How Can Governments Be Motivated to Stably and Ethically Govern a Country? Lessons Learned from China

A country that includes “People’s Republic” in its name nominally belongs to its people, but because states cannot spontaneously self-govern, governance must be implemented by government agents who are capable of resisting the temptation to abuse their power. It is therefore necessary to find ways to limit selfish behavior by government officials and reduce the gap between the rich rulers and their partners and the ordinary people to a tolerable degree, thereby allowing the governors to provide social stability and to stimulate both social and economic development. China’s experience demonstrates the crucial importance for successful institutional change based on a neutral policymaker that is capable of limiting the government’s power to decide who will benefit from policy changes, as was done by China’s successful State Commission for Restructuring the Economic Systems from 1982 to 1997. At the same time, it is crucial to strengthen crutiny of government workers and improve supervision of government departments and officials. Lessons learned from the 1982 to 1997 period will help us to restore social equity and promote economic development without sacrificing the needs of the people, thereby allowing them to improve their welfare through their own efforts.