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Perspective on Local Governance Reform in China

China & World Economy 2006年第2期14卷 16-31页

作者： Mingxing Liu Binwen Song Ra Tao associate professor School of Government Peking University Beijing China. assistant professor Zhejiang University of Finance ＆ EconomicsChina. associate professor Center for Chinese Agricultural PolicyBeijing China

This paper is an attempt to present an analysis of China＇s decentralization and local governance practices, the dilemmas rooted in the current institution. We argue that the misbehavior of local government officials is endogenous to China＇s central-local structure and that competition among localities has become distorted and constrained by various policy burdens and development mandates imposed from above. The information asymmetry for the enforcement cost of mandates that exists between central and local governments not only leads to difficulties and distortions in local performance evaluations, but also creates opportunities for local bureaucracy expansion and rent-seeking. Enhancingfiscal transfers, or strengthening political restraint, although necessary, would be far from enough to solve the local governance problems. The ultimate solution entails an in-depth deregulation reform on factor mobility and a furthest eradication of policy mandates for the local government.

关键词： political competition decentralization local governance policy mandate

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Rural Informal Taxation in China:Historical Evolution and an Analytic Framework

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China & World Economy 2007年第3期15卷 1-18页

作者： Justin Yifu Lin Mingxing Liu China Center for Economic Research Peking University Beijing China. Associate Professor School of Government Peking UniversityBeijing China.

The present paper examines the historical evolution of China＇s rural taxation system from the pre-reform period to the late 1990s. We propose that because of information asymmetry between the upper-level and the lower-level governments, local governments had to be granted some informal tax autonomy to fulfill the upper-level policy mandates. This easily led to excessive local informal taxation on farmers. As market liberalization of the grain sectorprogressed, the low-cost tax instruments implemented through the traditional approach of implicit taxation gradually eroded. Local governments in agricultural regions had to resort to informal fees collected directly from individual rural households while the more industrialized regions shifted to non-agricultural taxes that are less costly in terms of tax collection. Hence, political tension between farmers and local governments in agriculturebased regions emerged and rural tax reform became necessary.

关键词： policy mandate rural informal taxation tax instrument

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