Alexander Libman, Professor of Russian and East European Politics, Institute for East European Studies, Freie Universität Berlin, Germany 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

• Contents: 1. Introduction 2. Fiscal federalism 3. Bureaucratic incentives 4. Information, monitoring and control 5. The local state 6. Logic of divergence 7. Conclusion References Index

'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

Alexander Libman, Professor of Russian and East European Politics, Institute for East European Studies, Freie Universität Berlin, Germany 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

• Contents: 1. Introduction 2. Fiscal federalism 3. Bureaucratic incentives 4. Information, monitoring and control 5. The local state 6. Logic of divergence 7. Conclusion References Index

'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

Alexander Libman, Professor of Russian and East European Politics, Institute for East European Studies, Freie Universität Berlin, Germany 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

• Contents: 1. Introduction 2. Fiscal federalism 3. Bureaucratic incentives 4. Information, monitoring and control 5. The local state 6. Logic of divergence 7. Conclusion References Index

'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