The institutional reform of local governments has become a hot topic—one of general concern to all quarters in society. Institutional reform is a huge systemic project that involves many different aspects. When formulating and implementing the reform plans, consideration must be taken of many different factors—the cultural environment, social guarantees, the economic system, the political system, and the leadership system. Coordinated action should be taken at all levels while the work is advanced in all directions. Otherwise, if constraints [sic] occur in any one aspect, a growing number of reversals could take place because of hindrances resulting from personnel dispositions, redistribution of interests, and shifts in power, even after the institutions have been reduced in number or merged, and the institutional reform could ultimately fail to achieve its objectives. Hence institutional reform of local governments should revolve around the issue of transforming government functions and efforts should be placed on resolving problems that may arise during the reform.
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Han Feng (2002) studied this question.
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