Edward Elgar Publishing Federalism in China and Russia: Story of Success and Story of Failure? (Studies in Fiscal Federalism and State-local Finance series)

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. Review '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 About the Author Alexander Libman, Professor of Social Sciences and Eastern European Studies, Ludwig Maximilian University of Munich, Germany, Associate Research Fellow, International Center for the Study of Institutions and Development, National Research University Higher School of Economics, Moscow, Russia and Associated Researcher, Center for Russian Studies, East China Normal University, Shanghai, China and Michael Rochlitz, Professor of Institutional Change, Department of Economics, University of Bremen, Germany and Associate Research Fellow, International Center for the Study of Institutions and Development, National Research University Higher School of Economics, Moscow, Russia