Government's Function And Transformation In The Transforming Country Under The Economic Globalization

With the deepening of the world economic globalization, the countriesrepresented by Russia and China, which had been carrying out aplanned-economy policy, are continuously expediting the transformationsteps toward market economy. So it is a new challenge for such countries toredefine the governments'functions and to make clear their developmentdirection to meet the demand of market economy. The thesis presents somesuggestions on the transformation and the development direction of thegovernments'functions of these countries including China through thesum-up analysis of system and governments'structures variance of thesetransforming countries on the background of economic globalization. Thethesis includes six parts.Part 1 emphasizes the concept of structure transformation in moderneconomics. The theory is an important part of modern economics, especiallyof new system economics. The structure transformation is defined as "theproduction resources mainly run by collectivity and party department arebeing used mainly by private ownership and individual and private groups'disperse decisions". There are two basic types of structure transformation, i.e.radicalness and gradualness. According to the new system economics, thesuccessful realization of structure transformation in socialist countries musttake importance on the function of government. Market economic systemcan not be initiated if the government does not function positively in theprocess of structure transformation.Part 2 emphasizes the analysis on the internal relation and pertinencebetween the economic globalization and system variance in transforming countries. The current world economic globalization provides a goodopportunity for the economic opening-up and system reference in eachtransforming country and enhances the equality in every country's structure.The economic globalization has three main carriers: the trade liberalization,the internationalization of production activity and the globalization offinance, which have far-reaching influence on the popularization of marketeconomic system in the world. The accelerated development of global tradeand investment and finance will enlarge the degree of opening-up andamalgamation in transforming countries. The continually founded anddeveloping international economic organizations have great functions on thestructure selection and arrangement for these countries. But the issue on thestructure construction of economic transformation is mainly determined bythe specific social and economic conditions of each country, not by severalimportant international finance organizations, on which relying excessively,there will be a devastating result for the economic transformation andstructure construction.Part 3 emphasizes the governments'functions and conversion of eachtransforming country in the economic globalization. The economicglobalization brings forward a higher demand on the policy of economicreform and implementation of macro economic policy in the transformingcountry. The economic reform strategy and the macro economic policy arenot only internal affairs of one country in the background of economicglobalization. How to make a balance and to pursue the best among mutuallyconflicting aims and policies and measures requests the government to havehigh forecast and accuracy toward economic policy action. A powerfultransforming government must be rational and effective and independent toadjust its effectiveness to the function in the reform of government in theeconomic globalization. According to the request of the market economy, thegovernment transforms its function to create and maintain good market andsocial environment with enterprise spirits to reform the government andincrease the efficiency of the government. The fact proves that a weak andinept government can not open the door to the modernization.The government shall cultivate markets and establish rules and maintainmarket orders except the common functions of providing public products,sustaining stability and increase of the macro economy and improvingearnings and fair distributions. The government shall also choose thetransforming strategy preferable to the country's complexion according to hisown condition, set up the social security system matching with the marketeconomy and exert itself to manage its economic development in theinternational competition. Moreover, new requests are also presented to thefunction of the transforming country's government under the newinternational economic order, such as keeping country's "economic safety",exerting itself to solving the problems of the global environment, population,terrorism, drug crimes and the criminal activities on the internet.Part 4 emphasizes the view on the transforming particularity of thesecountries'governments'function under the economic globalization. It is thehard task faced by the government and its determined aim to confirm theparticularity when the government is in the process of merging in theeconomic globalization. The government should take the regulationcondition required in establishing market economy as a key task, especiallythe exoteric economic structure which can only be fulfilled by thegovernment under this condition. Most of countries choose the free marketeconomy structure. They always stress on the reduction of governments'intervention on the economy and neglect and even deny the function ofgovernment. Then they strengthen the function again in certain degree andstart its intervention. The transforming countries'governments'function isquite different to that of other developed countries, i.e. they have broaderextension and more fields to play their roles.Part 5 stresses on the governments'function in China, and puts forthsuggestions for its transformation. With entry into WTO, China's economybegins to merge more into the world economy, which brings about variouschallenges to the traditional economic function of the government. China isin a state of transforming its economic structures, which requires thegovernment to take on two major functions: on one hand, trying to reduce theeconomic function of direct management of different productive factorsunder the planned economy, to decrease administrative intervention and letthe market system distribute resources, i.e., minimize the functional space ofthe government; while on the other hand, bearing the function of cultivatingthe market system that was oppressed under the planned economic system,so as to foster and facilitate the growth of market economy and expand themarket's operational space. The major direction for the transformation ofgovernment's economic function is to reform the economy administrationstructure, improve the way of controlling economy, speed up thetransformation of SOEs, readjust the distribution of state economy, cultivatemarket system, rectify market order, build a preferable market environment,...