Reform of the background and current situation of institutions

From institutions to the enterprise, go through enormous changes, including changes in the concept of the staff of the most important.

Wang Ying Status institutions Institutions is a concept with Chinese characteristics, the equivalent of public services in other countries. It is defined as: the establishment of the State for the purpose of social welfare social service organizations, is organized by the State authorities or other organizations to use state-owned assets by engaging in education, science and technology, culture, health and other activities of the organization (1998, the State Council Decree No. 252).

Institutions have the following characteristics: Service?? For economic construction and social development;

Public welfare?? Established for the purpose is for public well-being, itself a non-profit institutions, heavy social benefits;

Public sex?? 95% of the institutions is the use of state-owned assets held, there are a small part of the private non-enterprise organization;

Entity?? A legal entity, a certain degree of human, financial autonomy;

Cultural?? Institutions are mostly intelligence-intensive organizations, the intellectual focus, concentrate about 60% of China’s intellectuals.

Institutions are also very large scale in China, with 1.3 million institution, employing 3,000 people, equivalent to the number of workers of state enterprises 2 / 3, total employment in the public sector 34% of the country for business unit’s financial spending accounts for more than 30% of expenditure. Institutions widely distributed, mainly in education, health, science and technology, culture, and ATM services in areas such as types of extremely complicated, and is the second largest corporate community. Institutions in the proportion of GDP, about 5% to 10%. Largest education, health, research and culture in four sectors, accounting for 5.1% of GDP.

State institutions had invested considerable resources, such as 60% of highly educated labor force, annual recurrent expenditure of about 1 / 3, non-operating state-owned assets, most of the large number of state-owned land.

With the market economy, and institutions has been hampered by the existing system operation and development institutions. Mainly as follows: regardless of political affairs, is unclear; management single, rigid management mechanism; management autonomy is not in place; agency nature of the administration of; value orientation deviation; management is not standardized; officers can not reasonably flow; distribution of incentive mechanism ; and so on. Why

Reform Therefore, the state should reform public institutions, the main way is restructuring. The current restructuring of institutions is fundamental to unlimited liability by the state to assume limited responsibility for change, but also from a planned, semi-planned economy to a market economy, and reform of state-owned enterprises are very similar. The restructuring of public institutions on the socio-economic development of great significance.

First, the restructuring will help service industry. China’s per capita GDP in 2003 breaking 1000 U.S. dollars, marking the economic structure will undergo profound changes in the characteristics of the services sector in the national economy has risen. But our service is still quite backward, because the traditional institutions and mechanisms to restrict the institutional development of service industry.

Secondly, the restructuring will contribute to the socialist market economic system improved. Reform of institutions involved in property rights system, labor and personnel system, social insurance system, regulatory framework and government functions, and many other reforms, improve the socialist market economic system the difficulty and focus.

Third, restructuring contribute to economic and social development.

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