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2017 | OriginalPaper | Chapter

6. Central-Local Relations

Authors : Angang Hu, Xiao Tang, Zhusong Yang, Yilong Yan

Published in: The Modernization of China’s State Governance

Publisher: Springer Singapore

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Abstract

As a huge country with a high population, a vast territory and imbalanced economic development across various regions, China has both the advantages and disadvantages of all large nations, particularly in terms of politics. This means that a careful balance between central and local relations is critical, especially under the governance of a single party. China deals with central-local relations using two initiatives, having learned that one initiative leads to improper handling. Mao Zedong believed that a combination of central and local initiatives was the key to success. In essence, this refers to the formation of a mechanism for incentive compatibility, through which each initiative can play its proper role, and national strength can be united to focus on state affairs.

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Footnotes
1
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2
Mao Zedong: Seven-Character Lvshi ‘On Feudalism’ to Guo Moruo, August 5, 1973, Mao Zedong’s Manuscripts Since the Founding of the P.R.C., Book 13, P. 36, Beijing, Central Party Literature Press, 1998.
 
3
An old Chinese saying goes that there is “one famine every three years, one disease every six years, and one calamity every twelve years” (Huainanzi Tianwenxun). According to the statistics of Xiao Guoliang, a Chinese economic historian, in the almost 3000 years from the Zhou Dynasty to the Qing, there were up to 5168 calamities, including 1052 droughts, 1029 floods and 473 locust plagues. This was organized and calculated by the author based on Xiao Guoliang’s Royal Power and China’s Society and Economy (Beijing, Xinhua Press, 1991).
 
4
Ci Hai defines the ‘great unification’ as the unification of the entire territory. Yang Songhua defines the system of unification as a historic period of up to 2132 years from BC 221 (the First Emperor of the Qin) to 1911 BCE when the Qing Dynasty was overthrown by the Revolution. Ancient China implemented a set of basic systems for politics, economics, culture, and S&T. One emperor and one government played the core role, and a national system of unified administration was implemented in all nations inside China’s territory. Yang Songhua: The Great Unification System and China’s Vicissitudes, Beijing Publishing Press, 2004.
 
5
Book of HanWang Ji’s Record.
 
6
Hu Angang (editor): China’s Development Outlook, P. 196, Zhejiang People’s Publishing House, 1999.
 
7
Angus Maddison: The World Economy: Historical Statistics, Chinese version, P. 265, Beijing, Peking University Press, 2009.
 
8
Yang Songhua: Great Unification of the System and China’s Vicissitudes, Beijing Publishing Press, 2004, Yang Songhua: Great Unification of the System and China’s Vicissitudes, Beijing Publishing Press, 2004.
 
9
Perkins, Dwight, Government as an Obstacle to Industrialization: the Case of Nineteenth-Century China, J. of Economic History 27, 4, 1967, PP. 478–492. See Wang Shaoguang: Enlightenment of American Progressive Era, Beijing, China Financial and Economics Publishing House, 2002.
 
10
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11
For further discussion of financial reforms during this period, see Young, Arthur N., China’s Nation-Building 19271937: the Financial and Economic Record, PP. 1–11, Stanford, CA: Hoover Institution Press, 1971. Young acted as a financial counselor to the Kuomintang government from 1929 to 1947. See Wang Shaoguang: Enlightenment of the American Progressive Era, Beijing, China Financial and Economics Publishing House, 2002.
 
12
Wang Zhiyong: Brief Introduction to Finance in the Republic of China, PP. 115–116, Taibei, Imperial Bookstore, 1952. (没翻译完).
 
13
Angus Maddison: The World Economy: Historical Statistics, Chinese version, P. 269, Beijing, Peking University Press, 2009.
 
14
Gilbert Rozman, The Modernization of China, Chinese version, P. 6, Zhejiang People’s Publishing House, 2003.
 
15
Since the later period of the War of Liberation, the Communist Party of China has paid great attention to unification in terms of ideology, politics and organization. In 1948, the C.P.C. Central Committee issued the Instructions on Strictly Executing the Report System. The C.P.C.’s Decision on All Central Bureaux, Sub-offices, Military Regions, Military Commissions and Former Commissions Seeking Instructions from and Reporting to the Central Government, was intended to strengthen the unified leadership of the C.P.C. Central Committee, and centralize all possible powers and those that had to be centralized into the central government and representative organizes of the central government.
 
16
The Common Programme of September 1949 stipulated that the P.R.C. build a unified army, namely, the P.L.A., and a people’s security force, to be commandeered by the People’s Revolutionary Military Commission of the Central People’s Government, and to be subject to unified command, system, establishment, and laws.
 
