An analysis of the "province leading counties" administrative reform in China

Abstract

In recent years, a system of "province leading counties" (shengguanxian) is rising in most Chinese provinces. The main features of this administrative reform, which took place during the period 2002-2008, were the expansion of counties` administrative and economic powers and the implementation of a "province leading counties" fiscal system. The depth of this reform,interms of the number of powers devolved to counties and the type of localfiscal system, varied widely between provinces. This article explores the experiences of the provinces ofZhejiang, Jiangsu, and Jilin and seeks to explain why and how the "province leading counties" policy has become increasingly popular. The article suggests that even though the stated aim of the reform is to promote the economic development of counties, the significant local variation in its implementation is the result of provincial political-economic factors, that is to say, interaction between the provincial leade ship, private business, and the varying capabilities of prefecture-level cities and counties. This contrasts with the view of some scholars that variations in the intensity of the reform can be attributed to differing levels of marketization and economic development among provinces.