Research On The Effect Of Guangzhou Dashi Government On Local Economic Development

County or town level governments remain as important parts in the Chinese government frame. They not only enjoy special statues in the government system, but also play key roles in developing the local economy. In the construction proceeding of the market economy, they are the motivator of the local economy, the adjustor of the market economy operation, the administer of the social affairs, and the public service provider as well. Their importance has become obvious in the wake of China's development. Therefore, the extends and the ways they perform their functions will cast a substantial influence on whether the local economy and society could achieve sustainable developments and remain a harmonious ones. Writer of this Paper aware those when there are needs to analysis the effects our government has on the socialist market economy, most of the research only focused on the Central Government and seldom have the ability to mention the contribution of a town level government. Considering this, the writer therefore is here to try to fill up the blank.The Paper is written on the basis of management theory, economy theory and administration theory, citing Dtashi Town, a rising town since China's opening-up policy, as an example. After China's reform and open, Dashi town has become a semi-city town. So, Dashi government is different from other common town level governments. The writer hopes to use theory, figures as well as examples to reveal the active effects Dashi town cast in the local economic development, analysis limitation a town government might process, and in the end to come out with a series recommendation on policies to meet with the said limitation.The discussion will be laid in 4 parts, and they are as follow.Part one will be a general discussion on the governments'effect of local economy. It focus on the role of developing local economy especially as a town level government in order to provide analysis foundation for the discussion on the Dashi government's effect of local economy. If we are to answer the question of what kind of influence a government shall cast on the economic development then we should firstly sort out the relationship between a government and the market. A thorough understanding of the relationship between government and market is the foundation of exploring the role of local government in the development of economy. Therefore, the first step is to understand the relationship between government and market, on top of it we analyzed the role of a government in the development of local economy in general. As for the government, the key to balance the relationship with market is to emphasize the role of service. The local government shall transform to a public services provider instead of administrative officer, shift the focus on maintaining market order, and ensure fair competition by providing an optimized, efficient and fair environment and public services for the local economic development.In Part two, the writer together with us will look into the active effects Dashi Government showed in the local economic development. Therefore it constitutes as the most significant part in the whole Paper. Here, before going into the active effects Dashi Government showed in the local economic development, the writer will firstly expose us economic development situation briefly as the base to the conclusion. It could summarize in 3 aspects for the Dashi Government to affect local economy's development. The first is to strengthen the power of economy adjusting and the power of pushing industry frame adjusting. Policies such as clustering industries, promoting manufacturing, real estate as well as the tertiary industry are adapted by Dashi Government as ways to adjust economy and industries frame. Secondly, the Government is to regulate local economic development plans and the related beneficial policies, and govern the Town. To do this and promote economy development, the Government has to come out with general economic planning, design preferential policies to attract investment, and carry out management over the town in order to remain a harmonious one. Lastly, Dashi Government is to provide public goods and services, which means to undertake infrastructure facilities construction and service.Part three is to analysis the limitation Dashi Government showed in the local economic development. The writer believe that as the structure of society changed, there exists limitation as to the government's functioning the local economy, there have been appeared to ignore the external problems of environmental damage, the shortage of the public goods supplying, the short-term act of government, etc. The deeper reason is caused by the distortions between the higher level of government and the town level government due to the asymmetric information. In order to obtain a favorable performance evaluation, the town level governments only focus on the development of local economy by over input efforts but deliberately oversee the environmental protection, the public services, the capacity for sustainable development, etc.Part four will be focusing on the answers to the limitation mentioned in the previous part. First, we think a correct position for the town level government in the role of development of economy is essential. The Dashi government should continue its positive role in the development of local economy, enforce the economic adjustment and social management, and improve its public goods and services. Secondary, it is suggested to set up stimulation and restrain mechanism for the governmental action. The most important one is reasonable adjust to the multi-source cross stimulation for the town level government and set up officer performance evaluation system to restrain them. Finally, the author presents solutions against the specific questions of Dashi government in the development of local economy. In the answers to all the problems that exist in the running of the Town, the writer firmly believes that clear definition of rights to environment resources could meet the external problem of environmental pollution. Basing on the overall idea of coordination construction, classification management and reasonable bearing, Dashi Government can solve the serious problem of public goods and services supplying. Applying more official construction land, pushing manufacturers to cluster, and setting needed barriers to manufacturers could meet the problems of scatters industry frames.To build a harmonious society, it is a urgent need for the Government to play an active role while avoid the passive influences, which are also key to the success of market economy development. The Paper here is to analysis the active role of Dashi Government in local economy development jointly using theories and examples. In the other hand, the writer analyzes the limitations of Dashi government in the role of local economic development. It try to provide answering policy to the limitation Dashi Government showed in order to optimize the role of Dashi government in the economic development. It is the hope of the writer to provide some helpful reference in the topic of effect a town government could have on the local economy.