Creating wealth and welfare - Entrepreneurship and the developmental statein rural China

This article examines the role of China's rural township and village govern ments in welfare provision. in it, I first describe the role of local offic ials in the promotion of collective and private enterprise, and the relatio nship between these entrepreneurial activities and more traditional respons ibilities of government, particularly social assistance and welfare provisi on. The extraordinary development of China's township and village enterpris es created resources which have frequently been channelled towards the prov ision of public goods and welfare. Examination of policy changes and budget allocations for rural welfare highlights the extent to which localities ar e dependent on their own funding sources. In conclusion, I suggest that new initiatives in fiscal reform may limit the entrepreneurial capacity of loc al governments, reducing their control over resources and thus their capaci ty to meet welfare responsibilities.