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| 1 |
ID:
111299
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| 2 |
ID:
155667
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| Summary/Abstract |
Unprecedented and highly visible degraded air quality in China's urban centres has prompted a step change in central government control efforts in recent years. This “War on Air Pollution” has included a mixture of administrative controls, regulatory clampdowns, economic incentives and public education campaigns. A critical constraint on how policies are designed and implemented is the central government's capacity to access accurate cost information, and monitor, evaluate and enforce the policies at subordinate levels of government. We examine in detail the directives and arrangements that underpin China's “War on Air Pollution” at the provincial level, taking Hebei province as a case study. Located upwind of Beijing, Hebei's heavy industries have been a particular focus of the environmental policies. The current approach, which requires highly specific and costly local actions, yet allocates funds centrally, suffers from misaligned incentives and does not address longstanding weaknesses in local policy monitoring, evaluation and enforcement.
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| 3 |
ID:
182982
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| Summary/Abstract |
In China's decentralised system, vital public services such as health, education and social welfare are provided by local governments. The intergovernmental fiscal system is critical to ensuring local governments are adequately financed. Since 1994, China has overhauled its public finances to create a system able to finance government operations, support economic growth and fund industrial policies and international initiatives. Its Achilles' heel remains a weak intergovernmental fiscal system that is unable to fund local governments efficiently and equitably. This article analyses local finance through three decades of reform. Despite a promise early in the Xi Jinping administration to realign central–local fiscal relations, local finances have deteriorated since 2015 due to slowing growth, tax cuts and pressures from tightened budget management. Local fiscal difficulties have caused a decline in social spending as a share of gross domestic product. If continued, this trend threatens to reverse recent gains in improving services and undermine other national policy goals.
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