A Study On The Correlation Between Financial Difficulty And Public Power Dissimilation

Public powers differ greatly in areas with tremendous discrepancy in economic developments. Public power departments in less developed areas differ enormously from those in developed areas in policy capabilities, service quality and operation efficiency. For instance, public powers are applied to gain unlawful profits, which, consequently, results in such high investment cost that it is hard to make investments in these areas and the brain and capitals drain. It is generally called an unfavorable environment for economic development. What, then, are the causes, since different areas have the same economic and political systems? It is an instructive project that must be solved if backward areas hope to make progress. This paper, after an intensive study, holds that the financial adequacy and inadequacy level is a possible reason for different degrees in pubic power dissimilation under the condition that local governments assure the local economic and social developments on their own. To be detailed, inadequate administrative expenditure due to financial difficulties in local governments, low pay and welfare of staffs and lack in supervision are certain to lead to public power dissimilation. It puts forward that in addition to reforms in economic and political systems, it is of necessity to regulate financial functions and expenditure structures, and establish public finance so as to hinder public power dissimilation, which, conversely, is able to improve administrative service and reduce exterior costs in enterprise deals. The purpose is to create a favorable legal and administrative environment to develop the old industrial areas in the Northeast of China. The paper has three parts. Part one is about the reasons for public power dissimilation. First, it points out that public power dissimilation refers to the unlawful application of power, harming public interests, and, in general words, corruption. For example, those who hold the positions of public powers fail to fulfill their responsibilities effectively. For another, the operation of public powers is illegal, deviating from non-interest aims of providing public service and promoting public interests, and to be worse, public powers serve to gain material or spiritual profits for individuals directly or indirectly. Second, it elaborates the harms of public power assimilation. To name some, the ineffective and even failed market mechanism, power abuse and corruption, tremendous waste of social resources, the loss of citizens'traditional value and identification of government lawfulness, and the decline of governments'efficiency and fairness. And then, the paper analyzes its reasons, involving system defect, human weaknesses, and especially financial difficulties. Part two studies the reasons for local financial difficulties and its correlations with public power dissimilation. It indicates financial difficulties in less developed areas and the improper solutions by means of the comparison of the revenue and the administrative expenditure of public departments in Jilin City and Suzhou City. The following part analyzes the reasons for local financial difficulties. First, irrational financial systems lead to great imbalance of local financial revenue and expenditure. The central authorities maintain the large amount of revenue, while the rest is granted to local governments, which, though, are required to be responsible for major expenditure. So the result is that local governments have great difficulty in developing local economy. Second, local finance supports a higher proportion of staffs. The statistics show that finance in less developed areas is largely burdened by overstaffed organizations. Third, financial expenditure is unreasonable in the aspects of dislocation, improper structures, weak budget control, and decision failure, leading to waste of financial expenditure and low efficiency. Fourth, the economic development lags behind resulting from an unfavorable environment. Finally, it takes a close look at the harms of local financial difficulty, including short supply of public products, inability of adjusting the income difference, failure of financial policies to regulate economic operation, inadequate expenditure for proper administrative functions, and low social welfare, which probably contribute to public power dissimilation that causes local governments to lose priority in economic competition. Then, it makes a study on the correlation between local financial difficulty and public power dissimilation. The comparison of the relations between financial revenue and dissimilation degrees indicates that financial strength has an influence on the function ability of local governments, having a...