Ge Yanfeng: Institutional Reform Should Focus on Solving System and Mechanism Problems

Deepening the reform of public institutions is to promote the development of social undertakings

It is of great significance to vigorously develop various social undertakings such as education, science and technology, culture, and health. This is not only conducive to social progress and improvement of people's livelihood, but also an important basic condition for maintaining the long-term healthy development of the economy and society. In China, it is mainly public institutions that assume various social services and service functions. Since the founding of New China, especially since the reform and opening up, various social undertakings in China have been developing steadily, and various types of institutions and employees at all levels have contributed. Since the reform and opening up, in order to meet the requirements of the development of the socialist market economic system, the state has also paid more attention to the development of social undertakings and conducted a series of reform explorations. The results of the relevant reform exploration have been outstanding.

However, due to various institutional factors and policy choices that are forced by specific issues during certain periods, there are still some very prominent problems in the development of social undertakings in China, especially the management and operation of public institutions. For example, in the field of social undertakings, the relationship between the government, the market, and the society has not yet been rationalized. Affected by the financial system and the administrative management system, many social undertakings between the urban and rural areas and between the regions are still unevenly developed....the existence of these problems, It is not conducive to the healthy development of social undertakings but also brings about some social conflicts.

Given the importance of the development of social undertakings, the important functions of public institutions, and the current deficiencies in the fields of social undertakings, especially the operation of public institutions, we must deepen reforms based on a thorough review of lessons learned at home and abroad. The goal of the reform is to promote the healthy development of social undertakings, to better serve the national economy and social construction, and to enable the general public to receive better services. At the same time, tens of millions of employees in public institutions must also be encouraged and encouraged to fully mobilize their enthusiasm.

Classification is the basis of reform

The "Guiding Opinions of the CPC Central Committee and the State Council on Classifying and Promoting the Reform of Public Institutions" (hereinafter referred to as the "Guiding Opinions") places particular emphasis on the classification of public institutions. This is the basis for the smooth progress of reform, improvement of management, and promotion of the healthy development of related social undertakings.

The reason why the classification is emphasized is because the complexity of social undertakings and institutions far exceeds that of economic organizations such as enterprises. China's current institutions include many industries, and the inherent laws and development characteristics of different industries vary widely. In addition, even within the same industry, there are different types of institutions. There are also great differences in the internal operating rules and it is impossible to use a unified model for management. Therefore, it is necessary to classify organizations and classify management.

On the other hand, it is also related to the actual composition of our current public institutions. Affected by many factors such as the traditional management system, China's current public institutions, in addition to providing science, education, public welfare services and other institutions, there are some institutions that have nothing to do with the government's public service goals or should organize management through other means. Although the number of these institutions and personnel is not large, due to unclear positioning, many contradictions have arisen and must be resolved through classified reforms.

There are two points that need to be emphasized in the classification: First, the classification criteria must be further defined. At present, many institutions often have social functions with different attributes. To this end, it is necessary to distinguish and adopt different approaches on the basis of full consideration of the attributes of different social functions. Second, the choice of management methods after classification must be further refined according to their respective characteristics.

Institutional Reform Should Focus on Solving System and Mechanism Problems

The core of the reform of public institutions is to improve the management system and operating mechanism. In the coming period, we need to focus on solving the following problems:

Rationalize the relationship between the government and institutions. The government is the main body of responsibility for the development of social undertakings, and institutions are the bearers of specific service functions. Therefore, we must first clarify the respective rights, responsibilities and obligations of the government and the institutions. In view of some problems that have existed for a long time, the basic idea put forward in the "Guiding Opinions" is to promote "separation of government affairs" and "separation of government affairs from management." To promote the separation of government affairs is to rationalize the relationship between the government and public institutions. Administrative authorities should speed up the change of functions, innovate management methods, reduce the micro-management and direct management of institutions, and strengthen the formulation of policies and regulations, industry planning, standards and regulations, and supervision and guidance. Responsibility and other responsibilities, to further implement the institutional legal entity autonomy. The goal of “separation between management and office management” is to further improve management. It is not a simple adjustment of the inter-departmental management rights. More emphasis is placed on law and compliance supervision, and more prominent goals and results supervision. At the same time, improve the coordination between different management departments to form a reciprocal management mechanism.

According to the characteristics of different types of units, reform and gradually improve the governance of public institutions. First, it is necessary to define the objectives, behavioral boundaries and activities of the activities according to the characteristics of different institutions, and to regulate them with strict and effective laws and regulations. The second is to improve the decision-making mechanism. A large number of public institutions directly serve the public, and it is necessary to gradually establish a collective decision-making and supervision mechanism that is based mainly on the board of directors, the board of directors, etc., and to strengthen openness, transparency, and accountability. Special types of institutions can adopt special management methods. The third is to improve management methods. Institutions need to highlight national and social goals. The government regulates institutions according to social goals. The organization regulates internal activities and employee behavior according to established goals. It should not place too much emphasis on “responsibility internally”. Protection of employee rights and interests is another category.

Improve the evaluation system and incentive and restraint mechanisms. What needs special emphasis is that public institutions are responsible for public service functions and are very different from companies. Therefore, the evaluation of the performance of institutions cannot be based on economic and financial indicators as they are on companies, but on the improvement of the development of related social undertakings and the improvement of national welfare under a given level of investment.

Institutions and employees are the executors of the government's public service functions. They themselves also have interests and require reasonable protection. Therefore, the establishment and improvement of incentive and restraint mechanisms to fully mobilize the enthusiasm and creativity of employees are also issues that need to be addressed.

Focus on comprehensive support and steadily push forward reform

The goal of successfully implementing the reform of public institutions and realizing the great development of social undertakings, the benefits to the people, and the encouragement of the broad masses of workers is also crucial in the choice of methods and methods of reform.

While increasing government investment, we must simultaneously promote the reform and adjustment of operational mechanisms. As the country’s investment in social undertakings continues to increase, it is necessary to focus on reversing some of the distortions in operational objectives and methods that have resulted from factors such as insufficient investment in the past. The focus is to clarify service attributes, standardize financial revenue and expenditure and asset management, and establish a more reasonable income distribution system.

We must handle the relationship between macro guidance and local exploration. Institutional reforms need to fully mobilize the enthusiasm of all sectors, especially to encourage local governments to actively explore and pilot projects. However, it must be emphasized that the development of various social undertakings has its own internal laws. At the same time, the relationship between local interests, national interests, and social interests is not always consistent and unified. Therefore, the guidance of top-level design and exploration of local reforms is strengthened and established. The "trial and error" and "error correction" mechanisms are of great significance.

Balance the interests of all parties. Public institution reform involves a large number of institutions and personnel, and related reforms are also an important part of the reform and construction of the entire country’s economic and social system. Therefore, we must pay attention to the balance of interests in the reform process. In this regard, the "Guiding Opinions" all put forward clear ideas and requirements. It is necessary to continuously improve operational policies in the implementation process.

In addition to the above-mentioned issues, the institutional reform of public institutions must also undergo continuous reform and improvement of other related systems. For example, it is necessary to further promote fiscal system reform and promote the balanced development of social undertakings between urban and rural areas and between regions. It is necessary to further reform the administrative management system in order to strengthen macro-level planning, achieve coordinated development between different social undertakings, and promote division of labor and cooperation among different agencies in the same field.

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