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From Predator to Debtor

The Soft Budget Constraint and Semi-Planned Administration in Rural China

Bibliographic Data

ID6008484
AuthorsYia-Ling Liu (National Chengchi University, Taipei, Taiwan, corresponding author)
Year2012
Volume38
Issue3
Pages308-345
Publication date2012-05-01
Open AccessYes
TypeARTICLE
VenueModern China (JOURNAL)
Journal identifiersISSN: 0097-7004 • E-ISSN: 1552-6836
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0097700411432674
OpenAlexW2148221735
LanguageEN
Citations received5
References cited33

This article explores the institutions of the Chinese semi-planned administration under which the grassroots role of debtors has loomed large and made possible the transition of grassroots cadres from predators to debtors. The institutional features of the semi-panned administration—the institution of target responsibility, the legacy of cost shifting, and the paternalistic care provided by the socialist state—together with related policy measures explain the pathology of budget deficits and debt problems at the grassroots level across rural China. An investigation into the public finances of grassroots governments in Wenzhou, Wuxi, and Jianshi illuminates how the Chinese semi-planned administration has shaped individual cadres’ calculations and behavior, perpetuated their irresponsible spending, and reproduced local soft budget constraints. This article argues that without an outright revamping of the institutions of the Chinese semi-planned administration, the current practice of simply writing off rural debt through financial bailouts perpetuates soft budget constraints across the countryside

Administration (probate law · China · Debt · Economic growth · Economics · Grassroots · Institution · Paternalism · Political economy · Political science · Politics · China's Socioeconomic Reforms and Governance · Chinese history and philosophy · Finance · Housing, Finance, and Neoliberalism · Law · Public Administration

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Citations per year0.45
Citation span2015 - 2021 (7)
Highly citedNo

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