TFR has had an immediate positive influence on rural incomes, the TFR has had a
negative impact on the functions of the township governments particularly in poorer
counties.
The TFR has completely eliminated the ability of township governments to
generate self-raised funds from rural residents for local expenditures. These self-raised
funds allow the township governments to function as semi-autonomous administrative
units with the authority to make investments decisions on local infrastructure projects
such as the construction and maintenance of village educational and health care facilities.
Without the capacity to generate local revenues from villagers the township governments
become more dependent on rural enterprises and local businesses for revenues. However,
poor townships without rural enterprises or local industries have to become completely
dependent on remittances from the county government. Thus, how has the TFR affected
the provision of services in these poorer townships and what type of services are
affected? What happens to a local government when it loses the capacity to generate
local revenues? When does a local government become an administrative unit for the
higher authorities?
Township governments in poorer counties are losing autonomy, and are unable to
carry out local functions. Within every township government there are two general
offices. The county authorities manage one set of functions (tiaotiao) and the township
authorities are responsible for another set of functions or services (kuaikuai). Although
there are separate functions, many rural services, such as education and health care, have
dual functions (both the county and the township manage specific services). For
example, education is a dual function at the township level. The county manages the
salary and hiring of village elementary schools teachers, while the township is
3
Convention