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Governance in China

image of Governance in China

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.

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Public Sector Budgeting Issues in China

China has undertaken extensive reforms to its budgeting system over the past 10 years. These have encompassed the entire budgeting cycle: formulation, approval, implementation and audit. This chapter reviews each of these elements.

China has made crucial progress in this field. The early challenge was fundamentally to create the institutional infrastructure for a modern budget process where none had previously existed. In the planned economy, all resource allocation decisions were made in the plan with the budget serving essentially as a secondary accounting device.

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