Study Of Local Government, Unhealthy Competition And Its Governance

Local government competition means that different administrative areas of local government to provide public goods to area residents In order to develop cross-regional intergovernmental competition about institutional innovation, investment environment, government efficiency, the government try their best to attract capital, talent, technology and other factors of production. In China, competition among local governments is an important force to promote progressive reform of China, along with the increasing competition and competition issues, it began to attach importance to the people and some academics. In this paper, the causes of local governments compete for the bad reference point, the sound development of the local competition is conducive to raising the level of competition among local governments and speeding up local economic development, ultimately finish the transition of the Chinese system. With the rise of the competition theory, a large number of scholars at home and abroad began to study the competition between the government, so there are some competing theories about the government, such as: co-ordinating regional development theory, competition theory of jurisdiction, the balance of the policy game theory. As the development of China's production of unhealthy competition among local governments, a number of issues have come about, (1) the spatial distribution of inappropriate macroeconomic, intergovernmental excessive competition resulting in a large number of redundant construction. (2) The prevalence of local protectionism and market segmentation serious. (3) the differences expansion between areas and between rural and urban. (4) the imbalance between regional population, resources and social development potential of the relationship. Emergence of these problems in China, there is a profound social causes: first, the government thinking on economic development in the lack of knowledge. Causing each government only value their own personal interests, and the increase of private property and often make selfish thing. Second, in the process of transition, the problems of decentralization. Because the increase of right to self-differentiation and local governments power in the decentralization process were also followed some problems. Again, factors of production in the market are free flow inadequate. As the regional protection policies and regional blockade, human, financial, material and other production factors are limited. Finally, the local government's incentive and restraint mechanisms is not complete. As local government leaders and executives, officials are all have personal interests to pursue, so their incentives and constraints affecting the process of intergovernmental competition. Because of the negative competition between local governments have serious implications for the development of local economy, and even the healthy development of the national economy, so in this paper puts forward some solutions: (1) Construction Principle about the local government competition, such as people-oriented, scientific development, reform and opening up, the principles of democracy and so on. (2) improving the ideology of win-win cooperation. (3) improve the local financial system. (4) to strengthen construction about the unified market. Elimination the trade barriers and opening up the implementation of regional and accelerate the formation of the unified national market. (5) improve the performance evaluation system. Put the official assessment into economic development and forming the human constraints on the Government's competition.