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Full-Text Articles in Political Science
The Political Economy Of Township Government Debt, Township Enterprises, And Rural Financial Institutions In China, Lynette H. Ong
Lynette H Ong, Dr
This paper sheds light on the ways in which township governments had mobilized resources from local financial institutions, and how failure to repay many of these loans had given rise to sizeable local government debt. Mobilization of resources was done through loans to collective enterprises whose de facto owners were township authorities. Though the enterprises were nominal borrowers, loan transactions would not have occurred in the absence of guarantees by township governments. Another way of financial resource mobilization was by establishing local informal financial organizations that were subject to less strict regulations, and over which township authorities could exercise control ...
Multiple Principals And Collective Action: China’S Rural Credit Cooperatives And Poor Households’ Access To Credit, Lynette H. Ong
Lynette H Ong, Dr
Ample empirical evidence suggests that Rural Credit Cooperatives (RCCs), which are the core credit institutions in rural China, are not accountable to their member households. This article argues that this conundrum can be explained by an institutional analysis of the credit cooperatives using the multiple principals–agent framework: the credit cooperatives as agents are accountable to multiple heterogeneous principals—with multiple conflicting objectives. The multiple principals are (1) the County RCC Unions, which exercise control using the evaluation criteria on which the remuneration of grassroots RCC officers is assessed; (2) local party secretaries, who exert influence through top personnel appointment ...