Authoritarianism and Chinese 'Success Story'

Abstract

The paper is an English draft version of the text previously published in Chapter 8 in the book "Institucionalnye ogranichenia sovremenogo ekonomicheskogo rosta" - Institutional Constraints on Modern Economic Growth – “Delo” Publishing House Moscow, 2011 In this chapter, the authors tried to review the Chinese economic miracle. The majority of economists are deeply impressed by the high rate of China's economic growth. They are going to search for explanations of the coming new successes of this country. The missed point of these assessments is the lack of attention to the new trend of poor formalized China institutions' development. Clearly observable in the modern Peoples Republic of China deterioration of entrepreneur's personal immunity informal guarantees means broken guarantees for private property. The government's failure to defend (at least not make a threat) to private property could cause a negative influence on China's economic growth in a very Long Run.

Keywords: China Model, Foreign Direct Investment, Personal Owners’ Rights Informal Guaranties, Informal Rules Violation, Arbitrary Arrests

JEL Classification: P16, P37, P52, N45, D73