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Brief Description of the Country and Its
National/State Government Structure
Demography
The People's Republic of China (PRC), founded on 1 October
1949, covers an area of 9.6 million square kilometres. In
1994, it had a population of 1198.5 million and 31 provinces,
autonomous regions and municipalities. China is a country
with 56 nationalities but the Han nationality is
the largest one, accounting for about 94 per cent of the total
population. Beijing is the capital of the country. China's
population is unevenly distributed. In 1994, the eastern part
of China covered about 40 per cent of its area but housed
over 90 per cent of its population. In the same year most
of the Chinese people were rural and only 28.62 per cent were
considered urban although the number of cities reached 619.
China is accelerating its industrialization and non-agricultural
activities have dominated the economy in most of the coastal
developed areas. However, China's economy as a whole, measured
by Gross National Product (GNP) and employment, is still dominated
by agriculture. In 1994 the ratio of primary, secondary and
tertiary sectors was 21.0 per cent, 47.3 per cent and 31.8
per cent of GNP and 54.3 per cent, 22.7 per cent and 23.0
per cent in terms of employment. China GNP was 4,491,800 million
RMB yuan (about 547,780.48 million US dollars) in 1994, but
the GNP per capita was only 374 yuan (about 457 US dollars)
due to its large population. Therefore, China can be categorized
as a developing country.
National governmental and political structure
China is a socialist country led by the working class and
a people's democratic dictatorship based on the alliance of
workers and peasants. The organs of state power include the
People Congress, Chairman, State Council, Military Commission
of the Central Committee of the Communist Party, Local People
Congresses and Local Governments, Autonomous Organs in the
nationality autonomous regions, the Supreme People's Court
and the Supreme People's Procuratorate. The system of the
People Congress is a radical political system. The People's
Congress of China is the supreme organ of state power and
its permanent organization is the Standing Committee of the
People's Congress of China. The Standing Committee exercises
legislative power. The Local People Congresses at different
levels are the state power organs at local level. The Local
People Congress at county level or higher level set up the
Standing Committees that forms the permanent organization
at the corresponding local levels.
The Chairman of the country, according to the decision of
the People's Congress and the Standing Committee, has the
power to promulgate decrees, appoint and remove the Premier
and Vice Premier of the State Council, as well as state members,
Ministers, the Major auditor and the Secretary General, confer
the state medals and glory titles, issue the decrees of special
pardon, martial laws and mobilization order and proclaim the
state of war. The State Council of China is the supreme administrative
organ of the state and the executive organ of the supreme
organ of state power. Local governments are the executive
organs of the state power at different local levels and are
the local administrative organs. Local governments are the
administrative organs of state under the leadership of the
State Council and obey the State Council.
Figure 1. Organization of the Chinese Government
The Military Commission of the Central Committee of the Communist
Party leads the armed forces of the country. The Chairman
of the commission holds the responsibility to the People's
Congress and the Standing Committee of the congress.
People's Courts at different levels are the judicial organs
of the country. The People's Courts at local levels, Special
People's Courts and the Supreme People's Courts exercise the
judicial authority. The People's Courts at local levels are
divided into the Basic-Level Courts, Middle People's Courts
and Higher People's Courts. The Special People's Courts include
Military Courts, Railway Transportation Courts, Water Transportation
Courts, Maritime Courts, Forest Courts and other Special Courts.
The People's Procuratorates at local levels are the organs
of law supervision of the state. The state sets up the Supreme,
Local and Special People's Procuratorates. The Local People's
Procuratorates include those of province, autonomous region
and municipality, those of autonomous prefectures, cities
under the jurisdiction of province and those of county, city,
autonomous county and district under the jurisdiction of city.
The Special People's Procuratorates include the military,
railway transport, water transport and other ones.
China is a country with several political parties which practices
multiparty cooperation and political consultative system under
the leadership of the Communist Party. The democratic parties
join the state power, the consultation of the policies and
selecting leaders of the state, the formulation and practice
of national policies and laws.
Evolution of Local Government, its Legal
and Political Background
Since the foundation of the People's Republic of China, the
designation of the organs of the central government, with
the development and change of political and economic situations,
has experienced adjustment and could be divided into four
periods.
Socialist transformation (1949-1956)
After the foundation of the Peoples Republic of China, the
Central Committee of People's Government represented the country
and exercised state power. The Committee organized the Government
Administration Council, the Revolutionary Military Committee,
the Supreme People's Court and the Supreme People's Procuratorate.
