CHINA FISCAL DECENTRALIZATION AND THE FINANCING OF LOCAL-SERVICES IN POOR TOWNSHIPS

The major theme of the economic reforms initiated in 1978 has been to decentralise economic management, giving greater autonomy to local gov ernments and state enterprises, and allowing the development of non-st ate sectors. Within this context, fiscal reforms during the 1980s have been characterised by decentralisation. Despite the remarkable econom ic performance over the past 18 years, comparable improvements have no t been achieved in the provision of basic social services to rural hou seholds. In some poor areas these sen ices have even deteriorated. Ina dequate funding is a dominant problem in the provision of basic social services in poor areas.