ABSTRACT
The dilemmas of local governance in contemporary China have recently received a great deal of attention from both academics and policymakers. Many Chinese farmers, especially those in less developed regions, have been plagued by excessive tax burdens, insecure land property rights and intrusive local governments. It is widely agreed that the size of local governments is excessive and expanding too quickly; at the same time, local provision of public services frequently remains insufficient and of low quality. From the center’s perspective, local government officials, in pursuit of their own interests, tend to ignore the demands of local people. However local officials, for their part, complain that higher levels of government, (especially the center) unduly monopolize fiscal resources. They argue that in many less developed regions the center has failed to provide fiscal transfers commensurate with ever-increasing local expenditure needs, thus creating local fiscal insolvency leading to chronic under-provision of public services.
