“Expanding Power and Strengthening County” and Administrative System Reform—Experience from Zhejiang Province - 中欧社会论坛 - China Europa Forum

“Expanding Power and Strengthening County” and Administrative System Reform—Experience from Zhejiang Province

Authors: Xing Wei

Published by Journal of Graduate School of Chinese Academy of Social Sciences, March 2010, No. 2

The Third Plenary Session of the 17th CPC Central Committee proposed the need to “expand the autonomy of county development”. “Areas where conditions permit may, in accordance with the law, explore the system of the county (city) directly administered by the province”. On 1st August 2009, China implemented the first official provincial government regulation to promote “Expanding Power and Strengthening County”, which was the “provisions for strengthening the administrative functions of county government in Zhejiang Province”. It indicates that Zhejiang province is once again decentralising socio-economic management to county level government. 443 powers on examination and approval were decentralised all at once. It is referred to by experts as “the largest direct decentralisation in Zhejiang”.

I. Review on implementation of the “Expanding Power and Strengthening County” policy

The so-called “Expanding Power and Strengthening County” policy or the system of the “county directly administrated by the province” was a government fiscal reform that has been implemented since 1992, in Zhejiang and other provinces. The core content is that by expanding the powers of the county government, the administrative power of “city with districts” which controls the county (city) government is reduced. “Expanding Power and Strengthening County” policy endows the county government with greater autonomy, which lays the foundation of economic development and social management for the county government. This helps to reduce management levels, lowers administrative costs, improves management efficiency, and leads county economy to “the fast lane of rapid development”. Since 1992, Zhejiang provincial government decentralised the power of examination and approval, as well as municipal economic management to county government, respectively. From 2002 onwards, many provinces began to follow the reform of the “Expanding Power and Strengthening County” policy, such as Jilin, Hebei, Hubei, Jiangsu, Heilongjiang, Henan, Guangdong, Jiangxi, Liaoning, Shandong, Fujian and others.

II. Significances of the implementation of the “Expanding Power and Strengthening County” policy

1. Through piloting, more concrete benefits will be brought directly into the counties’ economy, among which the areas of finance and projects will receive the greatest benefit. In terms of finance, the municipal government will no longer obtain a share of the county government’s income; in terms of projects, projects will be directly reported to the provincial government, which increase the autonomy and success rate of reported projects in counties.

2. Through piloting, a better environment will be created for economic development of the counties. The procedures of the provincial government reporting to higher levels of government and the waiting for an approval are eliminated, so there will be increased efficiency in work. The forming of a more autonomous, fast and efficient working environment will help to attract and seize more business and investment opportunities.

3. Through piloting, it will establish a closer cooperative relationship with the province.

4. Through piloting, a more standardised operating mechanism will be formed for government.

III. Powerful challenges for the “Expanding Power and Strengthening County” policy

1. For counties (cities) with strong economy, there is an obvious lack of capacity and authority for social management, therefore affecting the government’s overall performance in fulfilling its role.

2. For counties (cities) with strong economy, there is a shortage in organisations of market regulatory services, which is required for development. Also, the compilation of government is limited, therefore restricting the further development and improvement of counties with strong economy.

3. Implementation of the “Expanding Power and Strengthening County” policy does not integrate well with the current system and the laws and regulations, as a lot of the authority is difficult to fully decentralise.

4. For counties (cities) with strong economy assessment and incentive mechanism is defective, and it strongly requires adjustments and improvements.

IV. Effective strategies of the “Expanding Power and Strengthening County” policy

When implementing a pilot scheme for the “Expanding Power and Strengthening County” policy, the county government must seize the important factor of “expanding power” and grasp the mainstream of “development”. It should encircle the key point of “innovation”, make greater efforts to promote the pilot scheme, and work hard to enhance the unconventional economic development of counties.

1. Ideas should be updated and the route of development should be clearly understood. Ideas should keep pace with the times; the traditional concept should be transformed and ideas for development should be innovated.

2. The county should promote project works and fully seize opportunities. The most important element in the implementation of the “Expanding Power and Strengthening County” policy is the reporting of projects directly to the provincial government. Therefore, opportunities for major development projects should be grasped and best efforts should be made to develop these projects.

3. The link of relationships should be communicated and the operating mode should be changed. To implement the “Expanding Power and Strengthening County” policy, indicates adjustments in economic management power, rather than changes in administrative divisions and administrative management. Its own position should be put straight. The county departments should improve their working ideas, styles and methods. They should not wait or rely on the higher levels of government, nor delay projects, but should actively enhance the communication and link with the provincial departments.

4. The environment for development should be optimised and the style of working should be improved.

5. The quality of cadres should be enhanced, and training and learning should be intensified.

6. The exercise of power should be standardised, and management and supervision should be strengthened.

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