Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province

This paper investigates, both theoretically and empirically, the role of factional competition and local accountability in explaining the enormous but puzzling county-level variations in development performance in Fujian province of China. When the...

Full description

Bibliographic Details
Main Authors: Fang, Hanming, Hou, Linke, Liu, Mingxing, Xu, Lixin Colin, Zhang, Pengfei
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/308341556738437634/Factions-Local-Accountability-and-Long-Term-Development-County-Level-Evidence-from-a-Chinese-Province
http://hdl.handle.net/10986/31602
id okr-10986-31602
recordtype oai_dc
spelling okr-10986-316022022-07-18T00:24:18Z Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province Fang, Hanming Hou, Linke Liu, Mingxing Xu, Lixin Colin Zhang, Pengfei ACCOUNTABILITY POLITICS FACTIONS FAMINE ECONOMIC DEVELOPMENT LOCAL GOVERNANCE This paper investigates, both theoretically and empirically, the role of factional competition and local accountability in explaining the enormous but puzzling county-level variations in development performance in Fujian province of China. When the Communist armies took over Fujian from the Nationalist control circa 1949, Communist cadres from two different army factions were assigned as county leaders. For decades the Fujian Provincial Standing Committee of the Communist Party had been dominated by members from one particular faction, which we refer as the strong faction. Counties also differed in whether there was local guerrilla presence prior to the Communist takeover. The model predicts that county leaders from the strong faction were less likely to pursue policies friendly to local development, because their political survival relied more on their loyalty to the provincial leader than on the grassroots support from local residents. In contrast, the political survival of county leaders from the weak faction was based more on local grassroots support, which could be best secured if these leaders focused on local development. In addition, the local guerrilla presence in the county further improved the development performance either because it intensified local accountability of the county leader, or because it better facilitated the provision of local public goods beneficial to development. The paper finds consistent and robust evidence supporting these assumptions; being affiliated with weak factions and having local accountability are both associated with sizable long-term benefits in terms of growth, education, private-sector development, and survival in the Great Famine. The paper also finds that being affiliated with the strong faction and adopting pro-local policies are associated with higher likelihood of political survival. The empirical findings here suggest that factional competition contributes to efficiency in non-democratic countries, and that local accountability is a key ingredient for balanced development. 2019-05-02T18:52:20Z 2019-05-02T18:52:20Z 2019-05 Working Paper http://documents.worldbank.org/curated/en/308341556738437634/Factions-Local-Accountability-and-Long-Term-Development-County-Level-Evidence-from-a-Chinese-Province http://hdl.handle.net/10986/31602 English Policy Research Working Paper;No. 8837 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTABILITY
POLITICS
FACTIONS
FAMINE
ECONOMIC DEVELOPMENT
LOCAL GOVERNANCE
spellingShingle ACCOUNTABILITY
POLITICS
FACTIONS
FAMINE
ECONOMIC DEVELOPMENT
LOCAL GOVERNANCE
Fang, Hanming
Hou, Linke
Liu, Mingxing
Xu, Lixin Colin
Zhang, Pengfei
Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province
geographic_facet East Asia and Pacific
China
relation Policy Research Working Paper;No. 8837
description This paper investigates, both theoretically and empirically, the role of factional competition and local accountability in explaining the enormous but puzzling county-level variations in development performance in Fujian province of China. When the Communist armies took over Fujian from the Nationalist control circa 1949, Communist cadres from two different army factions were assigned as county leaders. For decades the Fujian Provincial Standing Committee of the Communist Party had been dominated by members from one particular faction, which we refer as the strong faction. Counties also differed in whether there was local guerrilla presence prior to the Communist takeover. The model predicts that county leaders from the strong faction were less likely to pursue policies friendly to local development, because their political survival relied more on their loyalty to the provincial leader than on the grassroots support from local residents. In contrast, the political survival of county leaders from the weak faction was based more on local grassroots support, which could be best secured if these leaders focused on local development. In addition, the local guerrilla presence in the county further improved the development performance either because it intensified local accountability of the county leader, or because it better facilitated the provision of local public goods beneficial to development. The paper finds consistent and robust evidence supporting these assumptions; being affiliated with weak factions and having local accountability are both associated with sizable long-term benefits in terms of growth, education, private-sector development, and survival in the Great Famine. The paper also finds that being affiliated with the strong faction and adopting pro-local policies are associated with higher likelihood of political survival. The empirical findings here suggest that factional competition contributes to efficiency in non-democratic countries, and that local accountability is a key ingredient for balanced development.
format Working Paper
author Fang, Hanming
Hou, Linke
Liu, Mingxing
Xu, Lixin Colin
Zhang, Pengfei
author_facet Fang, Hanming
Hou, Linke
Liu, Mingxing
Xu, Lixin Colin
Zhang, Pengfei
author_sort Fang, Hanming
title Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province
title_short Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province
title_full Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province
title_fullStr Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province
title_full_unstemmed Factions, Local Accountability, and Long-Term Development : County-Level Evidence from a Chinese Province
title_sort factions, local accountability, and long-term development : county-level evidence from a chinese province
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/308341556738437634/Factions-Local-Accountability-and-Long-Term-Development-County-Level-Evidence-from-a-Chinese-Province
http://hdl.handle.net/10986/31602
_version_ 1764474707876249600