World experience has demonstrated the adverse consequences of uncoordinated urban and rural development policies on the quality of life and economic and social outcomes. This paper focuses exclusively on the role of properly designed fiscal policies that have the potential to overcome these fallouts by creating positive incentives for orderly and coordinated development and by providing negative incentives to discourage actions with negative social and economic consequences. The paper reviews international experience and draws lessons of policy relevance for China from economic principles and international practices in dealing with major challenges in urban-rural divide, social exclusion, environmental degradation and inequalities in income and opportunity across the nation.
Get full access to this article
View all access options for this article.
References
1.
Asian Development Bank (2015) People's Republic of China: Fiscal Policy for Urbanization, Industrialization, and Agricultural Modernization in Henan, Policy Advisory and Technical Assistance Consultant's Draft Report prepared by Anwar Shah, consultant, July 2015, Manila: ADB.
2.
Asian Development Bank (2014) People's Republic of China: Public Finance Development Strategy 2020, TA 8379 Technical Assistance Consultant's Report by Anwar Shah, Yolanda Fernandez Lommen, ADB Task Manager.
3.
Asian Development Bank (2013) Local Public Finance Management in the People's Republic of China: Challenges and Opportunities, Synthesis paper for ADB TA 7763 prepared by Anwar Shah, Consultant, under the direction of Hiroko Huchimura, Task manager, ADB, Manila: ADB.
4.
HuangJikun and RozelleScott and WangHonglin (2006) Fostering or Stripping Rural China: Modernizing Agriculture and Rural to Urban capital Flows, The Developing Economies, XLIV-1 (March):1–26.
5.
HitherJeff, RobertsSandra and ShahAnwar (1997) Public Expenditure Reform under Adjustment Lending. Lessons from World Bank Experiences, Washington, DC: World Bank.
6.
InmanRobert (2005) Financing Cities, NBER Working Paper no.11203, Cambridge, MA: NBER.
7.
LucatelliSabrina and De MatteisPietro (2011) Rural Urban Partnership for Sustainable Development, Unpublished paper, UU, Brussels.
8.
MoisioAntti (2010) Local Public Sector in Transition, A Nordic Perspective, Helsinki: VATT.
9.
OECD (2014) Industrial Policy and Territorial Development: Lessons from Korea, Paris: OECD Development Centre Studies.
10.
OECD (2013) Rural-Urban Partnerships : An Integrated Approach to Economic Development, Paris: OECD.
11.
OECD (2013) Trends in Urbanization and Urban Policies in OECD Countries: What Lessons for China?, Paris: OECD.
12.
OECD (2012) Policy Brief. Compact City Policies: A Comparative Assessment, Paris: OECD.
PatridgeMark and RickmanDan (2012) “Integrating Regional Economic Development Analysis and Land Use Economics”, Prepared for the Oxford Handbook on Land Economics, April 19, Ohio State University.
15.
PezziniMario (2012) Rural Policy Lessons from OECD Countries, Paris: OECD.
16.
ShahAnwar (2014a) The Architecture of Multi-order Governance for the Information age, Keynote address at the 20th Anniversary International Conference of the Financial and Fiscal Commission of South Africa, Cape Town.
17.
ShahAnwar (2014b) The Reform of the Fiscal System of the People's Republic of China (PRC): An External Perspective, Center for Local Public Economics, Southwestern University of Finance and Economics, Chengdu/Wenjiang, PRC.
18.
ShahAnwar (2014c) “Grant Financing of Metropolitan Areas: A Review of Principles and Worldwide Practices”, in: BahlRoy, LinnJohannes and WetzelDeborah, Metropolitan Governance and Finance in Developing Countries, Washington, DC: Brookings Institution.
19.
ShahAnwar (2007) “A Practitioner's Guide to Intergovernmental Fiscal Transfers”, in: BoadwayRobin and ShahAnwar (eds) Intergovernmental Fiscal Transfers, chapter 1:1–54, Washington, DC: World Bank.
20.
SkinnerJonathan (1991) “Prospects for Agricultural Land Taxation in Developing Countries”, in: Khalilzadeh-ShiraziJavad and ShahAnwar (eds) Tax Policy in Developing Countries, Ch.9:139–152, Washington, DC: World Bank.
21.
BankWorld (2014) Reforming Local Governments to Work Better, Cost Less, Facilitate Urbanization and Inclusive Economic Growth: An Emerging Success Story from Hubei Province-Managing-County Reforms, Beijing: World Bank.
22.
World Bank and Development Research Center (2014) Urban China: Toward Efficient, Inclusive and Sustainable Urbanization, Beijing: World Bank and DRC.
23.
ZinnesClifford (2009) Tournament approaches to policy reform. Making Development assistance more effective, Washington, DC: Brookings Institution.
