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International DevelopmentIdeas, Experience, and Prospects$
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Bruce Currie-Alder, Ravi Kanbur, David M. Malone, and Rohinton Medhora

Print publication date: 2014

Print ISBN-13: 9780199671656

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199671656.001.0001

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(p.651) Chapter 38 China
International Development

Lan Xue

Ling Chen

Oxford University Press

There has been much discussion of the “China Model” and to what extent it can be replicated. China's success can be explained through three relationships: domestic and international, economic and governmental, central and local. Implementing domestic reforms and opening up internationally created a virtuous cycle where adapting to international standards facilitated foreign direct investment and the exchange of ideas which then enabled further domestic reform. Meanwhile, a delicate balance was maintained between economic reform and governance reform, with particular attention paid to the pace of each process so that internal stability could be maintained. Likewise, there was also careful management of the evolving relationship between the central government and local governments, which was alternately characterized by decentralization and centralization. Adaptive learning during the policy making process has been critical throughout. Future challenges include: unfinished economic reforms, relations between the central government and civil society, environmental sustainability, and emerging global expectations.

Keywords:   central planning, economic reform, decentralization, governance reform, state-owned enterprises, adaptive learning, stability

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