Rule of law distinguishes China in growth race

The collapse of the Russian economy in the 1990s drew economists' attention, belatedly, to the importance of institutions that enforce the rule of law.

After the Yeltsin government rapidly privatized and marketized Russia's industry in 1992, GDP fell by over 50 percent and corruption boomed as politically connected oligarchs "self-privatized" formerly state assets.

The lesson learned was that marketization without a government strong enough to enforce the rule of law does not work.