Maximum Tinkering under Uncertainty

Abstract

At a time when many Western standard recipes for economic policy are losing credibility, it is imperative to step back from past orthodox explanations and rethink the unconventional approaches to managing economic change that we find in China's developmental experience. The key to understanding the adaptability of China's political economy over the last few decades lies in the unusual combination of extensive policy experimentation with long-term policy prioritization. China can serve as an extremely instructive place to look for lessons on creative management of uncertainty in policy making.