In 1952, the Central Committee changed the people's government
into administrative committees that were taken as the organs
of the Central Committee to lead and supervise the local governments
in order to suit the new situation. At the same time, the
ministries of the Government Administration Council were adjusted
and increased to 42 ministries by the end of 1953. In June
1954, the central government, in order to strengthen its leadership
to the provinces, municipalities and autonomous regions, to
decrease its organization levels and to raise its efficiency,
decided to dismiss the administrative committees. In 1955
and 1956, the socialist transformation of urban industries
and commerce and the cooperative transformation of agriculture
were undertaken. The central government adjusted and reorganized
the financial ministries organs under the State Council in
order to strengthen its leadership of the economy. By the
end of 1956, the State Council had 81 organs: 48 committees
and ministries, 24 institutions directly under the council,
8 offices and 1 Secretary General. This was the first major
reorganization of the central government since liberation.
Socialist construction (1957-1966)
With the end of the first five-year plan and the completion
of the socialist transform action, the administrative organizations
of the state increasingly became overstaffed and inefficient
and were not suited to the development of productive force.
In 1958 and 1959, the State Council adjusted its organization.
By the end of 1959, the State Council decreased its organizations
to 6 offices and 1 general-secretary. In the winter of 1960,
in order to adjust, consolidate and develop the national economy,
6 central bureaus were set up covering North, Northeast, East,
Central, Southwest and Northwest China. By 1965, the ministries
and organizations under the designation of the State Council
were subdivided. By the end of 1965, the State Council had
79 organizations, including 49 committees and ministries,
22 organizations directly under the Council, 7 offices and
1 Secretary General.
Cultural revolution (1966-1976)
In May 1965, the Chinese Community Party decided to establish
military control in some ministries of the State Council and
either transfer them to the armed forces or sent military
representatives to these ministries. In 1970, the whole country
was divided into 10 coordinated regions. Management of most
enterprises and organizations directly under the state was
put under the lower administrative levels. Many organizations
were cut down and merged and large numbers of personnel were
transferred to lower levels. By then, the State Council only
had 32 organizations of which the 13 organizations transferred
to management by the Military Committee. Therefore, the State
Council only led 19 ministries. From 1971-1973 and in 1975,
the economic system experienced 2 consolidations. The State
Council increased to more than 20 organizations. By the end
of 1975, the council had 52 organizations, including 29 committees
and ministries, 19 organizations directly under the council
and 4 offices. During this period, the management of the state
with respect to economy and society was not undertaken formally.
New socialist construction (1976-1999)
In October 1976 the Cultural Revolution ended and the socialist
construction of China entered a new era. From 1977 to 1981
the State Council resumed and designated 48 organizations.
By the end of 1981 the council had 100 organizations: 52 committees
and ministries, 43 organizations directly under the council
and 5 offices. This was the greatest reorganization of state
organs since the liberation. From March to August 1982 the
State Council carried out the organizational reform. Through
adjustment efforts, the organizations of the council decreased
to 61. In December 1982 the posts of state Chairman and Vice
Chairman were resumed, state members were added the council
and the Military Commission of the Central Committee of the
Communist Party was designated. From 1983 to 1987 the State
Council designated some committees, departments and bureaus
to improve the administrative system of the country. In October
1987 the Communist Party of China decided to carry out the
reform of the political system accompanying the reform of
the economic system. By the end of 1990, the State Council
had 68 organizations, including 41 committees and ministries,
19 organizations directly under the council, 7 administrative
bodies and 1 general office. In addition, 16 State bureaus
under the governance of committees and departments were designated.
In October 1992, the Communist Party of China put forward
to carry out the reform of political system actively and construct
the socialist democratic politics with Chinese features.
Local Government Categories and Hierarchies
Types and levels
Local governments, according to the Constitution and the
related law, are divided into 3 main types: local governments
at different levels, autonomous governments of nationality
regions and governments of special administrative regions.
In 1996 an administrative hierarchical structure was formulated.
The structure is the same as that of the Communist Party at
the national, sub-national and local levels. The levels of
local government have undergone several changes since the
foundation of the PRC. Generally, there were 6 levels from
October 1949 to September 1954: large region, province, city,
county (urban district), district and country (township).
Since September 1954, the number of levels changed to 5 levels:
province, city (prefectures, league and autonomous prefecture),
county (autonomous county, banner and district under the jurisdiction
of the city), district and village (people's commune, town
and autonomous country). At present, the organizational system
of local government is divided into 4 levels:
Provincial level
These include Provincial, Autonomous Region and Municipal
Governments, which are the highest levels of local government.
