China in the Global Economy Governance in China by OECD

By OECD

Whereas China's financial system has proven notable dynamism following the elevated reliance on market-based regulations, the governance constructions themselves should be reformed deeply for this development to be sustainable. This record examines the various demanding situations of governance which China is facing.  as well as the well known difficulties on the topic of the shortcoming of openness in executive and highbrow estate rights, this ebook additionally seems on the supply of public companies, administration of nation resources, regulatory administration, e-government, taxation and public expenditure, combating corruption, and generating trustworthy details. chosen coverage components the place the inadequate governance reforms impact the guidelines themselves -- just like the monetary region, agriculture, environmental safeguard, labour marketplace and social safety, schooling, and festival -- also are mentioned.

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Before then, the 30 GOVERNANCE IN CHINA – ISBN 92-64-00842-X – © OECD 2005 SYNTHESIS major problem was the lack of fiscal control of the central government over the local levels. After 1994, redefining the functional responsibilities of the different levels of government and organising fiscal transfers across levels of government became priorities. However, the lack of central government control over local levels persists through problems of enforcement and localism. The evolution of the broader economic and governance regime suggests that resolving these problems will mean improving the management of the relations between the central level and the local level.

1. CIVIL SERVICE REFORM IN CHINA Summary T he Chinese Government has undertaken extensive reforms to its civil service system over the past 10 years. These have encompassed recruitment and selection, training, appraisal, rewards and punishments, compensation, discipline and other areas. This chapter reviews each of these elements. The chapter argues that the capacity of the civil service has improved during the past 10 years. But the capacity improvements may be explained by reasons other than civil service reform, such as by improvements in China’s system of education.

Until recently, much less effort had been made to examine the sources of corruption and to develop preventative measures. More attention should be paid to reviewing risk areas prone to corruption, eliminating opportunities for corruption and creating conditions conducive to ethical behaviour. More generally, in a context of widespread corruption, efforts to improve the efficiency and effectiveness of public action through the modernisation of the governing tools as described previously (reform of the administrative approval system, regulatory enforcement, management of fiscal and human resources, administrative simplification and introduction of e-government) contribute most effectively to curb corruption.

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