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Filling the gap of formal institutions: the effects of Guanxi network on corruption in reform-era China

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Abstract

Corruption exists around the world and throughout the human history, but societies undergoing rapid modernization and institutional transition tend to be more susceptible to this problem. This article analyzes the corruption-facilitating roles of guanxi network under transition. It argues that when deficient political and economic institutions hamper the effective flow of information and resources and when fast structural changes generate uncertainty, people can resort to guanxi network, an informal institution, to overcome these difficulties and advance their private interests. Using empirical evidence from reform-era China, this article demonstrates how the communication, exchange, and normative functions of guanxi network enhance the opportunities, means, and incentives for public officials to engage in corruption, especially transactional corruption through particularistic ties.

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Notes

  1. Historically corruption in China also included other offences such as illegal profiteering (touji daoba), negligence (duzhi), squandering (huihuo langfei), privilege seeking (yiquan mousi), smuggling (zousi), and moral degeneration (daode duoluo) [38, pp. 26–33].

  2. An anonymous referee suggests that this phenomenon of ‘midway interest group’ is perhaps not merely a transitional phenomenon but has deeper roots in the Chinese history and culture. If so, it would be of more significance than the analysis here suggests. This is an interesting idea worth exploring in another project.

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Acknowledgments

The author wishes to thank Richard Baum, Yunxiang Yan, Jeeyang Baum, Mark Warren, and especially the anonymous reviewer for their valuable comments and suggestions on the earlier versions of this article. All errors remain the author’s own. This research is supported by South China Programme Research Grant from Hong Kong Institute of Asia-Pacific Studies.

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  1. Department of Government & Public Administration, The Chinese University of Hong Kong, Shatin, New Territories, Hong Kong

    Jing Vivian Zhan

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Zhan, J.V. Filling the gap of formal institutions: the effects of Guanxi network on corruption in reform-era China. Crime Law Soc Change 58, 93–109 (2012). https://doi.org/10.1007/s10611-012-9379-9

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