Research on the joint reward and punishment mechanism in Hangzhou

In recent years, in order to promote the economic development of Hangzhou, enable enterprises to survive and eliminate the fittest under the incentive of credit, and public service departments to provide better services, Hangzhou has launched a series of social credit system construction , especially represented by the joint reward and punishment mechanism, which has gradually become an effective means of the new market supervision mechanism. This paper starts with the concept of joint credit reward and punishment mechanism, analyzes its connotation, main functions and components, and combines foreign credit supervision and implementation to investigate the current situation of the construction of credit breach of trust punishment mechanism in Hangzhou. Finally, it provides suggestions for improving Hangzhou The joint reward and punishment mechanism starts from four aspects: promoting the construction of social credit-related laws and regulations, increasing the cost of breach of trust, strengthening punishment, establishing a sound supervision system, establishing a joint incentive system and a complete credit repair mechanism, and effectively exerting credit in the social credit governance system and the modernization of governance capabilities, promote Hangzhou City to build a new market supervision system with credit as the core, promote market entities to operate with integrity in accordance with the law, and create a social environment of integrity.

Keywords: social credit system; lack of credit; joint reward and punishment mechanism

ABSTRACT

In recent years, in order to promote Hangzhou's economic development, so that enterprises can survive under the encouragement of credit, and public service departments can provide better services, Hangzhou has carried out a series of social credit system construction, especially the representative of the joint reward and punishment mechanism. Gradually becomes the market new type of supervision mechanism effective means. This paper starts with the concept of credit joint reward and punishment mechanism, analyzes its connotation, main functions and constituent elements, and combines foreign credit supervision and implementation, makes an investigation on the present situation of Hangzhou credit breach punishment mechanism construction. Finally , in order to improve the joint reward and punishment mechanism of Hangzhou City, we should promote the construction of social credit-related laws and regulations. Improve the cost of credit breach, strengthen discipline, establish a sound regulatory system, establish a joint incentive system and a complete credit repair mechanism to effectively play the role of credit in the modernization of the credit governance system and governance capacity of the society. To promote Hangzhou to build a new type of market supervision system with credit as the core, to promote the market subject to opera

te in good faith according to law, and to create a good faith social environment.

Keywords: Social credit system; lack of credit; joint reward and punishment mechanism

Contents

1. Introduction 1

(1) Research background and significance 1

1. Research background 1

2. Research significance 1

(2) Research Method 2

(3) Basic Concept 2

1. The connotation of joint rewards and punishments 2

2. The main reasons of joint rewards and punishments Function 2

3. Components of joint rewards and punishments 3

2. Current status of Hangzhou’s social credit and dishonesty punishment mechanism 3

(1) Current status of joint credit rewards and punishments 3

(2) Specific policies and impacts of joint credit punishment 3

1. E-commerce industry 3

2. Transportation field 4

3. Credit renting 4

4. Credit medical treatment 4

5. Safety production management field 4

6. Tendering and bidding management field 5

3. Enlightenment on joint credit rewards and punishments in other provinces and cities5

(1) Promote the construction of social credit-related laws and regulations5

(2) Increase the cost of breach of trust and strengthen punishment Intensity 6

1. Build and comprehensively use the public credit information platform 6

2. Strengthen industry self-discipline construction 7

3. Strengthen credit publicity Education 7

(4) Establishing a joint incentive system 7

(5) A complete credit repair mechanism 7

IV. Summary 8

Reference 9

Acknowledgments 10

1. Introduction

(1) Research background and significance

1. Research background

In 2016, the State Council issued the "Guiding Opinions on Establishing and Improving a Joint Incentive for Trustworthy and a Joint Punishment System for Untrustworthy to Accelerate the Construction of Social Integrity" (Guofa [2016] No. 33), requiring all regions and relevant departments across the country to Take the implementation of joint incentives for trustworthiness and joint punishment for breach of trust as an important measure to promote the construction of the social credit system, conscientiously implement the opinions and formulate specific implementation plans. The "Hangzhou Public Security Information Management Measures" (Government Order No. 295) reviewed and approved by the Hangzhou Municipal Government in 2016 clearly stated that it is necessary to accelerate the establishment of a trustworthy incentive and a dishonest punishment mechanism. The party and government have attached unprecedented importance to the construction of social credit.

