For rectifying and standardizing market economic order, establishing a modern market economy and ultimately realizing harmonious development of society, a sound social credit system has a crucial role. And to establish a sound social credit system, the first task is to deepen the construction of government credit to consolidate the basis for the whole social credit system. At present stage, our government is trying her best to goven our country by laws and build a harmonious socialist society. During this stage, it continues to strengthen its credibility, the credibility and the administrative capacity of the government have already been greatly improved and enhanced. But we should also see that beacause the economic transition, the imperfect law system, the influence of the“Official Standard”idea and the factor of understanding is not enough etc., combined with lack of supervision, some of the local governments can not provide public management and service effectively, and the events of breaking its promise to the public have repeatedly occurred, as a result, seriously damaged the image and the prestige of the local governments. The problem has caught much attention by the Party Committees, governments and society. Therefore, the study of the local government credit system construction is significant in the aspects of improving and perfecting the credit system of local government, standardizing the market economic order and the realization of a harmonious society.This article is divided into six chapters. The first chapter is the introduction, which introduces the background, purpose and significance of the research , and it also illuminate the research methods, research ideas and the structure.The second chapter is an overview of local government credit, including the connotation of government credit, the character and its use. This chapter mainly expounds the characteristic of the Government’s credit evaluation. It also summarizes that government credit is the premise of policy for the people,is the security of smooth operation f social economy, and it also is the social credit foundation.The third chapter is research on the basic theory of local government credit, including theory of political legitimacy, social contract theory, the principal - agent theory, transaction cost theory, which is the theoretical basis of honest government. Chapter IV describes the performance of lacking government credit, and has in-depth analysis in the causes of these phenomena.In Chapter V, in view of the phenomenon of local governments’ lacking of credit, on the basis of analysing the reason of lacking local government credit, it will sum up the reason of lacking local government credit, and probe into ideas and countermeasures of constructing local credit government, that is,to adhere to the people-oriented, and firmly establish credit government concept; to clear the responsibility of government, and to transform government functions; to improve the legal system, and to reinforce the the basis of the credit system of government; to perfect the supervision system,and to improve government oversight of credit; to strict accountability, and to increase the cost of officials in order to make some modest building for local government faithful construction. The final conclusion of this paper gives a brief summary and induction, and makes its future development prospects as well.
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