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
Francis Fukuyama
Encina Hall, C148
616 Jane Stanford Way
Stanford, CA 94305
Francis Fukuyama is the Olivier Nomellini Senior Fellow at Stanford University's Freeman Spogli Institute for International Studies (FSI), and a faculty member of FSI's Center on Democracy, Development and the Rule of Law (CDDRL). He is also Director of Stanford's Ford Dorsey Master's in International Policy, and a professor (by courtesy) of Political Science.
Dr. Fukuyama has written widely on issues in development and international politics. His 1992 book, The End of History and the Last Man, has appeared in over twenty foreign editions. His book In the Realm of the Last Man: A Memoir will be published in fall 2026.
Francis Fukuyama received his B.A. from Cornell University in classics, and his Ph.D. from Harvard in Political Science. He was a member of the Political Science Department of the RAND Corporation, and of the Policy Planning Staff of the US Department of State. From 1996-2000 he was Omer L. and Nancy Hirst Professor of Public Policy at the School of Public Policy at George Mason University, and from 2001-2010 he was Bernard L. Schwartz Professor of International Political Economy at the Paul H. Nitze School of Advanced International Studies, Johns Hopkins University. He served as a member of the President’s Council on Bioethics from 2001-2004. He is editor-in-chief of American Purpose, an online journal.
Dr. Fukuyama holds honorary doctorates from Connecticut College, Doane College, Doshisha University (Japan), Kansai University (Japan), Aarhus University (Denmark), the Pardee Rand Graduate School, and Adam Mickiewicz University (Poland). He is a non-resident fellow at the Carnegie Endowment for International Peace. He is a member of the Board of Trustees of the Rand Corporation, the Board of Trustees of Freedom House, and the Board of the Volcker Alliance. He is a fellow of the National Academy for Public Administration, a member of the American Political Science Association, and of the Council on Foreign Relations. He is married to Laura Holmgren and has three children.
(October 2025)
Global Populisms
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
Stanford conference explores new development approaches post Arab Spring
As the Arab world undergoes an unprecedented period of political transition, many are looking towards a new development model to spur economic growth and social advancement. The Program on Arab Reform and Democracy (ARD) at Stanford's Center on Democracy, Development, and the Rule of Law examined this question during its third annual conference on April 26-27, 2012 at Stanford University. The conference featured leading academics, practitioners, and activists, who looked beyond economics to present a more integrated framework for development.
According to ARD Program Manager Lina Khatib, "A goal of the conference is to present an integrated approach to development in the Arab world, particularly in places witnessing democratic transition, which links social, political, and economic factors."
The conference included a diverse array of speakers hailing from the political and social sectors, representing youth leaders, religious minorities, women's rights advocates, and civil society representatives, who joined economists to discuss new regional frameworks for development.
Conference speakers included: Mona Makram Ebeid, who has a long and distinguished career as a parliamentarian in Egypt, commenting on the challenges facing minority rights in democratic transition; Hedi Larbi, director of the Middle East department at the World Bank, who will address the issue of oil dependency and how it constrains economic development in the Gulf region; Libyan NGO leader Rihab Elhaj who co-founded The New Libya Foundation and who will speak about the important role civil society plays in the development equation; and Valentine Moghadam, professor of sociology at Northeastern University and a leading expert on gender issues, who will examine political development through a gender lens.
To view the complete program and download the presentation documents and conference report, please click here.
Stanford research suggests increased role for social entrepreneurship in post Arab Spring countries
The Arab Spring has unleashed powerful social forces across the region ignited by young people seeking to reclaim their countries from the hands of long-standing dictators. In the aftermath of the revolutions, this younger generation has expressed a greater interest and responsibility towards improving their communities. Faced with crumbling economies and rising unemployment, young people in the region are combining their activism and entrepreneurial ingenuity to launch new businesses and non-profit organizations.
A new research study entitled, Social Entrepreneurship: Why is It Important Post Arab Spring? released by the Program on Arab Reform and Democracy at Stanford University's Center on Democracy, Development, and the Rule of Law finds that economic conditions coupled with social changes unleashed by the Arab Spring have created an environment ripe for social entrepreneurship.
Operating where the public and private sector have failed, social entrepreneurs introduce new ideas and approaches to solve intractable development challenges in their local communities. Applying business principles towards a social cause, social entrepreneurs create new programs, reforms, and goods that benefit disadvantaged and marginalized segments of society. Leading innovations in the non-profit and business sectors, they have generated new employment opportunities for youth, worked towards building more inclusive societies, and advanced sustainable environmental practices.
