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China’s leaders have often expressed concerns about social instability,viewed as a threat both to the political order and to continued rapid growth.Slower growth might,in turn,fiirther undermine social stability.Using survey data,the present paper examines the economic determinants of social instability.Four main determinants are identified:past and expected growth of income,income inequality,economic insecurity and misgovernance.The paper then considers possible policies to reduce social instability,examining each of the determinants in turn.
China’s leaders have often expressed concerns about social instability, viewed as a threat both to the political order and to continued rapid growth .lower growth might, in turn, fiirther undermine social stability. Using survey data, the present paper examines the economic determinants of social instability.Four main determinants are identified: past and expected growth of income, income inequality, economic insecurity and misgovernance. The paper then considers possible policies to reduce social instability, examining each of the determinants in turn.