The Study Of Political Risks On The Local Government On The Systerm Innovation

Since the 1970s, a great progress has been made of the system innovations theory in the West. The study of system innovations theory in the new system economics has got a general approval by most people and has a great influence. Along with the osmosis and influence of the new system economics on politics and administration science, Since the 1990s, a great of achievement has been made of the study on the system innovation on the Local government. However, the system innovation on the Local government is an emerging research and the study about it is being at a primary stage and thus there is some insufficiency existing in both the fundamental research and the positive study.System innovation is a process full of the risks. These risks include the political risk and the failure risk. As an angle of view for the study of system innovation on the Local government, some attentions have been paid to the political risk by some scholars. But the systemic researches about it are still quite few. Moreover, in reality, some adverse affects, such as the implicit of the Local government, an increase in the system innovations cost and the political instability and so on, are always brought to the Local government by the political risk. Therefore, the political risk may become an obstacle to the system innovations on the Local government. For this reason, it is significant in both theoretical and practical sense to study the problem of the political risk in the system innovations on the Local government.This article consists of four sections. The first section is the introduction. In this section, the origin, the significance, the present state, the tool, the method and the innovation of this article are presented. The second section is the article's fundamental part where the concepts of the system innovations on the Local government and the political risk and the relationship between them are presented. Firstly, the concepts of the system innovations on the Local government and the political risk are introduced respectively, and then the adverse affects of the political risk on the system innovation on the Local government are analyzed. In the third section, the detailed forms and the reason for the political risks in the system innovation on the Local government are analyzed. These political risks consist of the conflicts of interest, the attenuation of authority and the loss of authority. Moreover, the attenuation of authority and the loss of authority are analyzed from both the aspect of the public sector and the aspect of the Local government individual. In the fourth section, some strategies are proposed for the preceding analyses to reduce the loss caused by the political risk and enhance the efficiency in the system innovation on the Local government. These strategies include enhancement of the risk awareness of the Local government, establishment of the reasonable mechanism of interest compensation, establishment of the assessment mechanism for the political risk and the transformation of the function of the Local government from the management to the government and well government.