Administrative reform is easier to describe in theory than put into practice, so China has decided that Shenzhen municipal government should be a proving ground for reform. The Shenzhen government is the first in China to seek a balance between its "visible hand" and the "invisible hand" of the market. The visible hand of democratic governance is crucial in creating a decent society, while the invisible hand of the market is irreplaceable for the allocation of resources. Indeed, government efficiency has become a key component of Shenzhen's core competitiveness. Since there are no perfect markets, only an effective administrative system can successfully level the playing field and carry out legitimate regulatory intervention. Shenzhen is a model of success in this regard.

The government's role as a service provider is controversial in China. There are agencies and programs that seem to offer assistance only to those within internal personnel networks. Inevitably such behavior has sown the seeds of corruption. This trend has worsened considerably and led to growing distrust in government over the past few decades.

Theoretically, private interests should be left to run their own businesses, but business-government relations in China are vertical, not horizontal. Chinese people recognize the need for government involvement, but only to the extent of positively providing a legal and regulatory framework in which business can operate fairly. Over the years, Chinese people have witnessed ineffective supervision of government and the corruption of government officials. Further reform should limit government power by creating an effective institutional framework that leans towards the protection of civil rights, social welfare, and fairness.

As the role of the government covers the entire spectrum of China's economic development, China will face challenge to its political reforms in the 21st century. In terms of progressing political reform, obviously Shenzhen can do more than most other Chinese cities. As a synonym for China's reform program, Shenzhen will continue to play a guiding role in further reform. If Shenzhen can find a way of improving the administrative system and making government intervention more effective, then China as a whole can also do so. Hopefully this will end up with another stage of "Shenzhen Experience," the stage of political reform.

The author is a columnist with China.org.cn. For more information please visit:

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