Governing by Competition
Western democracies have a delivery problem. Not an ideas problem, not a values problem, but an execution problem. The infrastructure takes decades. The permits take years. The agencies fight each other. The projects come in late and over budget. Meanwhile, China builds high-speed rail networks in the time it takes American cities to complete environmental reviews.
The usual explanations are unsatisfying. "They're authoritarian" is true but not useful. Authoritarianism doesn't automatically produce competence; plenty of dictatorships are disasters. "They don't have our constraints" is also true, but it dodges the question of whether some of their mechanisms might work without their constraints. The interesting question isn't whether we should become China. It's whether China has figured out something about incentives that democracies could adopt without abandoning democracy.
The answer is yes. And the mechanism is surprisingly simple: they make bureaucrats compete.
The Cadre Tournament
China doesn't elect its provincial leaders. It promotes them. The Chinese Communist Party runs what political economists call a "cadre tournament," a system where officials advance based on relative performance against their peers.
Here's how it works. Provincial governors and party secretaries are evaluated not against fixed targets but against each other. If your province grows faster than comparable provinces, you move up. If it doesn't, you stall. The Organization Department of the Communist Party controls appointments, tracks performance, and manages careers. There are no elections to win, no donors to please, no media cycles to survive. There is only the scorecard and the peers you're measured against.
The metrics have evolved over time. For decades, GDP growth was the dominant measure, which explains both China's explosive economic expansion and some of its distortions. More recently, the scorecard has added environmental compliance, debt control, and political discipline. But the core mechanism remains: relative ranking, career consequences, and competition between jurisdictions.
This creates something unusual: a quasi-market inside an authoritarian hierarchy. Officials behave like entrepreneurs because their careers depend on outperforming rivals. Provinces become laboratories, experimenting with policies that might give them an edge. The ones that work get copied; the ones that fail get abandoned. The system generates information about what works because officials have skin in the game.
Why It Produces Results
The cadre tournament solves a problem that plagues large organizations everywhere: the principal-agent problem. How do you get people to act in the organization's interest rather than their own? The standard answers are monitoring (watch them closely) and incentives (pay them for results). China's system leans heavily on incentives, but with a twist: the incentive is promotion, not money, and the measurement is relative, not absolute.
Relative measurement matters because it's harder to game. If everyone is evaluated against a fixed target, everyone has an incentive to lobby for easier targets. But if you're evaluated against peers facing similar conditions, the only way to win is to actually outperform. The comparison controls for factors outside your control. A province hit by natural disaster isn't penalized for slow growth if other provinces were hit too.
Career consequences matter because they're long-term. A bonus can be pocketed and forgotten. A promotion shapes the next decade of your life. Officials in the tournament aren't optimizing for this quarter; they're optimizing for a career. This creates patience that short-term incentives can't.
The result is a system that converts ambition into output. Officials who want to rise have to deliver. Delivery means building things, attracting investment, creating jobs, maintaining stability. The personal and the institutional align.
The Hidden Costs
The system works, but it's not free. The costs are real and worth understanding, both because they matter in China and because they're warnings for anyone who wants to import the mechanism.
The first cost is metric distortion. When GDP growth was the dominant measure, officials found ways to inflate it. They built infrastructure that wasn't needed, accumulated debt that wasn't sustainable, and reported numbers that weren't accurate. The metric became the target, and the target became corrupted. This is Goodhart's Law in action: when a measure becomes a target, it ceases to be a good measure.
The second cost is political centralization. Under Xi Jinping, the tournament has narrowed. Loyalty now weighs more heavily than competence. Officials who might have experimented now play it safe. The bottom-up innovation that the system once encouraged has been dampened by top-down control. The tournament still exists, but the rules have changed in ways that reduce its effectiveness.
The third cost is the authoritarian tradeoff itself. The system optimizes for speed and coherence at the expense of consent and rights. Decisions that would take years of public deliberation in a democracy happen by fiat. This is efficient in a narrow sense, but it's not legitimate in the way democracies require. The cadre tournament is embedded in a system that suppresses dissent, controls information, and concentrates power. You can't extract the mechanism without acknowledging the context.
What Doesn't Port
Some elements of China's system are structurally incompatible with democracy. It's important to be clear about what can't be adopted, not because the ideas are bad, but because attempting them would break something more important.
Political promotion via economic outcomes doesn't work when politicians are elected rather than appointed. Voters aren't a unified principal with a clear objective function. They vote on identity, narrative, coalition, and mood. Elections reward different things than tournaments do, and there's no way to change that without changing what elections are.
Single-score optimization doesn't work in pluralistic societies. Democracies are designed to resist monocausal metrics. Courts, media, opposition parties, and civil society all exist to inject friction, to ensure that no single value dominates. This is a feature, not a bug. A democracy that optimized for GDP the way China did would be a democracy that had abandoned pluralism.