In recent years, Hangzhou City has successively formulated the "Implementation Opinions on the Use of Credit Records and Credit Reports in the Administrative Management Process of Hangzhou City", the "13th Five-Year Plan for the Construction of the Social Credit System" and the "Hangzhou City There are 28 related system documents such as the Municipal Public Security Bureau’s Credit Information Inquiry Measures, and the department has issued 61 industry credit systems. Currently, Hangzhou is at the forefront of social credit construction in the country. In 2015, Hangzhou became one of the first batch of credit demonstration cities in the country; in August 2017, Lian Weiliang, deputy director of the National Development and Reform Commission, hosted the first "China Urban Credit Construction Summit Forum" in Hangzhou. . At present, Hangzhou's per capita GDP level has entered the ranks of moderately developed countries, and its industrial system has entered the post-industrial era, with the service industry and smart economy gradually taking a dominant position. At present, the whole city of Hangzhou is vigorously promoting the internationalization of the city and making every effort to build a world-famous city with "unique charm and unique excitement". The joint punishment and reward mechanism is an important measure for Hangzhou to improve the construction of the social credit system. It is an important starting point for Hangzhou to implement the work arrangements of the Party Central Committee and the State Council and improve Hangzhou's social governance and public management capabilities.

After years of continuous efforts in the construction of Hangzhou's credit system, the relevant credit data collection has achieved remarkable results, the credit system construction has been continuously improved, and the overall credit work is at the forefront of the country. However, there are still problems such as the government's lack of extensive credit use and incentives. Problems such as insufficient effectiveness, lax punishment for violations, and insufficient social promotion. Facing the new situation and new requirements in the implementation of Hangzhou’s urban internationalization strategy during the “Thirteenth Five-Year Plan”, strengthening the construction of the credit system, especially the construction of a joint credit reward and punishment system, is very important for promoting the use of credit products in Hangzhou and improving the credit level of the whole society. It is urgent and necessary, and is of great significance to Hangzhou City in promoting the construction of a model city for the social credit system in Hangzhou.

2. Research significance

In the early days of the development of market economy, the traditional credit rules and hidden rules that maintained my country’s economic development had effectively

reduce transaction costs. Improved regional economic development capabilities. However, with the rapid economic development and rapid social transformation, traditional credit relationships have been severely challenged and tested. It is very necessary and urgent to speed up the establishment of a joint punishment mechanism for dishonesty and improve the modern social credit system, and has great theoretical and practical significance.

Theoretical significance: The establishment of a joint credit punishment mechanism is a necessary condition for reducing the phenomenon of dishonesty. In developed Western credit countries, the social credit system is relatively complete and sound, and punishment for breach of trust is the responsibility of government departments or organized voluntarily by private institutions. The former focuses on administrative mandatory punishment, while the latter focuses on using market mechanisms to play the role of economic punishment. The two complement each other. Judging from the current research status of the joint credit disciplinary mechanism, in terms of research content, there is more discussion on the social credit system from the macro level, but less research on the practical operability level; there are many exposures and criticisms of the phenomenon of untrustworthy behavior, but combined with national and local There is little theoretical analysis of the specific situation and institutional background, especially the research on the operation of joint credit punishment as a key link in the social credit system. The joint credit disciplinary mechanism is a key link in the construction of a modern social credit system, and is the execution mechanism and guarantee mechanism for the effective operation of the social credit system. If there is no reasonable and effective punishment mechanism for dishonesty, no specific institutional arrangements for punishing dishonesty, and no joint punishment by multiple departments, the entire social credit system will be like a castle in the air. Therefore, research on the joint credit disciplinary mechanism in Hangzhou will surely provide an important theoretical basis for the standardization and rectification of Hangzhou's market economic order and the construction of the social credit system.

