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Debating Decentralized Development: A Reconsideration of the Wenzhou and Kerala Models
Unformatted Document Text:  1 Model, n. A person or thing eminently worthy of imitation; a perfect exemplar of some excellence. Also: a representative specimen of some quality. - 10 th definition, Oxford English Dictionary (2004) In both the study and practice of development, a sharp dichotomy exists between cases of developmental failure versus success. Given that the latter are scarce relative to the scores of developmental disappointments, if not disasters, when a positive example is discovered, it tends to acquire a near-canonical status in the field. Among practitioners of international development, certain types of activities and policy interventions become known as “best practices,” which are then recommended and reproduced around the world by aid agencies and other donors. In academia, the components of a developmental success story become known as a “model,” which then attracts the attention of scholars who seek to identify the causal mechanisms underlying its success, and explain why other patterns of development have not performed as well. While state-centric theories of the 1980s lead to a focus on various national-level developmental models, the rise of fiscal decentralization (and fiscal federalism) since then has called attention to the political economy of sub-national development. It is within this context that the developmental experiences of two localities in China and India—Wenzhou and Kerala, respectively—warrant consideration by comparativists. Wenzhou is best known within China as a locality that developed a vibrant private sector in the early reform era, that is, before private enterprise was formally sanctioned by Beijing. Meanwhile, Kerala is known internationally as a locality that has a relatively low per capita GDP, but performs impressively well on human development indicators. In short, the Wenzhou model represents a successful case of indigenously generated petty capitalism, while the Kerala model represents a developmental success story in terms of literacy levels, quality of health care, and

Authors: Tsai, Kellee.
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1
Model, n. A person or thing eminently worthy of imitation; a perfect
exemplar of some excellence. Also: a representative specimen of some
quality.
- 10
th
definition, Oxford English Dictionary (2004)
In both the study and practice of development, a sharp dichotomy exists between cases of
developmental failure versus success. Given that the latter are scarce relative to the scores of
developmental disappointments, if not disasters, when a positive example is discovered, it tends
to acquire a near-canonical status in the field. Among practitioners of international development,
certain types of activities and policy interventions become known as “best practices,” which are
then recommended and reproduced around the world by aid agencies and other donors. In
academia, the components of a developmental success story become known as a “model,” which
then attracts the attention of scholars who seek to identify the causal mechanisms underlying its
success, and explain why other patterns of development have not performed as well. While
state-centric theories of the 1980s lead to a focus on various national-level developmental
models, the rise of fiscal decentralization (and fiscal federalism) since then has called attention to
the political economy of sub-national development.
It is within this context that the developmental experiences of two localities in China and
India—Wenzhou and Kerala, respectively—warrant consideration by comparativists. Wenzhou
is best known within China as a locality that developed a vibrant private sector in the early
reform era, that is, before private enterprise was formally sanctioned by Beijing. Meanwhile,
Kerala is known internationally as a locality that has a relatively low per capita GDP, but
performs impressively well on human development indicators. In short, the Wenzhou model
represents a successful case of indigenously generated petty capitalism, while the Kerala model
represents a developmental success story in terms of literacy levels, quality of health care, and


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