China's Harmonious Society: Village Democracy, Development and "Pork Barrel Politics"

Thursday, January 10, 2008
4:15 PM - 5:30 PM
(Pacific)
Philippines Conference Room
Speaker: 

China's Harmonious Society colloquium series is co-sponsored by the Stanford China Program and the Center for East Asian Studies

Since 2006, the official doctrine of China's Communist Party calls for the creation of a "harmonious society" (HeXieSheHui). This policy, identified with the Hu Jintao leadership, acknowledges the new problems that have emerged as China continues its amazing economic growth. The economy is booming but so are tensions from rising inequality, environmental damage, health problems, diverse ethnicities, and attempts to break the "iron rice bowl." In this series of colloquia, leading authorities will discuss the causes of these tensions, their seriousness, and China's ability to solve these challenges.

A key issue in political economy concerns the accountability that governance structures impose on public officials and how elections and representative democracy influences the allocation of public resources. In this talk, Rozelle discusses a unique survey data set from 2450 randomly selected villages. The data describe China's recent progress in village governance reforms and its relationship to the provision of public goods in rural China between 1998 and 2004.

Rozelle and his colleagues examined two sets of questions using an empirical framework based on a theoretical model in which local governments must decide to allocate fiscal resources between public goods investments and other expenditures. They discovered--both in descriptive and econometric analyses--that when the village leader is elected, the provision of public goods rises (compared to the case when the leader is appointed by upper level officials). Thus, one may conclude that democratization--at least at the village level in rural China--appears to increase the quantity of public goods investment. Further, they find that when village leaders who had been elected are able to implement more public projects during their terms of office, they, as the incumbent, are more likely to be reelected.