Governance effect by local government on the regional development in modern China

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In modern China, it was not until 1999 that the property rights of private enterprises were legally guaranteed by the Constitution. Even before that date, however, private enterprises had grown remarkably in some provinces as many villages of the Wenzhou area in southern Zhujina province. Some towns and villages such as in southern parts of Jiangsu province, or the town of Da qiu zhuang in Tien jin City, and that of Yang shu fang in the suburbs of Da lian city have been well known as most rich and welfare regions in rural China. Collective owned enterprises, though their property was very ambiguous, contributed to realize their industrialization and to raise the level of habitants of those regions.In the period of transition toward the market mechanism system, legal system and rules have not been so completely established that all kinds of trade have always been uncertain and risky. Under such circumstances, not only private enterprises but collective enterprises have been only able to rely on authorities of local government. Local government at the level of town and village in China has been, on the one hand, the smallest organization of state, and a component of community on the other hand. The leaders of local government have been expected to solve the problems that have been caused in the process of business and to supply the favorable conditions for economic activity in order to raise the level of income of inhabitants. They will have lost their dignity and chances to rise in rank, if they couldn't have helped their inhabitants. So the leaders have been substantially under the supervision of inhabitants.On the side of leaders, they have monitored the operations of collective and private enterprises. Such a reciprocal governance among the local government, enterprises and inhabitants has been fundamental driving force for the economic success of the region.