China in the Global Economy Governance in China
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While China's economy has shown impressive dynamism following the increased reliance on market-based policies, the governance structures themselves will have to be reformed deeply for this growth to be sustainable. This report examines the many challenges of governance which China is facing. In addition to the well-known problems related to the lack of openness in government and intellectual property rights, this book also looks at the delivery of public services, management of state assets, regulatory management, e-government, taxation and public expenditure, fighting corruption, and producing reliable information. Selected policy areas where the insufficient governance reforms have an impact on the policies themselves -- like the financial sector, agriculture, environmental protection, labour market and social protection, education, and competition -- are also discussed.
(above-norm) enterprises in all economic sectors and on central sample surveys otherwise. The report forms are mostly collected locally, but the data on each enterprise are passed on individually to the NBS, i.e. aggregation can occur at the NBS itself. Unless local statistical bureaus flagrantly falsify individual enterprises’ reports, which is unlikely, and unless enterprises misreport data, these data are as good as the accounting system within the enterprise. Surveys implemented by central
is not always able to fully explain particular statistics to the public. Individuals within the NBS have made repeated and highly laudable efforts to explain their statistics to the public, including to international organisations, and may be interested in sharing their experiences and in learning from other countries’ experiences, but they always remain constrained by domestic political considerations. This also implies that nobody, except those individuals within the NBS who actually manipulate
standards. Fiscal revenue-raising is quite decentralised, but it is less so than expenditure, in particular since the 1994 tax reform which significantly increased the central government’s overall share of total revenue. Transfers from the central to the provincial governments to bridge the resulting gap have risen substantially. However, they fall short of covering the gap between expenditure responsibilities and tax revenue resources. Moreover, many earmarked transfers arrive late in the year
at the national level. The CCPD has fulfilled an emerging role to co-ordinate the prevention efforts of procurator bodies at the sub-national levels and supply them with guiding documents such as the Recommendations on Corruption-related Crime Prevention issued by the Supreme People’s Procuratorate. Although effective and timely prosecution has remained the principal activity of procurator bodies, preventive measures have gained relative importance for identifying common sources of corruption by
government. More broadly, a government-based social insurance system comprising pension, health, unemployment, injury and maternity was established in 1997. Prior to this date, benefits were provided by the companies to employees. The costs of this shift of responsibility for the provision of social services from productive units to local governments also took place in former communist countries such as Poland and the corresponding costs were widely underestimated. GOVERNANCE IN CHINA – ISBN