Nobel Prize-winning research on institutions gains traction in China to aid private sector
Hu Deping, son of a late former liberal leader, calls for rethink inspired by Nobel Prize-winning research and better protection for private enterprises
Riding on recent discussions by Nobel Prize-winning economists on the importance of institutions to growth, some members of the Communist Party’s elite have renewed calls for more policy support for private entrepreneurs as China looks for ways to reinvigorate its sluggish economy.
While their theory has been viewed by some with suspicion in China, Hu – a vocal voice of the so-called princeling faction that refers to descendants of the past state leaders – said it deserved closer reading and further discussion.
Other prominent Chinese intellectuals, including economist Xiang Songzuo and Renmin University professor Nie Huihua, have also called for a rethink about the role of institutions.
The current difficulties facing the private economy are about the business environment and external factors. These issues are not of the sector’s own making
Hu, meanwhile, said the theory about “institutional economics” had caused a sensation in China and overseas, according to a transcript of a speech published in the December issue of China Civil Entrepreneur magazine.
