Institutional diversity: Why Chinese civilization survives

Diversity sustains an ecosystem when the environment changes, and a diversity of human institutions improves the ability of cultures to adapt to change and survive. Because it is not always clear which of several potential policies will be the optimal solution for a given situation, preserving a mix of policies often performs better than insisting on a single policy. The survival of Chinese civilization for millennia is a consequence of how this huge, economically vibrant nation perceives itself and its global role. To understand the dynamics of institutional diversity and their consequences during China’s long history, it’s helpful to understand the meaning of the Chinese long (dragon) symbol and its impacts on China’s socioeconomic development. In contrast with evil western dragons, long symbolize harmony through the ability to incorporate a range of ideas, resulting in increased institutional diversity. This diversity has helped Chinese civilization survive many historical crises, and is now sustaining...