Document Type

Article

Publication Date

2011

DOI

10.1007/s11459-011-0150-4

Publication Title

Frontiers of Economics in China

Volume

6

Issue

4

Pages

616-637

Abstract

The Confucian school emphasizes family value, moral persuasions, and personal relations. Under Confucianism, there is a free-rider issue in the provision of efforts. Since national officials are chosen through personal relations, they may not be the most capable. The Legalist school emphasizes the usage of incentives and formal institutions. Under the Legalism, the ruler provides strong incentives to local officials which may lead to side effects because some activities are noncontractible. The cold-blood image of the Legalism may alien citizens. By exploiting the paternalistic relationship between the ruler and the ruled under Confucianism and the strength of institution-building under the Legalism, the ruler may benefit from a combination of Confucianism approach and the Legalism approach as the national strategy of governance. As each strategy has its pros and cons, which strategy of is optimal depends on factors such as the minimum enforceable level of public service and the level of institution building costs.

Rights

© 2011 Higher Education Press and Brill.

Included with the kind written permission of the publishers.

Original Publication Citation

Zhou, H. (2011). Confucianism and the Legalism: A model of the national strategy of governance in Ancient China. Frontiers of Economics in China, 6(4), 616-637. https://doi.org/10.1007/s11459-011-0150-4

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