Practical significance: As a key link in the construction of the social credit system, the credit penalty mechanism is a major strategic measure to implement the scientific outlook on development, build a harmonious society, improve the socialist market economic system, and promote the sustained and healthy development of the national economy and society. . At present, the lack of credit has become a hot issue that has attracted much attention, seriously hindering the deepening of reform, and bringing troubles and obstacles to the establishment of market order and economic development. The reason is that a fundamental problem is the lack of a credit punishment mechanism. Those who break trust cannot be severely punished. The cost of breaking trust is small but the profit is huge; those who keep trust cannot be rewarded. Only through the establishment of a credit punishment mechanism can the chaotic state of the market order be fundamentally reversed, so that those who are trustworthy will be rewarded and those who are trustworthy will pay a heavy price. social atmosphere and achieve harmony and stability in economic and social life. Therefore, in the process of building a socialist market economy, under the conditions of information asymmetry, through the study of the joint disciplinary mechanism of credit construction, it is necessary to form a fair, equitable and healthy credit environment, promote the healthy and rapid economic development of Hangzhou City and build a harmonious society. Society has very important practical significance.

(2) Research methods

Literature research method: Use the latest journal network resources, documents related to national, provincial and municipal credit system construction, forum proceedings, etc. to conduct document searches and learn extensively Collate the results of other people's research to formulate basic research questions and determine the direction of research. Documents include published journal documents, yearbooks, survey reports, etc. at home and abroad. Relevant information includes relevant documents, work reports, relevant activity information, management files, websites and other information issued by the country and the province.

Through the literature research method, we learned about the research trends, development history and current situation of issues related to the joint disciplinary mechanism, and used this research method to form a literature review by collecting facts and accumulating materials.

Comparative analysis methods. When analyzing the problems existing in the implementation of the joint credit disciplinary mechanism in the construction of the social credit system in Hangzhou, the comparative analysis method is mainly used, by comparing the implementation of the joint disciplinary mechanism in Hangzhou with developed countries in credit reporting and provinces with rich experience in building domestic credit systems. Comparison, in order to find out the shortcomings of Hangzhou City, learn from their experience, and formulate improvement methods and countermeasures.

Case study method. By analyzing individual cases of the implementation and construction of the joint disciplinary mechanism in Hangzhou, we summarize the existing problems in the implementation and construction of the joint disciplinary mechanism in Hangzhou, conduct analysis and research, and propose feasible measures to promote the construction of the overall credit system and form a reference value research results.

(3) Basic concepts

As the focus of the current credit system construction in Hangzhou, the joint reward and punishment mechanism punishes untrustworthy behavior and punishes trustworthy behavior by uniting departments and organizations at all levels. Rewards, through the comprehensive use of these reward and punishment methods, promote the construction of the social credit system and form a healthy and orderly new market economic order.

1. The connotation of joint rewards and punishments

Before the State Council’s social credit system planning outline was released, many scholars had already begun to explore the construction of a breach of trust punishment mechanism in my country’s credit reporting system. Involving different perspectives such as law, management, economics, and sociology. The definitions of joint credit reward and punishment mechanisms in these articles are relatively similar. Generally speaking, relevant agencies comprehensively use legal, administrative, economic, moral and other means to make the dishonest pay the economic and reputational price corresponding to their behavior, and to make the trustworthy pay the economic and reputational price corresponding to their behavior. Investors get various conveniences and benefits, and gain more market opportunities. From the perspective of incentive theory, incentives for trustworthiness and punishment for breach of trust are both incentive mechanisms. The former is a positive incentive, providing development opportunities and space for trustworthy people, such as giving priority under the same conditions; the latter is a reverse incentive, providing opportunities and space for trustworthiness to those who are trustworthy. Limit development opportunities and development space within a certain period of time, such as imposing restrictions or increasing transaction costs when granting financial credit.

