The new code, which will take effect in July, limits the
scope of matters incurring licensing to things directly related to the public
interest, and authorizes only national and provincial legislative bodies and the
State Council to define these matters.
It also requires administrative offices to unify their
channels for processing applications for approval.
To the general public this represents another welcome
reduction in the number of things that require government approval. For those
things that still need permission, the procedure will be much simpler. In
particular, for citizens who have new undertakings to pursue, life could become
much more creative. At the very least, they won't have to waste so much time
waiting for government approval.
Only a few months are left for government agencies to
sort out the many approval requirements they previously issued for everything
from building a new railway to selling steamed buns on the street
corner.
The premier has given his subordinates a timely reminder
to adjust their portfolios and mindset rather than feeling lost at the tightened
rein on licensing which used to be a hallmark of power.
The government's involvement with economic and social
affairs today is much less than it used to be, thanks to the country's reform
drive over the past 25 years. But sentiments for a more efficient economy and a
good government institution inherently require laws to define the degree of
influence government officials can exert on everyday life.
As foreign investors grow weary of the bureaucratic
procedures that have often soured their endeavours, the domestic population has
suffered even more. Rigid approval systems have, by economists"reckoning, cost
the country millions of jobs.
Amid growing consequences of the past economic boom, such
as unemployment and regional wealth gaps, the administration needs to dismiss
itself from the centre of the economic stage and assume a bigger role in public
service, which is vital to both social stability and further
prosperity.
The licensing law is an answer to the reform that
requires, among other things, providing more leeway to accommodate society's
creativity and to more effectively check government intervention while improving
its efficiency.
It is encouraging that the premier and cabinet have
showed their willingness to address the problem.
The deregulation of many previously licensed endeavours
will trim the government's work load, and therefore facilitate its long-standing
bid to downsize bloated agencies which have even frustrated substantial wage
hikes for civil servants.
A restrained approach to market affairs, as provided in
the licensing code, will also help the government fulfil its promise to the
World Trade Organization of transparent and standard
governance.
Investors will no doubt find it easier to conduct
business in a market free from unwarranted government
intervention.
(China Daily)
