李克强总理在地方政府职能转变和机构改革会议上的讲话（双语）[1]

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不久前，党中央、国务院颁发了《关于地方政府职能转变和机构改革的意见》，这是贯彻落实党的十八大和十八届二中全会精神作出的又一项重大决策，是指导和规范地方政府改革的重要文件。今天的会议是继今年5月国务院机构职能转变动员电视电话会议后又一次重要会议，主要任务是进一步统一思想，深入动员，对地方政府职能转变和机构改革进行安排部署，把中央的决策落到实处。

Not long ago, the Central Committee of the Communist Party of China and the State Council issued the Opinion on Functional Transformation and Institutional Reform of Local Governments. That was yet another major decision made to implement the conclusions of the 18th CPC National Congress and the second plenary session of the 18th CPC Central Committee. It was an important document that would offer guidance and norms for the reform of local governments. Today's meeting is another important meeting following the audio-video conference in May on transforming functions of State Council institutions. Its main task is to further unify thinking and mobilize efforts, make arrangements for functional transformation and institutional reform of local governments and ensure that the decisions made at the central level are well implemented on the ground.

一、 上下联动，做好政府改革这篇大文章

I. We need to effectively write the major articles of government reform by integrating central and local efforts.

如果说中央政府改革是上篇，地方政府改革就是下篇，需要整体构思、通盘考虑、上下贯通，把政府改革的整篇文章做好。地方政府职能转变和机构改革，是党和国家改革开放事业大局的重要内容，也是深化行政体制改革的重要组成部分。政府改革的主要目的，就是进一步理顺政府和市场、政府和社会、中央和地方的关系，更好地发挥市场、社会的作用，更好地调动中央和地方两个积极性，推动政府全面正确地履行职能，加快现代政府建设，努力促进经济持续健康发展、社会不断进步，不断满足人民群众的新期待、新要求。

The reform of the central government and the local governments can be described as the two parts of an article. We need to take a holistic approach to both parts and ensure that the two go well together to form a good article of government reform. The functional transformation and institutional reform of local governments is an important part of the broader reform and opening-up endeavor of the Party and the country. It is also an important component of our efforts to deepen administrative reform. The main purpose of government reform is to clearly define the relations between government and the market, between government and society and between central and local governments. Reform can also better leverage the roles of market and society, further mobilize the initiative of both central and local governments, make sure that the government fully plays its part, accelerate the development of modern government, promote sustained and sound economic growth and social progress, and meet new expectations and requirements from the public.

1. The reform of local governments is important for sustained growth and for the transformation of the economy. Under current circumstances, if the Chinese economy is to achieve sustained and sound growth over the long run, it has to transform. Looking at the immediate and long-term needs, the Chinese economy has entered a crucial stage of transformation and upgrading.

新一届政府成立以后，面临的国内外经济形势错综复杂，经济下行压力增大；财政收入增速下滑，中央财政一度出现负增长；货币增量也难以再扩大，因为池子里的水已经很多。在这种情况下，我们把政府职能转变和机构改革作为开门的第一件大事，紧紧抓住不放，既作为全面深化改革的“马前卒”，又作为宏观调控的“当头炮”。半年多来，我们保持定力、稳中有为，创新宏观调控方式；同时深处着力、稳中有进，下大力气推进职能转变、简政放权，中央政府分四批取消和下放了300多项行政审批等事项。原来以为，通过取消和下放审批事项激发市场活力要有一个过程，实际上这样一个强烈的信号发出后，对市场的预期、市场的活力、社会资本的调动，虽然不能说立竿见影，但已初见成效。社会投资和创业热情迸发，加快改革与调整结构叠加的效果，超出人们的预期。今年以来，企业登记数增长25%，其中民营和个体企业增长37%，带动了民间投资以23%左右的速度增长，明显超过政府性投资增速，这也是三季度经济稳中向好的一个重要因素。通过转变职能，把该放的权放下去、放到位，激发市场活力、需求潜力和发展的内生动力，可以有力推动结构调整、转型升级，促进以开放带动改革。把中央的相关权力放给地方，促进贸易和投资便利化，可以提高经济运行效率。通过简政放权可以做到政府不花钱能办事或少花钱多办事，这个道理我们要深刻领会。