In 1996, China had 31 provincial-level administrative units,
including 23 provinces, 5 autonomous regions and 3 cities;
City level
This category includes cities under the jurisdiction of the
province, prefectures, autonomous prefectures as well as leagues
and districts under the jurisdiction of the apex municipalities;
County level
This level includes country, autonomous county, county-level
city, banner, autonomous banner, special zone, forest districts,
industrial and agricultural districts, districts of the city
under the jurisdiction of province, subdistricts of the apex
municipalities, etc.;
Village (town) level
These include county, autonomous village, town, subdistrict
(excluding those of the municipality) and are the lowest levels
of local government.
Autonomous government of nationality region
China is a multinational country. To carry out the autonomous
system of nationality in each region is the nationality policy
of China. In 1954, the Chinese Constitution divided the autonomous
nationality regions into 3 levels: autonomous regions (provincial
level), autonomous prefectures (prefecture and city level)
and autonomous counties (county level) according to their
administrative levels. By the end of 1992, mainland China
had 5 autonomous regions, 30 autonomous prefectures and 124
autonomous counties (leagues).
Special administrative district
In 1982 the Chinese Constitution wrote that the state would
set up special administrative districts whenever deemed necessary.
On 1 July 1997, China resumed exercising sovereignty over
Hong Kong and set up the special administrative district of
Hong Kong. In 1999 Macao will return to China and a new special
administrative district will be set up. The special administrative
district is the product of the conception of one country,
two systems, which means that mainland China carries out a
socialist system and Hong Kong, Macao and Taiwan a capitalist
system. But in the international affairs, the PRC is the only
country representing China.
Figure 2. Administrative Hierarchy of China
(1996)
Local Government Functions
The main function of local government is managing the economy
of the area under its jurisdiction. This includes:
- Drawing up socio-economic development strategies of the
regions as well as middle and long-term plans for economic
development, year plans, measures of developing resources,
transforming technologies, importing technologies and capital;
- Solving important economic contradictions between branches
and between branches and regions and mediating economic
relations;
- Organizing and coordinating production and circulation;
- Enforcing economic laws and regulations;
- Appointing and dismissing cadres; and
- Providing infrastructure basic conditions and services
for economic development.
After the reform of the economic system in 1978, local governments
have increasingly participated in economic construction and
played an important role in rural-based industry promoting
economic development. The Pearl River Delta, an economic developed
region in China, for example has seen a great socio-economic
leap. Between 1980 and 1993, the rural enterprises in the
delta increased from 30,850 to 403,898 and by 1993, the industrial
output value by rural industries accounted for 39.49 per cent
of the total industrial value. The rapid development of rural
industries resulted to a large extent from the impetus of
local governments. In 1980s, during the early period of the
economic take-off in the Pearl River Delta, local governments
and enterprises were combined into one. As of such, local
governments directly intervened in the economy and played
a leading role by providing a series of favourable conditions
for enterprises. These included amongst others transferring
governmental functions to help the development of rural industries,
identifying projects for enterprises, resolving the problem
of shortage of special personnel for enterprises, providing
credit guarantees for the management of indebted enterprises,
improving infrastructure, opening overseas markets, fostering
backbone enterprises, establishing enterprise groups, and
developing scale economies. Apart from managing the economy,
local governments have the following functions:
- Culture and education;
- Urban and rural development and construction;
- Finance and taxation;
- Civil administration;
- Social security and public order;
- Medical and health affairs; and
- Other functions.
Organization of local government
Local governments consist of personnel and functional branches.
Local government personnel include two types: administrative
senior officers, vice senior officers and heads of various
functional branches and working personnel. The composition
of local governments at different levels is listed as follows:
Provincial government
At present most of the governments of the provinces, autonomous
regions and municipalities have about 45 organizations and
50 officers who are selected for a term of five years.
Figure 3. Organization Structure of Provincial
Government
| Provincial Government - The People Congress at Province
Level |
General Office
Department of Civil Administration
Department of Finance
Department of Public Security
Department of Safety
Department of Legislature
Department of Education
Department of Broadcast and Television
Department of Health
Department of Territory
Plan Committee
Economic Committee
Agricultural Committee
Committee of Foreign Trade
Construction Committee
Committee of Science and Technology
Committee of Physical Exercises
Committee of Nationality Affairs
Office of Affairs concerning Nationals Living Abroad
Department of Personnel
Department of Labour
Bureau of Statistics
Bureau of Prices
Department of Auditing
Bureau of Aquatic Products
Department of Higher Education
Bureau of News and Publication
Bureau of Industrial and Commercial Management
Bureau of Rural Industry Management
Department of Supervision
Department of Transport
Department of Machinery Industry Department of Petroleum
and Chemical Industries Department of the First Light
Industry
Department of the Second Light Industry
Department of Agriculture
Department of Forestry
Department of Water Conservancy and Power
Administrative Offices (many) |
City government
Generally speaking, city government consists of 9 to 35 officers
(45 at most) selected for a five-year term. Details are presented
in figure 4.