17
The European Union (English: European Union; French: Union Européenne, Germany: Europäischer Union) is hereinafter referred to as the E.U., which is headquartered in Brussels, and which developed from the European Community.
 
18
Decision of the State Council on Improving the National Administrative System (Draft), Selected Important Literature since the Founding of the P.R.C, Book 9. P. 326, Central Party Literature Press, 2011.
 
19
Mao Zedong: On Ten Great Relations, April 25, 1956, Mao Zedong’s Collected Works, Volume 7, P. 31, Beijing, People’s Publishing House, 1999.
 
20
When discussing local-central relations, Mao Zedong said: ‘Our Constitution provides that local governments have no legislative power, and that legislative power should be centralized in the National People’s Congress. We have learned from the Soviet Union. It seems that this doesn’t apply to the U.S.A. American states can make laws, and state laws can oppose the federal constitution. It seems that state legislation in finance and tax revenue is different. The U.S.A. is a developed country, taking only 100 years to become prosperous, which is worth investigating. Its political system is also worth studying. It seems that we need to expand local power. Weak local power is disadvantageous to socialist construction”. The above content is not included in Mao Zedong’s On Ten Great Relations, but was recorded by Bo Yibo based on Mao’s speech at the Expansion Meeting of the Political Bureau of the C.P.C. Central Committee on April 25, 1956, and the Supreme State Conference held by Mao Zedong on May 2, 1956). See Bo Yibo: Review of Several Important Decisions and Events, Volume II, Beijing, Party School of the Central Committee of C.P.C. Press, 1993. Mao Zedong believed that excessive centralization was unfavorable, and was not good for mobilizing all powers to build a powerful country. “Drawing lessons from the Soviet Union, the C.P.C.’s history should be reviewed, so as to resolve the issue of centralization and decentralization properly”. Mao Zedong: Concluding Remarks at the Expansion Meeting of the Political Bureau of the C.P.C. Central Committee, April 28, 1956, Mao Zedong’s Collected Works, Volume 7, P. 52, 54, Beijing, People’s Publishing House, 1999.
 
21
Liu Shaoqi: Political Report at the Eighth National People’s Congress of the C.P.C. Central Committee, Selected Important Literature Since the Founding of the P.R.C., Book 9, P. 76, Beijing, Central Party Literature Press, 2011.
 
22
Suggestions on the Second Five-Year Plan for National Economic Development at the Eighth National People’s Congress of the C.P.C. Central Committee (1958–1962), approved on the Second National People’s Congress of the Eighth C.P.C. Central Committee on September 27, 1956. Selected Important Literature Since the Founding of the P.R.C., Version 9, P. 319, Central Party Literature Press, 2011.
 
23
Selected Important Literature Since the Founding of the P.R.C., Book 9, PP. 327–328, Beijing, Central Party Literature Press, 2011.
 
24
At a Spring Festival Gathering held by the central government, Mao Zedong said: “Excessive centralization of power constrains productivity. I am an advocate of a ‘constitutional monarchy’. The central government must handle affairs, but not too much. Most affairs can be handed over to provinces and cities that do better than us (central government, departments and ministries)”. See Bo Yibo: Review of Several Important Decisions and Events, Volume II, PP. 796–797, Beijing, Party School of the Central Committee of C.P.C. Press, 1993.
 
25
Mao Zedong: Speech at the Chengdu Meeting, March, 1958, Mao Zedong’s Collected Works, Volume 7, Beijing, People’s Publishing House, 1999.
 
26
Bo Yibo: Review of Several Important Decisions and Events, Volume II, PP. 797–801, Beijing, Party School of the Central Committee of C.P.C. Press, 1993.
 
27
Wu Li (editor in chief): China’s Development Path (II), P. 819, Hunan People’s Publishing House, 2012.
 
28
On June 2, 1958, the C.P.C. Central Committee issued a notice that all textile work, 96% of the light industry, 91% of the chemical industry, 82% of civil machinery, 77% of metallurgy, 74% of the coal industry, 73% of the water reservoir industry, and over 60% of other industries must be delegated to lower levels. All central departments were required to finish delegating corresponding enterprises and institutions to lower levels before June 15. See Bo Yibo: Review of Several Important Decisions and Events, Volume II, P. 798, Beijing, Party School of the Central Committee of the C.P.C. Press, 1993.
 
