Institutional Designing and Public Choice

Globalization drastically alters the internal development phases of China. In Hong Kong, Shenzhen and Shanghai emerge typical financial capitalism driven by the foreign capital inflows, with which combine cheap labor, stimulating industry boom. Inland China, however, remains vast farming areas. Due to the globalization, the Chinese economic structure is fully interconnected with the world at all different levels, the normal 500-year European history is not replaying in China in just 50 years, and more importantly, there are three different types of order remolded in one system. Given this circumstance, Chinese rulers have to deftly manage three institutional difficulties of historical development: successfully completing the construct of modern nation-state (modernity), actively participating global governance (post-modernity) and carefully handling community relationships and cultural divergences at local levels (pre-modernity). The future success would depend on pattern changes of development, structural reforms and innovations of legal paradigms. In this regard, the competition of different institutional designs and public choice of different social models from now on are of great importance.

  

References(link

 

Research Group

Bin, Kai (link)

He, Xuefeng (link)

Ji, Weidong (link)

Lin, Guoji (link)