Think tanks are an important part of modern national governance and reflect the soft power of a country. For new think tanks with Chinese characteristics under new conditions, we need to comprehend the national governance system and capacity for modernization, as well as the think tank's role in national governance system and in relation to the following:

I. Comprehensive understanding of modern national governance system

The "Decision on Major Issues Concerning Comprehensively Deepening the Reform" passed at the Third Plenary Session of the 18th Party Central Committee points out that the general goal of comprehensive reforms is improved socialism with Chinese characteristics, a more modern national system of governance and larger governance capacity. President Xi has had some important remarks on modern national governance and its capacity and clearly explained the development direction of modern governance in three ways.

1. Modern national governance and its capacity are a part of overall reforms

The national governance system and its capacity reflect the country's system and ability to implement, Xi said. The national governance system is an institutional way of administering the country under the leadership of the Chinese Communist Party, covering systems, and laws and regulations in the economy, politics, culture, society, ecology, and Party development and these are closely connected. National governance capacity refers to the ability to administer, in accordance with the national system, various social affairs, including stable reforms and development, domestic and foreign affairs, and national defense.

The country's overall reforms mean sticking to a Chinese socialist road, improving Chinese socialism, and greatly rejuvenating the Chinese nation. Priority in this is given to improving Chinese socialism and promoting a modern system of governance and its capacity. Modern Chinese governance must follow the Chinese socialist road and Chinese socialism must be improved by constantly strengthening modern governance. And, to guarantee that we follow a Chinese socialist road, we need to develop Chinese socialism and have modern governance.

2. A modern governance system and capacity are a symbol of how the Communist Party rules the country in an institutionalized way.

China's former leader Deng Xiaoping said in his speeches while touring the South, in 1992, that China would have a more mature, stable system in 30 years. And, by following Deng's thought, the Party came up with a modern system of national governance and capacity at the Third Plenary Session of the 18th Party Central Committee, something that was necessary for improving Chinese socialism and for socialist modernization. At the time, President Xi Jinping said, "The system plays a fundamental, far-reaching role in national governance." This is true and China has experienced both success and hardships during its 60 years of exploring Chinese socialism. The main task now for the country is to improve Chinese socialism and use the improved, more workable systems for the country's development, people's benefit, and social harmony. Institutionalization is a fundamental feature of modern governance, or more specifically, it means regulating the political system in national governance, including power allocation, power use, authority functions, power supervision, and civil rights protection.

3.Modern national governance and capacity and China's current situation

Theories say that governance refers to all processes of governing, whether public or private or institutional. Different countries have different national governance systems because they have various political systems during different phases of development. Xi said, "A country’s choice of governance system is determined by its historical inheritance, cultural traditions, economic and social development, and its people." And, Chinese governance is an effective way for the people to rule the country under Party leadership, and so is the national capacity. To develop a modern system of governance and capacity, the country needs to make sure that its people can catch up with the times and continue to develop. China needs to make an effort overall in its system based on government by law and ruling the country by constitution and law. Xi's ideas are that national governance has two meanings: first, that modern Chinese governance cannot be separated from its history and culture, or from the history and practice of other socialist countries. And, it needs to learn from them, considering the more reasonable cases and mature, effective rules in management; and, second, the country shouldn't follow foreign governance theory and practice in a mechanical way, nor should it reject it completely, and needs to borrow the better examples.

II.New Chinese think tanks construction as an important part of modern national governance

The 18th Party Central Committee Decision pointed out that China needs to increase work on Chinese think tanks and improve policy-making and consulting. International experiences show that think tanks can play a decisive role in national governance so China needs the support of think tanks in its modern governance. Any leader who makes light of the role of think tanks is not likely to be an outstanding leader in the modern world, so the following are important:

1.Think tanks playing a role in developed countries' national governance

Think tanks are a major part of developed countries' governance system and play an increasingly important role in it, with statistics showing, as of 2013, almost 7,000 think tanks in operation around the world. Before World War II, the United States had just 20 think tanks, such as the Brookings Institution and Hoover Institution at Stanford University, but that figure had increased to 1,828 by 2013, forming a policy-making consultation system in consistency with its social system of governance. Think tanks in developed countries are also a means of strengthening international communications and having a voice abroad. To increase their international influence, think tanks in developed countries often open up to the outside world in operations, research, and communications, and use their connections and their insight into international issues for high-level communications and "think tank diplomacy". They have become a way developed countries communicate their values and policy views.

2. Chinese think tanks are unable to satisfy modern governance demands

Xi has helped instruct Chinese think tanks in their development in recent years, in their direction, goals, and tasks, for new Chinese think tanks. The 18th Party Central Committee also set goals for their reforms and it is not an exaggeration to say that think tanks are facing tougher new requirements and have more important, difficult, and historical responsibilities.

