- Authoritarian Markets explores the political underpinnings of China's banking boom and its far-reaching impact on the Chinese economy.
In 1978, China had no commercial banks. Today, it dominates the world's largest banking system, with assets equivalent to 40% of global GDP. According to Adam E. Liu, this rise was not the result of market reforms, but the result of political bargaining and bureaucratic mobilization.In the 1990s, Beijing issued banking licenses as a pressure card, to ensure that local governments cooperate in their pursuit of painful reforms. The result was a sprawling and competitive banking market, built not in spite of, but thanks to, authoritarian rule.Based on interviews, spatial data, census records, surveys and experiences, Liu reveals how local state banks have become engines of growth in China and incubators for its current economic risks. With its exciting and compelling style, Authoritarian Markets offers a new perspective on the political logic of market development in China and authoritarian countries around the world.
