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High Administrative Cost and China’s Political System

The root cause of high administration expenditure lies in the Chinese system and a deep-down system reform is the only way to resolve the problem, said the People’s Daily website. Major administrative and functional coordination is implemented by government or quasi-government entities that extend their control throughout the country via various layers of government entities. Centralized system brings weak local governments that are derivative of the central government. Too many layers of government also contribute to the high administrative cost of the government.

Source: People’s Daily website, September 10, 2008