Informal Institutions And Rural Development In China by Biliang Hu

From the Publisher

China's successful transition from a centrally planned economy to a socialists market economy, with rapid growth in rural areas 1980s, is a consequence of the impact of both formal and informal institutions. Hitherto, most work undertaken on this issue has focused on formal institutions. This book shows the great importance of informal institutions on the economic and social development of rural China. It examines the relationship between informal institutions and rural development in China since the end of the 1970s, focusing in particular on three major informal institutions: village trust and rotating savings and credit associations (ROSCAs), guanxi community and 'integrating village with company' (IVWC) governance. It argues that informal institutions, traditions and customs are all critical factors for facilitating modernization and social and economic development, enabling, the integration of trust, reciprocity, responsibility and obligation into economic and social exchange processes, and considerably lowering risks and transactions costs. It does this by analysing case studies that illustrate how informal institutions function and support development in rural China.

About the Author:
Biliang Hu is Professor of Economics at the Graduate School of the Chinese Academy of Social Sciences

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Table of Contents