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

在现代中国，直到1999年，私营企业的产权才得到宪法的法律保障。然而，即使在此之前，私营企业在一些省份已经显着增长，如南部诸暨省温州地区的许多村庄。江苏省南部的大丘庄、大连市郊区的杨树坊等乡镇，被誉为中国农村最富裕、福利最好的地区。在向市场机制体制转轨的过程中，由于法律的制度和规则尚未完全建立，各种交易活动往往具有不确定性和风险性。在这种情况下，不仅是私营企业，集体企业也只能依靠地方政府当局。中国的乡镇政府既是国家的最小组织，又是社区的组成部分。地方政府领导人被期望解决在商业过程中产生的问题，并为经济活动提供有利条件，以提高居民的收入水平。如果他们不能帮助他们的居民，他们将失去尊严和晋升的机会。因此，领导人在很大程度上受到了居民的监督。在领导人方面，他们监督了集体和私营企业的运作。地方政府、企业和居民之间的这种互惠治理是该地区经济成功的根本动力。

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.