Centralized cadre management doesn't work without a party that controls appointments. The United States has no equivalent to the Organization Department, and any attempt to create one would be correctly labeled authoritarian. The separation of powers, the independence of agencies, the role of Congress in confirmations: all of these exist precisely to prevent the concentration of personnel authority.
What Does Port
But some elements can be adopted, and they're worth taking seriously. The key is to distinguish between the authoritarian wrapper and the incentive mechanism inside it.
Tournament-style promotion can work inside bureaucracies. Civil servants, agency heads, and military officers are appointed, not elected. They operate in repeat-game environments where reputation matters. There's no structural reason they can't be evaluated on relative performance against peers, with promotion tied to comparative outcomes rather than tenure. This already happens informally in some agencies. Making it formal and rigorous would sharpen incentives without touching democratic legitimacy.
The design requirements are demanding but achievable. You need a small number of metrics, ideally five or fewer, that are auditable and resistant to gaming. You need peer-relative scoring so that officials are compared to others facing similar conditions. You need forced rotation so that high performers move up and out, preventing entrenchment. And you need periodic metric resets so that the measures stay aligned with actual goals.
Competitive benchmarking can work across states and agencies. Publish scorecards. Rank jurisdictions on infrastructure delivery time, permitting latency, cost per outcome. Index some portion of federal funding to performance deltas, not absolute levels. This preserves federalism while creating pressure to improve. States that deliver faster get rewarded. States that lag have incentive to learn from the leaders.
This isn't coercion. It's competition structured by money. The federal government already does this in crude ways with grant programs. Making it systematic and transparent would amplify the effect.
Policy sandboxing is perhaps the most portable idea of all. Let jurisdictions opt into experimental regulatory regimes. Pre-approve waivers with hard evaluation windows. Make scale-or-kill decisions based on results. This converts ideological debates into empirical questions. Instead of arguing about whether a policy will work, you run the experiment and find out.
The United States does this sporadically. Fintech sandboxes, healthcare waivers, education experiments. But it doesn't do it systematically. There's no central authority tracking experiments, evaluating outcomes, and diffusing successes. Building that infrastructure would be high-leverage reform.
The Optimistic Scenario
Imagine these mechanisms implemented well. What changes?
State capacity improves without authoritarian drift. Permits move faster. Infrastructure costs less. Public goods get delivered. The gap between what government promises and what government does starts to close. Citizens who have learned to expect dysfunction encounter competence instead.
Culture shifts inside institutions. The assumption that tenure equals advancement gives way to the assumption that performance matters. Risk aversion, the default mode of bureaucracies that punish failure and ignore success, gives way to measured experimentation. Agencies that were sleepy become competitive.
Federalism revives. States become policy laboratories again, not because anyone mandated it, but because the incentives reward it. Evidence starts to beat ideology, at least in domains where evidence is measurable. The best practices of high-performing jurisdictions spread because other jurisdictions want what they have.
This is not utopia. It's a more functional version of what already exists. The mechanisms are proven. The question is whether the political will exists to implement them.
The Failure Scenario
The mechanisms can also fail, and the failure modes are predictable.
Metric theater is the most common. Rankings get published, but nothing changes. The scorecards become PR exercises rather than management tools. Officials learn to game the metrics without improving the underlying performance. The appearance of accountability substitutes for the reality.
Politicized evaluation is the most dangerous. If the metrics are chosen to reward allies and punish enemies, the system becomes a weapon rather than a tool. This is what happened in China under Xi: the tournament was captured by political loyalty. The same could happen in a democracy if the benchmarking authority were controlled by partisans.
Institutional inertia is the most likely. Pilot programs launch with fanfare and then never end. The sunset clauses get extended. The kill switches never get pulled. The experiments become permanent without ever being evaluated. This is the default outcome for government innovation, and avoiding it requires unusual discipline.
The safeguards are known: sunset clauses that actually sunset, independent evaluators with no stake in the outcome, transparent methodologies that can be audited. Whether these safeguards get implemented depends on whether reformers understand that the mechanism is only as good as its governance.
The Real Lesson
China's edge is not authoritarianism. Plenty of authoritarian states are incompetent. China's edge is incentive clarity and career-linked accountability. Officials know what they're being measured on, they know the consequences of success and failure, and they know that their peers are being measured the same way. This creates focus, urgency, and competition.
Democracies can adopt competition without adopting central control. They can adopt experimentation without adopting suppression. They can adopt performance discipline without adopting loyalty tests. The mechanisms are separable from the regime.
The future of democratic governance is not less democracy. It's better-designed institutions. Institutions that harness ambition rather than hoping it disappears. Institutions that measure what matters and reward what works. Institutions that treat execution as seriously as they treat deliberation.
China solved a problem that democracies also have. The solution isn't to become China. It's to learn what they learned and apply it within constraints they don't share. That's not capitulation. It's intelligence.