“Delegation and Then Intervention”: The 2009 Decision to Create the New Rural Pension

Abstract

AbstractThis article reviews the decision-making process behind the creation of a new rural pension between the early 2000s and 2009. It finds that although policymaking was initially delegated to the bureaucratic level and hence involved a protracted bureaucratic struggle, the issue was resolved by a fiat imposed by top leaders rather than by bureaucratic compromise as a bureaucratic politics model would suggest. I call this policymaking process “delegation and then intervention.” Although the Ministry of Labour and Social Security (MOLSS) persistently argued in favour of creating the new rural pension, the Ministry of Finance obstinately objected to it. This study finds that when bureaucratic organizations are in conflict because of their core beliefs, rather than resource allocation, they are less likely to reach a consensus. Faced with a prolonged bureaucratic deadlock, top leaders decided in favour of the MOLSS policy initiative, thereby adopting a progressive measure that would provide a completely subsidized basic pension for the rural elderly.