The transition of state‐peasants relationship : From the fiscal perspective in three decades of reform in China

Purpose – The relationship between state and peasants are reflected as the distribution of the economic benefits to each party. The purpose of this paper is to explore the essential change of the relationship from the fiscal term since the beginning of the new century. Design/methodology/approach – Utilizing first‐hand survey data, this paper illustrates the changes of relationship between state and peasants by certain qualitative and quantitative approaches. Findings – Recent positive changes in China have seen the creation of a new public finance system designed to improve equality within basic public services not only for the world's largest population but also the world's largest number of peasants. This development has produced a change in the relationship between state and peasant from “take more” to “take less.” Research limitations/implications – The sample size used in the empirical studies in this paper is relatively small. In addition, the studies focus only on the effects of relationships in the fiscal term while the social impacts are neglected. Originality/value – This paper provides evidence that the recent positive changes in China have seen the building of a new public finance system, with the intention of enabling a huge number of peasants to experience equality within basic public services.