Experience Summary and Theoretical Connotation of 'Hangzhou Model'

Abstract

Hangzhou experience attracts more and more attentions, as Hangzhou has explored a unique development path both in private sector and in public sector in the last decade. The main purpose of this article is to summarize the practices in public sectors of Hangzhou, and give a theoretical explanation to them based on the “exit or voice” theory proposed by Hirschman (1970). The article argues, a series of institutional innovation has been initiated by the Hangzhou Municipal Government in last ten years, provides a broad space for citizen to participate in public affairs with relatively low cost, and thus triggers the enormous power hidden in the society. The co-work and interaction of the local government and the public produces significant performance in development, as it improves the quality of public decision-making by effective information integration, improves the implementation effectiveness of public policy by deep involvement of the public, improves the quantity and quality of the delivery of public goods and services by coproduction, and improves the government governance by strengthening the power monitoring and government performance evaluation system. This kind of interaction may require a lot of time and efforts in the beginning, but would certainly generate long-term effects on regional development because of its powerful reservoir effect and spillover effect.