29
With regard to China’s economic system, Bo Yibo (one of China’s most prominent economic system planners, and a proponent of the 1958 economic reform) considered whether a socialist market economy had been officially established in China (1993). When summarizing the lessons of the 1958 economic reform, he believed that if we focus on the disadvantages of the centralization of power (planned economy), the power will be delegated to local governments; if too much power is delegated to local governments, the central government must centralize power. This was not realized under the socialist system; we only emphasized the implementation of the planned economic system, ignoring and negating the role of market mechanism. See Bo Yibo: Review of Several Important Decisions and Events, Volume II, PP. 797–804, Beijing, Party School of the Central Committee of C.P.C. Press, 1993.
 
30
The central government issued the Notice on Delegating Directly Affiliated Enterprises of Industrial and Traffic Departments of the State Council to Local Governments, Request for Instructions by Core Teams and Revolutionary Committees Built by All Departments of the State Council, Outline of the Fourth Five-Year Plan (Draft), which required directly affiliated departments of the central government to gradually delegate most enterprises and institutions to local governments in 1970.
 
31
Prepared by NBS: China Statistical Abstract (2008), P. 14, Beijing: China Statistics Press, 2008.
 
32
Wu Jinglian: Course on Contemporary China’s Economic Reform, P. 226, Shanghai, Shanghai Yuandong Press, 2010.
 
33
Tan Zongji, Ye Xinyu: Record of the P.R.C.’s Reform and Major ChangesInitiating a New Pattern of Modernization (19771983), Volume IV, (I), PP. 235–236, Changchun, Jilin People’s Publishing House, 1994.
 
34
Wu Jinglian: Course on Contemporary China’s Economic Reform, PP. 234–235, Shanghai, Shanghai Yuandong Press, 2010.
 
35
Loren Brandt, Thomas Rawski, China’s Great Economic Transformation, Chinese version, P. 364, Shanghai, Shanghai People’s Publishing House, 2009.
 
36
Deng Xiaoping: The Central Government Must Have Authority, September 12, 1988, Deng Xiaoping’s Selected Works, Volume 3, PP. 277–278, Beijing, People’s Publishing House, 1993.
 
37
Deng Xiaoping: The Central Government Must Have Authority, September 12, 1988, Deng Xiaoping’s Selected Works, Volume 3, PP. 277–278, Beijing, People’s Publishing House, 1993.
 
38
Deng Xiaoping: With Stable Reform and Opening Policies, China Stands a Good Chance (September 4, 1989), Deng Xiaoping’s Selected Works, Volume 3, P. 319, Beijing, People’s Publishing House, 1993.
 
39
Wang Shaoguang, Hu Angang: A Study of China’s State Capacity, Shenyang, Liaoning People’s Publishing House, 1993.
 
40
Jiang Zemin: On the Socialist Market Economy, P. 117, Beijing, Central Party Literature Press, 2006.
 
41
Jiang Zemin: On the Socialist Market Economy, PP. 59–60, Beijing, Central Party Literature Press, 2006.
 
42
Jiang Zemin: On the Socialist Market Economy, P. 136, Beijing, Central Party Literature Press, 2006.
 
43
C.P.C.’s Decision on Several Issues about Building Socialist Market Economic System (approved in the Third Plenary Session of the 14th C.P.C. Central Committee on November 14, 1993), C.P.C. Party Literature Research Office: Selected Important Literature Since 14th C.P.C. Central Committee, Book I, P. 534, Beijing, People’s Publishing House, 1996.
 
44
Hu Angang: China’s Development Prospects, P. 133, 183, Hangzhou, Zhejiang People’s Publishing House, 1999.
 
45
Data source: National Bureau of Statistics: China Statistical Abstract 2013, P. 73, Beijing, China Statistics Press, 2013.
 
46
Hu Angang: China’s Development Prospects, PP. 197–198, Hangzhou, Zhejiang People’s Publishing House, 1999.
 
47
Jiang Zemin: Correct Handling of Several Important Issues in the Drive for Socialist Modernization, September 28, 1995, Jiang Zemin’s Selected Works, Volume 1, P. 472, Beijing, People’s Publishing House, 2006.
 
48
Lou Jiwei: Maintaining the Financial Pattern of Central and Local Governments, Increasing the Rights of the Central Government over Affairs, Phoenix Net, November 21, 2013.
 
49
In 1982, Zhao Ziyang, then Premier of the State Council, said: ‘We must stick to central planning, local freedom, centralization, local decentralization, set our chess-pieces in order, and give play to the role of local initiatives’. To publish Zhao Ziyang Several Problems Facing the Current Economic Work, March 4, 1982, Compilation of Important Works Since the Third Plenary Session (II), P. 1194, People’s Publishing House, 1982.
 
Metadata
Title
Central-Local Relations
Authors
Angang Hu
Xiao Tang
Zhusong Yang
Yilong Yan
Copyright Year
2017
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-10-3370-4_6

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