Editor's  Note: During an interview with 21st Century Business Herald, Xue Lan, dean of the School of Public Policy and Management at Tsinghua University, shed light on the institutional reform plan that was recently approved at the first session of the 13th National People's Congress, China's national law-making body. The following is part of the interview.

The features and characteristics of the eighth institutional reform program of the State Council since the China reform and opening-up reflect the requirement of China's entry into the new era of comprehensive development and high-quality development, with distinct characteristics of the times and themes. In my view, there are several highlights.

First of all, from the purpose of the reform, this reform will focus on improving the national governance system, put emphasis on the changing functions, mode and style, optimize the distribution of government functions and improve government operation efficiency. The outcomes and spirits of the Third Plenary Session of the 19th CPC Central Committee and the 19th National Party Congress embodies the reform thought to be " let the market play a decisive role in allocation resources, and better play the role of government ".

Specifically, this round of  institutional reform will serve the goal of high quality development, to strengthen and improve the government's role in economic regulation, market supervision, social management, public service and ecological environment protection.

Secondly, this reform embodies the requirements of China's entry into the new era of comprehensive development and high-quality development. The focus of reform is beyond the field of economic development. It involves social management, public services and environmental protection.

Finally, it is noteworthy that two new departments under the central government, the department of veterans affairs and the emergency management department, will be established. The former will help protect the legal rights of military families and strengthen the construction of a veterans service system, and better safeguard the legitimate rights and interests of military dependents. The establishment of the latter reflects a new and significant change in the construction and development of China's emergency management system since 2003.

China must confront various natural risks, and the establishment of the Ministry of Emergency Management will help coordinate the emergency functions that were originally scattered in various governmental ministries. Thus, we can engage in multiple dimensions to improve emergency response capabilities, protect people's personal property and maintain social stability. Certainly, emergency management involves multiple fields of professional and technical capabilities.

In institutional reform, defining functions, organizational structure and manpower - commonly known as the “three defines” - is part of the core content and usually causes some concerns. Many may worry whether the reform will lead to the expanding of manpower in the institutions. However, after carefully comparing the practices of the world's major powers, we found that the manpower scale of China’s central government is not big. As we know, compared with the OECD and the BRICS countries, the proportion of the central government personnel to the total of various-level governments is the lowest.

To well implement the reform scheme, there are three suggestions:

First, in accordance with the overall objectives of the national governance system and the modernization of governance capacity, follow the inherent law of modern administrative science to configure administrative resources, and strengthen the weak points of public management.

Second, seize the opportunity of institutional adjustment and make efforts to streamline government institutions. The relevant institutions should also carry out corresponding reforms, and their administrative functions should be transformed into government institutions. Those functions that can be handed over to society should be handed over in a timely manner.

Third, since the reform and opening-up, China's central government has carried out eight institutional reforms, including the current one. All the reforms are based on the basic law of the State Council, The Organization Law of the State Council, since its enacting on December 10, 1982, by the Fifth Session of the Fifth National People's Congress.  It has never changed, still maintaining the original 11 articles of less than 900 words. The basic law should be modified to solve the conflict between the composition departments of the State Council and to define State Council and local government relations, the premier's responsibility system and the meeting of State Council relations as well as many other vital issues, to better promote the modernization of the national governance capacity and the governance system.

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