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Fiscal Policies for Coordinated Urban-Rural Development and their Policy Relevance for the People's Republic of China

Author: ANWAR SHAH
Published in PFM, Vol. 16 No. 1

World experience has demonstrated the adverse consequences of uncoordinated urban and rural development policies on the quality of life and economic and social outcomes. This paper focuses exclusively on the role of properly designed fiscal policies that have the potential to overcome these fallouts by creating positive incentives for orderly and coordinated development and by providing negative incentives to discourage actions with negative social and economic consequences. The paper reviews international experience and draws lessons of policy relevance for China from economic principles and international practices in dealing with major challenges in urban-rural divide, social exclusion, environ-mental degradation and inequalities in income and opportunity across the nation.

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