One third of government departments here have been axed in an attempt to de-emphasize government and move toward a more market-based society.

Scholars say the new, leaner government model could serve as a pilot program for the rest of the country.

"We want to change the scenario that the government has a finger in every pie," said Li Feng, executive vice mayor of Shenzhen, during a press conference Tuesday morning. "The government now will not step into what is supposed to be market-oriented.

"Instead, it will support the non-government organizations and enterprises to make it more market-driven."

The reform merged 46 departments into 31 by functions, which is far lower than the 40 set by the central government.

The government structure includes seven commissions, which are responsible for policy making, 21 bureaus for execution and three offices to deal with emergencies and assist the mayor.

In the new system, the government cancelled or transferred away 194 approval rights, including the approvals for pilot projects that promote recycling, approvals of tax preferential status to medical organizations, and approvals for the suspension and resumption of business. These approvals account for nearly one third of the total approval rights, Li said.

It also relieved the government from 90 trivial duties, including rating, training and organizing exhibitions.

Wang Min, new director of the bureau of human resources and social security, which was merged from the bureau of personnel and the bureau of labor and social security, said the business environment will be more friendly after reform.

"Previously some government departments have rights in approving or refusing the applications without giving a reason. Now the government will work out standards and make it open to the public. As long as you meet the standards, the related government must accept the application and approve it," he told reporters.

The smaller government will remove 151 divisions, 394 officials and almost 500 civil servants and government employees, but the positions will be lost via attrition to keep up employee morale, Wang said.

The current system allows 10 deputy directors in a department. But that number will be reduced to between two and five, and never more than six, Wang said.

Scholars applauded the reform of Shenzhen.

"It's a great move. It is significant in terms of transforming the government function and separating the policy-making departments from execution departments," said Ding Li, a professor at Guangdong Academy of Social Sciences.

(China Daily September 9, 2009)