As more aid dollars flow towards social entrepreneurship programs, little research has been conducted to examine the sector post Arab Spring. Researchers with the Stanford Program on Arab Reform and Democracy launched this study to assess general economic conditions, attitudes towards entrepreneurship, and the challenges social entrepreneurs currently face.
The Stanford research team used data from an online survey issued in Arabic and English to more than 12,000 residents in 18 Arab countries by Bayt.com, the leading online jobsite in the Arab region, and YouGov, a research and consulting organization. The survey targeted respondents who are on average younger, better educated, and more technologically connected than the general Arab public—previous research issued by the Brookings Institution suggested that this target group is predisposed towards the entrepreneurial sector.
Citizen-led uprisings have inspired a new generation of youth who are increasingly invested in the future development of their societies across the larger region.
Youth-led social and economic development: One of the most revealing findings in the study uncovered the changing perceptions and attitudes of young people towards the long-term development of their societies after the revolutions. Citizen-led uprisings have inspired a new generation of youth who are increasingly invested in the future development of their societies across the larger region. In Arab Spring countries 71% of respondents in Egypt and 75% in Tunisia expressed interest in improving their communities, revealing this upward trend.
According to Jacqueline Kameel, managing director of Nahdet el Mahrousa, the first social enterprise incubator in Egypt, "Youth are more vocal than ever now, they have a sense of responsibility towards Egypt, believing that if we don't do enough now, we might never have a similar chance to take the lead and impact the future of Egypt." In addition, the survey found that volunteerism is on the rise with nearly one-third of Egyptian and Tunisian youth currently volunteering their time at local NGOs, religious establishments, and schools. These trends represent promising pathways towards social entrepreneurship for the region's youth.
Rising unemployment leads to increased interest in self-employment: The results revealed deteriorating economic conditions across the larger region, impacting all age groups and economic levels. However, the effect on countries that experienced protracted revolutions is particularly stark with 58% of respondents in Tunisia, 68% in Egypt, and 71% in Syria indicating that their employment situation now is either worse or much worse than before the revolutions. Those working in the private sector have been disproportionately impacted by the Arab Spring than their counterparts in the public sector, suffering higher levels of unemployment.
Despite this fact, respondents across the region expressed a strong desire to work in the private sector, reflecting a move away from the government as a primary employer. The survey also revealed widespread interest in business ownership as respondents in every country said that if given the choice they would opt for self-employment. While many cited the independence it would offer, others indicated they were drawn to entrepreneurship out of economic necessity, not opportunity. Current economic conditions and a move towards the private sector and business ownership point to the growth of the entrepreneurship sector across the region.
Growing awareness of entrepreneurial sector: With increasing interest in social entrepreneurship, the study evaluated the level of familiarity with entrepreneurship—in both the business and social sense—as the term is often perceived as an import from the West. Survey results concluded that overall there was a general level of familiarity with the term, but more respondents identified with the business side of entrepreneurship, indicating that there is more work to do to build awareness around the social sector. More encouraging was the number of respondents—63% in Tunisia and 56% in Egypt—who expressed an interest in starting their own business and a general openness towards working in the field of social entrepreneurship.
Challenges facing the sector: While survey results revealed several opportunities, there remains a high rate of failure for new businesses and NGOs, preventing them from reaching maturity. In Egypt 44% of business owners stated that their current businesses were not performing well, and in Syria the figures were higher at 50%. Those operating NGOs did not fare much better, as 56% of respondents in Egypt said that they had hoped to start an organization but were unable to do so. Government interference, the inability to obtain finance, bureaucratic hurdles, fear of failure, and corruption were the major obstacles to starting a new enterprise.Government interference, the inability to obtain finance, bureaucratic hurdles, fear of failure, and corruption were the major obstacles to starting a new enterprise. With transitions underway in Arab Spring countries, Stanford researchers called for a number of policy recommendations to create an ecosystem conducive for entrepreneurship to thrive. Some of their suggestions include: legal and regulatory reform in the banking sector; introducing entrepreneurial education in schools; and increasing the number of high-tech incubators.
While the Arab Spring has had an immediate negative impact on the economic landscape in the Arab world, the positive effect on citizens’ interest in social and economic development remains strong. As Arab Spring countries attempt to rebuild economically, social entrepreneurship represents a promising pathway for the post-revolutionary generation to engage in positive social change in the region and beyond.