Wesson: Power Balance Is The Key To China's Reform In The Future.

Further deepening reform It is becoming the general consensus of all walks of life in China today. The Chinese society has come to the point of no further reform and even the urgency of reform. But the question is how to reform the next step of China's reform, especially the political system reform, and how to start? What is the core and key of the reform?

In February 28th, World Bank President Zoellick presented six suggestions for further reform to Chinese policymakers at the press conference in Beijing: (1) redefining the role of the state sector and the private sector, and achieving the goal of further reform. market economy Transformation. (2) promote innovation and establish an open society linked to the global R & D network. (3) promote green development. (4) providing equal opportunities and social security for all. (5) strengthening the financial system and improving financial sustainability. This involves three key areas: ensuring that governments at all levels have sufficient financial resources to meet the demand for expenditure, raise more financial revenue, adjust the expenditure structure, and increase the proportion of social and environmental expenditures. (6) to ensure that China continues to integrate into the global market as a stakeholder in the international community.

The six proposals put forward by Mr. Zoelick seem grand, comprehensive and realistic at first glance, but it seems that every proposal is very "empty" and does not really touch the deep core problem of China's economic, political and social system operation. Moreover, even if these six reform proposals involve some problems that need to be solved in today's Chinese society, their specific feasibility and operability are also doubtful.

After more than 30 years of reform and opening up and rapid economic growth, what is the fundamental problem facing China's economy and society? To understand this problem, we must first sort out some of the major social problems that need to be solved in today's Chinese society.

Looking at the various economic and social problems that have occurred in the Chinese society in recent years, roughly summarize them into 8 categories:

First, corruption cases in government officials' corruption cases have occurred in large areas and have not been treated repeatedly.

Second, second, the gap between social wealth and income distribution has been widening. The Gini coefficient of social income distribution is close to 0.5%.

Third, the whole society is increasingly relying on government and state sector project investment and high investment rate to sustain economic growth.

Fourth, household income and consumption share of national income continues to decline.

Fifth, broad money is constantly expanding, and prices of house and consumer goods are rising rapidly. As a result, the price level of Chinese food [7.39 0.54%] and daily necessities is close to some and even more than that of developed countries.

Sixth, under the slow growth of ordinary residents' income, the government's expenditure on medical insurance and social security is seriously insufficient, resulting in the accumulation of people's livelihood and public grievances.

Seventh, social integrity and business ethics are seriously missing. Food safety, product quality, environmental pollution and even commercial fraud have been exposed in various media and have not been treated repeatedly.

The seven kinds of problems have worsened, and have produced eighth social problems that are perplexing the decision-making level of the Chinese government today. Some vicious incidents and incidents involving more than ten thousand people happen from time to time.

Why are these 8 major social problems accumulated and accumulated during the period of rapid economic growth in China? And the above problems are intertwined and deteriorated. Tracing back to the source, we will find that the above deep-seated economic and social problems, directly or indirectly, or more or less, are related to the checks and balances of the executive power of the government.

Tax from China alone financial system In view of this, China's governments at all levels now have more than ten trillion fiscal and tax revenues, together with the land revenue and other kinds of extra budgetary revenues of various governments. The conservative estimate is also estimated to be seventeen trillion yuan and eight trillion yuan. Professor Zhou Tianyong of the Central Party school has estimated that the actual fiscal revenue of all levels of government in China has reached 15 trillion yuan in 2010. Such a large government financial plate, the fiscal revenues and expenditures of governments at all levels are not transparent and open. Transparency of government officials' corruption takes place on a large scale, and it is not an inevitable outcome of the lack of institutional arrangements for democratic budgets and fiscal transparency. The widening gap between wealth possession and income distribution in today's Chinese society has a direct and indirect relationship with most of the rich people in China. Is it not related to the basic political system with such a financial system arrangement?

As mentioned above, eight major problems in today's Chinese society tell people more and more that the Chinese government's fiscal and taxation system is at a time when we can not change. The reform of the financial system that is linked to the government system and the whole political system should be a core issue in the current and future political restructuring in China.

In view of this, some deep-rooted economic and social problems in today's Chinese society are not the problems of inadequate and inadequate market-based reform. Rather, they have been marketed. In today's Chinese society, the government not only regulates and manages the market, but also directly participates in the market by means of marketization. In the process of developing the economy, some government officials openly or secretly use the power and huge resources they control to make profits and rent-seeking for their families and relatives and friends. Therefore, in order to move towards a well ordered market economy society in the future, we must use the modern system rules of democracy and the rule of law to make the government's power subject to substantive restraint and checks and balances. If the institutional rules of modern democratic politics can not be established in the future Chinese society, the government's power will not be subject to any substantive checks and balances of the people's representatives. Any reform of the surface market and any reform of the political system can only be empty talk, and it will certainly not achieve the desired result if we talk about "redefining the role of the state sector and the private sector, completing the transformation to the market economy, and even further privatizing the large state-owned enterprises".