When the new government took office, it was confronted with a complex economic situation both at home and abroad, with downward pressures on the rise of the Chinese economy. Growth of fiscal revenues slowed down to such a degree that the central fiscal revenue even experienced negative growth at one point. And it was difficult to further increase money supply as there had already been much water in the pool, so to speak. Under such conditions, we decided to focus on transforming government functions and reforming government institutions as the number one task for the new government. We intended to use it to kick off profound and sweeping reform and exercise effective macro control, playing the role of "soldier" and "cannon" when a Chinese chess game begins. Over the past six months and more, we have stayed focused and worked to innovate ways of macro control while maintaining stability. At the same time, we have addressed the issue at its root and made intensive efforts to seek steady progress in transforming government functions, streamlining administration and delegating power. As a matter of fact, the central government has abolished or delegated to lower levels the power of approval over more than 300 items in four batches. We thought that it would take some time for this move to unleash the vitality of the market, but as it has turned out, the strong signal sent by this move has already produced initial, if not immediate, effect in boosting market expectations, galvanizing the market and mobilizing capital from all sources. There has been a burst of enthusiasm for investment and entrepreneurship. The combined effects of accelerated reform and structural readjustments have exceeded people's expectations. Since the beginning of this year, the number of registered enterprises has risen by 25 percent. Among them, the number of registered private and individually owned enterprises has been up by 37 percent, resulting in a growth of around 23 percent in private investment, obviously faster than the growth of government investment. This was also an important factor behind the steady and improved performance of the Chinese economy in the third quarter. Transforming government functions and fully delegating all the power that should be delegated have unlocked market vitality, potential demand and inherent driving force for development. As such, they can give a strong boost to structural readjustment, transformation and upgrading, and advance reform through further opening-up. The primary objective of the establishment of the China (Shanghai) Pilot Free Trade Zone is to promote trade and investment facilitation and enhance efficiency in economic operation through streamlining administration and power delegation. By streamlining administration and delegating power, the government can get things done without extra costs or do more with less. This is what we should fully appreciate.

改革开放35年来，各级地方党委政府牢牢扭住经济建设这个中心不放，为推动我国经济社会发展作出了巨大贡献。今年以来，各地花了很大气力，取得了经济社会发展的新成效。从当前看，稳增长的压力仍然很大，财政收入的增速不高，而改善民生的刚性支出不能减，甚至在有些方面还需增加。经济发展靠财政支出和政府投资，靠中央再多打赤字、多增发票子，已经受到很大限制，这方面的政策空间很有限了。从长远看，各地要实现经济持续健康发展，再继续走老路，靠政府扩大债务、单纯经营土地，靠高投入、高消耗、高排放，也会形成过剩产能，肯定走不长，也走不通。即便短期有效，长期代价也很大。所以，对各级政府来说，无论是当前稳增长，还是长远谋发展，都要靠改革创新。这就必须加快转变政府职能，下决心破除审批多、办证多、收费多、罚款多的体制机制障碍，把推动发展的着力点放到发挥企业、市场、社会力量的作用上来。

Over the past 35 years of reform and opening-up, local Party committees and governments at various levels have concentrated on the central task of economic development and made huge contributions to the economic and social development of our country. And this year, various localities have worked really hard and made new headway in economic and social development. Judging from the current situation, we are still under tremendous pressure in stabilizing growth. Fiscal revenues are only slowly growing, while the necessary spending to improve people's well-being cannot be cut and may even have to be increased in some areas. Economic growth achieved through fiscal expenditure and government investment and through more central government deficit and money supply has already come under major constraints. There is only very limited room for policy maneuver in this regard. In the long run, sustained and sound economic development will not be achieved if we continue to follow the old path. Increasing government debts, engaging in mere land transactions, and relying on excessive investment, energy consumption and emissions would also end in overcapacity. So such an approach would not go very far or lead us anywhere. Even if it does produce some short-term effects, they will come at the expense of huge long-term interests. That is why, be it for stabilizing current growth or seeking long-term development, government at all levels needs to rely on reform and innovation to release reform dividends and upgrade the economy. To achieve this, we have to accelerate transformation of government functions and make determined efforts to do away with institutional obstacles arising from excessive approvals, licences, fees and fines. We have to focus our development efforts on giving play to the roles of businesses, the market and non-government actors.

