Federalism, Chinese Style: The Political Basis for Economic Success in China

Federalism, Chinese Style: The Political Basis for Economic Success in China

January, 1994 | Barry Weingast, Yingyi Qian, Gabriella Montinola
The document introduces AgEcon Search, a global open-access digital library for agricultural and applied economics research, emphasizing its sustainability and accessibility. It highlights the Institute for Policy Reform's mission to enhance economic growth in developing countries through research, education, and policy reform. The paper "Federalism, Chinese Style: The Political Basis for Economic Success in China" by Barry Weingast, Yingyi Qian, and Gabriella Montinola explores how China's economic reforms have been supported by a unique form of federalism that limits political discretion and protects markets. This system, characterized by political decentralization and a shift in ideology, has provided a strong foundation for economic development, despite the absence of complete market-preserving federalism. The authors argue that this federalism, while different from Western models, has crucial political durability and incentives for local governments to foster economic prosperity. They also discuss the limitations of China's current system, such as the lack of private property rights and a common market, and suggest areas for future reforms.The document introduces AgEcon Search, a global open-access digital library for agricultural and applied economics research, emphasizing its sustainability and accessibility. It highlights the Institute for Policy Reform's mission to enhance economic growth in developing countries through research, education, and policy reform. The paper "Federalism, Chinese Style: The Political Basis for Economic Success in China" by Barry Weingast, Yingyi Qian, and Gabriella Montinola explores how China's economic reforms have been supported by a unique form of federalism that limits political discretion and protects markets. This system, characterized by political decentralization and a shift in ideology, has provided a strong foundation for economic development, despite the absence of complete market-preserving federalism. The authors argue that this federalism, while different from Western models, has crucial political durability and incentives for local governments to foster economic prosperity. They also discuss the limitations of China's current system, such as the lack of private property rights and a common market, and suggest areas for future reforms.
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Understanding Federalism%2C Chinese Style%3A The Political Basis for Economic Success in China