Glamor Economics

Chapter 88

Chapter 12, Section 6, What the Government Needs to Do in a Free Market——The Economic Functions of the Government
In 2005, Qionghai City, Hainan built an administrative service center.The center will provide one-stop service for enterprises and citizens, and fundamentally improve the investment environment of Qionghai City.

In the administrative service hall of Qionghai City, more than 20 functional bureaus have set up special office seats, and the procedures are handled by computerization. There is also a notification sheet for handling affairs on the seat of each functional bureau.

The center follows the principles of legal openness, truthfulness and fairness, transformation of functions, emphasis on efficiency, integrity and self-discipline, and implements the model of "one center for external access, one window for acceptance, one-stop service, one-stop processing, and one-time fee".Through channels such as touch-screen computers, notification sheets, supervision desks, diagrams, consultation guides and other channels, the center implements the "six openness" commitment system of service content, handling procedures, handling basis, bidding materials, handling time limit, and charging standards; implements through the information management system Immediate completion system, time limit commitment system, joint processing system, declaration and co-organization system, negative reporting system and other five processing systems; through the establishment of complaint desks, consciously accept the supervision of the masses, so as to provide high-quality, efficient and convenient services for the masses.

More and more local governments have set up administrative service centers, and some counties and cities have simply renamed the centers as administrative service supermarkets. It has no shelves and commodities, but has the same counters and windows as supermarkets. It provides services related to venture capital and residents. Administrative licenses and public services closely related to work and life.

Under the condition of market economy, it is necessary for the government to maintain the fairness and justice of market competition activities by restricting market behavior and regulating market order, so as to better realize its own economic functions.

1.Economic Functions of Government
income distribution function.It means that the government participates in the initial distribution and redistribution of national income for a certain period of time through various policy tools, so as to realize a reasonable division of income among various departments, regions, units, and members of society, narrow the income gap, and reflect social fair.

Economic Stabilization and Development Function.Refers to the promotion of economic development by intervening and adjusting the operation of the national economy to achieve the goals of price stability, full employment, and balance of international payments.

Resource allocation function.Refers to guiding the flow of social resources such as manpower, material resources, and financial resources through government economic activities, forming a certain industrial structure and regional economic structure, optimizing the structure of resource allocation, and improving the efficiency of resource use.

2.The means by which the government realizes its economic functions
Provide a rule of law environment for social and economic activities.

Maintain macroeconomic stability through aggregate measures.

Provide basic social security for low-income groups and maintain social equity.

Under conditions of market failure, economic and administrative means are used to make up for it.

3.The Main Tasks of the Transformation of Government Functions under the Condition of Socialist Market Economy

Standardize government behavior and accelerate the pace of separation of government and enterprises.

Establish modern public utility organizations and improve the level of government public services.

Reasonably define the responsibilities of governments at all levels and divide the scope of fiscal expenditures.

Establish a new state-owned assets management system.

Improve the macroeconomic regulation and control system and improve the government's macroeconomic regulation and control capabilities.

[links to related words]

Government administrative cost refers to the administrative investment or resources consumed by the government to provide certain public services to the society.Administrative cost refers to the consumption of economic resources by government administrative activities.From a narrow perspective, the normal operation of government agencies needs to consume resources, such as buildings, office facilities, and staff salaries. This part of the administrative cost itself will not bring direct economic benefits, but it is necessary.From a broad perspective, government administrative costs also include the price paid for government administrative decision-making. Whether this part of the price is worthwhile depends on whether the decision-making is correct. If the decision-making is wrong, it will inevitably lead to unnecessary administrative costs.

(End of this chapter)