Over the past five years, Wenling City— particularly Xinhe Township—in southeastern Zhejiang Province has pioneered openness and public participation in local budgeting. Although there are flaws in the reform, it is nevertheless highly significant in underscoring a clear problem in local governance, breathing life into the normally inert local people's congresses, and introducing a degree of democratic supervision. Local leaders can justly take pride in these reforms. Although there have been efforts in other parts of China to introduce legislative supervision of local budgets, there are significant obstacles to popularizing this innovation, including recent efforts to centralize control over budgets.
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