The Economics of Religion in a Globalizing World: Communist China and Post-Communist Central Europe

Research background: Religion is often neglected by economists despite the existing studies of its importance for the economy. Religion and culture shape the development of informal and formal institutions and hence impact economic development. Considering the economic importance of China, the religious situation in that country deserves attention; at the same time, due to the peculiar conditions of religion under Communism, the future of religion in China seems rather unclear. Purpose of the article: The paper proposes that the economics of religion may be useful in the analysis of the religious situation in China. It shows the possibilities of applying the economic approach even where markets are suppressed, such as under Communist rule. In light of economic theory, it shows that the experience of Central European countries under Communist rule, particularly Czechoslovakia, may provide clues about the future of religion in China. Methods: The paper builds on previous findings in the economics of religion. It reviews the theories concerning the regulation of the religious markets and the effects of deregulation, as well as the theories specifically developed to analyze religion under heavy regelation and the strategies for its survival. The history of Communist China and Czechoslovakia are compared with regard to those theories. Findings & Value added: The paper shows the similarities between Communist China and Czechoslovakia. The parallels seem useful to predict the further development of religion in China, including the effect of the possible tightening of anti-religious policies as well as those of deregulation upon the liberalization of the Chinese political regime.

Book Reviews

Jean-Philippe Platteau of the University of Namur reviews “The Economics of Religion in India,” by Sriya Iyer. The Econlit abstract of this book begins: “Discusses the merits of economic insights and methods for the study of religion, emphasizing its usefulness for development policy in India and other countries characterized by religious pluralism.”