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Zhejiang Practice of Comprehensive Reform

Source: Learning Times Editor: Min Meiying 2014-12-23 10:52:44
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Reporter: Hello, Governor Li. In our interview last year, you said that we should stimulate vitality through deepening reform and create new advantages for Zhejiang's development. A year later, how are these reforms progressing?

Li Qiang: Reform is a major event throughout this government. The road map of Zhejiang's reform is to take the reform of the administrative examination and approval system as a breakthrough, to horizontally leverage the reform in various fields of the economy and society, and vertically leverage the reform of the government itself. In our research, we found that the problems in Zhejiang's economic and social development are all related to the mismatch of resource elements. The basic task of deepening reform in Zhejiang is to solve this problem. General Secretary Xi Jinping pointed out that "reform is driven by problems, and is deepening in the process of solving problems." Over the past year, although we have made some adjustments in specific reform matters and steps, we have made great efforts to implement in accordance with this road map, which should be said to have made good progress and achieved good results.

Reporter: The first thing you will do after you are elected governor is to reform the approval system. Why?

Li Qiang: Because the two wheels of reform and innovation are the fundamental driving force for development. In the two wheels, reform is the first move. Not only the effectiveness of development depends on the effectiveness of reform, but also the effectiveness of innovation depends on the effectiveness of reform. From the perspective of the actual work of the government, administrative approval has long been the main mode of factor allocation in China. The structural and quality problems accumulated in our province over a long period of time are mainly due to the factor mismatch caused by the over managed approval system. Therefore, we regard the reform of the administrative examination and approval system as the first important work after the formation of this government. This not only responds to the voice of enterprises and society, but also reflects the spirit of self revolution.

Since last year, we have promoted the reform of the administrative approval system at the provincial, municipal and county levels, focusing on building a province with the least and fastest approval items and procedures. By the end of September 2014, the number of administrative licensing projects announced and implemented by provinces, cities, counties and the whole province had decreased from 1617 at the beginning of 2013 to 945, or 41.6%, of which the number of projects actually implemented at the provincial level had decreased from 706 to 322, and 82 projects were entrusted to cities and counties for implementation. All non administrative licensing items at the provincial level have been cleared up and cancelled.

While promoting the general reform, we carried out a pilot project of efficient approval of enterprise investment projects in Keqiao, Shaoxing, and delegated 13 provincial powers. The whole process approval time of enterprise investment projects was shortened from 344 days to 99 days (including 33 days of administrative approval), and the approval time was shortened by more than 70%. At present, 13 approval powers delegated by provincial departments to Keqiao District, which are matched with the pilot project of efficient approval, have been extended to all counties (cities and districts) under the jurisdiction of Shaoxing City, and the relevant experience of the pilot project of efficient approval of enterprise investment projects has been carried out throughout the province. We also implemented the pilot reform of the integration of city and county approval levels in Jiaxing, where 20 items of approval authority were delegated at the provincial level. Only 52 of Jiaxing's 594 items of municipal administrative approval were retained, and the rest were delegated to counties (cities, districts), basically achieving "the same authority for cities and counties". In order to speed up the development and mechanism innovation of Zhoushan Islands New Area, provincial departments of our province delegated 116 items of approval.

After the Third Plenary Session of the 18th CPC Central Committee, in accordance with the spirit of "enterprises' investment projects, except those related to national security, production safety, major national productivity layout, strategic resource development and major public interests, are all independently decided by enterprises in accordance with laws and regulations, and the government will no longer review and approve them" Jiashan has carried out the pilot project that the government no longer approves the investment projects of enterprises outside the approved list, and has made positive progress. At present, a large number of enterprise investment projects have entered the pilot program. Accordingly, Keqiao's original pilot project of efficient approval of enterprise investment projects was transferred to the pilot project of efficient approval of enterprise investment projects in the approval catalogue.

In order to simplify the process and improve the efficiency of approval, we have also established a whole process agency and centralized approval system throughout the province. At present, the completion rate of the "two centralized and two in place" reform of the municipal and county governments has reached 98.9%, the proportion of approval departments stationed in the administrative service center has reached 95.0%, the proportion of approved items stationed has reached 95.0%, and the proportion of items that can be accepted and handled has reached 89.5%. 11 cities divided into districts and 90 counties (cities, districts) have set up special agency centers for examination and approval of enterprise investment projects; Social security, health care, family planning and other livelihood issues are included in the village (community) level convenience services, and a team of agents with village cadres, college students and village officials as the main body has been established to facilitate the masses to handle affairs.

