State, Market, and Bureau-contracting in Reform China

State, Market, and Bureau-contracting in Reform China
Author: Yuen Yuen Ang
Publisher: Stanford University
Total Pages: 177
Release: 2009
Genre:
ISBN:

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Why and how has China succeeded as a developmental state despite a seemingly rents-ridden bureaucracy? Following conventional wisdom, "Weberian" bureaucracies are an institutional precondition for development, especially in interventionist states like China. However, my research finds that China's fast-growing economy has not been governed by a purely salaried civil service. Instead, Chinese bureaucracies still remain partially prebendal; at every level of government, each office systematically appropriates authority to generate income for itself. My study unravels the paradox of "developmentalism without Weberianness" by illuminating China's unique path of bureaucratic adaptation in the reform era -- labeled as bureau-contracting -- where contracting takes place within the state bureaucracy. In a bureau-contracting structure, the state at each level contracts the tasks of governance to its own bureaucracies, assigning them revenue-making privileges and property rights over income earned in exchange for services rendered. Contrasting previous emphases on the prevalence of illicit corruption in China, my study shows how and why bureaucracies in this context are actually authorized by the state to profit from public office. Specifically, I identify two factors that constrain arbitrary and excessively predatory behavior among Chinese bureaucracies: first, mechanisms of rents management, and second, the mediation of narrow departmental interests by local developmental incentives. In short, I argue that it is the combination of an incentive-compatible fiscal design and increasingly sophisticated instruments of oversight that have sustained an otherwise unorthodox structure of governance in China. In a phrase, bureau-contracting presents a high-powered but opportunistic alternative to the Weberian ideal-type. The Chinese experience suggests that "market-compatible" bureaucratic institutions need not necessarily conform to -- and may even diverge significantly -- from standard Western models, at least at early stages of development. My research draws on interviews with 165 cadres across different regions and governmental sectors, as well as statistical analysis of previously unavailable budget data.

Chinese Firms Between Hierarchy and Market

Chinese Firms Between Hierarchy and Market
Author: D. Chen
Publisher: Springer
Total Pages: 232
Release: 1994-11-13
Genre: Business & Economics
ISBN: 0230375502

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This book is about the enterprise reform in China in general, and the Contract Management Responsibility System (the CMRS) in particular. The latter is an institutional arrangement to deal with the relation between the government and the state-owned enterprise which has always been at the centre of the enterprise reform. This research is based on four in-depth case studies of Chinese state-owned companies.

Bureaucrats in Business, Chinese-Style

Bureaucrats in Business, Chinese-Style
Author: Jane Duckett
Publisher:
Total Pages: 0
Release: 2003
Genre:
ISBN:

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In the 1990s, parts of the state bureaucracy in China have been setting up new profit-seeking, risk-taking businesses. Some of these businesses are entrepreneurial rather than rent-seeking, and are an unplanned and unanticipated development in China's market-oriented economic reforms. What are the lessons of this phenomenon for the developing world? State entrepreneurialism may create problems such as reduced government control over departmental finance, loss of state assets, and uneven provision of services. It is nevertheless an innovative solution to the politically difficult problem of bureaucratic restructuring, and confounds the development orthodoxy, fostered by neoliberalism, that states will resist market reform. It also demonstrates that to understand fully the politics of market reform we must research the activities of subcentral state bureaucrats as well as central leaders and policymakers.

The Chinese Economy in Crisis

The Chinese Economy in Crisis
Author: Xiaohu (Shawn) Wang
Publisher: Routledge
Total Pages: 265
Release: 2015-04-29
Genre: Business & Economics
ISBN: 131745796X

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The authors of this work argue strongly that the decentralization that has taken place in China over the past two decades threatens to undermine the future of reform and perhaps even the state itself. They contend that reform has undermined state capacity in China, and that the state's fiscal revenues, as a percentage of GNP, have declined and will continue to decline into the foreseeable future, thereby weakening China's ability to mobilize resources for modernization.

China's Transition from Socialism

China's Transition from Socialism
Author: Dorothy J. Solinger
Publisher: M.E. Sharpe
Total Pages: 308
Release: 1993
Genre: Business & Economics
ISBN: 9781563240683

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The essays in this volume address the industrial, commercial, urban and regional reforms of China's planned economy during the 1980s. The emphasis is on the dominating institutional and bureaucratic presence of the state even as it sought to loosen the pre-1979 vertically structured centralised command system and to introduce some market principles to stimulate economic activity. The essays fall into four categories: theoretical and policy discussions and debates at the central leadership level; reform of the urban economy and of inter-regional relations; industrial and commercial reforms; and the rise and position of the new entrepreneurial class. Many of the essays draw on interviews with Chinese economic officials in the Central China city of Wuhan and therefore this is the only study that uses local data on actual operations of reforms from a Chinese city; the other sources are the Chinese press and Chinese official and scholarly journals. In each of the categories there are pieces from different points in the chronological process of reform. This study begins with the first theoretical discussions among China's economists and top political leaders in the late 1970s and concludes with experiments with bankruptcy and stock markets in the late 1980s. The countervailing heavy presence of the state at both the policy and the practical levels throughout the reform decade is its unifying theme.

Commodifying Communism

Commodifying Communism
Author: David L. Wank
Publisher: Cambridge University Press
Total Pages: 310
Release: 1999
Genre: Social Science
ISBN: 9780521798419

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An examination of how private business is conducted through personal ties in China's market economy.