2. The reform of local governments is part and parcel of overall government reform. Local governments directly interact with businesses and the public, and the rights and interests of market players and the public are realized, safeguarded and developed mainly through the local governments. The local governments have a very important role to play in the whole system of government, accounting for over 90 percent of civil servants and around 85 percent of eventual fiscal expenditures in China. It is particularly true for primary-level governments, which belong to the "last one kilometer", as we often say. Whether the reform of government institutions meets its goal as expected and whether government functions are genuinely transformed depends, to a large extent, on local governments. During our recent field trips and seminars in different localities, we have found that many entrepreneurs are looking at the local governments to deliver what the central government has already committed in power delegation. According to them, the effects of streamlining administration and delegating power at the central level will be greatly compromised if the local governments fail to proceed with corresponding reform in a timely fashion. I assured them that the central government has made up its mind, and that so long as the central government can set a good example of effectively doing what is required, the local governments will surely act to meet the requirements of the central government. Under the current circumstances, streamlining administration and delegating power is a very important means to stabilize growth. And to stabilize growth is also for the sake of ensuring employment. With administration streamlined and power delegated, some powers of administrative approval will be cancelled or delegated, which will energize the market and make the businesses and society more creative, thus generating more jobs. If only the head turns and the body stays put, the transformation of government functions and the institutional reform may become a "fake reform" or a "feinted attempt". Since last May, positive results have been achieved in the new round of efforts to streamline administration and delegate power in various localities. Yet, due to restraints of local and sectoral interests, there have been cases where powers have been wrongly or inappropriately delegated, or where only lip service has been made with no real action. In some places, only the complex powers that involve big responsibilities have been delegated, with the "more valuable power" still retained by the government. In others, there have been exaggerations. They easily claim to have delegated approval power for more than 100 items, yet few of them involve any significant power. I want to stress that in the course of reform, the local governments must take a holistic perspective and bear in mind the overall interests. They should not be narrowly preoccupied with their own local interests, still less are they allowed to play tricks or conduct reform as a mere formality. We must ensure that streamlining administration and delegating power must be effectively delivered and serve its purpose.

3. The reform of local governments is important to ensure the effective implementation of central government decisions and mobilize the initiative of various localities. In this round of reform, we must further straighten out the relationship between the central and local governments. We need to ensure the effective implementation of central government decisions. The central government should delegate responsibilities that it is not supposed to undertake in order to focus on matters that fall within its mandate. This will make sure that the decisions of the central government are carried out effectively. At the same time, we should fully mobilize the initiative of local governments. China is a unitary state, which practices the system of unified central leadership, with specific responsibilities distributed across different levels of local government. Major policies adopted by the central government must be strictly implemented by all local governments. However, it is also important to recognize that China is a big country, with varying conditions and uneven development across different localities. We need to bear in mind this reality and leverage the role of local governments in managing economic and social development in a way consistent with their own local conditions. At this stage of economic and social development, we are seeing more demands and more differentiated needs from the people. As a result, the services to be provided by the government are also growing in scope and complexity. In line with their respective conditions on the ground, localities should be more proactive and creative in their work. As the saying goes, "Victory can only be achieved when the army share the same goal throughout the ranks". If we can think and work with one heart and one mind, we will be able to do an even better job.

二、地方政府职能转变要抓好“接、放、管”

II. "Taking over, releasing and undertaking" responsibilities is key to the transformation of local government functions.

大家可能注意到了，国务院的改革方案把“职能转变”放进了标题，这次关于地方政府改革的意见又把“职能转变”放到“机构改革”前面，就是为了突出强调职能转变。各方面普遍认为，政府改革的核心是职能转变，职能不转变，机构改革也达不到目的。这次地方政府职能转变要重点抓好“接、放、管”。接，就是把中央放给市场的权力接转放开，把中央下放给地方的职能接好管好；放，就是把本级该放的权力切实放下去、放到位；管，就是把地方该管的事情管起来、管到位。

You may have noticed that we have included "transform government functions" in the title of the reform proposal of the State Council. This time, in the opinions on the reform of local governments, we have put "transform government functions" ahead of "institutional reform" in order to underscore the importance of transforming government functions. It is widely believed that the key to government reform lies in changing its functions. Without functional changes, institutional reform would not be able to serve its purpose. In transforming the functions of local governments this time, the priority should be placed on "taking over, releasing and undertaking" responsibilities. For local governments, "taking over" means allowing the market to take over responsibilities released by the central government, and taking over and assuming the responsibilities delegated to them by the central government; "releasing" means delegating all powers that ought to be delegated to the lower authorities in real earnest; and "undertaking" means assuming full responsibilities for matters that fall within their purview.

