Mechanisms Of Cooperation In The Government Transformation And Building A Harmonious Society

Since our country's reform and opening-up, we have got very great success in all fields of the economy and the society. The economy are going up at a high speed, the synthetical power of our country has boosted up greatly, and also people's standard of living has being improved notably, the average GDP of each person exceeds 2000 dollars. In the new century, China's contribution to world economic growth reached 15%, and is universally recognized as the emerging power of economic growth. In the course of"cross the river by feeling the stones", governmental sector plays a vital role. Since 1978, the reform started from rural areas, and then prompted to cities in 1984, in the early 90s the last century we proposed the establishment of a socialist market economic system, every step of the reform process has left a deep imprint on government departments.While promoting rapid economic development and continuous improvement of the social market economic system, the government departments also exist the shortage of putting too much emphasis on economic growth and ignoring the lack of social development. People's income gap is widening, the bottleneck of economic development resources are becoming increasingly marked, environmental pollution is increasing, and so on. These factors give the further development of our country's economy and society adverse effects. Growth-oriented government changed into the development-oriented government becomes an inevitable choice in the course of promoting the balanced development of the economy and the society and of building a socialist harmonious society.In the beginning of the reform and opening-up, government department launched the market-oriented reform through the cooperation with the non-government stakeholder, established some special economic zones and run market mechanism in them. Government departments provided land and some policies for the foreign? tradesman in order to get the much-needed capital and technology for the development of the economy. Nowadays the reform is deepening, in order to promote the transition of the government sector itself and the harmonious development of the economy and the society, government sector needs to strengthen cooperation with non-governmental sector stakeholders.In the process of transferring growth-oriented government to development-oriented government, there exists some benefits as follows: firstly, the cooperation between government sector and non-government sector stakeholders can improve the effectiveness of government departments. The government of resources available for a given condition could be allocated into the places that would produce the greatest economic and social benefits, promote the welfare of all people. Secondly, through cooperation, the government could focus on the"limited"affairs that have great influences to economic development, some of the resources would be shifted from economic fields to livelihood fields, concentrate government functions in the needed areas. Thirdly, the cooperation between them could enhance the participatory of the development. Through the broad participation by the people, the policies would be implemented more smoothly, the government sector would receive better feedbacks and it will promote the construction of harmonious society.The cooperation between government sector and non-government sector stakeholders could be classified by voluntary co-operation, incentive-based co-operation and compulsory co-operation in accordance with the increasing level of constraints between them. Under the voluntary co-operation, since the non-cooperation strategy reduces the level of return of both sides, therefore co-operation strategy becomes dominant strategy between them. Under the incentive-based co-operation, in order to raise the overall level of return, the co-operation would be realized by way of transferring some benefits which belongs to government sector to the non-government sector stakeholder. In the compulsory co-operation, government departments through a variety of coercive measures to promote co-operation with non-government sector to achieve the objection of increasing the overall level of return under the established conditions, and in the while prevent the non-government sectors from choosing the strategies that would reduce the overall level of return.These three kinds of co-operation is not independent of each other, they could be transformed into each other in some conditions. Their mutual transformation due to the co-operation model should be changed in accordance with the ever-changing development situation of the economy and the society. From the microscopic point of view, this mutual transformation embodies the process of rational behavior of partners. In the case of other conditions established, the monitoring cost is higher in compulsory co-operation than in the other two co-operation models, the net earnings are lower than the other two cases. Therefore, the course of transforming compulsory co-operation into incentive-based co-operation and voluntary co-operation embodies the course that the partners ever-enhancing their overall level of return. From the macroscopic point of view, this transformation also embodies the course that the market system is improving continuously. Compulsory co-operation often appears in the areas that exists market failure and the market mechanism is imperfect, the increasing of voluntary co-operation illustrates that the businesses between government sector and non-government sectors abide by the principals of equality and voluntariness required by the market economy.From the view of policy options, in the course of promoting the development of socialist market economy and the construction of harmonious society, the government department should choose a proper co-operation model accord to the reality, and also promote compulsory co-operation transformed into incentive-based co-operation and voluntary co-operation by the laws, regulations and policies, and meanwhile to realize the transformation of growth-oriented government to development-oriented government.