Their development, in China, lags behind, as can be seen in the following: first, there is no institutional guarantee for think tanks as an important part of China's soft power; second, their influence on national policy is unstable; third, because most Chinese think tanks are fully or partially government-funded, they find it difficult to do independent policy research; fourth, they need to improve research quality in view of their insufficient role in strategic planning and studies, and they need a better connection between research results and policy-making for social benefits; and, last, there are many institutional obstacles in the way of Chinese think tank development, such as training suitable people, funding, and reasonable salaries.

3.Think tanks could play an important role in Chinese modern governance

To develop better quality, newer Chinese think tanks and to modernize national governance, the following are important:

Think tanks need to support the entire progress, from policy agenda ideas to explaining policies and holding policy discussion to assessing reforms and results.

They need to investigate and do surveys of opinions from all walks of life, produce articles, books, comments, research, and discussions, guide policy discussions, and explain public policies, as professionals.

They need to be objective and impartial, and give their point of view on policy and offer a communications platform for different sides with different interests and values.

They need outstanding researchers, the essence of their worth. They need to cultivate more talented people in different areas so that the government could select researchers from think tanks to work as senior officials, while senior government officials leaving their post could turn to research.

III. Developing new Chinese think tanks

The US's Brookings Institution was founded in 1916 when research on US national governance was just beginning. It adjusted its research focus as the US developed and the world changed over the past 100 years. Chinese think tanks, on the other hand, only began to appear after the reforms and opening up, so they need to study all the theories of national governance and try to develop the proper analytical tools for greater research on the problems that China faces in modern governance, in the following ways. And this includes the Development Research Center of the State Council (DRC).

1.Follow the principle of Party leadership, with the people being the masters of the country, and the country ruled by law.

The Chinese state and political systems and regime are the basic elements of national governance and are the result of historical development and are based on Chinese history and its people. Party leadership guarantees that the people are masters of the country and rule it by law. The people being the masters of the country, is the essence of socialist democracy and the rule by law is the basic strategy. We need to continue to improve and develop our economic, political, cultural, social, and ecological systems and Party development, along with the law and regulations, under Party leadership, and to improve and develop Chinese socialism. The country needs to increase its awareness of the rule by law, and to standardize and modernize national governance.

2.Modern national governance needs to focus on modern state development, better national governance basis, and greater government efficiency.

Modern national governance refers to the process of administering social issues and promoting economic and social development with all governance parties involved, including the nation, governments, social organizations, enterprises, and individuals. Research and experience both in China and abroad show that modern governance in developed countries is based on a state system and state machinery backed by law. It is the effective state system based on the rule of law that assures that different subjects can interact in an orderly way and that economic and social development can continue. This experience is worth researching and learning from.

There are many factors, such as historical and cultural heritage, stage of economic development, and basic political system, which decide whether China needs to construct a modern state at this stage, and with people's sense of identification with the Party and the country to form new relations between the state and individuals and to establish governance under which the people are masters of the country led by the Party.

In continuing state-building based on the rule of law, China needs to implement the law as a basic strategy of the state and form a system of Chinese socialist laws and insist on the ruling of law across the country, in government, and society and improve controls and supervision to make sure the Party and state leaders and officials use power in line with approved procedures.

To establish a modern fiscal system and a modern budget country, China needs an efficient, fair, modern tax system, and a more transparent and efficient budget management system, governed by law. It needs to rebuild relations between government and the market, government and society, central and local governments, and between the state and individuals. It also needs to increase efforts in politics, the economy, society, culture, and ecology.

The country needs a just and fair insurance system for a modern society that is full of risks, and it has the responsibility to establish an insurance system that covers everyone. Establishing an insurance network that covers all of China's population, with its rapid modernization, social transformation, and aging is a huge problem.

The country needs a more effective supervisory, managerial system and a market economy based on the rule of law to release of its ability to create wealth. We need government supervisory and managerial systems that can handle the necessary intervention in economic and social activities deal with the negative effects of market failure. Government management should be fair, transparent, and accountable both in economic supervision, such as market access and competition, and in social supervision, including production safety, food safety, and the ecology and environment.

And, because development is still the solution to all of China's problems, government needs to commit itself to providing a good market environment, maintaining market order, increasing its infrastructure efforts, technology investment and human resource development, and innovation for sustainable, healthy economic and social development. We can take a lesson from the past 60 years in developing the country to adjust the way in which the country guides development.

3.The importance of informatization on modern governance

Information and communications technology have changed the way people produce, live and communicate, and they are for a basis for the country's research on modern governance. Governance in the information age has to make full use of information and communication technologies, in population studies, economic statistics, land use, and policy-making for the economy, education and medical care. These all need information. In addition, the people's involvement in governance is based on accurate understanding of the economy, society and national affairs. And, with the wider use of the Internet, the way of the government, enterprises, and individuals interact has changed over time. Government is now a hub for the national and social network and informatization will play a major role in establishing institutions for modern governance and for increasing its capacity.

This is an excerpt from a speech by Li Wei, at the Think Tank 2014 Forum, on Sept 13. Li Wei is a research fellow and minister at the Development Research Center of the State Council.

Source: China Economic Times, Sep 16, 2014