1. Local governments should properly take over or further release as required approval power delegated by the central government. Approval items that are phased out by the central government must be fully released to the market and the society, and local governments should not retain such approval power in any disguised form. The central government should also delegate certain responsibilities to the local governments for them to conduct more robust and effective economic and social management by taking advantage of their close knowledge of local communities. Where power is delegated to the provincial level, provincial governments should exercise it properly. Where power is delegated to the municipal or county level, provincial governments should not try to retain or block it, but delegate it promptly. CCTV Primetime News recently ran a story about the establishment of the national deep-sea center for the Jiaolong manned submersible. This project is funded by the central government. In the past, a number of reviews were required for such projects and dozens of seals needed to be stamped, which would take at least two years. Now that the central government has delegated the power of approval to the local government, it only took two months for the project to be approved. This example shows that delegating power can help to unleash productive forces and raise efficiency. We should also make sure that whenever power is to be given to the market and society, it must be delegated fully. Some social organizations are still overseen by the government. If power is delegated to them, it may in the end stay in government hands. This situation must be averted.

2. We should minimize the number of items subject to administrative review and approval by local governments. Provincial governments should go through the items that still require review and approval, and resolutely abolish or delegate the power of approval to lower levels when necessary. The State Council has set the goal of canceling or delegating over a third of the items requiring administrative review and approval within the five-year term of this government. The provincial governments should also set clear goals according to local realities. Delegation of power should be evaluated not only quantitatively but also qualitatively. In principle, provincial governments from now on should not set new items requiring administrative review and approval. As for municipal and county governments, they do not have such right in the first place, but there are cases where they have imposed requirements through official documents in the form of registration, archiving, verification, annual review, certification, supervision, examination, accreditation or certificates of this kind or that. These may not be called "administrative review and approval", but they all represent thresholds for companies, being hardly different from review and approval and involving the collection of fees in most cases. The government is now encouraging university students in big cities to return to their hometown after graduation to start their own business, which would be good for local employment. But without an enabling environment, how can they run a business on a sustainable basis? Therefore, we should have the strictest enforcement of a "threshold" for items requiring administrative approval. Items established via "official documents" to impose administrative management or to collect charges and fines must be abolished if they do not conform with laws and regulations. The State Council has decided to reform the business registration system. The reform, as we have learned, is welcomed by the people, especially the youth and university graduates. They all hope it could be carried out as soon as possible. Local governments should waste no time in putting in place the supporting measures so as to encourage more people to start their own businesses.

3. Local governments need to enhance their functions in both regulation and services. Sufficient power delegation does not mean zero regulation. Power delegation and enhanced regulation are like the two wheels of a wagon. Only when both wheels turn can the reform of the government progress smoothly. In this sense, local governments must exercise market regulation to the full extent vis-a-vis all the producers and distributors. With reduction in pre-project approval, the government needs to step up mid- and post-project regulation. In this round of local government reform, the power of market regulation will be delegated to the lower levels, especially to the municipal and county governments. A regulation web of full coverage will be set up to leave no misconduct unattended to. In this way, we will be able to break away from the doomed cycle whereby power delegation leads to market disorder which, in turn, leads to tighter control, thus ending the transformation efforts.

地方政府抓经济，很重要的一条，是为各类市场主体创造统一开放、公平竞争的发展环境，这也是加强管理服务职能的一个重要方面。今后地方政府原则上不要再直接投资办企业，地方政府直接办企业或直接干预企业生产经营，容易在当地形成投资、产业的垄断和市场封锁。多年来，全国统一开放的市场完善不起来，一个重要原因就是地方保护。对一个地方来说，应该是不求所有、但求所在。这是改革开放之初南方一些地区提出的理念，实践证明他们发展起来了。能够发展地方经济，增加就业，政府依法收税，这才是根本。地方政府抓经济，不是当“司机”，不是直接开车上路，而是要管好“路灯”和“红绿灯”，当好“警察”。“路灯”就是为所有的企业照亮道路，对所有的企业一视同仁，不厚此薄彼。“红绿灯”就是讲规则，该走则走、该停则停，也对所有企业一视同仁。当好“警察”，就是加强监管，对假冒伪劣、欺行霸市、坑蒙拐骗、侵犯知识产权，特别是对食品安全等领域损害人民生命健康的违法违规行为，要严惩不贷。这样，对于遵纪守法、诚信经营的企业才是公平的。如果监管不力，坑蒙拐骗之类的反而吃得香、走得开，就会出现“劣币驱逐良币”的现象。我们把更多精力放到这上面来，也是建立一个良好的市场环境，经济转型升级也会有一个良好的基础。

