A Research On Western Governments Failures And Its Illumination On China

Corresponded with the market failures, government intervention also exists failures. The government is also an imperfect society machine, and there are limitations of awareness and capacity, policy adjustment delay or inefficiency, etc. Government also has its own interest, and tries to maximize their own income, thus, it will inevitably result in government intervention deviation. It should be noted that in the course of public decision-making the interests of the community is limited, but at the same time the development of a modern market economy has fully proved that the appropriate government intervention is necessary, and to be effective, our recognition of those shortcomings does not mean to abolish government intervention, but rather to improve and optimize through government's efforts.This paper is divided into three parts. The first part provides the theories and concepts related and gives an identification on government and market, market failures, and government failures. The second part has an overview upon the research in progress home and abroad on western government failures. The third part goes for the comprehensive analysis of governments failures. It is analysed through the causes, the phenomenon, the types of the western government failures and the strategies to them. The fourth part provides the illumination brought in China from the western issue. This part illustrates the necessary government intervene and relevant important issues in this particular period of China and analyzes facts of Chinese government failures on both theoretical and practical basis and finally proposes possible countermeasures.China now has some government failure or signs of this phenomenon, and analyzes the causes and proposes appropriate measures. The current situation is investigated on three aspects, which are government's own problems, the role of the government offside, and government position absent. Concerned with government's own issues, it includes four aspects: first, rent-seeking behaves seriously. In the process of the establishment of a market economic system in China, on the one hand, individual desire is distorted with a long time suppressed by the planned economic system. On the other hand, the unclear functions of the government and property rights system are breeding rent-seeking behavior and provide a hotbed of corruption, at the same time, legal system is not perfect in the transitional period, thus, it can hardly constraint the rent-seeking behavior or corruption. Second, the agencies are overstaffed and functions are overlapped. And compared with other market economies, the Chinese government and the scale of expansion are at an alarming rate, and there is a lack of scientific and legal constraints in institutions. Third, the value of the policy had shifted and the government work appears to be low-quality and low effectiveness. As a policy based on timely transmission of information is not an accurate assessment of even distortion, resulting in masses on the authenticity and validity of the policy in doubt, the impact on the effective implementation of policy; Not according to scientific decision-making procedures, policy makers strong subjective wishes; Fourth, the government provision of public goods has low efficiency. The scope of supply and the market is unclear. The government in the provision of public goods has the phenomenon of waste and shortage, or poor quality. Offside prominent role of the government embodied in the government-to-business and the excessive market intervention, or the intervention of the Japanese intensity too. Absent refers to the role of government in market economy conditions of the government should bear the responsibility, the government has no commitment or commitments were not enough, thus causing the market unable to adjust some parts of a "vacuum."Official Standard mainly comes from the traditional thinking, the lack of effective supervision system, the government is the biggest monopoly, the government functions defined unclear, the government intervention, methods unreasonable for several reasons analysis perspective, and made a number of prevention or failure of the Chinese government to resolve the issue of countermeasures, such as: change, and develop a new service concept, improve the government's macro-control functions, and the sound speed up the cultivation of China's market system, the establishment of government authority, effective supervision and control mechanism, and strengthen the government's public service functions, etc.Failure of the government debate on the issue of government failure to renounce Western theory, a clear failure of government and the real meaning for us in the socialist market economic development, properly handle the relationship between government and the market, set reasonable, good play or change the government functions, improve the mechanism and macro-control. It is of great instruction to avoid government failure.