"Twenty years ago, seemingly everything for sale at American retailers had a "Made In China" sticker on it. Now, things have changed. Every year, forty thousand Chinese factories are shuttering their doors as businesses seek cheaper labor elsewhere. Clothes manufacturing is moving to Bangladesh...

Recruiting and retaining leaders and public servants at the grass-roots level in developing countries creates a potential tension between providing sufficient returns to attract talent and limiting the scope for excessive rent-seeking behavior. In China, researchers have frequently argued that...