Reporter: How did the reform of the administrative examination and approval system promote the reform of the government itself? Did it achieve the effect of promoting the reform of the government itself?

Li Qiang: The reform of the approval system is not new. From Zhejiang's experience, since 1999, Zhejiang has carried out three rounds of major reform of the approval system at the provincial level, reducing more than 2/3 of the approval items. However, we are also soberly aware that no matter whether it is required to cut 30% or 70%, the department may come up with secondary or secondary important approval matters. Even if it is explicitly cut, it may be restored through filing system, commitment system and other forms. After several rounds of reform, the reduction number of approval items is very beautiful, but there are still problems such as cumbersome approval procedures, low efficiency, and non-standard management, especially the problem of inconsistent rights and responsibilities. This makes us deeply realize that the reform of the approval system is difficult to advance alone, let alone the whole reform of the government itself. Only by combining the reform of the examination and approval system with the overall reform of the operation of administrative power can the reform of the examination and approval system continue to deepen and really play a role in leveraging the reform of the government itself.

To this end, we have done a lot of thinking and research, and proposed to build "three lists and one network", which later developed into "four lists and one network". The first is the power list, the second is the negative list of enterprise investment projects, the third is the management list of special financial funds, the fourth is the responsibility list, and the first is the government service network. This "four lists and one network" closely combines the reform of the examination and approval system with the overall reform of administrative power, and is the main point of Zhejiang to promote the reform of the government itself.

The first list was launched on November 15 last year, the day after the end of the Third Plenary Session of the 18th CPC Central Committee. The executive meeting of the provincial government requires all provincial departments to clean up their homes in one month. Fortunately, we were surprised that 57 provincial departments have 12333 powers. With so much power, how can enterprises and ordinary people not be bothered to handle affairs? Moreover, some departments said that they had no idea that there were still some powers in place. Some powers were not used for five, eight or even ten years. Therefore, we made three provisions at that time: first, the power of the government comes from the authorization of the law, and the power without legal basis will be canceled immediately. Second, the power that is more convenient and effective for local management should be delegated to local management. Third, despite the legal basis, all powers that do not meet the requirements of deepening comprehensive reform should be strictly controlled. The Provincial Editorial Committee Office organized relevant departments, experts and a group of veteran comrades to do this as a third party. It took half a year, and after "three reports and three reviews", 42 departments and 4236 administrative powers were retained, with a reduction of more than 60%. On June 25 this year, the power list of provincial departments was released to the public on the government affairs service website. At the same time, on January 8 this year, we launched a pilot reform of the power list system in Fuyang. On March 7, Fuyang released the first list of county level administrative powers in China. Among them, the number of commonly used powers was reduced from more than 2500 to 1474, making breakthrough progress. The list of powers of other cities and counties was published online in October. In the next step, we will speed up supporting reforms and tighten up mechanisms such as supervision during and after the charity.

The second list was also launched on November 15 last year. The formulation of this list means that the government will not approve any enterprise investment projects that meet the market access standards in addition to the five aspects stipulated by the state, and the energy assessment and environmental assessment will also be adjusted accordingly. At present, many EIA agencies are attached to government departments. The provincial environmental protection department has made great determination to separate the environmental impact assessment and compete fully in the market as a third party. In June this year, the provincial government officially formulated and released the Catalog of Approval of Zhejiang Enterprise Investment Projects. In order to speed up the implementation of the second list, on July 6, we launched the reform of "zero site technical transformation" in the province, where the government will no longer approve, and clearly proposed that all "zero site technical transformation" projects will no longer be approved if the total amount of pollutant emissions decreases, if the energy consumption per unit added value decreases, and if the plant transformation meets the requirements of building quality and safety.

The third list was launched on December 20 last year. At present, some provincial departments focus on their work, which requires power, money and staffing. Many special financial funds are directly allocated by provincial departments to enterprises, farmers and self-employed households. There is a basis for distributing money and goods, and there is a policy for distributing them to others. This not only affects the optimal allocation of resource elements, but also produces some corruption. For this reason, we are determined to take the lead in establishing a list system for the management of special financial funds nationwide, clearly stating that provincial government departments generally no longer directly distribute and allocate funds to enterprises, and generally no longer directly collect administrative fees from enterprises. This year, the provincial financial transfer payment special projects were consolidated from 235 to 54, with a decrease of 181. Generally, they reached cities and counties through the factor method, and were implemented by cities and counties to specific enterprises and projects. At present, 39 provincial budget special projects and 40 transfer payment special projects have been included in the management list and have been announced to the public on the government affairs service website. The "two no longer" reform is the continuation of the power list system. The purpose is to force people to reduce institutions by reducing power and money, so as to accelerate the transformation of government functions.

