China’s government restruction campaign, an important part of political reform in china, has been foomally staged. Restruction in government institutions is urgently needed to deepen economic restructuring and promote economic and social development in china. It constitutes an important aspect of the reform of the state’s leadership system, and a necessity to bring the government closer to the people.

The basic framework of current government institutions were formed gradually during the time when the country’s economy was perdominantly a planned one. Although china has adjusted and reformed government institutions on many occasions and made some progress in government restructuring since its implementation of reform and openning policies, many problems have not been foundamentally solved due to the restrictions imposed by historical conditions and general environment. Consequently, the incompatibilities of government institutions to the development of socialist market economy have become increasing apparent. The following problems are most conspicous in this regard.

First, a bloated size and whelmed-organization of government institutions with overlapping functions and serious overstaffing have given rise to bereaucracy and red-tape, bribe and curruption, promoted unhealthy practices and created a heavy financial burden on the state.

Second, the functions of the government fail to be seperated from those of the enterprizes. The government often has a direct hand in the operation of the enterprises which makes it difficult to the establishment of an invesment system based on scientific decision-making but easy to lead to nonaccountability and wrong decision-making. Consequently, the market can hardly play a foundamental role in the allocation of resources.

Third, the government manages economic and social affairs mainly through administrative means. Many of the matters that should have been otherwise dealt with by legislation or through social inter-medium orgaznizations are managed by extra government departments thus creating extra responsibilities for the government.

We will carry out this reform in accordance with the requirements for developing a socialist market economy and by following the principles of simplification, uniformity and efficiency. We will shape the functions of the government and separate them from those of enterprizes so as to establish a highly efficient, well coordinated and standardized administrative system. We will improve the system of public servant, build a contingent of administraters who are highly competent and professionally specialized. The reform will focus on reorganizing or cancelling departments directly in charge of economic management and on enforcing macro-control departments as well as those enforce law and supervise law enforcements. In accordance with the requirements of integrating power with responsibility, we should readjust and redefine the responsibities of various departments and government in improving administrative operating mechanism.

All government institutions and functionaries must implement stste laws, decrees and policies. The leading cadres at all level should faithfully perform their official duties according to law as industrious, honest and efficient administraters.