Transforming Administration and Governance by Creating Associations: An Evaluation of China's Experience

Abstract

Over the past two decades the Chiese central state has promoted the creation and development of business and professional associations. The promotion of associations was conceived and has been carried out as a bureaucratic project. The individual agencies of the state bureaucracy have played a central role in the creation of associations within their spheres of jurisdiction. Although many associations have been creatied, the fact that associations exist and are treated as appendages of individual state agencies has hindered the development of these associations. In addition, confusion exists as to the precised role of associations in regulating economic activity. This article argues that if associations are to play a more positive and dynamic role in the economy than they have to date, decisive action on the part of the central state is need to breat the stifling dominance of bureaucratic agencies over association and to clarify the role of associations vis-a-vis regulation. Detailed case studies of two associations are presented to illustrate and suppor the argument.