The document discusses the relationship between economic growth and institutional changes. It notes that for an economy to flourish, certain legal and social institutions like property rights and government policy must be in place. It uses China as an example, noting that after economic reforms in the 1980s, China experienced unprecedented growth of 9.5% annually. However, this also led to sharp regional disparities with coastal areas becoming far richer than central and western regions. The document states that further reform and improvements to institutions are still needed to promote more balanced development across China.