To grow the economy, local governments should, first and foremost, create a unified, open and level-playing field for all types of market players. This is also an important way to strengthen regulation and services. Going forward, local governments, in principle, will make no direct investment in enterprises, as such investment or government direct intervention in the production and management of enterprises tends to give rise to monopoly over investment and industry and market blockade. For years, local protectionism has been a main obstacle to the development of a national, unified and open market. Local governments should not aim to own businesses operating in their localities. Rather, they should aim to play good hosts. This was the approach adopted by some local governments in southern China at the early days of reform and opening-up. What has happened since shows that the governments following this approach have seen their economy grow. For local governments, what is of fundamental importance is to grow the local economy, create more jobs, and collect taxes in accordance with law. In growing the economy, local governments should serve not as a "driver" personally riding the vehicle but as someone taking care of the "street lights" and "traffic lights" and as a "police officer". The "street lights" are intended to light the way forward for all enterprises with no discrimination. "Traffic lights" refers to rules that tell the enterprises when to go ahead and when to stop and apply to all enterprises. "Good policing" refers to more effective regulation and severe punishment for violations of laws and regulations, such as producing and selling counterfeit and substandard products, bossing and monopolizing the marketplace, cheating and swindling, infringing on intellectual property rights and, in particular, jeopardizing food safety at the expense of people's life and health. Effective regulation ensures fairness for law-abiding and honest enterprises, while ineffective regulation will allow "bad money to drive out good" and result in rampant cheating, swindling and the like. If we focus more of our efforts on enforcing the "rules of the road", we will be able to foster a better market environment and put economic transformation and upgrading on a more solid foundation.

还要改革创新监管方式，建立一套科学监管的规则和方法。过去我们在市场监管上，年度检查、月度检查太多了，还时不时搞“大检查”，不是说不可以搞，但问题是查谁不查谁、罚谁不罚谁、罚多还是罚少，随意性太大。在这方面，我们可以借鉴一些国家的做法，对监管对象按确定的比例随机抽查。随机不是随意，而是有规则。比如100家企业，规定每年抽查百分之几，通过“摇号”来确定，被摇上的，就一查到底。也可以委托给第三方去查。一旦发现有违法行为，就要重罚，让违法者无利可图，甚至倾家荡产。同时要建立健全经营异常名录和黑名单制度，把问题企业和违法经营者列进去，用技术手段来保证这个制度的刚性，一旦被列进去，任凭找什么关系、走什么“路子”都抹不掉。一次经营违法，可能终身不能在这个领域从业。有这样一个具有普遍震慑作用的制度，所有企业都感到头上有一把剑，侥幸心理就会越来越少。诚信经营的，半夜不怕鬼敲门；坑蒙拐骗的，说不定哪一天被“摇”上，就要付出难以承受的代价。这样也可以规范政府监管人员的行为，降低监管成本，提高监管效率。各地可以在这方面进行探索。

We also need to reform and innovate ways of supervision and establish a set of scientific rules and methods of supervision. In the past, we had too many annual and monthly market inspections and even staged "inspection campaigns" from time to time. I am not saying that such inspections are to be banned altogether, but they should not be done without clearly defined rules to follow as to whom to inspect, whom to punish and how severe the penalty should be in case of irregularities. Here, we can borrow the practice of other countries, such as conducting proportionate random inspections on entities under supervision. Random inspections are not inspections at will; on the contrary, there are rules to follow. For example, if there are 100 enterprises under supervision, then every year, a preset percentage of them will be selected through a lottery draw to receive thorough inspection. We can also entrust a third party to conduct the inspections. Those who violate the law, once found, are subject to punishments enough to make their violations unprofitable and even lead to their bankruptcy. At the same time, we need to establish a complete catalogue of enterprises with irregular operations and a system of blacklisting, and ensure their rigidity through technical methods. Problem enterprises and illicit operators, once listed, cannot have their names removed no matter what connections they have or what strings they pull. One single irregularity in a certain business will mean life-long exclusion. Such a system, with its universal deterrence, serves as a sword hanging over the heads of all business operators, who may be deterred from taking chances. The honest ones are never worried that the devil might call at night but the swindlers are always in fear of unbearable cost once their luck runs out. This system can also help standardize the conduct of government regulators, and lower the cost and improve the efficiency of regulation. Local governments may make explorations in this area.

