In “From Click to Boom,” Lizhi Liu examines a digital solution: governments strategically outsourcing tasks of institutional development and enforcement to digital platforms—a process she calls “institutional outsourcing.”
China’s e-commerce boom showcases this digital path to development. In merely two decades, China built from scratch a $2 trillion e-commerce market, with 800 million users, 70 million jobs, and nearly 50 percent of global online retail sales. Contrary to conventional wisdom, Liu argues, this market boom occurred because of weak government institutions, not despite them.
