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June 29, 2005
Bureaucracy Versus Modernity, in China and the rest of the Third World
Bureaucracy exists to prevent surprises; that's why bureaucracy doesn't cooperate with economic growth. One of the world's most interesting riddles is how China, the world-historical champion of big fat bureaucracies, ended up with a government that's comparatively lean and mean and growth-friendly where the governments of India and most of Latin America and Africa are complex and bloated and growth-hindering.
There's little evidence that Chinese officials are less corrupt compared to other developing-country officials, and in fact in many Chinese provinces it seems you can't get any business done without paying off the local Communist Party boss. The difference is that China doing business in China requires fewer officials to be placated, evaded or bribed. Buy off the party boss, and you can get down to business without any more legal niceties. Indian business visitors to China sometimes cite this "what the party boss says, goes" authoritarian environment as a feature that's very convenient for business, but very creepy to Indian (and Western) mindsets of individual rights and business regulation. China's "one-stop shopping" approach to bribing the local government seems to be a sordid but significant part of what makes China an attractive place to develop new business. And it's new business investment, more than anything, that's driven China's economic growth.
But all this leaves me wondering at the underlying question: how did China, of all places, end up with less bureaucracy than India, Peru, and Nigeria?
Posted by danielstarr at June 29, 2005 05:39 AM
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Comments
Simple. Bureaucracy has been China's main form of government for about the last 500 years.
Posted by: Dave Schuler ![[TypeKey Profile Page]](http://www.danielstarr.com/nav-commenters.gif)
at June 29, 2005 11:04 AM