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Gu Yanwu'sScheme and Central-local Government Relationship Construction: Vitality Embodied in Order

【Authors】
LV Bingyang
【WorkUnit】
Renmin University of China, 100872.
【Abstract】

Central-local government relationship is a very important institutional arrangement for a country and it has great influence on the economic, social and political operations. The research of this paper finds that order is an important core concept of governance; today China's central-local government relationship has been deeply influenced by its historical tradition of the system of prefectures and counties which could help improve organizational efficiency and construe the state order, but with inevitably negative effects on state governance; while dealing with the central-local government relationship, the complex, asymmetrical information, the size and quantity of local governments will determine the conversion between vitality and order. Gu Yanwu's scheme is in essence trying to strike a balance between vitality and order in the centrallocal government relationship. Based on Gu's scheme, this paper puts forward the central-local government relationship reform scheme “Vitality Embodied in Order”: it gives county-level governments more autonomy power and emphasizes decentralization and vitality; it advocates the vertical management by the central government above the county level and emphasizes centralization and order to form a “dumbbell-like” power structure. This paper proposes a detailed reform plan design.

JEL:H77, B52, P48

【KeyWords】
Central-local Government Relationship, System of Prefectures and Counties, Fiscal Decentralization, Information Asymmetry