Figure 4. Organization Structure of City Government
| City Government The People Congress at City Level |
General Office Bureau of Civil Administration
Bureau of Finance
Bureau of Public Security
Bureau of Safety
Bureau of Legislature
Bureau of Supervision
Bureau of Auditing
Bureau of Prices
Bureau of Culture
Bureau of Statistics
Bureau of Archives
Bureau of Tax Affairs
Bureau of Territory
Bureau of Personnel
Bureau of Labour
Bureau of Education
Bureau of Health
Bureau of Industrial and Commercial Administration
Bureau of Agriculture
Bureau of Broadcast and Television
Bureau of News and Publication
Committee of Plans
Committee of Economy
Committee of Urban and Rural Construction
Committee of Transport
Committee of Commerce
Committee of Economic System Reform
Committee of External Economy and Trade
Committee of Physical Exercises
Committee of Family Planning
Committee of Science and Technology
Office of Affairs concerning Nationals living abroad
Office of Foreign Affairs
Office of Environmental Protection
Office of Air Defense
Bureau of Water Conservancy
Office of Advice |
County government
Consists of 9 to 21 officers (31 at most) selected for a
term of five years.
Figure 5. Organization Structure of County
Government
| County Government The People's Congress at County Level |
Office
Bureau of Civil Administration
Bureau of Finance
Bureau of Public Security
Bureau of Legislature
Bureau of Auditing
Bureau of Prices
Bureau of Culture
Bureau of Statistics
Bureau of Personnel
Bureau of Labour
Bureau of Education
Bureau of Health
Bureau of Industrial and Commercial Administration
Bureau of Agriculture
Bureau of Grains
Bureau of Tax Affairs
Committee of Economy
Committee of Urban Construction
Committee of Transport
Committee of Commerce
Committee of System Reform
Bureau of Foreign Trade
Committee of External Economy and Trade
Committee of Physical Exercises
Committee of Family Planning
Committee of Science and Technology
Office of Agricultural Division
Bureau of Environmental Protection
Bureau of Rural Industries
Bureau of Animals
Bureau of Forestry
Bureau of Water Conservancy
Committee of Nationality Affairs |
Rural (town) government
At this level, several organizations are designated each
of which has one leader that can function in an acting capacity.
The county and town governments generally spoken consist of
3 to 13 officers selected for a term of three years. Details
are presented in figures 6 and 7.
Figure 6. Organization Structure of Country
Government
| Country Government - The People's Congress at Village
Level |
Office
Committee of Economy
Office of Farmland and Water Conservancy
Office of Family Planning
Office of Civil Administration
Office of Legislature
Office of Culture and Education |
Figure 7. Organization Structure of Town Government
| Town Government - The People's Congress at Town Level |
Office
Committee of Economy
Committee of Science and Technology
Office of Water Conservancy
Committee of Town Construction
Committee of Environmental Protection
Office of Civil Administration
Office of Culture and Education
Office of Legislature
Office of Family Planning
Office of Affairs concerning Nationals living abroad
Office of Finance
Committee of Agriculture Development
Office of Industrial and Commercial Administration
Office of Territorial Management |
Formation of local governments
The corresponding People's Congress selects the senior officer
and vice senior officers of local governments at different
levels. As for local governments at the county or higher level,
the Standing Committees of the corresponding People Congress
decide, after the election of senior officers, on the appointment
and dismissal of other posts based on the nomination of the
provincial governor, the Chairman of the autonomous regions,
the mayor and heads of autonomous prefectures, counties and
districts and report to the next higher level government for
record. In China, an indirect rather than direct election
system is adopted to elect the local administrative officers.
That is, the local voters elect the representatives to the
People Congresses who have the right to elect the officers
of local governments. The candidates for the function of senior
officer and vice officers should be nominated by the presidium
of the people's representatives or co-nominated by more than
10 representatives.
Authorities of local governments
The authorities of local governments refer to their rights
to govern administrative affairs in their administrative divisions.
The extension of these rights is directly proportional to
the government level and function number. The Constitution
of China stipulates the functions and powers of local governments
at different levels in Han nationality areas are
as follows. "Local governments at the county or higher level
have the power to carry out resolutions and orders of the
People Congresses at the corresponding and higher level of
governments and of the State Council, can govern the economic,
educational, scientific, cultural, health, sport and administrative
affairs, like finance, civil administration, public security,
nationality, judicature, supervision and family planning,
exercise personnel appointment and dismiss training, examination,
rewards and punishments. The provincial and municipality governments
have the power to decide on the designation of the country
and the nationality of the country and town. Local governments
at country and town level have the power to carry out resolutions
and orders made by the People Congress at the corresponding
and higher level of governments and to govern administrative
affairs. The autonomous authorities of governments of the
autonomous areas, except for exercising the powers of the
local governments at the same levels as mentioned above, can
decide on local finance for themselves, govern the local educational,
scientific, cultural, health and sport affairs for themselves
and have the power to organize the public security army for
safeguarding local social security and to use the local language
in common use."
