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