Institution Innovation And Modernization Of China

The social institution is the key factor that the modernization improves. Modernized institution analysis is to state the relationship of institution and modernization. By explaining the connotation of institution, the article analyzes how the institution influences the modernization. Based on the institution innovation theory, the article further analyzes the modernization and probes into the relationship between the institution and modernization. After a general survey of the modern world history, we find that in the course of economic development of any country or area, production technology and various kinds of institutions not merely gives an enormous boost to economic development, but they themselves improves gradual progress constantly, which can be proven by the industrialization and modernized course after World War II in developing countries and regions; it can also be proven by the recent development of the developing countries including China that implement the institution and go away from the original planned economic institution. In terms of the new coming developing counties, such as China, the importance of the institution factor seems particularly outstanding because of the pressure of catching up with development is extremely heavy, and motivation factors for modernization, such as technology, knowledge and manpower capital, etc., are difficult to make a breakthrough in a short time. Just as the promise a professor pointed out then, "the efficient organization is a key to the economic growth, an efficient development in Western Europe of organization is exactly a reason why the Western countries rise". So, it is argued that the key question of China's modernization drive in one and a half centuries is to set up a social institution frame which is suitable for modernization. The institution innovation directly determines the vicissitudes of China's modernization. The establishment of new China indicates the first structural breakthrough in China's institutional innovation, which has formed and supported a powerful authoritative institution that implements and improves the modernization institution on a large scale. China has taken a unique development path and made the universally acknowledged achievement since the Third Plenary Session of the Eleventh Central committee of the CPC in 1978. Nowadays, reflecting the history, we find that the institution has played an important role at the beginning of China's reform and opening-up. The direct target of the reform is a institution, and the great achievement made in modernization in reform and opening-up over the past 20 years indicates China has formed an effective social structure, and broken a long-timedeadlocked stagnate situation for a modernization power. The institution reform and institution innovation have already become an inherent motive force of economic development and an important component. In a word, there is a close relationship between contemporary China's social development and institution innovation. Every action of institution innovation exerts a great influence to modernization.This article discusses the relationship between the process of modernization and institution innovation from the following three parts. The first part expounds the puzzles in China's modernization. Through the analysis of the four stages of modernization, this part reports the achievement and problems made in the modernization, and continues analyzing the existing problems in institution innovation; the second part analyses the importance of institution innovation in our country's modernization drive based on the Western scholars' theories of institution and institution transition; The third part discusses the route choice of institution innovation in China's modernization drive and further proposes how to realize the institution innovation in China by analyzing three layers of shade which hinder the institution innovation with a combination of the concrete content of institution innovation.