Modes of Governance in the Chinese Bureaucracy: A 'Control Rights' Theory
Abstract:
The Chinese bureaucracy presents a set of anomalies that need to be explained: In the presence of a strong central authority, why do we observe widespread collusive behaviors at the local level? Why are violations and problems uncovered in the inspection processes are left unaddressed? Why is performance evaluation conducted by the higher authorities is subsequently ignored by the local authorities? We develop a theoretical model on authority relationships in the Chinese bureaucracy by conceptualizing the allocation of control rights in goal setting, inspection and incentive provision among the principal, supervisor and agent. Variations in the allocation of control rights give rise to different modes of governance and entail distinct behavioral implications among the parties involved. The proposed model provides a unified framework and a set of analytical concepts to examine different governance structures, varying authority relationships, and behavioral patterns in the Chinese bureaucracy. We illustrate the proposed model in a case study of authority relationships and the ensuing behavioral patterns in the environmental protection arena over a 5-year policy cycle.
About the speaker:
Xueguang Zhou is the Kwoh-Ting Li Professor in Economic Development, a professor of sociology, and a Freeman Spogli Institute for International Studies senior fellow. His main area of research is on institutional changes in contemporary Chinese society, focusing on Chinese organizations and management, social inequality, and state-society relationships. Zhou's research topics are related to the making of markets, village elections, and local government behaviors. His recent publications examine the role of bureaucracy in public goods provision in rural China (Modern China, 2011); interactions among peasants, markets, and capital (China Quarterly, 2011); access to financial resources in Chinese enterprises (Chinese Sociological Review, 2011, with Lulu Li); multiple logics in village elections (Social Sciences in China, 2010, with Ai Yun); and collusion among local governments in policy implementation (Research in the Sociology of Organizations, 2011, with Ai Yun and Lian Hong; and Modern China, 2010) .
Philippines Conference Room
Xueguang Zhou
Shorenstein APARC
Stanford University
Encina Hall, E301
Stanford, CA 94305-6055
Xueguang Zhou is the Kwoh-Ting Li Professor in Economic Development, a professor of sociology, and a Freeman Spogli Institute for International Studies senior fellow. His main area of research is on institutional changes in contemporary Chinese society, focusing on Chinese organizations and management, social inequality, and state-society relationships.
One of Zhou's current research projects is a study of the rise of the bureaucratic state in China. He works with students and colleagues to conduct participatory observations of government behaviors in the areas of environmental regulation enforcement, in policy implementation, in bureaucratic bargaining, and in incentive designs. He also studies patterns of career mobility and personnel flow among different government offices to understand intra-organizational relationships in the Chinese bureaucracy.
Another ongoing project is an ethnographic study of rural governance in China. Zhou adopts a microscopic approach to understand how peasants, village cadres, and local governments encounter and search for solutions to emerging problems and challenges in their everyday lives, and how institutions are created, reinforced, altered, and recombined in response to these problems. Research topics are related to the making of markets, village elections, and local government behaviors.
His recent publications examine the role of bureaucracy in public goods provision in rural China (Modern China, 2011); interactions among peasants, markets, and capital (China Quarterly, 2011); access to financial resources in Chinese enterprises (Chinese Sociological Review, 2011, with Lulu Li); multiple logics in village elections (Social Sciences in China, 2010, with Ai Yun); and collusion among local governments in policy implementation (Research in the Sociology of Organizations, 2011, with Ai Yun and Lian Hong; and Modern China, 2010).
Before joining Stanford in 2006, Zhou taught at Cornell University, Duke University, and Hong Kong University of Science and Technology. He is a guest professor at Peking University, Tsinghua University, and the People's University of China. Zhou received his Ph.D. in sociology from Stanford University in 1991.
The Institutional Foundations of the Chinese Bureaucratic State
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The Spillover Effect of National Health Insurance on Household Consumption Patterns in Taiwan
One of the major aims of implementing a national health insurance program in Taiwan in 1995 was to provide financial risk protection to the country's 23 million citizens. Households may differ in how they allocate the resources freed up and available to them as a result of health insurance. This study presented by Jui-fen Rachel Lu aims to evaluate the impact of social insurance on household consumption patterns.
