Decision Making and Ability: An Explanation of Elitism in China¡¯s Government

Abstract

This article tries to explain elitism in Chinai¯s governmental decision making. Our model shows that the governmentsi¯ expected utility increases with a bureaucrati¯s ability to make decisions under the flexible framework of delegation and communication (with separated reporting strategy). In the early of 1950s, Chinai¯s government choose a flexible decision making framework in order to efficiently manage many affairs in a complex environment. This initial choice started the process of a self-reinforcing demand for ability inside of the flexible decision making framework. With the current reforms of streamlining administrations and retreating from the market, the elitism of Chinai¯s government might reverse.