A Study On The Counterpart Aid: A Cooperation Pattern Between Local Governments With Chinese Characteristics

After the Second World War, the social productivity has been greatly developed with the third technological revolution marked by the birth of computers, biological engineer and new materials. Thanks to the free flow of the productivity factors, the social production tends to be increasingly globalized. The technological innovation results in the profound changes in the patters of labor division, which tightens the ties and deepens the dependence between the nations and areas. The regional economic integration is the tendency of the world economic development. It not only breaks through the barriers in terms of institutions in the flow of commodity, technology and capital around the whole world, but also enhances the close cooperation between the local governments.Since the fifties of 20th century, under the guidance of the central government, the aids and cooperation between the local governments have been carried out and the policy of counterpart aid was adopted in 1979. It is regarded as a significant measure to narrow the gaps between the different areas. Many achievements have especially made in shortening the differences between the east and the west and in advancing the development between the governments in the two regions.Due to the great changes brought by the market economy since 90's in 20th century, in order to solve the common affairs facing the different local governments, the ties between the local governments have become much closer. Therefore the original one-way aid has grown into the bilateral cooperation and more requirements are made for the cooperation between the two counterparts. One significant issue in the cooperation is how to establish a stable and effective system for the counterpart aids so as to decrease the problems in the temporary aid policies and related activities.