The Political Foundations of Economic Development in China: Lessons for Pakistan

Abstract

China’s unique governance system involving centralization - decentralization mixture, political meritocracy, and the institutionalization of leadership succession has facilitated its economic miracle during the reform era. Substantial political reforms have been implemented in Chinese polity during past four decades ranging from the power succession system to decentralized local administration. Both these parts of political reform have provided China not only with enhanced political stability and legitimacy but also with the fruits of good governance and efficient administration. The Chinese development is a state-led development with regional decentralization. Pakistan also needs a proactive role of state in a decentralized framework to stimulate economic development. The Pakistani state needs to devolve its economic, fiscal and administrative functions to lower levels of government. The element of political decentralization by encouraging citizens’ participation in public decision making is also critical for improving governance standards.