Will China eventually be able to eliminate its socialist animal spirits? This is an important prerequisite to achieving its long-sought transition from extensive to intensive growth. Such a transformation would clearly require removing much of the economic power now enjoyed by local governments...

This report approaches current domains of development and tension within China. It was elaborated by students in the frame of a 'Task Force Seminar' in cooperation with the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). It addresses the issues of...