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Reforms to cut fat from government

By Chen Hong in Shenzhen and Cui Xiaohuo in Beijing (China Daily)
Updated: 2009-05-27 10:03

The city of Shenzhen, which pioneered the economic reform of China, is once again at the cutting edge of change as it relaunched a pilot project Tuesday to trim the size of government.

Back on the table after a six-year hiatus, the scheme is believed by analysts to signal fresh reform of the huge 8-million-strong Chinese civil service as the nation marks its 60th anniversary in October.

The long-awaited and well-debated cuts, which will reshuffle overlapping government institutions into a three-part structure of decision-making, implementation and supervision, have been hailed by the public.

But scholars point out that the latest surgery, which has already drawn international attention, will take aim at the administrative level while staying away from the higher-level legislature, the most powerful body in China's political hierarchy.

"The reform will not affect the current political system," said Ren Jin, a professor with the law department at Beijing-based National School of Administration.

A 10-page guideline on the Shenzhen reform, which also covers economic and social welfare reform and recently got the nod of the State Council, dedicates less than 50 Chinese characters to the sensitive topic of trimming the size of government.

The goal, said the guideline, is to achieve a certain concentration of decision-making, efficiency in implementation and effective supervision of power.

The plan did not touch upon hotly-debated issues like removing district-level governments in the city and expanding the Shenzhen Special Economic Zone, a pioneering reform area set up by former leader Deng Xiaoping in 1992.

Six years ago, a similar proposal to chop government failed to win approval due to local resistance and the disapproval of the State Council. No specific reason was given then, but experts assumed the cause to be weaknesses in the plan.

But this time, detailed plans may be in the works as early as next month, insiders said.

Yan Ran, a construction-material dealer in Shenzhen, said he hopes to see a better functioning government.

"One of the most serious problems is the big gap between the rich and the poor. The government should study ways to more reasonably allocate social resources, such as encouraging the rich to set up charities to help the poor," she told China Daily yesterday.

Limited breakthrough

Scholars in Beijing credited the move as being in the right direction but expected the breakthrough to be limited.

The engine for the fresh round of reforms comes directly from the central government's key leaders, Ren said.

"The move is a serious trial after the central government gave it the green light," he said.

Government institutions will coordinate their interests under the reform, he added.

But the cost of change will be cutting redundant institutions and government employees, a move which will inevitably upset many officials.

However, this is the easy part, said experts. The real pain will be how to build a better-functioning system.

Professor Wang Yukai, another senior researcher at the National School of Administration, said the process may require three to five years to take effect.

Shenzhen's reform scheme, modeled after neighboring Hong Kong, will also help the Pan Pearl River Delta region function better, according to Guo Wanda, vice-president of the Shenzhen-based China Development Institute, a government think tank.

In a keynote speech on Dec 18 last year marking the 30th anniversary of China's reform and opening up, President Hu Jintao urged the nation to forge ahead with reform.

"This is just the first step," Guo said. "It's more important to see what Shenzhen will do and what the central government could allow it to do. The approval could serve as an impetus but meanwhile it could put the city under pressure," he said.