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Study On The Failure Phenomenon Of China's Food Market Regulation Based On The Perspective That The Government Incentives Are Not Compatabil

Posted on:2011-09-21Degree:MasterType:Thesis
Country:ChinaCandidate:R Y HuangFull Text:PDF
GTID:2189360305468898Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
With the continuous development of China's economy and rising of people's living standards, people's demand for food has been changed from the pursuit of quantity to the pursuit of quality, food security has become one of the most concerned topics. In recent years, China's food safety incidents continue to occur, in 2004, it occurred "Datouwawa" incident, in 2005, it occurred"Sudanhong"incident, in 2008, it occurred"Sanlu poisonous milk powder"incident, all of them caused a sensation around the world and made enormous negative impaction on China's international image. Practice shows that food safety is a long-term task which needs the whole community works together, especially, the government as a manager in food safety plays a particularly crucial role. This is not only because it represents the state to legislate and implement supervision and management, but also because the Government has the functions of public administration, in particular, the Government functions of monitoring, protection, coordination and service can be able to compensate for food market failures. Therefore, the Study on the Government regulation in food safety is particularly meaningful. In reality, many scholars may focus on the relationship between government and enterprises'game, and overlook the various relationships within the Government during the course of the food safety regulation, which leads to an inadequate interpretation on realistic food safety issues.In this paper, in accordance with the standards of economic studies, it is integrated use of the normative studies, comparison and induction methods to analysis China's food safety issues. Firstly, This paper describes the grim situation of China's food safety, analyses the main reasons for the failure in food market, including the incomplete and asymmetric information, bounded rationality of consumers, explains the need for government regulation in food safety issues; Secondly, this paper makes a basic assumption on the government behavior, that the government, as one of the market players, is"economic man"in market economy, it has some basic attributes, such as the pursuit of self-interest maximization, opportunistic tendencies and bounded rationality. The Government is a collective actor which is subject to a limited rationality and opportunistic tendencies. in the process of the Government regulation in food safety, the design of the control objectives and measures have been given full consideration to the costs and benefits that the regulation may cause, and the costs and benefits are analyzed in detail, with a view of helping China's food safety regulations practices; Thirdly, for the main reasons of food safety market failure, combined with the status quo of China's food safety regulation, this paper constructs the objective functions of the China's various government sector in the food safety regulation(including central government, local government and functional departments), analyses several key factors which impact on the various government departments'objective function, and thus determines the options for action by various government departments, that is, the supreme power sector-the central Government-has chosen to strengthen the regulation and, as the implementation of specific control of the sectorlocal government and functional departments-have chosen to deregulation. Finally, this paper gives an important aspect of improving China's food safety regulation, improvise the food safety market regulations in government departments and non-governmental departments, including establishing and improving specialized agencies for food quality and safety management, improving food safety laws and regulations, improving the incentive and punishment mechanism on the regulatory agency and government officials, emphasizing on food safety publicity and education, emphasizing on making the social intermediary organizations playing a important organization of self-discipline role, such as trade associations, and each is analyzed.
Keywords/Search Tags:Food Safety, Government Regulation, Objective Function, Options for Action
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