Study On Institutional Innovation In The Central And Local Government Relations In China

To handle in a scientific way the relations between central and local governments is the difficulty and keystone of political civilization construction and political system reform being undertaken currently. Since the entry into the new century, China has continued to develop and perfect the socialist market economy system with its entry to WTO, and these require the further adjustment of relations between central and local governments as well as the scientific and rational responsibility distribution. Therefore, to deepen the systematic study on the central -local relations can not only meet the theoretical demand in this field but further brings the practical significance in clearing up obstacles in current economic and social development as well as in building a harmonious society.Based on the related theories developed by senior scholars and starting from the research status of the central/local relations, the paper analyzes conscientiously the connotation, essence and the historical evolution of their relations.Through a comprehensive analysis, the paper argues that institutional innovation is the key to handling with the relations between central and local governments. Therefore, the paper later discusses the existing problems and their causes, put forward the premise, principles, scope as well as the Countermeasures of their relations. The author believes that the coordination relations between central and local governments can be achieved by improving the institutional environment, changing government function, setting up communication mechanism , adjusting administrative divisions and hierarchical structure, legalizing relations between central and local governments as well as taking other effective measures.