Structure relations of local governments
Local governments of China comprise a hierarchical system
with a characteristic of leadership at different levels, the
lower level being subordinate to higher level. The provincial
governments lead the city governments. City governments lead
county governments and county governments lead country governments.
This means that lower-level governments must accept the leadership,
instructions, supervision and examination of higher-level
governments conscientiously and complete the tasks received
from them. At the same time, local governments at different
levels comprise the system of complete political power. They
can exercise their functions and powers independently under
the guidance of the higher-level government.
Local Government Finances
Government revenue and expenditure
Since the third Plenum of the 11th Central Committee, the
central government has put forward a series of policies that
have expanded the power of local authorities in local finance.
Therefore, provinces can have an independent plan as well
as autonomy in economic management. Consequently, they have
opened their doors to the outside world, fully utilizing local
resources. By emphasising the continuous, coordinated and
rapid economic development at the local financial administration
has been strengthened. All these result in the expansion of
local revenues and expenditure, which contributes to the swelling
of central government revenue.
Table1. Government Revenues and Expenditures
(in percentages)
|
| Government revenue by source |
1983 |
1993 |
|
| Total (100,000,000 yuan)* |
1248.99 |
5087.67 |
| 1. Taxes |
62.10 |
83.64 |
| 2. Revenue from enterprise |
19.26 |
0.97 |
| 3. Debts revenue |
6.36 |
14.53 |
| 4. Funds levied for development of energy
industry, transportation and key construction projects |
7.45 |
2.30 |
| 5. Other revenues |
4.84 |
6.64 |
| 6. Subsidies to loss-making enterprises |
|
-8.08 |
|
| Government expenditures by account item |
1983 |
1993 |
|
| Total(100,000,000 yuan)** |
1181.93 |
4469.52 |
| 1. Expenditure on capital construction |
32.39 |
20.15 |
| 2. Circulating funds |
1.09 |
0.41 |
| 3. Technical updates and transformation
of enterprises and new product promotion funds |
6.66 |
9.43 |
| 4. Geological prospecting |
2.00 |
1.10 |
| 5. Administration expenses of industry
transportation and commerce |
2.36 |
1.71 |
| 6. Expenditures on supporting agricultural
production and administration |
7.33 |
7.24 |
| 7. Culture, education, science and health
care |
19.76 |
21.34 |
| 8. Pensions and social welfare relief funds |
2.03 |
1.68 |
| 9. National defense |
14.99 |
9.53 |
| 10. Government administration |
8.65 |
13.11 |
| 11. Repayment of loans |
3.59 |
7.52 |
| 12. Price subsidies |
|
6.70 |
|
Source: The Statistical Bureau of China, 1995
* Debts revenue includes revenue from foreign debt and domestic
government bonds, etc. 1983 figures for enterprises' revenue
are less than industry revenue, due to foreign trade and grain
enterprises have big value of loss reduce the other enterprises'
revenue. 1993 figures for total taxes and revenue from enterprises
are not comparable with 1983 due to institutional reform.
** Government administration includes expenditures on armed
police, public security, judicial agencies and the justice
system.
From table 1 one can see that the industrial and commercial
taxes were the major contributors to the government revenue,
accounting for 62.10 per cent and 83.64 per cent in the total
in 1983 and 1993 and having increased 21.54 per cent in the
last 10 years. This increase in the share of industrial and
commercial taxes was the result of reform and improvement
of the tax system on the one hand and a reflection of the
industrial structural change towards the dominance of industrial
and tertiary sectors on the other, resulting in governments
having relatively stable and reliable revenue. However, between
1983 and 1993, the order of items with the largest expenditure
allocation changed. In 1983, capital construction, culture-education-science-health
care and national defence ranked the first three with the
largest allocation. In 1990, the first three were culture-education-science-health
care, capital construction and government administration.
This change indicated the changed priorities after the implementation
of the economic reform. In the mid 1980s, the state developed
the economy mainly through capital construction. In the early
1990s, the central government implemented an economic policy
of macro adjustment and control, so that the scale of capital
construction was controlled to some extent. In both years,
the expenditures on culture, education, science and health
care accounted for about one fourth in the total, which showed
that the central government has been paying attention to these
social services.
