to establish modern finance and state governance capacity,which can really resolve the contradiction between long-term benefits and short-term tenure,between potential long-term interests and explicit assessment indicators and between tool rationality and value rationality.In the safeguarding and expansion of values such as public interest,fairness and justice,modern financial system can further extend and reflect the public nature of government.