Participation of academic circles and enterprises in government decisions and policymaking: China's experience

 2 TABLE OF CONTENTS I. PREFACE ....................................................................................................................................... 3 II. INTRODUCTION......................................................................................................................... 4 A. REVIEW OF PARTICIPATION OFACADEMIC CIRCLES IN THE GOVERNMENT DECISIONMAKINGAND POLICYMAKING PROCESSES. ...................................................................................................................4 B. PARTICIPATION OF ENTERPRISES INADVANCING CHANGE IN GOVERNMENT DECISIONMAKINGAND POLICYMAKING........................................................................................................................................7 III. PARTICIPATION OFACADEMIC CIRCLES IN THE GOVERNMENT DECISIONMAKINGAND POLICYMAKING IN CHINA: MAJOR FORMS.......................... 9 A. THE MAJOR FORMS OF PARTICIPATION OFACADEMIC CIRCLES IN THE GOVERNMENT DECISIONMAKING IN CHINA....................................................................................................................9 B. ADVANTAGES OFACADEMIC CIRCLES' PARTICIPATION IN GOVERNMENT DECISIONMAKINGAND POLICYMAKING......................................................................................................................................13 IV. HOW ENTERPRISES HAVE FURTHERED CHANGES IN THE GOVERNMENT POLICY............................................................................................................................................ 16 A. MAJOR WAYS IN WHICH ENTERPRISES HAVE FURTHERED GOVERNMENT POLICY CHANGES .........16 B. ADVANTAGES OF ENTERPRISES' PARTICIPATION IN FURTHERING GOVERNMENT POLICY CHANGES ................................................................................................................................................................20 V. GOVERNMENT ADOPTION OF INPUT FROM ACADEMIC CIRCLES AND ENTERPRISES................................................................................................................................ 22 A. WAYS IN WHICH THE GOVERNMENT HASADOPTED SUGGESTIONS FROMACADEMIC CIRCLES ......22 B. GOVERNMENTADOPTION OF ENTERPRISE INPUT ............................................................................24 VI. AREAS NEEDING IMPROVEMENT: ACADEMIC CIRCLES, ENTERPRISES, AND THE GOVERNMENT..................................................................................................................... 26 A. ACADEMIC CIRCLES..........................................................................................................................26 B. ENTERPRISES ....................................................................................................................................28 C. GOVERNMENT(S). .............................................................................................................................29 ANNEX A- Participation of academic circles in the government decisionmaking and policymaking: typical cases...............................................................................31 ANNEX B - Typical cases of enterprises furthering government policy changes ..40  3 I. PREFACE 1. Democratization of economic decisionmaking in China accelerated following China's adoption in the 1980s of a policy of reform and opening to the outside world. Academic circles, an important element of civil society consulting, have been playing an increasingly important role in economic decisionmaking and policymaking by all levels of the government. Enterprises, as a directly affected party of government decisions and policy, have also been positively involved in the government economic decisionmaking and policymaking processes from the perspective of their practice. 2. On October 23, 2002, the Comprehensive Development Framework (CDF) Secretariat of the World Bank and the National Center for Economic Research of Tsinghua University jointly sponsored a seminar, "Participation of Academic Circles in Government Decisionmaking: China's Experiences," in Beijing. The seminar was chaired by Professor Li Zinai, Director of the National Center for Economic Research, Tsinghua University. 3. The seminar focused on four topics: (a) the major forms, typical cases, and experience of success of participation by academic circles in the government decisionmaking and policymaking in China; (b) the ways in which enterprises been working to push forward reforms in the government; (3) the ways in which the government has adopted policy input by academic circles; and (d) the ways in which China has been working to draw on the successful experience of the World Bank in the CDF area. 4. More than 30 people from the World Bank, Chinese government agencies, research and financial institutions, universities, and enterprises participated in the seminar. Participants included Mr. Pablo Guerrero, Head of the CDF Secretariat; Professor Li Zinai and Professor Jiasu Lei, National Center for Economic Research, Tsinghua University; Mr. Li Shangtong, a Professor of the Development Research Center of the State Council; Mr. Kong Jia, a Professor of the Institute of Financial Science, Ministry of Finance; Professor Gao Chengde, Guanghua School of Management, Peking University; Professor Li Xiaoxi, Institute of Economic and Resources Management of Beijing Normal University; Dr. Meng Yanchun, of the NGO Research Center, School of Public Administration, Tsinghua University; Dr. Li Yan, Economic School, Peking University; Professor Baoshang Li and Dr. Xiaobin Hou, Business School, China People's University; Professor Guo Tianyong, Institute of Securities and Futures, China University of Finance and Economics; Dr. Xu Zhenzhong, Department of Economics, National School of Administration; Mr. Xu Heping, Professor of the Research Center for Promotion and Development of Science and Technology, Ministry of Science and  4 Technology; Mr. Fan Xin, Professor of the Institute of Science and Technology Management and Policy, China Academy of Sciences; Mr. Wang Deyong, Professor of China Institute of Automobile Industry Economic and Technology Information; Mr. Fu Yongfa, Division Chief, State Economic and Trade Commission; Mr. Jiang Bo, Division Chief, Department of America and Oceania, Moftec; Mr. Zheng Hantong, Deputy Director of Economic Regulation Department, Ministry of Water Resources; Mr. Li Aiming, Division Chief, Conditionality and Finance Department, Ministry of Science and Technology; Madam He Dufang, Chairwoman of Association of Household Appliance, China Federation of Light Industry; Mr. Zhou Xiaoli, President of Dayue Consultants Company Ltd.; Mr. Xu Zhong, President of Beijing Aucma Asee Information Technology Company Ltd.; Mr. Li Xiaochun, General Manager of Investment Banking Department, Guotai Junan Securities Corporation; and Mr. Mao Chao, Assistant President of Datang Telecom Corporation. 5. Before and after this seminar, Professors Li Zinai and Lei Jiasu organized graduate students to conduct extensive research and investigation on the seminar's major topics. This report of the seminar's discussions also reflects the findings from this research.2 II. INTRODUCTION A. REVIEW OF PARTICIPATION OF ACADEMIC CIRCLES IN THE GOVERNMENT DECISIONMAKING AND POLICYMAKING PROCESSES. 6. In China, four types of academic institutions have been involved in government decisionmaking and policymaking: