Administrative Costs Of Local Government Management And Operation Mechanism

Since the 1970's, under the guidance of the new public management theory, the western countries got rid of the financial crisis, management crisis and confidential crisis through government reengineering. They mainly adopt the following methods to control the administration cost: changing the management functions of the government from paddle to helm; establishing the market-oriented government; establishing the decentralized government for widely using decentralized or authorized approach in management. While the research on the administration cost in our country is still in an early stage.Administration cost is defined as during a certain period of time, the cost of human, material, financial and other resources that can be scaled in currency Metrics by the government departments, political parties, institutions and organizations undertaking certain governmental function and its staff for performing administrative duties and realizing administrative goals. The main factors affecting the administration cost are government function, government scale, government decision-making and government behavior.From the administration cost in Qingdao City, there exist some problems in the management of administration cost: in vertical view, the total administration cost of Qingdao City grows relatively fast; in lateral view, the level of the administration cost of Qingdao City is relatively low; in structural view, the structure of the administration cost of Qingdao City is not reasonable. The following factors may explain the above problems. The local government budget and implementation is not normative. The local governments and their staff have a poor awareness of the cost. The local government scale is not reasonable. There are some drawbacks in the local government system.Qingdao City, as the relatively developed the municipalities specifically (separately) listed in the State Economic Plan, is in the forefront of the country in the innovation of administration. Particularly, Qingdao government adopted many reform measures in the administration cost control and achieved good results. For an instance, in the recent years, deepening government apparatus reform, speeding up the implementation of institution reform, deepening financial comprehensive reform and the implementation of standard subsidy policy effectively reduce the administration cost.In order to further consummate the administration cost control, several proposals are put forward here: set up the administrative idea to strengthen administration cost consciousness; control government scale to compress administration cost; implement E-government to reduce the administration cost; consummate government decision-making mechanism to establish the scientific standard administration cost management pattern; perfect legislative work to strengthen the financial expenditure surveillance.