2. The main functions of joint rewards and punishments

The credit joint reward and punishment mechanism has three main functions. The first is the punishment function, which is to reduce the material interests of credit entities through legal constraints, economic punishment and other means, including punishment for illegal acts, violations and breach of contract, which is the most direct and important function of joint punishment. The second is the deterrent function. Through the openness and sharing of punishment results for breach of trust, it can deter and warn potential breaches of trust, making them aware of the cost of breach of trust, thereby nipping the motivation for breach of trust in the bud and consciously regulating their behavior. The third is the incentive function. Under the action of the trustworthy incentive mechanism, honest and trustworthy companies and individuals are encouraged to continue to maintain a consistent record of integrity, so as to continue to obtain greater opportunities and development space in the market. An effective joint credit reward and punishment mechanism provides a guarantee for credit transaction activities. Credit granting parties are more willing to grant credit, and trustworthy parties are more willing to keep trust. This is conducive to the generation of credit transaction activities and improves the success rate of credit transactions. From this perspective, the joint credit reward and punishment mechanism is particularly suitable for economic breaches of trust where the amount of punishment is very small and it is difficult to use legal means to deal with it.

3. Components of joint rewards and punishments

The components of joint credit reward and punishment mechanisms mainly include four: reward and punishment subjects, reward and punishment platforms, reward and punishment motivation, and reward and punishment measures. The subjects of rewards and punishments mainly include the subjects and objects of joint rewards and punishments. The subject is the party that initiates and implements joint rewards and punishments, usually the industry management department, and the objects are various enterprises and individuals who receive rewards and punishments in society. The reward and punishment platform has two functions: First, it collects and shares the credit information of enterprises or individuals, so that enterprises or individuals with good credit can successfully obtain loans or transaction opportunities, and makes untrustworthy enterprises or individuals pay the cost; The other is that the implementation unit of joint rewards and punishments will collect and share the implementation status of reward and punishment measures and the information obtained from daily supervision, so that untrustworthy enterprises or individuals whose punishments have expired or whose credit has been repaired can regain normal trading opportunities, so that untrustworthy enterprises or individuals can regain normal trading opportunities. Trustworthy companies or individuals who have dishonest behaviors will no longer enjoy preferential opportunities and space.

On the one hand, the motivation for rewards and punishments comes from the need for government departments to strengthen supervision during and after the event, and on the other hand, it comes from the market's pursuit of material interests. The profit-seeking nature of capital makes market entities tend to increase transaction costs for dishonest individuals in order to reduce transaction risks. Punishment methods vary depending on the nature of the breach of trust. According to the classification in Guofa No. 33, it mainly includes administrative, market, industry and social means. The first type is mainly for government departments to punish untrustworthy entities in accordance with the law. The latter three types are for market economic entities to consciously reduce or refuse to engage in credit transactions with untrustworthy entities, and to expel untrustworthy entities from the market through market mechanisms.

2. Current status of the construction of social credit and dishonesty punishment mechanism in Hangzhou

(1) Current status of joint credit reward and punishment construction

In recent years, Hangzhou has actively explored the mechanism of punishment under the leadership of the government. credit construction, strengthen the leadership of credit construction work

actively promote the construction of the government's public credit information system, integrate public credit information resources, and strengthen credit supervision

Management work, guiding credit market services, coordinating the credit construction of the three major entities of government, corporate legal entities and natural persons,

The construction of "Credit Hangzhou" has made certain progress and positive results, and has provided a solid foundation for the social credit system Improve,

The establishment of a punishment mechanism for dishonesty provides the basic conditions for preventing and punishing dishonesty. Specifically, a relatively sound leadership organization and working mechanism have been established. All cities under the jurisdiction of Hangzhou have also established credit leading groups and their offices in accordance with the unified deployment of the city; and have carried out credit research in related fields earlier. , forming a relatively complete theoretical basis; a credit market supervision system has initially been formed. Currently, all municipal-level agencies, districts (counties, cities) and major public utility units have been collected, with 140 million valid credits in 2947 items in 338 categories. Information, more than 13 million natural person credit files and more than 1.2 million legal person credit files have been formed, fully covering the city's permanent population, floating population and various registered legal persons.

