China : PIM under Reform and Decentralization
China's transition from a planned to a market economy has required a fundamental change in the role of government in economic decisions. Progress in reforming public investment management (PIM) has been uneven, with notable successes alongside...
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| Format: | Public Investment Review |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/01/23068592/china-pim-under-reform-decentralization http://hdl.handle.net/10986/21045 |
| Summary: | China's transition from a planned
to a market economy has required a fundamental change in the
role of government in economic decisions. Progress in
reforming public investment management (PIM) has been
uneven, with notable successes alongside glaring weaknesses.
This report examines the institutional framework of
China's PIM system and its evolution through the
transition period, its, efforts at reform, and outcomes. The
government s strategy was to reform the existing PIM
framework incrementally by decentralizing responsibility to
subnational governments (SNGs) and opening up investment to
private participation at the margin. The process of
decentralization and marketization proceeded much faster
than expected in the 1980s and 1990s, when dismantling the
planning mechanisms caused a steep decline in government
revenues, especially central government revenues.
China's transition from a planned to a market economy
has required a fundamental change in the role of government
in economic decisions. Among the most important are those
affecting investment, where reform has seen the Chinese
government curtail its role and attempt to shift from
directing the overall pattern of investment to ensuring
adequate support to economic growth and public services. |
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