Local financial revenue
In China, the local financial revenue comes mainly from three
channels:
- Local taxes;
- Shared taxes;
- Non-tax revenues.
Figure 8. Local Financial Revenue
| Local Financial Revenue |
| Taxes |
| Local Taxes |
Income tax of collective enterprises
Agricultural tax, contract tax
License plate tax of using vehicles and ships
Real estate tax of cities
Tax on slaughtering animals, tax on animals
trade
Tax on country fair trade, tax on urban maintenance
and construction
Income tax of local state-owned enterprises
Adjustment tax of local state-owned enterprises |
| Shared Taxes |
Product tax, business tax
Increment tax, resource tax
Building tax, salt tax
Income tax of individuals, bonus tax
Tax on industrial and commercial integration
Income tax of joint-venture enterprises
Income tax of foreign enterprises |
| Non-Tax Revenue |
Revenue from monopoly
Revenue from benefit fee from projects
Revenue from penalty and compensation
Revenue from a set quota
Revenue from trust and management
Revenue from assets
Revenue from contribution
Revenue from assistance
Revenue from bonds and credits
Revenue from allowance |
Local financial expenditure
Local financial expenditure includes three major areas. These
are: expenditure on exercising local political authority,
expenditure on exercising local governance powers, and other
necessary expenditures.
Expenditure on exercising local political authority
This includes the expenditures of political parties and organizations
to organize local political activities through activity funds
of local party committees (including the expenditure of convening
the Communist Party Congress, administrative expenses of the
party committee and salaries of personnel), activity funds
of People Congress at different levels and activity funds
of democratic parties and mass organizations at county level
or higher levels.
Expenditure on exercising local governance powers
This includes activity funds of local governments, local
courts, local procuratorates, including the administrative
expenses, business expenses and operating expenses of government
organs, the expenses of economic, cultural and security construction
and the financial allowance of local courts and procuratorates
to handle the cases.
Other necessary expenditure
This includes expenditures on social and economic development
(infrastructure, education, social development and so on).
Local financial system
Since the foundation of the PRC in 1949, China has adopted
a financial system of unified leadership and graded management.
This system implies that not only does the Finance Department
centrally control financial power, but also that the financial
revenue and expenditure system is centrally planned, checked
and ratified by the state. Furthermore it provides that the
state makes national financial laws and policies, while local
governments can only adapt some rules and methodologies to
suite local conditions. The local political authorities decide
local budgets. The unified general budget is divided into
the central budget, provincial budget, county budget and basic-level
(village and town) budget. The local budget is associated
with local finance. The local governments redistribute the
local budgets according to the budgets checked and ratified
by the next higher and central governments and dispatch the
local reserve financial resources, make up the concrete measures
of carrying out the national budget, carry out the local budget
and work out the final accounts. The People Congresses at
the county level and above have the powers to discuss, determine,
examine and approve the budget. The State Council has set
up the auditing organs in order to audit and supervise the
financial revenue and expenditure of the departments of the
State Council and local governments at different levels. The
auditing organs have their branches in local governments at
all levels of government and exercise the auditing and supervisory
powers. The above system is for the budgeted funds. For the
non-budgeted funds, the system of planed management is accepted.
Personnel Systems in Local Government
Organization system of cadre personnel management
The organization system of cadre personnel management of
China consists mainly of organization branches of Communist
Party committees at different levels and personnel management
branches of local governments at different levels. The Central
Committee of the Communist Party and local committees set
up the organization branches. The organization department
is the functional branch of party committees responsible for
carrying out the cadre policies, improving the cadre system,
constructing and examining cadre's thought style and putting
forward suggestions to the party committees, according to
the laws, in terms of the examination, appointment and dismissal
of cadre. The State Council sets up the personnel department
of managing cadre at the top level as well as the personnel
organs in local governments. These personnel organs, under
the leadership of the party committees and governments at
corresponding levels, are responsible for cadre management
in their own areas. The Supervisory Department of China and
the supervisory organs are important components of the management
system and mainly supervise the different state organs and
their personnel to overcome bureaucracy, correct unhealthy
tendencies and serve the people wholeheartedly.
Concrete institutions of cadre personnel
management
Selecting and appointing cadre
Several principles appoint people according to their political
integrity and ability; select people in terms of the needed
matters and their abilities and promote people gradually.
Examining, awarding and punishing cadre
Different examination standards, according to the characteristics
of cadres at different levels, should be worked out. Since
its liberation, China has set up some institutions and regulations
to examine and evaluate cadres, which involve four aspects
of moral character, ability, hardworking and achievements,
central to examining real achievements. The basic method of
examination is the association of leaders and masses from
below and the top. Generally the examination is held yearly.
