Formation of "Dukedom Economies" and Their Causes and Defects

Shen Liren and Dai Yuanchen

Chinese Economy, 1992, vol. 25, issue 4, 6-24

Abstract: China is a country with extensive territory and a huge population where regional economic development is uneven. As such, it is impossible for a central government to manage the whole country economically. Economic management must be done at different levels, under unified leadership. "Unified leadership and multilevel management," however, can only be implemented through concrete systems whereby powers held by the central government and those delegated to local governments are clearly defined. With clear-cut and appropriate division of power the two can work in concert, utilizing the advantages of centralization and dispersion and avoiding the defects of overcentralization and overdispersion.

Date: 1992
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