OPINION> Commentary
Restructuring of system to improve governance
By Zhou Minkai (China Daily)
Updated: 2008-11-10 07:37

The Shanghai municipal government has drafted a program for a reshuffle of its administrative organs after the State Council pushed for a "super ministries" campaign in March following the 17th National Congress of the Communist Party of China (CPC).

On Oct 21, the Shanghai municipal government unveiled a detailed reform package, reducing the number of its government departments to 44 from the previous 45. In the new program, the government lineup consists of the general office, 23 departments and 21 subordinate organs. Also, another six management bodies are to be set up. The package signals Shanghai's formal launch of a new round of administrative restructuring.

In the largest such move since 2003, Shanghai, the country's eastern economic hub, is the first local government to launch a new round of department reconstruction after getting a nod from the CPC Central Committee and the State Council.

In his report to the 17th National Congress of the CPC Central Committee, President Hu Jintao vowed to step up reforms of the existing administrative management system and build a service-centered government. For this purpose, the report urged the government to transform functions, optimize composition and improve working efficiency to forge a scientific decision-making body and an unblocked and easy-to-monitor administrative management system. In this context, the State Council kicked off its "super ministries" reform.

Shanghai's move symbolizes a practical step in implementing the central government's push for reform of the administrative management system and exploring the construction of a responsible, service-oriented, and legally-functioning government.

As the first local government to practice department restructuring, Shanghai has its own distinctive conditions to prop up such a move. After 18 years since its Pudong New Area was established and opened to the outside world, the municipality is entering a crucial development stage.

In keeping with its leading role in the country's campaign to study and fulfill the Scientific Outlook on Development, a theory put forward by President Hu to guide the country's future development, Shanghai is conscious that it should first take a substantial step forward toward reforming its existing administrative system.

Compared with other regions, the city has long maintained an advantageous pace for economic growth. However, its fast-paced development has slowed in recent years. For example, the growth rate of its gross domestic product was lower than the national average in the first half of this year, the first time in decades.

The rigid administrative management system, leading to an overlapping of functions among different departments, lack of a workable inter-department coordination mechanism and a low working efficiency, has directly hampered Shanghai's advancement toward a service-oriented, responsible and legally-functioning government.

To make further progress in its comprehensive reform, the municipal government should first deepen its reform of the extant administrative system and overcome some deep-rooted obstacles.

At first glimpse, Shanghai's newly unveiled reform package suggests that only one department is due to be chopped from the previous 45 .

However, the latest reshuffle is essentially a test for exploring a deeper reform of the unscientific part of its inherent administrative management system. This obviously is an attempt to change government functions, straighten out responsibilities and powers among different functional departments, raise their governance and service efficiency as well as improve people's livelihood.

By launching the much-needed reform, Shanghai also aims to build itself into a more transparent, service-centered, clean, pragmatic and high-efficiency government. It is known that one of the underlying reasons for the overlapping departments is the long existence of vested interests among them.

If the latest reform program is properly implemented, functions and responsibilities of different government departments will be clearly demarcated. A transparent policy-making and implementation system will help curb vested interests and corruption.

In Shanghai's restructuring plan, departments with similar responsibilities and functions will be merged to form a comprehensive management system. This is expected to improve its ability to comprehensively manage social and economic affairs and reduce overlapping of functions.

It is possible that this transformation will initially lead to some structural problems. Difficulties may arise in putting in place or effectively running the functions of the established departments. In launching the recent restructuring, the municipal government's prime objective is to further transfer government functions, clarify the relations between government and market and transform a managing government into a serving one.

There is no doubt the Shanghai municipal government has taken a crucial step forward in this regard. Its effects are yet to be tested by time and the masses of people. However, adhering to an approach of reform and opening-up is the only way out for the country's development.

Also, the fruits Shanghai achieves in its implementation of the Scientific Outlook on Development will offer valuable experiences and lessons for other local governments in their own ideas for administrative restructuring.

The author is a professor with Shanghai-based Tongji University

(China Daily 11/10/2008 page4)