On Government Administrative Cost And Reconstructing Methods

Although China's economy have experienced twenty-year development,it is bearing increasingly heavy resource pressure. Constructing "Ecomomical Society"becomes the subject of our time and government is the leading role in society,so constructing the "economical government" is the basis of constructing "economical society" which depend on reducing administrative cost. From this point, we could conclude that reducing administrative cost is the logic foundation of constructing "Economical Society".The definition of so-called administrative cost which is widely accepted at present is the expense and expenditure that occurs during the government doing its execution and the indirect burden caused by the execution now and in the future. The government having function of running the country and society is the impersonality base for the existence of administration capital. but not all the administrative cost are reasonable, when the administrative cost go beyond the effect brought by when government run the society, this kind of administrative cost is considered to be overrun, in China, as Gangjian Du pointed out when he was interviewed by FINANCE NEWSPAPER"china has the hightest administrative cost in the world", and the datas has also proved that, it is showed by the datas that our country's administrative cost has the tendency of over-big scale and over-fast increasing speed, so it is significant to do deep research on administrative cost.This paper aims to explore the initial reasons of excessive administrative cost and put forward some effective measures to decrease this excessive administrative cost, so that can to some degree provide a theoretical model for decreasing the present excessive administrative cost. Based on the principle-agent theory and lateral supervision theory, the reasons of excessive administrative cost were analyzed from macro- and micro- angel, respectively. At the macro level, there was an principle-agent relationship between people and government, but owing to the free ride phenomenon, people, though as the principle part, seldom exerted well their deserved right, and meanwhile the government, as the special agent part, had an absolutely monopolization status, which potentially spurred the administrative cost push. At the micro level, the effective supervision of each other between national, subordinate and lateral sect, owing to the excessive administrative ranks and imperfect governmental system, was relatively absented, so the government could take part in the economics and political activities only by its will, which was also responsible for the excessive administrative cost. Accordingly, two principles to control the high cost were put forward: insisting on the unification between finites and obligations; insisting on the unification between self-restrain and external control. Moreover some certain measures in fathering the excessive domestic administrative cost were offered by referencing the advanced abroad experiences and combining the domestic realistic conditions.This paper employs many research methods such as reference analysis,comparative analysis,macro- and micro-analysis.In accordance with the principle of "raising problem, analyzing problem and settlingthe problem", including the introductory remarks, the paper is organized and divide intofive parts: The first part is about the research background and meaning. Investigating a basic survey of present government administrative cost research in our country, and on the basis of this, raising the significance,innovation and inadequatency of this paper. The second part consists of concrete analysis of administrative cost. It points out that the objective basis and the expansive trend of administrative cost because of the characteristics of public goods production, in the final of this chapter, the present phenomenon of administrative cost is analyzed. The third part is about the reasons for the higher administrative cost based on principle-agent theory from the macro angel. There are some reason on the basis of lateral supervision theory for the excessive administrative cost in four chapter. In the fifth part, the paper provides two principles on administrative cost control, and some certain measures were put forward by referencing the advanced abroad experiences and combining the domestic realistic conditions.The innovation of this paper lies in analyzing the resons of excessive administrative cost based on prindiple-agent theory and lateral supervision theory from micro- and macro-angel systematically.