Debating China's Economic Growth: The Beijing Consensus or The Washington Consensus

Abstract

Executive Overview This paper presents two competing views on China's growth experience over the past three decades. For the sake of illustrative ease and brevity I label these two opposing views as the Beijing Consensus and the Washington Consensus. The Beijing Consensus interprets China's economic growth as a function of innovations in the state sector, including close financial controls, state ownership of firms, and political controls in favor of economic growth. The Washington Consensus views China's experience much the same as growth experiences elsewhere—that is, as a result of financial liberalization, private entrepreneurship, and political opening. Contrary to the established views among China scholars, this paper argues that the Washington Consensus view fits with the Chinese growth experience better.