About the Speaker
Jui-fen Rachel Lu, ScD, is a professor in the Department of Health Care Management and dean of the College of Management at Chang Gung University in Taiwan, where she teaches comparative health systems, health economics, and health care financing. Her research focuses on equity issues in Taiwan's health care system; the impact of the National Health Insurance program on the health care market and household consumption patterns; and comparative health systems in the Asia-Pacific region. She earned her BS from National Taiwan University, and her MS and ScD from Harvard University.
Lu has served as a member of various government committees dealing with health care issues in Taiwan, and is the recipient of various awards. She is the author of Health Economics, and has published papers in journals including Health Affairs, Medical Care, and Journal of Health Economics. Her detailed CV can be found online.
Daniel and Nancy Okimoto Conference Room
Aid and Development Co-operation and North Korea: A Window of Opportunities or Pushing at a Closed Door?
Life in North Korea today is much more vibrant than the stark slopes and muted grey concrete buildings Katharina Zellweger encountered when she began traveling to North Korea in the mid-1990s. Day-to-day existence is still a struggle for many people, especially in the countryside, but Zellweger, who is the 2011–12 Pantech Fellow with Stanford’s Korean Studies Program, has watched positive change slowly ripple throughout the country for 17 years.
Drawing on her own experience, she presented thoughts her thoughts on aid and development work in North Korea—including strategies for conducting successful projects—at a March 29 forum held at Harvard University's Korea Institute.
Korea Institute
Harvard University
A critical analysis of South Korea's parliamentary election results
On April 11, South Koreans went to the polls and elected new National Assembly members, with the current ruling party winning the majority of seats. Shorenstein APARC director Gi-Wook Shin's insightful after-election analysis, including audio and remarks, is now available online.
An on-the-ground perspective of North Korean society
Returning to her office in Pyongyang from a site visit to an agricultural development project one day last year, Katharina Zellweger had a revelation to share with her colleagues:
“I saw trees, bushes, upland rice, maize, berries, and all kinds of other crops planted on the hillsides!” she said.
Life in North Korea today is much more vibrant than the stark slopes and muted grey concrete buildings Zellweger encountered when she began traveling to North Korea in the mid-1990s. Day-to-day existence is still a struggle for many people, especially in the countryside, but Zellweger, who is the 2011–12 Pantech Fellow with Stanford’s Korean Studies Program, has watched positive change slowly ripple throughout the country for 17 years.
“If you have the patience and perseverance, and try to understand the country as well as you can, it is possible to do work there that is meaningful for the survival of the people and for the future of the country,” she said during a recent interview.
Zellweger’s projects in North Korea began in 1995 while she worked for the Hong Kong office of Caritas Internationalis, a Catholic network of humanitarian organizations, and continued when she moved to Pyongyang to lead the efforts of the Swiss Agency for Development and Cooperation, a part of Switzerland’s Federal Department of Foreign Affairs. She lived in Pyongyang and interacted with North Koreans on a daily basis for five years until coming to Stanford in October 2011.
Since her earliest visits to North Korea, Zellweger has introduced ways to help alleviate the formidable problem of food scarcity and hunger. North Korea has always been a country of urban dwellers, she said, and the 60 percent of North Koreans who live in cities drain the countryside of its crops. In an effort to carve out new places to grow food during the toughest years, farmers have resorted to stripping hillsides of their trees. The solution is short-term and unsustainable, though, as the denuded slopes can only be planted for a few years, and it leads to soil erosion and flooding.
“If you do not have enough to eat and you are hungry, that is what people do,” Zellweger said.
She and her team tackled the problem in one province with a simple solution. They taught rural housewives to plant bands of deep-root vegetation every 10 meters along cleared hillsides. The slopes are a “no man’s land” outside of the commune system, and the women have official permission to either keep what they harvest or sell it in the market for extra income. The environment also reaps big benefits from this sustainable agricultural method, which is catching on in more provinces.
“The last time I visited the project, the women told me that they now grow about 15 species of crops, whereas previously they only had one or two,” Zellweger said. “It has brought biodiversity back to those areas.”
