28 September 2016
What we have achieved today in building the credit system for the tourism industry in Dujiangyan is of extraordinary significance. These achievements are based on the Municipal CPC Committee and Government’s in-depth understanding, including: 1) reforming the management mode of a credit-based economy is inevitable; 2) the leaders should have a clear comprehension of the goal, content, application and the underlying logic of building a credit system; 3) the leaders should have a strong sense of responsibility to bring more impetus to the economic growth in local society; and 4) the leaders should be highly determined to include the credit system in the governmental administration. After we compared the building process in Dujiangyan with those of other credit systems being built in China, we decided to name our mode the ‘Dujiangyan mode’. Hence, a thorough conclusion of this mode shows that the Chinese people have gained a deeper understanding of the credit system after relentless exploration. The mode enables us to build a new knowledge system and provides overall guidance for the building process of the credit system.
The key points of Dujiangyan mode are as follows:
1. Under the leadership of the Municipal Party Secretary, four working groups include the credit system into the government working agenda. With clear understandings and coordinated actions, an association of decision-makers and government leaders was established to enhance the leadership during the building process in Dujiangyan. The association performs as the policy-maker to clarify the core values and responsibility for its members. It also shows the society a firm will to build the credit system and the significance it brings, which demonstrates the local government’s credibility to implement the policies from the central government.
2. Credit information service agencies which have the ability to undertake the responsibility of building the credit system should be selected to assist the government during the building process. The decision-makers of Dujiangyan realised that credit information service agencies are indispensable in the building process of a credit system. Dagong, which has 20 years of experiences in the market, is a patriotic and powerful institution. We are brave to undertake the professional services of Dujiangyan’s credit system. Our concepts include: 1) a credit system is part of sovereign management and requires a local agency; 2) we should consider innovation in theoretical research, mode designs and professional capabilities when selecting a qualified agency. The three aspects are important to the government’s performance in building the credit system; 3) it is more efficient to analyse the competitions in the market from a vertical perspective, which avoids bad money driving out the good; 4) credit information is the only source to evaluate the credibility of members of society, which determines that the credit information service agency is the only service provider in building the credit system. Subsequently, the Dujiangyan government, with its representative offices and Dagong, decided to set up the Dagong Dujiangyan Credit Information Service Co., Ltd. The company will serve as the professional assistant for the government in credit management.
3. The Blueprint for Building China’s Credit System provides professional guidance for Dujiangyan. At the beginning of implementing the Outline of Building a Credit System issued by the State Council, Dujiangyan summarised and reviewed the building process in other cities, focusing on scientific research and independent thinking. Dagong’s professional reports about the building process of the credit system were also considered so as to avoid subjective conducts which are deviated from the laws of a credit system. The Dujiangyan government acknowledged the ultimate goal of building a credit system as follows:
1) To build up the social credit management system containing statistics, analysis and utilisation. The system utilises the credit information of the members of society, distributes social resources in order to achieve a credit-based society through credit management. Therefore, the society needs to set up a credit management system in which each institution is responsible for a specific credit management department;
2) It requires a model that guarantees safe operation of a credit management system;
3) It needs an infrastructure focusing on the interconnection of statistics, analysis, exchange, management and utilisation of credit information. It features one database and five platforms, including the credit information database covering all subjects in society, credit information analysis platform, credit information management platform, credit information exchange platform, credit management platform, and credit information public service platform;
4) It requires mapping and coding of social credit information, standardised data, digital analysis, and to use a matrix to support the products of credit information in terms of technology.
Dujiangyan and Dagong follows the highly professional, systematically, structural and logical idea of building a credit system, and make the overall action plan based on feasibility. The government chooses the representative tourism industry as a pilot and aims to establish the credit system by 2020. The forward-looking strategy of Dujiangyan leads its building process to the right direction and thus enhances the city’s appeal to better organise and operate the building process of its credit system.
4. To find the mode of promoting socio-economic development through credit system establishment. Dujiangyan has been searching for the docking point between the establishment of a credit system and socio-economic development. Credit is the order that governs the operations within a society, representing the obeying of social management rules and moral standards by the members of society. It is also the foundation of sustainable development of an economy and society. The establishment of the credit system aims at establishing a new environment for business and social governance, which features ‘one default leading to severe consequences’, and fostering the city’s new competitiveness. The tourism industry has been selected as the pilot in establishment of a credit system. The credit management method is used to distinguish the service quality among the tourist service providers. By releasing authoritative information on the credibility of them, the system provides visitors access to credit services, so as to form an incentive system and mechanism of encouraging competition in service quality. Under the principle of survival of the fittest, the credit system will strengthen the overall competitiveness of the tourism industry in this city through credit management. Meanwhile, the city gives top priority to building a credit system in rural areas for the purpose of: through comprehensive, professional, standardised, timely and sustainable recording of the credit information of farmers, qualifying them with a credit rating assigned by a third party, which would be their ‘credit ID’ endorsing their access to public financing in the capital market. With the credit ID, the farmers can borrow on credit and walk out of the financing dilemma that is subjected to guarantee, mortgage and pledge. For a city, a great portion of whose economy is supported by small producer businesses the circulation of credit information propelled by the establishment of the credit system will strengthen the interconnection between capital and producers. It will undoubtedly release the social productivity. Therefore, it is justifiable to name Dujiangyan mode as a credit-based economic one.
