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Lecture on 40 years of government-enterprise relations held in RDCY

2018-12-29

On December 19th, RDCY series lecture themed “40th anniversary of reform and opening up” was held at Chongyang Institute for Financial Studies at Renmin University of China (RDCY). Nie Huihua, the Vice Executive Dean of the National Academy of Development and Strategy at Renmin University of China, delivered a speech on the 40 years of government-enterprise relationship. The lecture was presided over by Chen Zhiheng, an assistant researcher at RDCY. Wang Wen, Executive Dean of RDCY, made an introductory speech.



Professor Nie Huihua noted at the beginning of the speech that "the relationship between government and enterprises is China's most important economic and social relationship." He introduced the reasons that we study the relationship between government and enterprises. First, the relationship between government and enterprises is one of the institutional environments that determine economic growth. The government-enterprise relationship has shaped the property rights system and the contracting system, which are important aspects to measure the business environment. Second, the government-enterprise relationship is about the vital interests of officials and businessmen. Academically speaking, the local government-enterprise relationship is good, and the the probability of rapid economic growth is higher. However, the distorted government-enterprise relationship will lead to a dilemma of the development of enterprises relations. Third, China is facing a crucial period of reshaping government-enterprise relations. At present, the central government attaches great importance to the government-enterprise relationship. Therefore, studying the government-enterprise relationship has become an urgent thing.


Next, Professor Nie discusses the methodology of analyzing the government-enterprise relationship. First of all, he clarified the concept of the government-enterprise relationship. On the basis of a clear definition, Professor Nie divides the government-enterprise relationship into four types: cooperation, division, injury and collusion of government and enterprises. The dimensions of the division are whether the government intervenes in the economic activities of the enterprise and the legitimacy of government-enterprise interaction. He said that this is the basis for analyzing the government-enterprise relationship in the past 40 years of reform and opening up.



Professor Nie said that the relationship between government and enterprises in China during the 40 years of reform and opening up is a wave-like forward. He divided the relationship into three stages: the integration of government and enterprise (1949-1978), the stage of common development of government and enterprises (1978-2012), and the reshaping of government-enterprise relations (2013-present). Now the relationship between government and enterprises is in the process of reshaping.


Professor Nie gave policy recommendations for the reshaping stage of the relationship: First, strengthen supervision over power and reduce government intervention in microeconomic activities. Second, vigorously develop the private economy. Third, effectively protect the legitimate rights and interests of entrepreneurs. Fourth, promote the standardization and transparency of policies. Fifth, strengthen the interaction between government and enterprises in the process of policy formulation. Sixth, the government should cultivate equality awareness and strengthen the building of contract spirit. Seventh, remove the influence of traditional unhealthy culture habits. Eighth, re-recognize the issue of legality.


Key Words: Lecture   RDCY   government   enterprise  

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