Along with receptiveness to new farming techniques, North Koreans have also embraced certain technological developments. Even though the city and countryside are relatively cut off from one another, for example, cell phone tower transmissions now crisscross most of North Korea. Already one million of North Korea’s 24 million citizens own cell phones, and can find coverage in 75 percent of the country.
“Mobile telephones are not just in the big cities—even farm managers have them,” Zellweger said. “With that, communication has improved a lot among the North Korean people.”
Some ripples of change have also penetrated North Korea’s educational system. English replaced Russian a few years ago as the main foreign language taught in school, Zellweger said, who smiled as she described the warbling greetings of school children who would sometimes approach her to test out their language skills.
“Years ago, I would not even have eye contact with people,” she said. “People would simply look down, and I would feel like thin air, as if I did not exist. That has gone—there is now a certain amount of natural curiosity.”
When she first began visiting North Korea, the Pyongyang Business School, a professional development project close to Zellweger’s heart, did not exist yet. Under her leadership, several groups of 30 to 35 mid-level managers and government officials had the opportunity to participate in a special diploma program. During each 12-month program cycle, lecturers from the Hong Kong Management Association flew monthly to Pyongyang to teach an intensive three-day seminar on subjects ranging from finance to management.
“The Hong Kong lecturers would say, ‘We could not have more diligent students,’” Zellweger said. “The feedback from the students was also very, very positive.”
As Zellweger experienced during her 17 years working in North Korea, change may unfold gradually there but it does come. And for the positive development to grow even more transformative, she said, the basic needs of everyday North Koreans must be met.
“When basic needs like food and medical care are covered, I believe things will start moving forward at a different pace,” Zellweger said. “There are 24 million people in North Korea who just want to lead a decent life, and who have the same dreams and hopes as we all have. That goes beyond any political issue.”
Zellweger will give a talk on May 11 about her work and the change she witnessed in North Korea.
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Entrepreneurship in Japan’s ICT Sector: Opportunities and Protection from Japan’s Telecommunications Regulatory Regime Shift
Entrepreneurs and entrepreneurship played a critical role in transforming Japan’s telecommunications sector. Between the mid-1990s and mid-2000s, in a sector long dominated by a stable set of large actors with well-established patterns of interaction, entrepreneurs introduced new technologies, new business models, and new norms of interaction.
The subsequent transformation of Japan’s telecommunications sector was dramatic, providing consumers with not only fast and sophisticated services but also low prices and an entire new ecosystem of mobile content—a considerable departure from Japan’s long track record of being known as producer- rather than consumer-oriented, with consumers enjoying high-end services and products, but at high prices.
Yet, these transformative entrepreneurs were not acting in a vacuum. Regulatory shifts in telecommunications were critical in providing opportunities for entrepreneurs, while simultaneously protecting them from large incumbent firms. These regulatory shifts were driven by the political dynamics of the 1990s as Japan struggled through its post-bubble economic malaise and political changes.
Philippines Conference Room
Kenji E. Kushida
He has published several books and numerous articles in each of these streams, including “The Politics of Commoditization in Global ICT Industries,” “Japan’s Startup Ecosystem,” "How Politics and Market Dynamics Trapped Innovations in Japan’s Domestic 'Galapagos' Telecommunications Sector," “Cloud Computing: From Scarcity to Abundance,” and others. His latest business book in Japanese is “The Algorithmic Revolution’s Disruption: a Silicon Valley Vantage on IoT, Fintech, Cloud, and AI” (Asahi Shimbun Shuppan 2016).
Kushida has appeared in media including The New York Times, Washington Post, Nihon Keizai Shimbun, Nikkei Business, Diamond Harvard Business Review, NHK, PBS NewsHour, and NPR. He is also a trustee of the Japan ICU Foundation, alumni of the Trilateral Commission David Rockefeller Fellows, and a member of the Mansfield Foundation Network for the Future. Kushida has written two general audience books in Japanese, entitled Biculturalism and the Japanese: Beyond English Linguistic Capabilities (Chuko Shinsho, 2006) and International Schools, an Introduction (Fusosha, 2008).
Kushida holds a PhD in political science from the University of California, Berkeley. He received his MA in East Asian Studies and BAs in economics and East Asian Studies with Honors, all from Stanford University.