CIFAR fellows advise China to embrace innovation

Three visiting senior fellows from the Canadian Institute for Advanced Research (CIFAR) told senior Chinese leaders they must undertake institutional reforms and make them more inclusive to stimulate innovation and avoid stagnanting economic growth. The three fellows — Drs Torsten Persson, Daron Acemoglu and Philippe Aghion — visited China last December and met with premier Li Keqiang and Zhou Xiaochuan. They warned that it must move away from manufacturing cheap products and give entrepreneurs and investors the confidence to pursue and finance innovation. Chinese leaders must also take steps to avoid greater inequality or face the risk of riots. The three fellows are part of CIFAR's Institutions, Organizations and Growth program which examines systemic issues that incorporate economic institutions and political and judicial governance....