The Functions Of Local Government During The Development Of Market Economy

The fault definition of government functions is becoming a serious obstacle for further developing economy and society and building a well-off society in an all-round way, so it's crying out for theory study about how to discuss the definition of local government functions deeply, and give play its functions in market economy efficiently. With a combination of theoretical and positive analysis, the paper studies the definition of local government functions in China's system transition and economic globalization in order to provide some useful consideration to further normalize and improve local government's action. The paper consists of four parts. Part 1 brings forward the thesis, explains the importance and urgency of how to correctly give play to the local government functions during the development of market economy. Part II discusses the relation between government and market. This part tries to outline and evaluate major economists' theories about government functions, analyzes the functions of government and market in China at present. Part III analyzes the transformation of local government functions. First, it discusses the definition of local government functions, analyzes the problems and causes in transforming local government functions; second, it concludes that transformation of local government functions must be adapt to the demand of system transition and economic globalization, based on functions partition between the central government and the local government, according to the different stage of economy development. Part IV analyzes the basic modes of an effective local government. First, it advances to build an efficient, service and rule of law government; second, it defines the basic functions of local government in market economy is to provide public goods, to keep the order of market economy, to guarantee innovations system, to remove externality, to keep the social equality in a region, and to build and keep an efficient and equal competitive circumstances for regional economy development. The focus of the article is to analyze the definition of government functions in China's system transition and economic globalization from local government's point of view, to bring forward the basic modes of building an efficient, service and rule of law of an effective local government, and to make clear the exact definitions of the basic functions of local government.