In defense of endogenous, spontaneously ordered development: institutional functionalism and Chinese property rights
Neo-liberal observers have frequently raised the red alert over insecure property rights in developing and emerging economies. Development would be at a crossroads: either institutional structure needs changing or it risks a full-fledged collapse. Yet, instead of focusing on the enigma between economic growth versus ‘perverse’ institutions, this contribution posits a functionalist argument that the persistence of institutions points to their credibility. In other words, once institutions persist they fulfill a function for actors.