ABSTRACT

This chapter seeks to harmonize the traditional theory of law and development with what has actually happened in China's real estate market. In the view of David Kennedy, supporters of law and development theory refuse to acknowledge how poorly it appears to apply to cases such as China. Thus, while the theory of law and development may be wrong, it is also possible that the theory merely needs to be broadened to incorporate informal customs and rules. Hence, the government's program of rule of law, political accountability, and increasing popular participation become something more than cynical rhetoric. Clarke, along with Peter Murrell and Susan Whiting, argue that China's political structure has managed to serve as a viable alternative source of stability even when formal laws remained more unpredictable. Moreover, China still is a Communist nation in many respects. The Chinese Communist Party is making great efforts to work closely with entrepreneurs, some of whom are actually Party members.