Public Policy Making in China: Development and Challenges

1. Public Policy Making in China: Development and Challenges Prof. Lan Xue School of Public Policy and Management Tsinghua University 2005.3.13-15 （ This research is partly supported by a grant from NSFC, approval number 70125005）

2. Outline • A brief review of China’s policy making process prior to 1979; • Changes in public policy process since 1979; • Response from the government and society • The role of expertise: the case of think tanks; • Challenges and future developments of China’s public policy process

3. I、A brief review of China’s policy making process prior to 1979 • Government and the party is everywhere, making almost all important policies; • Highly centralized; decisions are made top down, with political considerations dominates; • The process is opaque, general public knew little about what’s going on inside the government; • It is the game of the small group of the political elites, general public’s concern has to be channeled through this elite group; • …………………. • Nathan, Andrew. A Factionalism Model for CCP Politics;Lieberthal, Kenneth and Oksenberg, Michel. Policy Making in China Leaders, Structures, and Processes; Shirk, Susan L. The Political Logic of Economic Reform in China…..

4. II、Changes in public policy process since 1979 (A) • Since late 1970s, China is experiencing a sustained economic growth and historical transformation: • Economic system: • Planned economy->Market economy • Agriculture economy->Industrial and knowledge economy • Social system • Rural and closed society ->Urban and open society • Governance structure • Personal will and charisma->Rule of law and democratic principle

5. Changes in public policy process since 1979 (B) • A stratified society with competing values and diverse interests=>the capability to participate in policy process is very different (e.g. farmers, migrant labors vs new-riches); • Entrenched bureaucratic structure with vested interests; • Public participation in policy process through various channels (People’s Congress, public hearing meetings); • The new public forum for policy debates in the cyberspace (the case of Sun, Zhiguang); • The challenge for policy implementation in the local governments where great disparity exists; • ……..

6. III、Responses from the government and the society • strengthening policy capacity within the government; • Office of Policy Studies at Central government ministries and local government; • Government affiliated research institutes; • The development of expertise outside government • The growth of think tanks; • Collective studies by the Politburo; • Consultation meetings with outside experts; • Mechanism for public participation • Public hearing system • S&T Planning websites for public opinions……

7. Expert consultation meeting on coordinated development on June 17, 2003

8. IV、The role of expertise: Think tanks in China • A typology of think tanks in China (graph 1) • The development of think tanks (graph 2) • The role of think thanks • Bringing issues to policy agenda • Policy formulation and consultation • Policy implementation • Facilitate implementations • Implementation evaluation

9. China’s Policy research institutions Official Institute Non-official Institute Research Institute inside Bureaucracy Enterprise Institute private and Non-enterprise Institute Public Institute (Shiye Danwei) Research Instituteunder University Independent Public Research Institute Private and Non-enter-prise Research Institute Enterprise Research Institute Think Tanks

10. The development of think tanks in China (2004 survey)

11. V、China’s public policy: Challenges and future developments • All recent changes in development perspectives point to the urgent need for better public policy: • Three represents=>how best to represent the fundamental interests of the broad spectrum of the public? • Five coordinated developments=>how to weigh trade-offs for different policy options? • Harmonious society=>how to improve the policy process as well as the distributional outcome of a policy?

12. How to increase policy literacy and capacity of government? • Understanding the basic idea of public policy can be of great help for government officials, but how? • Capacity building in the government can actually promote better attention and resources allocated to policy work, but in the face of PSU reform and downsizing, government in-house policy units may face further cut;

13. How to increase the capacity of civil society & enhance its role in policy process? • Capacity building: from issues to solutions • The need to institutionalize of the role of civil society in policy process; • Building linkages: government-civil society-business;

14. How to harness expert opinions in the policy process? • Expert advice: • neutral technical advice • Vested interests; • Own value judgment. • The case of technology choice (see graph) • Solution? • Ethical standard? • Competition: idea market?

15. China standard? Technology choice or bureaucratic competition European Standard? Magnetic Levitation? Shigansen?