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Tuesday, March 20, 2012

Chinese Dream Turning Sour?

Chinese Dream Turning Sour?

There’s a famous Chinese aphorism often used to describe the dynamics of central-local relations in China: “The mountains are high, and the emperor far away.” Though the center’s information gap is narrowing – they are able to monitor local governments much more effectively than ever before – there’s still substantial freedom for local governments, which often leads to implementation gaps. For example, in the past 10 years, local governments in China have ignored central policies on mine safety, environmental protection, and food/consumer product safety, to name only a few. The central government in many ways allowed and even created these implementation gaps through counterincentives such as a singular priority being placed on raising growth figures. Since 2006 until now, the central government has certainly targeted rising property prices. However, until now, their policies have been less than ironclad – the policies were often reversed or loosened, and local governments had plenty of ... Read More...

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