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Development Strategy and Regional Economy

Principles and Key Steps for Power and Responsibilities Allocation and Optimization between Central and Local Governments


By the Development Research Center of the State Council and comppiled by Sun Zhiyan

Research Report No 125, 2013


The misallocation of power and responsibilities at different levels of government is one of the main causes hindering the transformation of China's economic development. The allocation of power and responsibilities in the new era needs to be based on several principles.

The optimization of allocation should make the central government a decision maker with the power of supervising lower-level governments. The lower-level governments should be offered more power in execution and management.