Analysis Of The Interactive Relationship Between The Debt Of Local Government And National Governance Capacity

Along with our country reform moving into the deep water area, the contradictions between local government and which social previously hidden start to show one by one. And one of the most surprising is the huge amount of local government debt. In dozens of years, debt that China’s local governments have accumulated is astronomical. Analysis of the causes of these debts as well as the impact on social and economic development and administrative ability and how to manage this kind of debt and so on, which has become a hot political and academic concern. Coinciding with the central government put forward the overall goal of deepening the reform in the Third Plenary Session of Eighteen Communiqué, which requires to construct modern national system of governance as well as to enhance national governance capacity. This paper starts with the governance theory, combined with the theory of public choice and institutional analysis theory from combining the current local government debt management and control coupling. According to the evolution history of local government debt, we analyze the historical origin and the institutional factors which formed the debt, then analyze the realistic reason of how the debt scale expanding for now to find out the clue and power which form the local government debt. Then, combined with the governance theory to find the starting point of the government functions, we try to achieve the unification of governance and local government debt management, how the government debt restrict the ability of governance and how the governance resolve the debt. Once more,,use Y City In Jiangsu local government debt situation as an example to demonstrate how the debt of local government influence the development of society and economy as well as the functions of the government in reality by data and graphs. Then to find out the reason of local government debt combined with the practical analysis of Y City. Furthermore, combined with the analysis of the above theory, from the four aspects of cognition, behavior standard, evaluation mechanism and support system,we propose how to improve the ability of government debt management, so as to enhance the level of governance ability. Finally, we try to put forward practical measures, through the improvement of concept, enrichment of means, improvement of security and the expansion of participation so as other means to improve the management of local government debt, and then to achieve the improvement of local government’s governance capacity.