The fourth list was launched in August this year. To formulate the responsibility list is to clarify the legal responsibilities of government departments and urge government departments at all levels to strictly and conscientiously implement them. The focus of the power list system is "to put what should be put to the end", to solve the problem of "disorderly action", and to achieve "no action without authorization"; The responsibility list system focuses on "doing what should be done", solving the problem of "inaction", and realizing "legal responsibility must be". At present, this work is progressing well. The responsibility list of provincial departments has been released to the public in October, and the responsibility list of municipal and county departments will also be released to the public at the end of this year.

"One Web" was launched at the end of last year. Since last year, I have been thinking about how to implement the "let power run in the sun" proposed by the Central Committee; What is the effective carrier of "opening the power operation process according to law" proposed by the Third Plenary Session of the CPC Central Committee; Whether various public services of the government need a unified platform to operate efficiently. After thinking about it, the Internet is the best carrier and platform. To this end, in February this year, we decided to establish a government service network. Its functional orientation is two sentences. The first sentence is to record the power operation track, open the power operation process, and ensure the correct exercise of power. The second sentence is to integrate government services, facilitate the masses to handle affairs, and facilitate social supervision. In general, it is a large platform integrating administrative examination and approval, convenient services, open government affairs, and efficiency supervision, with provincial, municipal, and county linkage and online interaction of all parties. This website was launched on June 25. When it was opened, a dialog box of "Please find fault" would pop up. We just want to introduce some good business models of Taobao, such as the poor comment system, and invite the masses to evaluate the government services. As of November 30, Zhejiang Government Affairs Service Network had seen 35.14 million pages in total, visited 5.739 million users, registered 304000 individual users and 9487 corporate users, which was highly concerned by all parties and welcomed by the people.

Reporter: How does the government's own reform extend to the economic and social fields, and then promote the reform in the economic and social fields?

Li Qiang: The government is just a way of allocating resource elements. The fact that the government has withdrawn from some fields that should not be or cannot be managed well does not mean that the market can naturally and efficiently accept the past, because the specific allocation of resource elements in different fields has its own characteristics and regulations. Therefore, our reform should finally settle down in the economic and social field, make concrete analysis of specific problems, and constantly improve the system design. Only in this way can we truly solve the problem of resource element mismatch.

Specifically, the optimal allocation of resource elements in the economic field involves three aspects. The first is the optimal allocation of resource elements between industries, the second is the optimal allocation between urban and rural areas, and the third is the optimal allocation between regions. Among them, giving full play to the decisive role of the market in resource allocation and giving better play to the role of the government are the core. To this end, we have selected several counties and cities to carry out pilot projects in accordance with the principle of "point to area" and "point to area combination". (Forward to the 11th edition)

(Continued from the first edition) First, the pilot reform of market-oriented factor allocation was carried out in Haining. The purpose of this reform is to actively explore the specific realization form of "the market plays a decisive role in resource allocation", promote the formation of land allocation mechanism of "heroes of per mu yield", environmental capacity allocation mechanism of "heroes of environment", energy allocation mechanism of "heroes of energy conservation", and "heroes of efficiency" by comprehensively implementing differential pricing of various factors Fund allocation mechanism. Over the past six months, the results have been very remarkable. By the end of November, enterprises had retired 72 plots of inefficient land, 3731 mu, reduced the emissions of major pollutants by nearly 550 tons, collected a differential electricity price increase of 8.31 million yuan, and 36 enterprises were listed in the equity trading center. In September, the provincial government approved to promote the comprehensive supporting reform of market-oriented allocation of resource factors in 24 counties (cities, districts).

The second is to carry out the pilot project of industrial structure adjustment mechanism innovation in Pinghu City. The purpose of this pilot reform is to actively explore the specific realization form of optimizing the allocation of factors and promoting industrial upgrading, and to form the promotion mechanism of vacating cages for birds, machines for people, space for land, and e-commerce for markets, as well as the cultivation mechanism of "famous enterprises, famous products, and famous experts". The provincial government approved the pilot program in March this year, and Pinghu Municipal Government issued specific implementation programs and related supporting policies. In the eight months of implementation, 161 key projects of machine replacement, 100 e-commerce market exchanges, and 100 space land exchanges have been organized. 110 land and emission rights transactions have been completed, with a transaction amount of 2.686 billion yuan, and positive results have been achieved.

