Susan Whiting (University of Washington in Seattle)

The talk seeks to explain two enduring puzzles surrounding China’s recent economic and political development: the regime has experienced sustained growth without secure property rights, and it has been durable despite the mass unrest generated by state property takings. This talk argues that, in the context of technological transition—here, from an agricultural to an industrial economy—a legal system that facilitates the re-assignment of property rights, making certain rights less secure, plays an important and under-theorized role in promoting economic growth. Specifically, the ability to re-assign land rights from lower-value to higher-value users is crucial. The legal system not only facilitates re-assignment but also manages conflict over insecure property rights. The legal system itself plays an important role in generating regime support and containing the conflict generated by state actions.