2010-04-29 07:55

The Baimiao experiment has been successful, prompting Li to rethink the idea of budget reform in central and western China. The reason: Poorer areas are more open to reform.

Li found to his surprise that Baimiao residents were more enthusiastic than their Wenling counterparts to discuss the public budget. That was contrary to traditional theory, which assumes that people in poorer areas are less interested in democracy because Baimiao is an impoverished mountainous town and Wenling is a prosperous city.

Explaining the contradiction between theory and practice, Li says people living in poorer areas with weak private economy have greater incentive in having a say in the preparation of the local government's budget.

In areas where private economy is strong, such as Wenling, many residents own or have a share in enterprises. Since they spend most of their time on their business they tend to pay less attention to public affairs, including government expenditure. But in poorer areas with few private enterprises, residents have no choice but to depend on government funds for public goods and welfare. Besides, public facilities and infrastructure such as clean water, stable power supply and decent roads are poor in these areas because of which residents have more urgent need to ask the local government to improve them.

Baimiao has shown that budgets of places in China's central and western areas can be made transparent and accountable, Li says. It poses a challenge, too, to the traditional theory that makes economic development a prerequisite for grassroots democracy. The enthusiasm of Baimiao residents to participate in the budget preparation process shows the poor are even more politically inclined. The effects of the budget reform have been much better than expected. Baimiao has benefited the government in three ways. First, fewer people suspect or complain that officials are pocketing or wasting taxpayers' money. Before the reform, no matter how hard the government tried, it failed to convince people that not all officials are corrupt.

Second, before the reform, higher officials or their relatives always pressured the local government to set aside some resources for their private use. Now, public scrutiny of government expenditure has ensured that no such pressure tactics is used.

Third, because the local people's congress or the representatives of the people prepare the budget together with the government, the responsibility is shared and the government alone cannot be blamed if something were to go wrong. This means the image of the government has improved in general.

The budget reform seems to be a win-win solution for the people and the government both. But it is still not certain whether the good practices of Wenling and Baimiao will be extended to other places. The experiment largely depends on the open-mindedness, courage and will of local officials. But, Li says, ways to make transparency part of general public practice have to be found even if it takes time.

(China Daily 04/29/2010 page9)