"In 2018, 51,302 new startups were founded. Last year, that number was down to 1,202."
That's the cost of authoritarian centralization. But it would also be dishonest not to concede the other side of the ledger. A government that eliminates all challenges to its authority also doesn’t depend on coalitions or election cycles, so doesn’t need to bargain with public-sector unions, entrenched lobbies, or party factions to stay in power. That concentration of authority can give Beijing a longer planning horizon than governments that live inside a permanent 18-month election cycle.
That’s the structural trade-off:
fewer constraints and more long-term maneuvering room, at the price of suppressing bottom-up initiative, i.e. entrepreneurship.
This is not a value judgment: it’s just the logic of political institutions. Centralized regimes can move quickly, avoid gridlock, and pursue 20- or 30-year industrial policy. But the same mechanisms that let them think long-term also deter the kind of decentralized experimentation that produces new firms and new ideas.
https://x.com/EleanorOlcott/status/1834109085450731530?s=20
"In 2018, 51,302 new startups were founded. Last year, that number was down to 1,202."
That's the cost of authoritarian centralization. But it would also be dishonest not to concede the other side of the ledger. A government that eliminates all challenges to its authority also doesn’t depend on coalitions or election cycles, so doesn’t need to bargain with public-sector unions, entrenched lobbies, or party factions to stay in power. That concentration of authority can give Beijing a longer planning horizon than governments that live inside a permanent 18-month election cycle.
That’s the structural trade-off: fewer constraints and more long-term maneuvering room, at the price of suppressing bottom-up initiative, i.e. entrepreneurship.
This is not a value judgment: it’s just the logic of political institutions. Centralized regimes can move quickly, avoid gridlock, and pursue 20- or 30-year industrial policy. But the same mechanisms that let them think long-term also deter the kind of decentralized experimentation that produces new firms and new ideas.