The Centre Decides and the Local Pays: Mandates and Politics in Local Government Financial Management in China

Yongmao Fan

Local Government Studies, 2015, vol. 41, issue 4, 516-533

Abstract: In China, ‘the centre decides and the local pays’ means the central government decides on policies but requires its local subordinates to provide the financial resources. The politics of this practice implies that local government has to take different strategies to cope with the unfunded mandates with various consequences. As an empirical study framed by Niskanen’s rational choice theory and Dunleavy’s ‘bureau-shaping’ model, this paper examines how the unfunded mandates impact local government behaviour. Its main focus is the question of how the local officials respond, the extent to which they comply or resist and the techniques they use to adapt to these mandates. This paper finds when deciding how to pay the bill for the centre, local officials have to take a number of principles into consideration. They need to stick to the people-orientated principle and to finance money for salaries and operation to the extent that they can; they also have to see if the mandates are strictly implemented or popular among local people.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/03003930.2014.968706 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:flgsxx:v:41:y:2015:i:4:p:516-533

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/flgs20

DOI: 10.1080/03003930.2014.968706

Access Statistics for this article

Local Government Studies is currently edited by Helen Hancock

More articles in Local Government Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().