Analysis On Village Governments Policy Execution Deviation From Principal-agent Theory

Public policy implementation process is the key to achieve the intended purpose of public policy and solve the practical problems. But when it comes to practice,because of some specific social issues,this party is often subject to decision-making bodies at all levels of government .China's grass-roots level governments is the basic in the implementation of public policies .So its problems must led to policy implementation up to expectations,more seriously,undermine the government in the public mind the image of the government's credibility and adversely affected the social credibility.To improve this situation , I try to analysis the features of the contacts from Principal-agent theory. During the course , I found the information betweens client and the agent is not balance. And this is just the main reason to cause the moral hazard . In order to perfect it ,we should establish effective supervision and incentive system.This article is divided into three parts:Part 1: The meaning and the condition of Principal-agent theory is discussed in-depth .Governments policy execution is explained deeply. From Principal-agent theory , not only the relationships of principal-agent in administration, but also relationship between the policy and the theory is discussed thoroughly.Part 2: To begin with , it analyses the case in Town Tangshenmiao . Secondly, the reasons bringing about problems of governments policy execution in Shenyang are comprehensively analyzed. The performance mainly lies in the immature of supervision system and imputation system, the immature of incentive, the different benefit between the government and the citizen and the dissymmetric information between two sides.Part 3: From the situation of Town Tangshenmiao , the systematic solution to solve the problems is given in this part from principal-agent. It establishes effective supervision and incentive system. It should break the situation of unbalance benefit between the client and the agent. And the passage of information should be widened.