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By Long Haibo, Research Team on “A New Round of Administrative Approval System Reform: Results, Problems and Countermeasures”, General Office of DRC

Research Report No.132, 2016 (Total 5015) 2016-9-26

Abstract: To deepen the reform of administrative approval system, the following six issues need to be properly handled. First, the regulatory responsibility and regulatory capacity need to be matched. The fact of laying emphasis on prior approval while neglecting the supervision during and after the related projects” should be changed and gradually form the regulatory system that matches the regulatory responsibility and regulatory capacity. Second, administrative behavior and the assessment and incentive mechanism. The government should be fully aware of the limitations of the traditional model under the background of the “new normal”, and gradually form a corresponding assessment and incentive mechanism. Third, the relation between cooperation and the division of responsibilities. The government should strengthen the cross-sectoral coordination relating to the same links of approval, adhere to the decentralization of power and responsibility, and simultaneously reinforce regulation and supervision. Fourth, interest separation and capacity enhancement. The administrative departments should not only decouple from the intermediary organizations as soon as possible, but also create a good environment for them. Fifth, the transfer of services and government purchases. The cultivation of various intermediary service organizations needs to be accelerated to guarantee the government’s purchase of qualified services. Sixth, power dependence and equal competition. The government should gradually establish a regulatory mechanism to decentralize and restrain its powers, so that relevant intermediaries can enjoy opportunities for equal competition.

Key words: administrative approval, streamline administration and delegate more powers to lower-level governments, reform dividend, relations