Policy Capacity Matters Differently Over Time: The Emergence and Persistence of Participatory Budgeting in China

ABSTRACT The persistence of participatory budgeting (PB) in selected Chinese localities challenges the conventional wisdom that deliberative democratic practices can only take root in liberal political environments. Yet, existing literature has not sufficiently elucidated the factors underpinning the rise and sustained operation of PB in this seemingly incongruous environment. This study addresses this gap by analysing the policy capacities critical to PB's design and implementation, and how these capacities have evolved over time. Utilising Wu, Ramesh and Howlett's framework and drawing on interviews conducted with local officials and key stakeholders, our analysis of the Wenling case in Zhejiang Province revealed that political capacity was crucial for the initial success of Wenling's PB programmes. Although this political capacity has waned over time, the steady build‐up of analytical and operational capacities has been vital for sustaining Wenling's PB practice amid and notwithstanding the evolving institutional environment.