ABSTRACT
In both China and India, economic development was not principally through borrowed institutions. China's economic growth is built on cheap labour intensive production. India's Information technology industry demonstrates Schumpterian innovation and growth, emphasizing the assimilation of knowledge between Silicon Valley in the USA and Bangalore. The dominance of lineages and localism ensured that the Chinese state was vested with legal authority that was porous and shifting. The Chinese Trust Law has fudged the issue of transfer of property and also conflicts with the civil law, which emphasizes the duty to keep accounts with the power of contractual obligations of trustees to allow inspections. Criticisms of Islamic capitalism exaggerate the impact of Islamic law, as throughout the 20th century it was restricted to personal and corresponding issues, not to criminal or commercial and procedural law, which were replaced by Western law.