The third is to carry out the pilot reform of urban and rural systems in Deqing County. The purpose of this reform is to accelerate urbanization and urban-rural integration by optimizing the allocation of elements between urban and rural areas. Zhejiang's promotion of new urbanization is not to spend too much effort on the urbanization rate, but to make an effort on the word "urbanization", so as to provide an equal system for those who are willing to go to the city and those who are willing to stay in the countryside. Specifically, there are three aspects: the first is to deepen the reform of the rural property rights system, mainly to promote "three rights to people (households), and rights follow people (households)". By the end of November, 100% of the contracted land and 100% of the homestead had been registered and issued. The transformation of the village economic cooperative into a shareholding system had been fully completed, creating equal institutional conditions for farmers willing to enter the city and those willing to stay in the countryside. The second is to actively promote urbanization with "humanization" as the core, mainly to encourage willing and qualified farmers to build houses in the county and central town through the replacement of homestead space. Deqing County has arranged 500 mu of land this year to promote the replacement of homestead space. The third is to actively promote the equalization of basic public services in urban and rural areas, unify the staffing and wages and benefits of teachers and workers in urban and rural primary and secondary schools, unify the distribution of medical and health resources in urban and rural areas, and unify the minimum living standards in urban and rural areas.

The fourth is to carry out the pilot project of mechanism innovation for the construction of key ecological functional areas in Kaihua and Chun'an County. The purpose of this reform is to strengthen the construction of ecological functional zones by optimizing the allocation of elements between regions, and form a mechanism of "protection of this protection and development of this development". There are three specific measures for reform. The first is to establish a financial reward and punishment system linked to the total amount of pollutants discharged. For each ton of pollutants discharged by Kaihua and Chun'an, the provincial finance will collect 3000 yuan from the county finance. The purpose is to promote Kaihua, Chun'an and all cities and counties in the province to reduce pollutant emissions. The second is to establish a financial and ecological compensation system linked to the outbound water quality and forest coverage. According to the outbound water quality, 1.2 million yuan will be awarded for each percentage point of Class I water, 600000 yuan will be awarded for each percentage point of Class II water, no penalty will be imposed for no award of Class III water, 200000 yuan will be deducted for each percentage point of Class IV water, and 600000 yuan will be deducted for each percentage point of Class V water, Deduct 1.2 million yuan per percentage point for inferior category V; For the forest coverage rate, RMB 2 million will be awarded for each percentage point higher than the provincial average. The purpose is to encourage counties and cities with Kaihua, Chun'an and other main functions as key ecological functional areas to protect green water and green mountains. The third is to improve the financial transfer payment mechanism, and implement the policy of guaranteeing the base and growth of the industrial tax revenue of the two counties, that is, take the actual performance of industrial tax revenue in 2012 as the base, and from 2014, make up the difference every year according to the average growth level of industrial tax revenue of the province. Since the implementation of this reform, Kaihua County has closed down and relocated 33 polluting enterprises and implemented 72 enterprise remediation projects; Chun'an County closed two chemical enterprises, closed 284 livestock farms for rectification, and achieved positive results. In the future, we will gradually extend this reform to some mountainous counties in southwest China, and the policies should be differentiated. For example, Quzhou and Lishui will no longer play the brand of "establishing the city through industry". The main function is to protect the ecology and protect the green water and green mountains of Zhejiang.

The optimal allocation of resource elements in the social field is mainly to achieve the equalization of basic public services between urban and rural areas and between regions. Since last year, we have actively pushed forward reforms in education, health, social security and other areas to optimize the allocation of resources in these areas, focusing on better ensuring and improving people's livelihood and promoting social fairness and justice. First, we focused on the reform of private capital in education and health, and formulated and issued the Opinions on Promoting the Healthy Development of Private Education and the Opinions on Accelerating the Development of Private Medical Institutions. Second, we actively promoted the reform of the social security system, focused on the integration of the basic old-age insurance system and the basic medical insurance system for urban and rural residents, and explored the establishment of a serious illness insurance system for urban and rural residents. Third, actively promote the innovation of social governance methods, focus on the construction of the network of five level management service organizations in provinces, cities, counties and villages, improve the service and management of migrant population, actively develop social organizations, and promote social harmony and stability.

Reporter: How effective are the three reforms?