Promotion is the important style of awards after cadre examination,
but the principle of graded promotion is followed.
Training cadre
Training is an important channel of raising political quality
and professional ability of cadres and an important measure
to achieve the cooperation and replacement of old and new
cadres. The concrete methods of training cadre include: establish
the institution of study days in the routine work; temper
themselves in practice and study by being released from work.
Cadre salaries and welfare
The current system of cadre salaries is in practice since
July 1985 and is characterized by a structural wage institution
taking the duty wage as the main content. The salaries of
state cadre include four parts: basic salaries, duty salaries,
allowance of working and teaching years and awards (including
raised salary by award and bonus). Cadres, apart from salaries,
enjoy the regulated vocations, public health service and social
welfare after retirement or death.
Central-Local Links
Organizational leadership and subordination
The supreme administrative organ is the State Council. The
administrative organs of state in the locality are the local
governments centrally led by and obeying to the State Council.
The branches of local governments must carry out the laws
and regulations of central government, complete the tasks
given by it and accept its professional guidance.
Functional division and coordination
The functions of central and local governments are very similar
in content. The difference between the local and central level
is that the central government manages the administrative
affairs of the country centrally and makes the macro decisions
while the local governments mainly manage local administrations.
Centralization and decentralization of state
powers
The relationship between the State Council and local governments
follows a model of unified leadership and proper decentralization
of powers. In particular those branches of government concerned
with political and social stability, socio-economic issues
of vital national concern, high technology, major infrastructure
construction, key scientific and research institutes and universities
are managed by the central government. As for finance, economy
and trade, legislature, education, scientific technologies,
health, culture, sports, employment, personnel and social
welfare a graded management by both levels of government is
practiced. For the important adjusting and control of powers
of macro economy on banking, tax, price and the development
power of resources, a joint method of division of authority
is put into place. The branches like auditing, supervision,
statistics could practice the system of dual leadership.
Unified financial leadership and graded management
The unified finance of the state is divided into two levels,
central and local, in which the local level can be subdivided
into three levels: province, county and country. For the cities
that govern counties administratively, a fourth level, namely
city-level, is added. In this hierarchical framework, central
finance is in a leading position and local finance is the
basic one.
Administrative interaction
Central government can exert its influence on local administrations
in many aspects. The State Council, in terms of the administrative
legislature, controls the local administrative procedures.
The local governments must follow the laws and regulations
by the central government. The State Council guides the local
administrations in terms of policies, assigns tasks to local
governments in terms of plans. In doing so, the central government
confers on the local governments the necessary authorities.
The State Council examines and approves the works of local
governments through three graded ways - general supervision
at the administratively subordinate relationship, special
supervision of supervisory branches and economic supervision
of auditing branches. Through these supervisions, the central
government evaluates the local governments' practice to policies,
laws and plans. Of course, local governments have counter-action
to central government to some extent. In recent years, some
local governments have exerted certain influences on the central
government at the decision-making of finance, import, export,
trade and so on.
Extent of Public Participation
Chinese Constitution stipulates that Chinese people can manage
the state affairs, economic and cultural undertakings and
social affairs through various channels and ways. The system
of the people's participation is the expression and essential
character of the socialist democratic system. The people's
participation includes two ways - direct and indirect participation.
The latter refer to the participation that the elected representatives
or their agents by election govern the state and its social
and public affairs. The electoral law of China has different
stipulations for the ratio of every representative to the
represented population in urban, rural and minority nationality
areas respectively. When voting for the representatives of
the national People Congress, the population represented by
each representative in rural areas is 8 times more than that
in urban area. When selecting the representatives of the provincial
and autonomous region's People Congresses, the ratio of rural
and urban areas is 5:1. For the representatives of the People
Congresses at levels of autonomous prefectures and counties,
the ratio is between 1 and 4 rural to 1 urban. For municipalities,
cities and districts under cities, each rural representative
will represent more population than urban districts. The stipulation
by the electoral law really reflects a higher percentage of
the current development in urban and rural areas.
The law also stipulates that the ratio of electing representatives
in Han and minority nationality areas is different.
In the minority nationality area, if the total population
of a same minority nationality is less than 15 per cent of
the total population in the area, the population represented
by each minority nationality representative is allowed to
be presented proportionally less than the population represented
by each non-minority nationality representative, but not less
than a half. For the areas in which the minority nationality
population accounts for over 15 per cent but less than 30
per cent, the situation is the same as the above one but the
minority nationality representatives cannot exceed 30 per
cent of the total representatives. For the autonomous counties
with very small population, the population represented by
each minority nationality representative is allowed to be
represented a half less than the population is by each non-minority
nationality representative. All minority nationalities should
have the representative of the national People Congress even
if their population is of a very small number. Besides, electoral
law stipulates that the national People Congress and the Local
People Congress in the areas with relatively more returned
overseas Chinese should have a proper number of representatives
of returned overseas Chinese.
