Skip to main content
×
Home
    • Aa
    • Aa

The Political Economy of Earmarked Transfers in a State-Designated Poor County in Western China: Central Policies and Local Responses*

Abstract
Abstract

In order to improve the effectiveness of redistributive policies, in 2002 the Chinese government increased fiscal transfers and imposed more stringent regulations on the use of earmarked funds. This article evaluates the impact this had on K county in a north-western province. The case study finds that the misappropriation of earmarked transfers did decrease but this did not necessarily indicate an improvement in the local government's compliance in the usage of transfers. Instead, the county governments found ways to sabotage central policies by exporting fiscal burdens to the subordinate bureaus that received the earmarked subsidies. In some bureaus this was done by reducing the amount of funds allocated for operating expenses. In others it involved increasing staff numbers. These findings provide a basis for evaluating the effectiveness of using earmarked funds and internal supervisory mechanisms to achieve policy objectives in an authoritarian regime.

Copyright
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Era Dabla-Norris , “Issues in intergovernmental fiscal relations in China,” IMF Working Paper, WP/05/30 (2005)

Ehtisham Ahmad , Li Keping , Thomas J. Richardson and Raju Singh , “Recentralization in China?IMF Working Paper 02/168 (2002)

Thomas Bernstein and Xiaobo , Taxation without Representation in Contemporary Rural China (Cambridge: Cambridge University Press, 2003)

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

The China Quarterly
  • ISSN: 0305-7410
  • EISSN: 1468-2648
  • URL: /core/journals/china-quarterly
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 3
Total number of PDF views: 72 *
Loading metrics...

Abstract views

Total abstract views: 243 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 22nd June 2017. This data will be updated every 24 hours.