ABSTRACT
When looking at the current post-crisis debate on the desirability of government intervention, we feel there is a tendency to refer back to well-analysed and consolidated arguments on market failure on the one hand, and government failure on the other (see Chapter 1). Even Chinese economic performance is often measured, explained and judged in terms of convergence (or divergence) from ‘Western models’. As already explained, the risk of analysing the Chinese case with only ‘Western’ lenses is to ground the debate on policy intervention on ideological rather than factual arguments. In this context, policy evaluation exercises and policy analysis, as part of the policy-making process, become fundamental. Research agendas focusing on rigorous and thorough policy analyses and evaluations can be a powerful tool in offering solutions to government failures, instead of merely offering evidence that failures exist.
