Institutional Supply Innovation: Theory and Practice

Author: Jia Kang, Ou Chunzhi

Publisher: The Commercial Press

In recent years, supply-side structural reform has been regarded as a breakthrough point for reform in the context of comprehensive deepening of reform. It is acknowledged that the theoretical framework of mainstream Western economics has long been asymmetrical: Keynesianism as well as classical and neoclassical economics all cope with the supply environment in a simple manner based on the assumption of perfect competition, and then analyze economics respectively from the demand side, ignoring or shunning investigation on the supply side. Now that the situation has changed, these theories are not able to explain new phenomena, let alone provide practical solutions to emerging problems. Seen from the aftermath of the global financial crisis, supply-side practice has superseded related theories.

Institutional Supply Innovation: Theory and Practice, by Jia Kang and Ou Chunzhi, discussed institutional supply in the bigger context of supply-side structural reform. The book mainly features the following aspects:

The book combines theories with practice, explaining abstruse issues, such as supply-side structural reform, institutional innovation and governance changes, in a well-understood way. It attempts to make policy conform to objective laws to avoid ineffective solutions, and does this by basing them on human nature.

The work examines the “new supply-side economics” from the perspective of social governance. Achievements in politics, philosophy, public administration and sociology are also included.

When examining the institutional supply innovation mechanisms of public-private partnerships, it should be noted that public-private partnerships are not simply a financing tool, but more importantly, a governing instrument. The book integrated every piece of research on public-private partnerships in different disciplines for more effective analysis and interpretation.

The authors provided their insights into the transformation of theoretical paradigms and revealed how traditional public service was subject to public administration, and further discussed the challenges and solutions faced by the new public management program, and finally put forward their own new ideas on the supply of public services.

Independent thinking is obvious in the chapter that discusses oversight in administration. The book refutes the current trend of detailed and quantified administrative oversight from the perspective of justice, and points out the principle of system construction to realize discretionary justice. In the chapter elaborating on administrative and approvals measures, the authors reflected on the current one-size-fits-all type of reform characterized by simplified examination and approvals and its relationship to the public interest. The authors concluded that the kind of administration and approvals process that can be in the public interest should be strengthened, but administrative approvals that tend to fall into the regulatory-capture framework should be streamlined.