Research On Local Government's Dual Behavior During The Procedure Of Economic Transition In The View Of Interests

Reviewing the economic development made during the procedure of economic system transition in the past over 30 years, we can find that there are achievements as well as problems. This paper argues that local government in China has played an important role in the transition. These achievements and problems are closely related to the behaviors of local government, and both the thrust and obstruction come from the local government. During the process of economic transition, local government shows dual characteristic:the positive behaviors which promote the transition and negative behaviors which impede economic transition. Then, what major factor is the behavior of local government in transition period influenced and determined by? Why does the local government show the dual characteristic behavior? What are the manifestation and behavior effect of the dual behavior? In the planned economy system, the interests of local government and enterprise were dissolved in the state interest. However, since the reforms in decentralization from 1980s, the central government has divided its powers to the local governments stage by stage, which enabled them become more and more independent entities with regional interest. Compared to the central government which represents national interest, local government has its self-interest, which leads to the dual behavior. Based on this understanding, this article, from the angle of the interest relationship among central government, local government and local enterprise, try to analyze local government's dual behaviors and their impact, and put forward suggestions for the negative behaviors at last.This thesis includes five chapters. Chapter one is the introduction. It explains the background, value and methods of this thesis, summarizes studies carried out by domestic and international scholars and makes a simple definition of the local government, local government interest and its behavior. Chapter two compares local government's behavior characteristics and performance before and in the process of economic transformation. Summarizes the local government's dual behavior in three areas:in the process of central government's macro regulation and control; in the relationship among local government and in the operation of local enterprise.Chapter three provides an interest analysis framework to answers the question why the local government in transition period has dual behavior, which is the key and innovative part of the whole thesis. The thesis draws lessons from The Tragedy of the Commons, inter-governmental competition theory, etc to analyze local government's dual behavior performance among the interest configuration.Chapter four analyzes the effect of local government's dual behavior during the transition. The positive acts promote China's economic development, while the abnormal behaviors bring a series of negative effects, resulting in the weakening of central authority; impede the formation of a national unified market system; delay the mature of enterprise and the corruption of local officials, etcChapter five puts forward the suggestion for the transition of local government based on the interests'framework on chapter three. First of all, define the central government and local government's powers and responsibilities by legislation; second, establish the region coordinated development organizations to promote the interest share; third, separate the functions of the government from those of local enterprises; last, establish a scientific performance evaluation system.