(2) Specific policies and impacts of joint credit punishment

1. E-commerce industry

In order to promote the construction of the credit system in the e-commerce field, Hangzhou Municipal People’s Government The General Office of the Government issued the "Hangzhou E-commerce Platform Integrity Construction Implementation Plan", which takes the cultivation of e-commerce platform integrity as the entry point to promote the disclosure of credit information, improvement of credit management systems, protection of consumer rights and interests, and government and enterprise credit in the field of e-commerce* **Sharing and interoperability, and striving to basically achieve the goal of establishing and sharing the city's e-commerce credit information within two years, initially establishing an e-commerce credit supervision and evaluation mechanism, and extensively carrying out joint rewards and punishments for e-commerce credit. Through multiple channels to enrich the sources of credit information for e-commerce platforms, carry out multi-link construction of e-commerce platform integrity mechanisms, and strengthen multi-dimensional credit supervision of e-commerce platforms, we will improve the construction of the credit system in the e-commerce field of Hangzhou.

Hangzhou City, through a joint credit reward and punishment mechanism, provides e-commerce practitioners with historical integrity business data, which can be used as an applicable basis for the simple "green channel" when registering market entities. procedures for business practitioners; and the integrity files established by the platform are entered through the evaluation of both parties to the e-commerce transaction, and are recorded in the credit records of the Hangzhou Public Security Information Platform after being identified by the competent department, court judgment or notarization, and by providing consumers with credit-based credit records. Search options for sorting ratings from high to low to strengthen policy support for e-commerce practitioners with good credit. In addition, through platform credit management, various departments are united to strengthen the punishment of various types of dishonest entities, and dishonest behaviors are used as a reference for government supervision.

2. Transportation field

In order to further promote the construction of the credit system in the city's transportation field and create a good atmosphere of "Credit Transportation", the relevant departments of Hangzhou City have formulated the "Hangzhou City Transportation Field "Red and Black List" Management System". In view of the city's currently implemented quality and credit assessment normative documents related to highway (waterway) engineering construction, road (waterway) transportation and road administration management, the assessment standards, reward and punishment measures are further refined, and the relevant credit assessment is included in the "red" in the field of transportation market. Blacklist" management category.

Strengthen the application of the results of "red and black lists" in the transportation field, and adopt incentive measures such as preferential policies and green channels for "red list" entities. Adopt disciplinary measures such as restricting market access, public resource transactions, and financial support for "blacklisted" entities, and continuously guide market entities, industry associations, and public opinion media to exert their influence on market transactions, industry self-discipline, and social supervision. The motivational and disciplinary effects of “red and black lists”.

The Hangzhou Municipal Public Security Bureau will forward information involving serious traffic violations to the Hangzhou Municipal Public Security Bureau Credit Information Platform every month. Relevant units will log in to the Municipal Public Security Bureau Credit Information Platform when handling business in related fields. The platform queries the traffic safety credit information of enterprises and personnel, implements punishments in accordance with the requirements of the memorandum, and promptly pushes the information to the Hangzhou Credit Office. As of the end of 2017, the Public Security Bureau had sorted out and published 422 "traffic violation blacklist" data, and notified the transportation department of 1,245 unprocessed records of motor vehicle drivers' traffic violations and 5 records of drug driving. More than 20 parties involved in traffic violations have been subject to joint punishment. In October 2016, a logistics company and a transportation company in Hangzhou were restricted from adding new transportation vehicles by the Hangzhou Transportation Bureau and the Hangzhou Public Security and Traffic Police Bureau due to a high number of traffic violations.

3. Renting with credit

In June 2018, Hangzhou launched a credit deposit-free service, aiming to become the first credit deposit-free city in the country. Personal credit information is entered into the database through the Credit Hangzhou APP, and deposit-free apartment rental services are provided to national 5A youth trustworthy incentive targets in the Hangzhou area every year. The credit deposit-free city not only benefits individuals, but small and medium-sized business owners and self-employed individuals in Hangzhou can also enjoy the benefits brought by credit. In order to allow trustworthy people to obtain more opportunities and benefits in the market, the Hangzhou Municipal Development and Reform Commission collaborated with local and social institutions to jointly promote the "Trust-Easy Rental" work, aiming to support trustworthy entities to enjoy more convenient leasing services. Start-up companies in Hangzhou can enjoy services such as credit-free renting of office space and office equipment through Alipay with their enterprise Zhima points.

