Two theories predominate in discussions of why China and Vietnam have, over the past three decades, achieved such rapid economic growth. The first argues that their startling performance can be explained by economic factors associated with late industrialization. The second proposes that China and Vietnam represent novel models of political economic organization that need to be better studied and understood. In this essay we review the voluminous literature on the political economy of China and Vietnam, evaluating the critical debates over the economic benefits of decentralization, experimentation, and state-led development. Although the debate remains unsettled, analysis suggests that growth in the two countries was most robust during periods of state withdrawal from the economy and that current economic difficulties in both countries are now arising from the scale and character of the state’s role in both economies.

/pdf/the-political-economy-of-development-in-china-and-vietnam-4thk5w8nr5.pdf

The Political Economy of Development in China and Vietnam

Using nationally representative data, the present paper examines the impact of China's ongoing rural tax reform on farmers. The difficulties in further local governance restructuring are also discussed. It is argued that the issues associated with rural taxation and local governance in China result from inherent tension between an increasingly liberalized economic system and a still centralized political system. Although rural tax reform has helped to reduce farmers' tax burdens in the short term, the establishment of an effective local governance regime requires coordinated reforms to downsize local bureaucracy by providing social security for laid-off cadres, to strengthen local accountability by granting higher local formal tax autonomy, and to promote meaningful participation by expanding local democracy.

How Has Rural Tax Reform Affected Farmers and Local Governance in China

Conceded informality. Scopes of informal urban restructuring in the Pearl River Delta

This paper undertakes a comparative analysis of rural–urban land conversion policies in China and Vietnam, and examines the ideology of the state in land policymaking under a market socialism environment. It argues that land policies in both countries include ambiguous boundaries, which allow the socialist state to legitimize its politico-administrative power in land management and retain strong intervention capacity in the land market. In addition to similarities, land policies in China and Vietnam show significant differences in terms of the ownership of rural land and related legislation on land expropriation and transactions. Together, these distinctions cause divergent impacts on the interests and motivations of multiple stakeholders in rural land conversion. It is further observed that the state in both countries is characterized by dynamic, complex, and self-coordinated institutional systems, in which multiple levels of government have different driving forces and strategies in land development. The internal structure of authority in rural–urban land conversion between the multiple levels of government is readjusted by the regulatory land control of the central government.

https://www.mdpi.com/2073-445X/7/2/51/pdf

Land Politics under Market Socialism: The State, Land Policies, and Rural–Urban Land Conversion in China and Vietnam

The Transformation of Chinese Governance: Pragmatism and Incremental Adaption

China’s economic transition has reached a stage where the past experimental approach is no longer sufficient. Future policy reforms need to be carried out in a holistic rather than a piecemeal manner. This paper analyzes the reforms of two related institutions in China: the household registration system and the rural land system. We argue that further institutional changes warrant national initiatives and coordinated reforms rather than merely drawing on local pilot experiences. A holistic policy package that can simultaneously promote the reforms of the household registration and the rural land system is proposed. We use fiscal simulations to illustrate the feasibility of the proposed holistic policy package.

/pdf/groping-for-stones-to-cross-the-river-versus-coordinated-1k8t2b3s3z.pdf

Groping for stones to cross the river versus coordinated policy reforms: The case of two reforms in China

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Groping for stones to cross the river versus coordinated policy reforms: The case of two reforms in China