Study On The Pros And Cons Of The Currency Reform Of China’s Public Service Vehicles

Reform on official vehicle-using system has become a hot issue that arouses great concern in today’s society. People hold different opinions on whether or not reform should be conducted. With ambiguity in mind, some local governments are hesitant on reform efforts.Official vehicles are vehicles which are configured to ensure that government departments and public officials carry out normal official activities successfully. China’s official vehicle-using system is the result of the long-term planned economy. It formed in the underdevelopment economic and social and public transportation gradually. The system stipulates the official vehicles management, the official vehicles’ users, and the punishment for that against the rules. The system played a very important role in improving the work efficiency and ensuring the target of government activities come true smoothly. With the developing of the economy and the society, however, the system brings more and more disadvantages: equipped beyond establishing standard or without permission, high operation cost and heavy financial burden, amazing waste, low efficiency and often used for private purposes. As a result, it’s time to innovate and update the present official vehicle-using system.Early in 1990 s, local governments began their hard exploration on reform of official vehicle-using system. The reform result in three operation modes and they are standardized mode, half-monetary mode and monetary mode. The author summarizes and criticizes the related theories in the innovation if official vehicles, finds out an innovation index system, which takes into account balancing the costs effects and benefits. In view of new institutional economics and using the theory of public management, the essay gives comparison analysis of the three modes, showing that each mode has its own advantages and disadvantages. Monetary mode turns out to be the complete market-oriented mode,and will inevitably become the choice of reform path. But monetary mode, as an institutional change, has some disadvantages. The paper shows that this phenomenon derives from strong path dependence.To make clear advantages and disadvantages in monetary mode reform on official vehicle-using system, the essay makes empirical analysis by taking such reform in Tongxiang of Zhejiang province as an example. In addition to the city people’s armed forces(even reservists), courts, prosecutors, public security bureau not included in the range of reform on official vehicle-using system, other government departments have all finished the reform now. This paper briefly introduces the situation of monetary reform of official vehicles in Tongxiang and deeply analyzes the topics, goal, method, and institution of the innovation on the basis of the new institutional economics, though analyzing case, sorting literature, investigating field, and comparative analyzing, which combines the reality and the history, and unifies the theory and practice,which studies and analyzes of the currency reform of Tongxiang’s public service vehicles, including analyzing interest concerned with the reform, using rational policy mode to analyze the official vehicle reform cost and benefit, summarizing the reform briefly.Finally,based on above analysis, the essay points out the pros and cons of the currency reform of china’s public service vehicles. The essay analyses the pros and puts forward some useful advice of the cons, and then gives some suggestions in the course of the promotion of the model. I hope that the essay would give some suggestions to the national reform on official vehicle-using system.