China To Restructure Local Government, The Institutional Perspective

The reformation of government organs is divided into the central organization reform and the local authority organization reform. If the central organization reform is one kind of macro-control to state's management system, the local authority organization reform should be a control limit and office procedure renovation. Comparatively speaking, when the local government reforms organization, on one hand needs to pay attention to the macroscopic policy and coordination to the local situation, on the other hand also needs to pay attention to the central committee and the local relations adjustment. Under a background of the switcher in China in economic and society, the local authority organization reform needs to process well with the financial system and the administration organizational reformation, this causes the local government reformation all appearing complicated and slow in the policy formulation and implementation process. The system already became one of the inner variable functions to give rise to the local organization reformation, and the modulation of benefit relations was the key to success.This article begins with a background of system environment .while reviewing the local authority organization reformation course, on the basis of the system economic and the switcher economic theory, we find that the local authority organization reformation is caused by the system pressure. Carrying on under the imperfect system background means that the reformation was in the benefit relations which had not straightened out. Then we realize that the local organization reformation also surely can affect some one's benefit whose relationships had not straightened out, as a result, twice touches to the benefit and no suitable policy to relax the contradictions between interest groups lead the unusual result to the local organization reformation. This article confirms by a defeat case and two successful cases to prove the interest adjustment is the key to local authority organization reformation, and accordingly put forward some policy advice. The innovation spot lies in: the reasonable adjustment to interest must be in two scopes: the benefit final pattern must be accepted by the special interest groups--the result should withstand in a scope; and the range of the adjustment also must be accepted by the special interest groups—the procedure should withstand in a scope. Thereupon the local authority needs more alignment procedure in the reform the system, the local authority organization reformation only then will be able to tend to achieve the fixed goal.