This is one of the most influential and controversial Chinese
studies of the Chinese economy published in recent years. The
authors argue strongly that the decentralization that has taken
place in China since the 1980s threatens to undermine the future of
reform and perhaps even the state itself. They contend that reform
has undermined state capacity in China, and that the state's fiscal
revenues, as a percentage of GNP, have declined and will continue
to decline into the foreseeable future, thereby putting China in
the ranks of the least "statist" societies, and weakening the
country's ability to mobilize resources for modernization.
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