This article compares two neighbouring underdeveloped counties in south-west China. They share many similarities in economic, political and demographic structures, but experience divergent levels of social instability. The comparison suggests that, under China's political system and cadre incentive structure, the endowment of mineral resources in one county, and the lack thereof in the other, significantly influences the modes of economic development and local governance in these two counties, and thus contributes to their different levels of social instability.
