In the context of the “new normal” in China, there will be pressures on overall revenue generation, and consequently on financing spending at all levels of government. With the rapid increase in local government debt in the recent past, including through special purpose vehicles, mechanisms to issue debt in a sustainable manner have become more important. This includes the issuance of bonds, as well as PPPs. Clearly the full extent of the public liabilities being generated must be made known to both the local and central governments, but this is not a simple task given limitations on budget and accounting systems in operation in China at the present time.

A key element of accountability is the own-source revenues available to the local governments. The replacement of the Business Tax by the VAT will further reduce the revenue instruments available at the sub-national level. Similarly, using land for collateral to raise credit causes distortions and has probably reached its limit.                     

In this context, Zhejiang University will host a Conference in November 2015 that will focus on sustainable mechanisms to finance investments and expenditures at the subnational levels—both for provinces as well as for municipalities and rural counties.                        

Please send proposals for papers (with abstracts) on the themes of the Conference, as well as for some of the tentative sessions outlined below.

Topic 1. Measuring local indebtedness and defining responsibility for servicing liabilities

Topic 2. Do local revenue resources lead to responsible management of debt in China?

Topic 3. Recording and measurement of local debt and game-play by subnational governments

Topic 4. Budget system reform at the local levels and management of risk

Topic 5. Establishing a local government bond market—some preconditions?

Topic 6. How to manage PPPs effectively to finance local investments?

Seminar dates: Nov.14-15, 2015     Venue: ZIJINGANG Campus, ZJU                    

Conference schedule: Nov.13, 2015, Check in and Registration

           Nov.14, 2015, Opening ceremony and keynote speeches and panels

           Nov. 15, 2015, Panels

Conference organizer: The Center for Research of Private Economy (CRPE), Zhejiang University; School of Economics, Zhejiang University              

Conference Chair:

Prof. Shi Jinchuan(史晋川), and Prof. Wang Zhikai(王志凯)                    

The deadline for submitting abstracts is June 30, 2015. All submitted abstracts should include paper title, keywords (up to 5), JEL Code (up to 5), author’s name, affiliation, position, and contact info (ex. Email address). The full papers should be submitted by Sept. 30, 2015. Please send your submissions to crpe@zju.edu.cn                            

Contacts: Ye Nan(叶楠), +86 571 87952835, crpe@zju.edu.cn,
         Zhu Wenjie(朱文杰), +86 13616520733, zjuzwj@qq.com