On The Operation Mechanism And Social Foundation Of Government Economic Function

Since the reform and opening up, Chinese economy has made great progress of development, and gotten gratifying achievement. However, due to various reasons of history, geography, development of environment and opportunities, regional imbalance in social and economic development is becoming increasingly prominent. According to the statistics, the per capital GDP of economic developed area is generally higher than the level of middle-income countries, but it’s lower than the average level that in low income countries, which promotes some regions to carry out the strategy of "catching-up and development". Therefore, the economic function becomes the main function of the government. In this condition, if the government’s economic function has not obtained the proper position, or it’s forced to carry out relevant activities in the condition of lacking scientific operation mechanism and social foundation, it may lead to government failure, management failure and other serious consequences. Therefore, ensuring the explicit government’s economic functions, reasonable operation mechanism and good social basis is the important factor to exert the functions of government. Giving full play to the government economic function is the core of China’s economic development and reform. Especially after the accession to the World Trade Organization, this problem has received widespread attention in the field of the society.In2012, Jinhua, which is in the city group in central area of Zhejiang, also proposed the "catching-up and development" strategy. The government makes full use of the favorable conditions and centralizes all the superior resources to lay a good foundation for the development of Jinhua city. Based on the sufficient study on this strategy, this article makes an in-depth research and demonstration of the operation mechanism and the social foundation of the government economic function. And then makes a systematic analysis of the strategy of "catching-up and development" form the theoretical level. The article will develop from the following aspects:The first section describes the "catching-up and development" strategy is a specific form of government economic functions. It mainly includes three aspects of the background, the strategic mechanism and the strategic initiatives.The second section mainly analyzes the social foundation of government’s economic function. In the classical theory, the government has to perform its economic function because of the market failure. And currently, the government can provide great platform for the economic development. Therefore, we can get the reasons for government’s intervention in the economy, and also provide substantial support for the theory of Jinhua’s "catching-up and development" strategy.The third section discusses the problems that may have in the implementation of "catching-up and development" strategy of Jinhua government, which contributes to analyzing the possible problems and the reasons in the operation of government economic functions. According to this paper, it may include the government function offside, rent-seeking and corruption and the GDP worship.The fourth part aims at putting forward several corresponding suggestions and countermeasures according to the problems above. It also includes three aspects. Firstly, we should improve the docking mode of government and market, and strengthen the construction of legal system to regulate the behavior of the government; Secondly, the construction of supervision mechanism and the self moral quality should be strengthened to get the effect of constrain and self-restriction. And finally, the government officials should establish the correct achievement view and development view. The cadre commitment and job performance evaluation mechanism should also be constructed to avoid those problems above. It is hoped that these suggestions can give some reference to the government department dealing with the relationship between the markets, or help them construct a scientific system of market economy.