ABSTRACT
This chapter focuses on understanding China's success story compared with Tanzania's relative failure. The development of the market means non-state activity, private sector, so including township and village enterprises (TVEs) and the household responsibility system (HRS). The chapter examines the corporatization of both state-owned enterprises (SOEs) in the interests of raising equity, and access to broader sources of finance coming through listing on the newly created stock markets of Shanghai and Shenzhen. It then focuses on primary institutions looking at the nature of property rights in China and their relationship to the legal system, and they explore the nature of the state, the dominant coalition of elites, examining the relationship between the Chinese Communist Party (CCP) and the state apparatus, the CCP's relation to institutional development, and its changing composition. It discusses the meso-institutions of organizational forms of enterprise and corporate governance, focusing on the corporatization of SOEs, the launching of stock markets in the early 1990s.
