| Policy is based on the fluctuation of the relation between the nation and the community. The community has different functional requirements of the government, while the change of the corresponding function of the government also demands different policies. Therefore, the range of the policy embodies the function of the government, which aims to regulate the community so that justice and efficiency can be achieved in a certain time. During this course, the social resources are sure to be redistributed. The regulating policy of the government appears due to the failure of the market, so the government is required to bring the interfering function into play to make up the drawbacks of externality and monopoly of the market. So, the regulating of the government should be orientated by the efficiency of the government.The transition from the traditional planning economy to the market economy is just the process of loosening regulation gradually, and at the same time it is also a process of establishing necessary regulation in the market economy. But because of the confused functions among the government institutions, the different treatment of the public and private organizations and the imperfection of the legal system, the confusion of policies appeared. For example, regulation becomes the means of seeking interests due to the excess of administrative examination and approval. To solve it, the corresponding reform of institutions and laws is performed and the embryonic form of regulating is established initially in the market economy. As the final rationalizing of regulating lies in compensating the failure of the market, it is put forward in this thesis that the cost - benefit analysis of regulating policies is what we have to face consequently. Because there is breaking up of interests in the market economy, the community must participate in formulating policies as well as the government in order that the policies can embody all kinds of interests. |
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