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Debating Decentralized Development: A Reconsideration of the Wenzhou and Kerala Models
Unformatted Document Text:  2 grassroots participation. Given the remarkable achievements of these localities, observers have called their experiences “models,” thereby suggesting that they are worthy of study and emulation. This paper critically analyzes the assumptions underlying popular conceptions of these models and makes three arguments. First, although both models sound inspiring, their success is contingent upon a particular mix of conditions that is unlikely to be found in other contexts, even within the same country. Second, over time neither “model” has proven to be fiscally or politically sustainable. Third, local developmental strategies that yield productive results initially may ultimately undermine themselves over time. The paper proceeds as follows. The first two sections outline the key positive features of the Wenzhou and Kerala models, respectively, as they are typically portrayed in the media and scholarly literature and review the main explanations for their success. The third section presents the debates generated by the models with a focus on some of their limitations. The final part of the paper reflects upon the theoretical and empirical implications of either idealizing or demonizing developmental models that are contextually and politically contingent. The Wenzhou Model Wenzhou is a rural mountainous locality with a population of 7 million people on the coast of the southeastern province of Zhejiang in China. It was especially impoverished during the Mao era (1949-1976) due to demographic and political reasons. Wenzhou has limited arable land as it consists primarily of mountains and tributaries, yet it also has a relatively concentrated population, which means that even subsistence agriculture posed a challenge for its inhabitants. Exacerbating the disadvantages of the low arable land-to-population ratio were national policies that intentionally deprived the southern coastal provinces of Zhejiang, Fujian, and Guangdong of capital investment due to their propinquity to Taiwan and thus, geostrategic sensitivity. The

Authors: Tsai, Kellee.
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grassroots participation. Given the remarkable achievements of these localities, observers have
called their experiences “models,” thereby suggesting that they are worthy of study and
emulation. This paper critically analyzes the assumptions underlying popular conceptions of
these models and makes three arguments. First, although both models sound inspiring, their
success is contingent upon a particular mix of conditions that is unlikely to be found in other
contexts, even within the same country. Second, over time neither “model” has proven to be
fiscally or politically sustainable. Third, local developmental strategies that yield productive
results initially may ultimately undermine themselves over time.
The paper proceeds as follows. The first two sections outline the key positive features of
the Wenzhou and Kerala models, respectively, as they are typically portrayed in the media and
scholarly literature and review the main explanations for their success. The third section
presents the debates generated by the models with a focus on some of their limitations. The final
part of the paper reflects upon the theoretical and empirical implications of either idealizing or
demonizing developmental models that are contextually and politically contingent.
The Wenzhou Model
Wenzhou is a rural mountainous locality with a population of 7 million people on the
coast of the southeastern province of Zhejiang in China. It was especially impoverished during
the Mao era (1949-1976) due to demographic and political reasons. Wenzhou has limited arable
land as it consists primarily of mountains and tributaries, yet it also has a relatively concentrated
population, which means that even subsistence agriculture posed a challenge for its inhabitants.
Exacerbating the disadvantages of the low arable land-to-population ratio were national policies
that intentionally deprived the southern coastal provinces of Zhejiang, Fujian, and Guangdong of
capital investment due to their propinquity to Taiwan and thus, geostrategic sensitivity. The


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