China’s Grassroots Management

According to the article, grassroots finance in our country is currently insufficient. At present, grassroots management (finance) mainly operates through two approaches: one is a strong performance-assessment model, where KPIs are set and progress is reviewed monthly; the last-place unit loses funding that is transferred to the top-performing unit, creating a form of fiscal payment redistribution. This ensures top-down control, enabling directives to be executed precisely. The other approach allows localities to identify their own development strengths and apply for projects based on those highlights. Fiscal budgets are allocated accordingly, but only up to a limited amount—any shortfall must be covered locally. As a result, areas with weaker governance capacity may fail to secure sufficient budget allocations, making even payroll payments a challenge.

Zhang Dandan: Why Does Grassroots Overtime Fail to Produce Real Results?