Size and Structure of Disaster Relief when State Capacity is Limited: China’s 1823 Flood

Abstract

This paper presents new archival evidence about the amount and structure of central government disaster relief during China’s devastating flood of 1823. The flood affected 20 per cent of China’s counties, and spending per capita was sizable and distributed between provinces depending on the intensity of flooding. Because of its relative small size and limited state capacity, the Chinese government ultimately spent about half of its annual tax revenues on relief during 1823. Given China’s ensuing secular economic stagnation, this is consistent with models emphasising state capacity for economic growth.