Federalism in China and Russia: Story of Success and Story of Failure?

Edward Elgar Publishing's series in Studies in Fiscal Federalism and State-local Finance presents a new book: Federalism in China and Russia: Story of Success and Story of Failure? The authors, Alexander Libman, Principal Investigator at the Graduate School, and Michael Rochlitz from the University of Bremen  offer an important comparative analysis of center-region relations in Russia and in China. In their study, they are focusing in particular on fiscal ties and incentives, bureaucratic and local government practices, flows of information, and the determinants of divergence between both countries.

The book offers a comparative analysis of center-region relations in Russia and in China. It is based on a synthesis of a large body of empirical and theoretical evidence, and will appeal to scholars in public economics, political economy and comparative politics, as well as to students and policy analysts.

The authors focus in particular on fiscal ties and incentives, bureaucratic and local government practices, flows of information, and the determinants of divergence between both countries. The book is based on a synthesis of a large body of empirical and theoretical evidence, and will appeal to scholars in public economics, political economy and comparative politics, as well as to students and policy analysts.

Alexander Libman is Professor of Social Sciences and Eastern European Studies at Ludwig-Maximilians Universität (LMU) München and a Principal Investigator at the Graduate School. He is also the Associate Research Fellow at the International Center for the Study of Institutions and Development at the National Research University Higher School of Economics in Moscow, Russia and the Associated Researcher at the Center for Russian Studies at East China Normal University in Shanghai, China.

Michael Rochlitz is Professor of Institutional Change at the Department of Economics at University of Bremen, Germany as well as Associate Research Fellow at the International Center for the Study of Institutions and Development at the National Research University Higher School of Economics in Moscow, Russia. He was a postdoctoral researcher at LMU Munich until spring 2019.

About the Book

Based on the synthesis of a large empirical and theoretical literature on center-region relations in China and Russia, Federalism in China and Russia is one of the first attempts to integrate this literature from different disciplines into a coherent common framework. Libman and Rochlitz argue that the divergence in growth performance between Russia and China can be – at least partially – explained by a number of features of the Chinese system of center-regional relations.

The authors offer a comparative analysis of the development of center-region relations in Russia and in China and explore several dimensions of these relations: fiscal ties and incentives; bureaucratic practices; flows of information; and local government practices, while addressing the determinants of divergence between both countries. They also examine how the Chinese system has recently started to change, by adopting several features of the Russian model, which might be one of the reasons for China’s declining growth performance in recent years.

Federalism in China and Russia should be read by scholars in public economics, political economy and comparative politics, as well as by students and policy analysts. For scholars, the book serves as a point of reference in studying the comparative evolution of the two countries. It will enrich the discussion on fiscal federalism, center-region relations and sub-national political regimes, and could potentially become an important part of syllabi in political economy, public economics and comparative politics courses. For policy analysts, the book offers a comprehensive survey of the evolution of center-periphery relations of the two countries and the differences between them, which is important to better understand the overall development of Russia and China.

Libman, Alexander and Michael Rochlitz. Federalism in China and Russia: Story of Success and Story of Failure? UK: Edward Elgar Publishing, 2019.

232 pages
ISBN: 978 1 78897 218 5
Hardback: £75.00
E-Book: £67.50
Edward Elgar Publishing

Cover: © Edward Elgar Publishing

Reviews

"Alexander Libman and Michael Rochlitz provide an important analysis of why some Chinese regional, county, city, township and village governments have generated economic success allowing China’s economy to grow at remarkable rates for more than three decades. In comparison, Russia managed significant growth only during the period of high oil prices (2000-08). With Vladimir Putin’s hyper-centralization, most Russian regions have been stifled and stymied rather than supported. The authors describe how China managed to generate an institutional system supporting a successful decentralized economy, while noting that China’s solution is far from perfect and its stability is not guaranteed." – Harley Balzer, Professor Emeritus, Georgetown University, US