Policies targeting individual companies for economic development incentives, such as tax holidays and abatements, are generally seen as inefficient, economically costly, and distortionary. Despite this evidence, politicians still choose to use these policies to claim credit for attracting investment. Thus, while fiscal incentives are economically inefficient, they pose an effective pandering strategy for politicians. Using original surveys of voters in the United States, Canada and the United Kingdom, as well as data on incentive use by politicians in the US, Vietnam and Russia, this book provides compelling evidence for the use of fiscal incentives for political gain and shows how such pandering appears to be associated with growing economic inequality. As national and subnational governments surrender valuable tax revenue to attract businesses in the vain hope of long-term economic growth, they are left with fiscal shortfalls that have been filled through regressive sales taxes, police fines and penalties, and cuts to public education.

Policies targeting individual companies for economic development incentives, such as tax holidays and abatements, are generally seen as inefficient, economically costly, and distortionary. Despite this evidence, politicians still choose to use these policies to claim credit for attracting investment. Thus, while fiscal incentives are economically inefficient, they pose an effective pandering strategy for politicians. Using original surveys of voters in the United States, Canada and the United Kingdom, as well as data on incentive use by politicians in the US, Vietnam and Russia, this book provides compelling evidence for the use of fiscal incentives for political gain and shows how such pandering appears to be associated with growing economic inequality. As national and subnational governments surrender valuable tax revenue to attract businesses in the vain hope of long-term economic growth, they are left with fiscal shortfalls that have been filled through regressive sales taxes, police fines and penalties, and cuts to public education.

China is widely viewed as a global powerhouse that has achieved a remarkable economic transformation with little political change. Less well known is that China's leaders have also implemented far-reaching governance reforms designed to promote government transparency and increase public participation in official policymaking. What are the motivations behind these reforms and, more importantly, what impact are they having? This puzzle lies at the heart of Chinese politics and could dictate China's political trajectory for years to come. This extensive collaborative study not only documents the origins and scope of these reforms across China, but offers the first systematic assessment by quantitatively and qualitatively analyzing the impact of participation and transparency on important governance outcomes. Comparing across provinces and over time, the authors argue that the reforms are resulting in lower corruption and enhanced legal compliance, but these outcomes also depend on a broader societal ecosystem that includes an active media and robust civil society.

China is widely viewed as a global powerhouse that has achieved a remarkable economic transformation with little political change. Less well known is that China's leaders have also implemented far-reaching governance reforms designed to promote government transparency and increase public participation in official policymaking. What are the motivations behind these reforms and, more importantly, what impact are they having? This puzzle lies at the heart of Chinese politics and could dictate China's political trajectory for years to come. This extensive collaborative study not only documents the origins and scope of these reforms across China, but offers the first systematic assessment by quantitatively and qualitatively analyzing the impact of participation and transparency on important governance outcomes. Comparing across provinces and over time, the authors argue that the reforms are resulting in lower corruption and enhanced legal compliance, but these outcomes also depend on a broader societal ecosystem that includes an active media and robust civil society.