The Analyses Of Laggard Transformation Of Government Function In LiaoNing's Economic Blossom

What is the role of government in market economy? It is an important issue in modern economics. In China, government's function transformation is a main aspect of making a perfect socialistic market economy. Basically, the "northeast phenomenon" and LiaoNing Province's slow economic development occurred after the change from planned economy to market economy are due to market economy's imperfectness. The laggard transformation of government function is an important factor that impedes the course of making a perfect market economy.This paper focused on the problem of "government's function lagging" in LiaoNing Province. The author proposed that government's negative effects on market mechanism, enterprises and government itself were representations of government's function lagging. The usual manner for government to manage economy is promulgating policy, examining and approving, which restrains the role of market mechanism; The mixed function of managing economy and state-owned assets leads to the absence of state-owned property owner, which is the main obstacle to establish modern enterprise system; Without the transformation of government function, it is impossible to break the circle of cutting and expanding during the reform in government organizations. Also, it is impossible to annihilate corruption and rent-seeking behaviors. LiaoNing Province's economy developed much more slowly than southern developed areas after 1978. A main reason is considering government as the center and leader in economy development and restricting private enterprises. As a result, the ownership structure is very simple (state-owned economy is in the majority) and there is few true competitive market players. The author figured out several factors accounting for the laggard transformation of government function. Such as ineradicable thinking of planned economy, the inertia of LiaoNing's local culture, the inconsistency between local interest and department interest, the conditionality of government function and government power, etc.It is very important for LiaoNing to speed up the transformation of government function in order to stimulate its economy development. How to do it? The author's answer is:(1) liberate thinking, strengthen study and innovation; (2) put public goods to market and make efforts to consummate market system;(3) provide good investment conditions and expand private economy. In addition, there is particularity in the transformation of government function in LiaoNing. Government should play a role in solving historic problems in state-owned enterprises, programming industrial and local development policies and making experiments in the reform of social insurance. This paper arrived at a conclusion that the fundamental goal of the transformation of government function in LiaoNing was to make a good market environment and realize the improvement and development of market economy.