All these concrete stipulations reveal the substance of the
socialist democracy. Another way of public involvement is
direct participation, which means that the people themselves
govern national and social affairs by participating in elections,
supervision, democratic management of enterprises, management
of cultural, health, welfare, security, mass organization,
government or political affairs and through discussion. Political
participation is the core content of people's participation.
The channels of people's participation can be divided into
organizational and non-organizational participation. Organizational
participation refers to people participating in the management
of national and public affairs through some social organizations
like political parties and trade unions. Non-organizational
participation refers to people as individual citizens participating
in the management of national and social affairs according
to certain law procedures, such as individuals' participation
in election, holding public offices, expressing their opinion
and putting forward suggestions and critiques to the state
organs and their personnel. At present, the system of the
people's direct participation includes 4 components.
Social consultation and dialogue
In the socialist system, direct dialogue and consultation
about important national and local affairs between the leaders
and the masses, and between social organizations and the masses
can be undertaken on an equal basis, which shows that the
system is a democratic political system. The social consultation
and dialogue are favourable to Handle and coordinate the different
benefits and contradictions between various social groups,
build a close association between the leaders and mass, make
the decision-making more scientific and more democratic and
promote the socialist democratic and political construction.
Writing letters and visiting state organs
People can express their own and collective ideas and suggestions
to the state organs by writing letters and paying visits.
This kind of activity, to some extent, reflects the state
of national socio-economic development and the social contradiction
objective. Besides, it is a factor of supervising and restricting
the state organs and management branches at different levels
and has an impact on the decision-making of the leadership
circle. This system is an expression of the socialist democracy
with Chinese features.
Workers and staff congress
Workers and staff in state-owned enterprises comprise the
congress through democratic election, which exercises the
power of democratic management. It is a basic form of state-owned
enterprises to practice democratic management and an important
system of realizing the goal that workers and staff directly
participate in management and exercise their powers of being
the masters in the country.
Mass autonomy in bottom-level areas
According to the laws, the people adopt a system of managing,
educating and serving themselves in the social bottom-level
areas where they live. According to the Constitution, there
are two mass autonomous organizations in the bottom-level
areas - the neighbourhood committee in urban areas and village
committees in rural areas. Both kinds of committees are identified
as an organization form with direct democracy and are important
organization forms of direct peoples' participation in the
management of national affairs and therefore are an important
component of the socialist democratic and political system.
The Way Ahead
Since its liberation in 1949, local governments have played
an important role in political, economic and social life.
The planned economy is changing towards a market-oriented
one and the reform of political system will change the governmental
organization towards the direction of facilitating the development
of a socialist market economy. The functions of local governments
will shift from the intervention towards fostering the market
and guaranteeing its normal operation, otherwise the socio-economic
development would be hindered. The model of combination of
local governments and enterprises in the Pearl River Delta
Region serves as an example. However, although it has greatly
promoted the development of rural industries, it has been
recognized it had many drawbacks with the expansion of rural
industries and gradual establishment of a market economy.
These drawbacks include that the expanded rural industries
do not need the protection of government anymore and that
the model of the combination into one of local governments
and enterprises is not suited to the market economy, as it
has resulted in the weakening of functions of local governments
and may cause the blind intervention of local governments
to rural enterprises and so on. Obviously, the local governments
and enterprises must separate from each other. That is, local
governments must extricate from microeconomic activities and
change to macro adjustment and social development.
Further Reading
All documents are written in Chinese
Lu, C. W. (ed.), The Contemporary Political System of
China, Zhongshan University Press, Guangzhou, 1993
Xu, C. D. (ed.), Chinese Constitution, The People's
University of China Press, Beijing, 1989
Pu, X. Z. et al (eds.), The Contemporary Administration
of China, Fudan University Press, Shanghai, 1993
The Secretary Bureau of the General Office of the State Council,
Organization of Chinese Government, Chinese Development
Press, Beijing, 1995
Wang, J. .S., Government and Politics of the People's
Republic of China, Press of Party School of CCCP, Beijing,
1995
Yiu ,G. J. et al (eds), Governmental Functions, Structure
and Operation, People's Daily Press, Beijing, 1996
He ,G. Q., Local Governments of Contemporary China, Press
of Higher Education of Guangdong, Guangzhou, 1994
Zhang, J. S. et al, Functions and Organization Structure
of Local Governments, Huaxia Press, Beijing, 1994
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