Centralization and Decentralization in State Governance Systems: The Case of China

Abstract

The objectives of this study is to focus on a unique political model of China and to explore the changing patterns of centralization and decentralization in State-Governance systems. The state-building process considers a centralization system for political stability but decentralization can promote and enhance the performance of governance. In this study, China is an interesting case as the Communist Party of China balanced the political system and knows how to enhance its performance and how to control corruption. The reforms started in 1978 and significant decentralization was adopted to make the economic decisions for the development which was carefully handled by the central authority. Qualitative research methodology is adopted with the comparative method and case study method to explore the performance under the central control. This research identifies the significant shift from decentralization to re-centralization under the leadership of Xi Jinping to maintain economic growth and political stability and also to oppose corruption. This paper also uses Max Weber’s domination model to explain the Chinese model is a blend of rational, traditional, and charismatic forms of authority to rule and maintain control for growth. This research uses China as a case to demonstrate that decentralization can be a tool to enhance government performance without compromising central control. This paper provides insights of the balance of power in a centralized system and recommends that centralization and decentralization can work together by maintaining balance for the development and economic growth of a country.