Lessons for Development Economists from the Shanghai Experience, 1842-2008

Abstract

This chapter compares the contours of Shanghai’s economy in the pre-war era (1842-1937) with its breakneck reform thrust following the 1990 designation of the city’s Pudong precinct as China’s primary financial centre. It will seek to explore why the city was a magnet for so many Chinese entrepreneurs and intellectuals before World War II, and whether the reformed societal and physical infrastructure of Shanghai in the 21st century can bring about similar entrepreneurial dynamism, that might help shake off the legacy of state dirigisme and create a truly global innovation hub.