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Market moulds state and social monoliths

By Luo Haocai (China Daily)
Updated: 2008-05-23 07:28

Against the backdrop of economic globalization, China has also been going through a social transformation. To resolve the problems and conflicts arising during the transformation, the country needs to develop its legal system to strengthen the regulation of State power and to safeguard citizens' rights.

China's social transformation means transformation from a planned economy to a market economy, from a single-sector system of public ownership to a system under which public ownership plays the dominant role and diverse forms of ownership coexist, from the rule of men to the rule of law, and from absolute, managerial government to limited, service-oriented government, from being closed or semi-closed to complete opening-up, and from a highly centralized structure of state and society to a dual structure.

China does not try to achieve social transformation overnight but seeks a gradual progress. A consultative mechanism with Chinese characteristics and a mixed governance model that combines soft with hard laws has been created.

Both hard and soft laws are basic forms of modern law. The fundamental difference between them is whether their enforcement is backed by State power. The so-called soft law is not legally binding but can produce practical effects. Soft and hard laws complement and replace each other and are interactive.

A large number of public policies have been instituted through consultation in the process of China's social transformation. They are an important form of the soft laws and are usually experimental and often come into being before the hard law. Comparing these public policies and the hard laws, one sees that the former is more flexible yet less stable and regulatory.

As its objectives of social transformation at different stages become clearer and its socialist legal system advances, China has gradually set up a regulatory legal system in line with the market economy, law-based government and civil society. China's public governance model, as a result of the country's social transformation, transcends traditional ideas on management, emphasizes common governance and cooperation, uses many non-mandatory means and produces good results in practice.

The social transformation in China has changed the relationship between those who wield public power and private citizens. Under the planned economy, there was a unidirectional "order-obedience" relationship in which those wielding public power gave orders for citizens to follow.

Now that China has gradually created a restraint mechanism, an incentive mechanism and a consultative mechanism, which help give full play to the strengths of all members of society, arouse their initiative, safeguard and promote the stability, innovation and sustainable development of society as a whole.

In a transitional society, both those who wield public power and private citizens need to participate in the process and promote it. Those who wield public power should carry out all their functions and provide public services while private citizens need to actively participate in the process of public governance. Thus their relationship becomes more bidirectional and interactive. Resources are better allocated in society, the interests of society as a whole are maximized and social harmony and scientific development have better chances of being achieved.

The consultative mechanism of China has three main characteristics: the equality of the parties, the openness of topics and the interactive nature of the process.

The parties engaged in consultation are equal before the law. The topics under discussion are open to revision or be replaced with other topics. These topics can be either major issues of concern to all or specific issues related to vital interests of certain groups. During the communication and dialogue process, the parties engaged in consultation may change their perspectives and they seek agreement and mutual understanding through rational arguments and exchange of ideas.

As China undergoes social transformation, there are many areas in which it has utilized the consultative mechanism relatively successfully.

In the course of building democratic politics in China, consultation not only is a work mechanism, but has also become a political system.

On the eve of the founding of the People's Republic in 1949, the first Chinese People's Political Consultative Conference (CPPCC) was held, to which representatives of all parties, localities and mass organizations, as well as a number of prominent individuals were invited. CPPCC adopted the Common Program and established the central government.

CPPCC carries out political consultation before important State decisions are made and during their implementation. Political consultation, democratic oversight and participation in the deliberation and administration of State affairs are important responsibilities of CPPCC. This kind of soft restraint, soft power and soft monitoring regularly achieve more substantial and enduring results than strict regulations.

As the market economy further matures, China has developed non-mandatory administrative methods in addition to mandatory administrative procedures. We advocate building a service-oriented government and raising the government's capability to provide and improve the services.

In a complex environment, a combination of soft and mandatory measures should be used and there have been successful explorations in many areas. The administrative law and the diversification in public administration have changed the old pattern of controlling everything through administrative management.

In general, China has already begun to form a model for protecting and improving the environment that combines both soft and hard laws. It emphasizes the hard laws by improving the environmental-protection legal system, strengthening law enforcement, acting in strict accordance with the law and closing down a large number of companies with backward production facilities.

It also underscores the soft laws and the consultative mechanism by using publicity to raise ecological awareness and mobilizing all enterprises, social groups and citizens to participate in making society more resource-conserving and environment-friendly.

China advocates that the people of all countries should work together to develop a harmonious world that enjoys lasting peace and prosperity for all. China works to develop friendly cooperation with all countries on the basis of the Five Principles of Peaceful Coexistence and advocates resolving international disputes through consultation and negotiation.

The author is president of China Society for Human Rights Studies and the article is part of his speech at a conference last week to mark the 10th anniversary of the founding of the Tokyo Foundation

(China Daily 05/23/2008 page8)