Abstract

This book presents the findings of nearly 10 years of sustained in-depth research into industrial associations in Wenzhou. The authors Yu, Zhou and Jiang have previously published, in Chinese, two books and numerous articles based on their joint research programme. This new book uses the results of careful study of the organizational development of industrial associations to assess the dynamics of civil society development in contemporary China. The authors embrace an approach focusing on interactions among associations, business firms, and the government. They seek to illuminate how the quest by associations to expand, the drive by business firms to make profits, and the effort by the government to govern more effectively combine to propel forward a distinctive process of civil society development. To accomplish this, the authors carried out three surveys between 2003 and 2008 and conducted a number of case studies. The book thus contains a wealth of interesting new empirical information. Yu, Zhou and Jiang also incorporate theory into every aspect of their analysis, drawing from both China-specific theory and the more general literature on organizational development, industrial associations, and civil society.
The argument of the book is that participation in public affairs and governance facilitates the growth of Chinese civil society. Industrial associations in Wenzhou have grown in organizational capacity and autonomy by working closely with the government in the administration of public affairs. Moreover, cooperation and mutual governance between governments and non-governmental associations leads to a win-win situation for both sides. So, civil society is developing in Wenzhou not as a result of industrial associations seeking autonomy from the government, but because these associations cooperate with the government, acquiring functions, resources, and legitimacy as a result. At the same time, however, the associations also struggle to provide valuable services to their members (the business firms). While there is a degree of tension between the tasks of serving members and taking on functions from the government, the book argues that in Wenzhou this is proving to be a viable path to the development of industrial associations that can form a part of civil society. Of course, this leads to questions about the meaning of the term civil society and thus into a conceptual and theoretical debate that is of dubious usefulness. Strip the concept out of the book’s analysis and one gets a fascinating and sophisticated argument about the formation of a new group of organizations in the blurry region between business firms and the government. Whether or not they are part of some variety of civil society is less important than that they are increasingly consequential actors in business affairs and governance.
The book’s chapters provide important insights in their own right, showcasing the merits of a close organizational analysis of industrial associations (indeed, of any associational sphere). Chapter 3 presents a useful model of the governance structure of industrial associations and then uses data from Wenzhou to show how these associations have developed organizationally as they have sought to provide benefits to members while taking on certain governance tasks. Chapter 4 then uses the survey data to identify the specific functions the associations have endeavoured to carry out and it explores how various parties judge how well the associations have performed these functions. These two chapters are richly peppered with interesting findings and arguments. Chapter 6 assesses the weaknesses of the associations, focusing on political dependence, inadequacy of internal governance, shortcomings in providing services to members, and abuses of power. This analysis demonstrates the core dilemma associations face: they need to provide more services to members, but their reliance on the government and interest in participating in governance pulls them away from focusing more attention on member services. The seventh chapter looks directly at association–government relationships, analysing the participation of associations in policy-making related to industrial development. The one weak part of the book is Chapter 5, on ‘social governance’, which examines the participation of industrial associations in areas such as environmental protection, wage negotiations, and food safety. Empirical evidence in these areas is relatively weak, and the authors uncritically embrace the notion that industrial associations should perform roles in social governance – roles that draw them even further away from services to members and tie them even more closely to the government.
Overall, this book is a valuable contribution to the literature on the wide variety of associations that have emerged in China since the 1980s. It is full of fresh empirical data, and the close organizational analysis sheds light on business associations in a particularly vibrant part of China. Industrial associations are now a ubiquitous part of China’s political-economic landscape, and the authors have provided an insightful picture of the issues and dilemmas these associations face in navigating the space between business and government.
