Developing Modernization Indicators for the People’s Republic of China : Key Considerations and a Proposed Framework

Abstract

This paper proposes an indicator to assess the progress being made in the modernization journey of the People’s Republic of China (PRC). In doing so, it fills a gap. The paper applies the modernization indicator—structured on thematic categories, subcategories, and intersections—to the PRC, whose performance is compared with Organisation of Economic Co-operation and Development and G20 countries. The PRC’s best score was for the functioning and efficiency of markets and the worst for inclusiveness. Here, it led a global trend for a weak performance on this measure of modernization. The paper examines four major policy implications from the modernization challenges facing the PRC: (i) economic governance reform to secure inclusive and sustained growth, which enhance social cohesion and stability; (ii) the governance building that will be needed to achieve the complex task of modernization; (iii) public sector reform should be guided by widely accepted values, such as transparency, accountability, efficiency, and providing high-quality public services; and (iv) the state, market, and civil society are all important stakeholders and players in the PRC’s modernization process; furthermore, finding an effective division of labor and creating synergy among stakeholders will make PRC’s modernization more successful and durable.