The Politics of Financing Education in China by Tingjin Lin (auth.)

By Tingjin Lin (auth.)

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80 The former is suitable for understanding the internal logic and dynamics of institutions as well as for pinning down the overall similarities or differences between the political institutions of various countries. Perhaps one may claim that institutions are important simply because of the fact that they have been in existence for a long time. Yet, the extrinsic approach to institutions asks more specific questions about the consequences of the operation of institutions, that is, the results or outcomes.

However, each level of sub-national government in China is critically constrained by the capacity of a hierarchically superior unit to appoint, remove or dismiss the leading officials in the locale in question, regardless of their economic capabilities. ”40 The overall increasing of the local autonomy in terms of revenue shares does not necessarily erode Beijing’s control over provinces, while it does indeed provide more opportunities for local leaders to manipulate local resources to advance their careers, either legally or illegally.

In contemporary China, due to the overall economic decentralization as well as unequally evaluated policy performance, the increasing autonomy of provincial leaders will increase the odds of their taking opportunistic actions. Theoretically as well as practically, the design of political institutions in a democracy differs fundamentally from that in an authoritarian regime, in precisely the principal–agent relationship: the institutions do in practice restrain the exercise of political power. The institutions of democratic regimes contribute much more to handling the principal–agent difficulties in political interaction, while in China these difficulties are very much in evidence if the center is looked on as the direct principal of the provincial elite.

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