China 10 years ago, maybe even now. Every society has laws, but rule of law requires that they be reliably and equitably imposed. Anytime you regularly have to resort to bribes and shakedowns from government official to get business permits and adjudication of conflicts, rule of law is on shaky ground.
Yes, and the further China has moved toward an equitable legal system, the more developed its economy has become. Corruption and crime are checks on economic activity, just as Rosenfield's original assertion would suggest.