4. Credit medical treatment

In 2014, Hangzhou strengthened the implementation of "credit benefits the people", mainly in the fields of medical and health care, by providing "medical credit payment" services to groups with good credit . "Credit benefits the people" is the core concept of Hangzhou City in promoting the construction of the social credit system. Through credit construction, more people can feel convenience and benefits. The "Medical Credit Pay" service allows nearly 7 million cardholders in the city to enjoy first-diagnosis and treatment-later payment services at major municipal hospitals in Hangzhou. In 2017, a total of more than 1.8 million yuan in post-payment services have been provided. At the end of March 2019, Hangzhou citizens with a Qianjiang score (urban personal credit score) of 550 or above who are normally insured by the medical insurance can take the lead in experiencing the "see a doctor first and pay later" credit medical treatment in 11 municipal hospitals, and gradually realize this. The credit medical service system covers all public hospitals in the city, including community health service centers.

5. Safety production management field

The Hangzhou Public Security and Fire Bureau has formulated the "Hangzhou Interim Regulations on the Management of Untrustworthy Units on Fire Safety", which has been implemented since July 2016 and is applicable to Hangzhou Various economic organizations registered with industry and commerce within the municipal administrative area and engaged in production, operation and service activities. Management of untrustworthy behaviors that occur in daily production operations and service activities and are related to the administrative management responsibilities of fire protection agencies. In addition, the Hangzhou Municipal Work Safety Supervision Bureau, together with the Hangzhou Municipal Development and Reform Commission and the Credit Hangzhou Construction Leading Group Office, jointly issued the "Notice on forwarding the cooperation memorandum of cooperation between 18 ministries and commissions including the National Development and Reform Commission on jointly punishing untrustworthy production and business units and their relevant personnel in the field of work safety." 29 specific and feasible disciplinary measures including safety supervision and supervision have been strengthened. An implementation method is proposed based on the national credit information sharing platform, which punishes untrustworthy behavior in accordance with the law and regulations according to the severity of the breach of trust and regularly reports the effects of the punishment. In 2016, the Hangzhou Municipal Work Safety Supervision Bureau put 93 companies on the joint punishment list for breach of trust. In addition, it has also issued production safety credit certificates for more than 1,000 companies, which are used for corporate listings, bond issuance, priority evaluation, corporate bidding, etc.

In the process of performing their duties, administrative agencies and authorized organizations can implement convenient service measures such as "green channel" and "vacancy acceptance" when applying for administrative licenses for entities with good credit for safety production management; in Among various government preferential policies, key support and priority facilities will be given to entities with good credit in safety production management. For non-credit entities that meet the blacklist identification standards, market and industry entry (exit) measures will be implemented; high-consumption behavior will be restricted; job qualifications will be restricted; fiscal subsidies and other policy supports will be restricted.

6. Bidding management field

Hangzhou City establishes the sharing of bidding information and bidding enterprise evaluation information in accordance with the "Interim Measures for the Announcement of Records of Illegal Bidding and Bidding Acts", and promptly reports to the government Procurement departments and bidding agencies report that the successful bidder's performance will serve as an important basis for bidder qualification review, bid evaluation, bid determination and contract signing. Hangzhou City requires the application of credit reports in the city's public resource trading activities. Credit reports are divided into comprehensive credit reports and industry credit reports. Among them, industry credit reports are used according to industry requirements; comprehensive credit report ratings are divided into five categories: A, B, C, D, and E. Category A companies can be shortlisted first when selecting qualifications; when calculating the total score, Extra points, the extra points value accounts for 0.5-3 of the total points. The enterprise's integrity level is evaluated on a rolling basis every three months. When bidding and bidding, corresponding bonus or subtraction points will be given based on the company's latest integrity level. In government-related bidding activities, companies with high credit ratings will receive bonus points in the score. The integrity level of the company will directly affect the results of participating in the bidding, which is very important for the development and growth of the company. At the same time, the joint reward and punishment mechanism in the field of bidding and bidding will in turn promote the credit construction of enterprises in related fields, focus on the construction of integrity, and promote enterprises to fulfill their obligations.