搞好保障民生的基本公共服务，也是地方政府需要加强的管理服务职能。这方面，政府的责任主要还是保住基本、补上短板、兜好底线，促进社会公正。现在一些地方保基本的内容走了样，“雪中送炭”的事还没做好，却热衷于搞“锦上添花”。有的义务教育学校变成了所谓“贵族学校”，有的养老院也过于豪华。政府把什么都包起来，把什么费用都免了，看似是在做好事，但实际上包不住、也包不起，社会力量又进不来，因为即使保本微利也难以平等竞争。我们要多动脑筋，调动市场力量来发展服务业。但政府必须把保基本的责任履行到位。最近，国务院明确提出要强化社会救助制度建设，用这个制度来托底。只有把底托住，不让冲破社会道德和心理底线的事情屡屡发生，才能更有力地推进市场化改革，这也是社会主义市场经济的应有之义。

To ensure basic public services essential to people's livelihood is another administrative function local governments need to enhance. In this aspect, the primary responsibilities of the government are to meet people's basic needs, address weak links and ensure that poor people have something to fall back on to promote social equity. Some local authorities have misinterpreted what basic services are about. They have been busily embroidering more flowers on the brocade rather than sending charcoal to the needy on a snowy winter day, so to speak. Some compulsory education schools have been turned into so-called "noble schools" — schools for the rich. Some nursing homes are far too luxurious. It may look good if the government tries to provide for everything free of charge, but in reality, this is unrealistic and unaffordable. And it would also make it hard for the private sector players to get in, because they can hardly compete even when they run businesses at a thin profit margin. We need to think hard and mobilize market forces into developing the services sector. Meanwhile the government must earnestly fulfill its responsibility of ensuring basic services. Recently, the State Council stressed the importance of strengthening the social aid system to meet people's essential needs. If we are to advance market-oriented reform more vigorously, we must improve this system to prevent such things from happening that are beyond the limits of people's moral and psychological tolerance. This is also what is intended by the socialist market economy.

要更加重视基层政府建设。大家常说，“上面千条线，下面一根针”。县 We need to place greater importance on the building of community-level governments. As people often say, "Authorities at higher levels are like thousands of threads and governments at the community level are the single needle that weaves". Governments in counties (cities), townships, and urban districts and resident offices directly interact with and serve the people. We need to care more about community-level officials and provide sufficient support for their life and work. In particular, there must be no wage arrears. In the transfer payments from the central to local governments, priority should be given to wage payment for community-level officials.

三、地方机构改革要搞好“控、调、改”

III. Local institutional reform should focus on "control, adjustment and change".

古人说，“善政必简”。这次地方政府机构改革，要着力搞好“控、调、改”。控，就是严格控制机构编制总量；调，就是调整优化机构编制结构；改，就是通过深化改革推动机构编制释放潜力。

One old saying has it that, "A good government is a slim government". This round of local government institutional reform must ensure success in "exercising control, making adjustment and promoting change". "Control" refers to strictly controlling the total size of government staff. "Adjustment" refers to making adjustments and improvements to the personnel structure. And "change" refers to unleashing staff potential through deepening reform.

一是对地方政府机构设置实行总额限制，控制政府规模。二是确保财政供养人员只减不增，这是本届政府向全社会的承诺，难度虽大，但我们要言必信、行必果。为什么要严控机构编制总量？从现实情况看，各级财政收入不太可能再像过去那样高速增长了，而财政供养人员多，往往“食之者众，生之者寡”，本届政府组建半年多，一些地区和部门又陆续提出增编要求，不控制将难以为继。现在机构编制总量已经很大，叠床架屋，效率低下，甚至滋生腐败，影响政府形象，也影响努力工作的公务人员的积极性，最终损害的是人民群众利益。