Dujiangyan mode is a practical mode under the instruction of the theory on the establishing a society-wide credit system. Rather than simply copy the theory, the city has chosen the Blueprint for Building China’s Credit System to guide its credit system establishment. The distinctive feature of Dujiangyan mode is that it has adopted the cutting-edge mode design plan concerning society-scoped credit system establishment and thereby found the correct direction. In this way, Dujiangyan can promote the entire city’s credit system establishment in a confident, professional, systematic, comprehensive and effective manner, instead of feeling its way in the darkness.
The Dujiangyan mode can be concluded as follows:
1. The establishment of a credit system is determined by the laws governing credit-based socio-economic development, and is inevitable amid the transformation of the social management mode. It is a new administrative function of the government. Establishing a social credit system is within the government’s responsibilities concerning credit-based social management. The biggest challenge encountering the establishment efforts comes from the bondage of the deep-rooted modes of thinking and social management. The power to break though the barriers comes from leadership. Therefore, building a society-wide credit system is the top priority of the Communist Party of China as well as the Chinese government. Dujiangyan mode is in line with this principle.
2. The executor and service provider are carriers of implementing the establishment of the credit system. The executor is the government, whose duty is constructing society-scoped credit management system and mechanism, and building an institutional environment for the establishment. The government’s role as the sole leader in the society-wide credit management determines the uniqueness of the executor. The service provider is the institution providing credit information, whose responsibility is assisting the government in the building of the credit system, as an independent and impartial third party with its professional services. The uniqueness of credit information as the standard of measuring the credibility of society members determines the uniqueness of the service provider. The mode ‘government + credit information service institution’ is the organisational mode to unify the two uniqueness, which provides the establishment process with the implementing entities required. Dujiangyan mode caters to this essential need.
3. The basic task of society-wide credit system establishment is to eliminate credit information asymmetry between the economic and social behaviours of society members, and the social management rules and moral standards, through system and mechanism, and to build up an infrastructure, namely a society-scoped credit management system, for sustainable management of the credit-based society. To make the establishment efforts clearly and precisely oriented, credit information needs to be placed at the centre of credit system establishment and tailored to the goal of social management. Meanwhile the content of the establishment and its supporting facilities need to be designed in line with the inherent laws of credit information. The keys to breaking through the bottleneck of the establishment and opening up a new prospect are study of laws, respect for science, and systematic design in accordance with standards of implementation. Dujiangyan mode is the right choice.
4. To promote social development through credit-based management is the fundamental goal and sole criterion for the building of a credit system. Building a social environment of ‘one default will lead to severe consequences’, encouraging keeping promise and breaking promise will definitely open up new growth space for economic and social development and therefore enhance a city’s competitiveness. From a macro perspective, a sound social environment can help gather social productivity factors and generate new impetus for economic development; from a micro perspective, excellent credit quality will dramatically improve an enterprise’s market competitiveness in investment and financing, production, supply and sales. The building of social credit system will integrate credit-based management into economic and social development and achieve the historic transformation from traditional socio-economic management mode to the management mode for the credit-based society. Dujiangyan mode is designed to achieve this innovation.
The reasons for recommending Dujiangyan mode are:
Firstly, its pioneering spirit for scientific innovation. Thanks to independent thinking and earnest learning, local leaders have designed scientific plans and been dedicated to fulfilling due responsibilities, rather than following other’s suit or simply copying.
Secondly, it embodies the Party’s administrative capacity building into the leadership and action for building the credit system.
Thirdly, undertaking responsibilities of economic and social development, local leaders respect experts’ opinions to prevent non-action or disorder action of building the social credit system making people from suffering from social cost wastes.
Fourthly, a series of innovations that embody the scientific principles of building of the social credit system have established the model position of Dujiangyan model, which will be transformed into new driving forces for building the social credit system across the nation.
Dagong is a credit information service agency with strong sense of social responsibility, national responsibility and historic mission. This extraordinary development concept will inevitably help Dagong embark on a new path of studying laws, discovering logics, innovating theories and designing modes. In responses to the call of the times, Dagong, dedicated to the values of responsibility and development, participated in the building of Dujiangyan mode with its strong scientific service capability. Under the leadership of Dujiangyan Municipal Party Committee and Municipal Government, we have sufficient confidence and ability to provide excellent services for building Dujiangyan mode and make it a model for building the social credit system across the nation.