Li Qiang: It should be said that the results are good. First, the market has become more dynamic. On March 1 this year, after we fully implemented the reform of the industrial and commercial registration system, 24000 new enterprises were established that month, up 55.5% year on year and 183% month on month. By the end of November this year, there were 4.146 million various market entities in the province, with an average of 13 people having one market entity; Among them, there are 1.247 million registered enterprises, with an average of 44 people owning one enterprise. Don't underestimate the increase of market players. To make the market viable, first of all, there should be more players. Only when there are more subjects can the competition be more full and the vitality be enhanced. These market entities have not yet grown into large enterprises and leading enterprises, but they must be the source of large enterprises and leading enterprises supporting the future development of Zhejiang. The second is the optimization of industrial structure. We have made a strategic deployment to vigorously develop the information economy according to the characteristics of Zhejiang's resource endowment and comparative advantages. At present, the development momentum is good. By the end of November, the added value of electronic information manufacturing in industries above designated size had increased by 8.6%. In addition, the added value of equipment manufacturing industry, high-tech industry and strategic emerging industry increased by 9.1%, 8.6% and 8.6% respectively, and the growth rate was also higher than that of general industry. Among the nine strategic emerging industries, biology, new generation information technology and the Internet of Things, new energy vehicles and other industries developed rapidly, with the added value increasing by 14.7%, 11.9% and 10.8% respectively. At present, the province has completed the annual target task of eliminating backward production capacity ahead of schedule, involving more than 3000 enterprises in more than 20 industries, such as printing and dyeing, textile, chemical fiber, etc. The proportion of added value of high energy consuming industries in industries above the designated size has further decreased. At the beginning of this year, the provincial government proposed to accelerate the cultivation of information, environmental protection, health, tourism, fashion, finance, high-end equipment and other seven industries that can support the future development of Zhejiang. At present, relevant work is actively and steadily advancing. Third, effective investment increased. In recent years, a large number of Zhejiang businessmen have "jumped out of Zhejiang to develop Zhejiang" and invested all over the country. Now, they insist on returning to development, which has a lot to do with the improvement of Zhejiang's development environment and the enhancement of market vitality after our in-depth reform. From January to October this year, there were 904 new projects for Zhejiang businessmen to return to the province, with a total of 179.647 billion yuan of funds from outside the province, up 28.48% year on year.

Reporter: How do you think the effectiveness of Zhejiang's reform should be measured?

Li Qiang: I think it can be measured from three aspects. The first aspect is whether the market vitality is really stimulated. The purpose of reform is to remove the institutional and institutional barriers that hinder the development of productive forces. Its direct effect is to reduce the transaction costs of economic activities, loosen the market, reduce the burden on enterprises, and truly stimulate market vitality. Our reform of the administrative examination and approval system and the reform of the government itself with the main content of "four lists and one network" have reduced the transaction costs of market participants in economic activities, led to the explosive growth of market participants, and really stimulated the vitality of the market, with obvious results.

The second aspect is whether the level of productivity has been improved. The reduction of transaction costs and the enhancement of market vitality are conducive to enhancing the vitality of scientific and technological innovation, improving total factor productivity and improving the overall productivity level. However, the improvement of productivity is not as immediate as stimulating market vitality. Some reform measures are effective in the short term, while others will take a period of time to show full effect. That's why I said reform is a deep stimulus and a strong stimulus. The current series of reform measures in our province should not underestimate their significance just because they have not been translated into GDP growth figures for a while. They will certainly promote the improvement of productivity in a subtle way.

The third aspect is to see whether the new competitive advantages of Zhejiang have been formed. Historical experience shows that some good reform measures may be affected by various practical factors or hindered by vested interests for a long time, and only when they rise to fixed institutional achievements and form new competitive advantages and new cultures can they play a full and lasting role. I often say that the business culture of "attaching importance to both justice and benefit, and facilitating trade and industry" is the advantage of Zhejiang's development, and Zhejiang people are the most valuable wealth of Zhejiang's development. However, it is needless to say that with the development of Zhejiang's economy, there are also some factors in our old system and mechanism that do not meet the requirements of modern market economy and are not conducive to the transformation and development of Zhejiang's economy. We are faced with the realistic task of re creating new advantages of the mechanism. The current series of reform measures in our province are aimed at this goal. I firmly believe that as long as we forge ahead along this path and work tirelessly, we will be able to create new advantages in Zhejiang's system and mechanism and push Zhejiang's development to a higher level.

Source: Learning Times

Editor: Min Meiying

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