1. The size of government staffing must be put under rigorous control. In this round of reform, we must observe two principles: one is to set a limit on the total number of local government agencies in order to control government size; the other is to make sure government payroll will only shrink and not expand. This is a commitment this government has made to the entire population. Difficult as it is, a promise is a promise and we will honor it with good faith. Why do we need to strictly control the size of government staffing? Given the current situation, government revenues at various levels are unlikely to see fast growth as in the past. With a large payroll, we will, more often than not, end up in a situation where the little produced by the few will soon be depleted by the many who consume. In just half a year since the formation of this government, some localities and departments have again asked to increase their staffing. Without control, the problem will go from bad to worse. The size of government staffing is already very big. Duplicating responsibilities and overlapping portfolios will not only lead to inefficiency, but even breed corruption. It will tarnish government image and dampen the enthusiasm of those hardworking civil servants. Eventually, it is the interest of the people that is at stake.

2. The organization and staffing structure of government agencies should be adjusted and improved. The problem at hand is not insufficient size, but poor structure and a misallocation of resources in terms of organizational setup and staffing. On the one hand, there is a shortage of hands in those key areas and links that should be strengthened, and government responsibilities that should be taken care of are even left unattended. On the other hand, in areas already identified as requiring less government attention, the agencies fail to streamline accordingly, resulting in overstaffing. While capping the overall size, we should also see the great potential in adjusting and improving the organizational and staffing structure of government agencies and public institutions. Over the past two years, we have been advancing reform of public institutions based on different categories and have removed some agencies and positions through rectification and regulation. Right now, some government agencies have fat bodies and thin legs, like an ostrich. Local governments must be determined to strengthen those institutions that should be strengthened and scale back those where it is necessary. In particular, the grassroots level and the frontline of government institutions should be fortified. When we make adjustments to the organizational and staffing structure, we have to give consideration to the need of slimming down higher-level governments while beefing-up those at the grassroots level.

3. Reform should be deepened to meet our needs for development. To control the size and adjust the structure of government agencies and staffing, the key is to deepen reform and innovate management. Experience over the years shows that without reform and innovation, it is very difficult to break the vicious cycle of streamlining-swelling-streamlining again-swelling again. In recent years, some localities have made good and effective explorations in institutional reform. Some have consolidated the market regulation functions and resources of several departments into one bigger department in order to build a unified, overarching market regulation system and thereby upgrading the quality and efficiency of its services and management. Some localities follow a real-name staffing system. All outside personnel, including those borrowed from government-affiliated institutions, are entered into records and disclosed to the public for scrutiny, effectively closing institutional and management loopholes that allow people to freeload, stay on the payroll without reporting for duty or make false claims for government funding. All local governments are encouraged to boldly explore reforms aimed at addressing these issues and good experience should be promptly summarized and shared. No central government agency may interfere in any way with the readjustment of local organizational setup and staffing.

地方政府改革是一场自我革命，涉及面广、触及利益深。各地要按照中央的统一部署，把这项改革作为一项重要工作。要民意为先、舍利为公，敢啃“硬骨头”，义无反顾、一抓到底。要与开展党的群众路线教育实践活动结合起来，与贯彻落实中央八项规定结合起来，实现相互推动、相互促进。省级党委政府要负总责，主要领导要亲自抓，加强对本地区改革的指导和督促检查。各级政府要认真制定改革方案，明确改革的时间节点和任务分工，强化责任，遇到重大问题及时向中央报告。中央有关部门要加强指导、协调和督查。要严格机构编制纪律，对违反纪律的，要严肃查处。

Local government reform is a self-initiated revolution. It will involve many quarters and shake up vested interests. All localities must follow the unified arrangements of the central authorities and put this reform high on their agenda. They must put public opinion and interests first and display the courage to crack hard nuts and see the reform through without ever letting up. This reform should be combined with the campaign to study and practice the mass line of the CPC and the implementation of the "eight rules" of the CPC Central Committee so that these efforts will reinforce each other. Provincial Party committees and governments should assume overall responsibility for the reform. Leading officials must personally take charge and do more to guide, supervise and monitor the reform process in their respective jurisdictions. Government at all levels must develop plans with all seriousness, specify the timeline and task breakdown, hold themselves strictly accountable and report immediately to the central authorities whenever major issues arise. Competent authorities at the central level must strengthen guidance, coordination and supervision. Discipline in organizational setup and staffing must be strictly observed, and violations shall be dealt with without leniency.