Risk and Insurance in Transition: Perspectives from Zouping County, China
Chapter 8 in Community and Market in Economic Development, Oxford University Press, edited by Professors Masahiko Aoki and Yujiro Hayami.
Morduch, J. & Sicular, T.
This book explores the role of community in facilitating the transition to market relationships in economic development, and in controlling and sustaining local public goods such as irrigation, forests, grazing land, and fishing grounds. Previously it was customary to classify economic systems in terms of varying combinations of state and market control of resource allocation. In contrast, this book recognizes community as the third major element of economic systems. This new approach also departs from the conventional view that markets and community norms should be treated as mutually exclusive means of organizing economic activity, instead clarifying the situations in which they may become complementary. Further discussion focuses on the conditions under which management of local commons can, and should, be delegated to local communities rather than subjected to the control of central government.