This chapter discusses the reasons behind China's economic reform movement in 1979, led by Deng Xiaoping. It explores how these policies have allowed the Communist Party to maintain power and the challenges they may face in the future.
Bruce Bueno de Mesquita of NYU and Stanford University's Hoover Institution talks about the incentives facing dictators and democratic leaders. Both have to face competition from rivals. Both try to please their constituents and cronies to stay in power. He applies his insights to foreign aid, the Middle East, Venezuela, the potential for China's evolution to a more democratic system, and Cuba. Along the way, he explains why true democracy is more than just elections--it depends crucially on freedom of assembly and freedom of the press.