Dissertation > Political, legal > China's political > State administration > State organs and personnel management

Analysis on Reducing the Cost of Government

Author MengXiangBin
Tutor WangYuXia
School Dongbei University of Finance
Course Western Economics
Keywords administrative cost administration efficiency solution
CLC D630
Type Master's thesis
Year 2011
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The sustainable development of a country’s stability and future economy is inevitably related to its administrative costs. In most countries of the world, the huge size of public administration institutes and the low administrative efficiency caused waste of scare resources. And administrative cost, to some extent, was influenced by global financial crisis in 2008. Therefore, to reasonably save limited resources and control administrative cost was becoming main focus of attention for governments worldwide. With the developing and more involving of governmental reform movements from the seventh decade of last Century, administrative cost was of more and more importance in science research whose object was government. Political circles criticized that the administrative cost was too high based on advocate of limited government; administrative circles proposed governmental administration should refer to private economic management method in order to improve administrative efficiency and thus reduce administrative cost, while economic circles, with free market economy as its theoretical ground, criticized government administration was of low efficiency and high cost. Under the impact of government reform and in order to adapt well to social and economic system transformation, China raised the issue of high administrative cost during system transformation from last century, based on changed governmental functions and establishment of a clean and efficient, service-oriented and more saving government. The 17th Congress of the Chinese Communist Party documents clearly put forward the establishment of a standardized system of public expenditure, strict control and effective reduce of administrative costs, to prevent excessive growth of administrative expenditure and accelerate the pace of construction of a saving government. In the process of implementing its function, the government has to consume a certain share of natural and social resources, but China’s current administrative cost is still very high and would be intensified its growth momentum, which is not conducive to the realization of optimal allocation of resources, and contrary to the establishment of a saving government. How to transform government functions, to strengthen the sense of cost savings, to reduce the social functioning burden, and to maximize the interests of taxpayers become a pressing issue. The argumentation of this paper was based the application of the theoretical results. By using the method of referring to relative literature, analyzing based on theories, combining studying literature and analyzing facts, the paper revealed the status quo of china’s administrative cost through defining its concept, analyzed all the factors contributing to the high administrative cost and proposed some possible idea to control cost through comparing the differences between the administrative expenditures of China and other countries. Finally, this paper put forward some solution to control government administrative cost from aspects like government function, government size, government decision, government action and government efficiency. There’s main three parts included in this paper:The first part is introduction to present status of China government cost, first defining the concept of government administrative cost, then dividing its reasonable range, and thus reveal status quo of government administrative cost. In the second part, the paper compares our amount of administrative expenses with that of other countries and analyzes what at the end lead to the high administrative cost. The third part puts forward a solution based on those causes and lists some domestic and foreign successful cases. The paper, based on the theory and present status of China government administrative cost, analyzed its existing problems and investigated the feasible measures of reducing administrative cost from the aspects like establishing cost consciousness, simplifying government institutes as well as establishing e-administration.

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