Over the past three decades, China's government, economy, and society have been undergoing a transformation, the momentum of which has intensified in recent years. Stanford sociologist Xueguang Zhou has been conducting a detailed ethnographic study in a rural township a few hours' drive from Beijing in order to understand these changes, especially in terms of China's political institutions. He is also beginning research about the behavior of urban government organizations and about the trajectory of personnel mobility in the Chinese bureaucracy.

Zhou (PhD '91), a senior fellow with the Freeman Spogli Institute for International Studies and the Kwoh-Ting Li Professor in Economic Development with the Department of Sociology, chose to conduct his ethnographic research project in a rural township because it afforded him a chance to stay in one place over a long period of time and to get closer to the everyday life of local residents. "It is easier to conduct this kind of research in rural areas because people are always there and once they get to know you, you can gain access to and make sense of their experiences, feelings and views, and their coping strategies in response to large-scale social changes," he notes.

Zhou's rural governance study branched out into three interrelated directions. He has been studying agricultural markets, including: how they have been taking shape and evolving over time, how harvests are conducted, and where local elites and farmers interact with large outside companies. China's rural election system, which Zhou suggests has become more institutionalized in the past six to eight years, has been another area of focus. He has examined how the system was first established, and how it has evolved into its current shape. Finally, he has followed patterns of government behavior within the context of the significant changes now underway in China.
"From a research point of view, this is really a critical moment in the Chinese economic transformation.

-Xueguang Zhou

FSI Senior Fellow and Kwoh-Ting Li Professor in Economic Development
Gradually shifting his focus to the study of China's urban political institutions, Zhou has been working with a doctoral candidate from Peking University to study the behavior of urban government bureaus for the past three years, and they are now working on articles highlighting the major findings from this research. In addition, Zhou is in the process of selecting urban sites in which to conduct a more prolonged and detailed study similar to his rural township project. He is also working with a Stanford master's student to analyze twenty years of government personnel data, tracing the movement of specific individuals across offices and bureaus as they have been promoted through the bureaucratic system. "It is all a public record," says Zhou, "but once you piece these trajectories together, they shed light on the inner working of, and dynamics in, the Chinese bureaucracy."

China's overall transformation has greatly accelerated in the past decade, and even as urban life is changing, life in rural areas around China's coastal megalopolises is perhaps changing even more quickly. Zhou suggests that within the next five to ten years the contribution of China's shrinking rural areas towards the country's GDP will become quite insignificant. "The speed is really just astonishing," he emphasizes. As cities expand, local governments purchase up land from rural residents for commercial development projects like shopping centers and apartment complexes. Real estate is a huge source of income for city governments and so there has been an aggressive push toward urbanization. As a result, says Zhou: "Millions of rural residents lost their land and became urban overnight without any relevant work skills." Although they are compensated to various degrees for their land, the bigger question is how this will affect the new city dwellers and their families in the future as they must develop new skills and adapt to the social and environmental conditions of urban life.

"From a research point of view," states Zhou, "This is really a critical moment in the Chinese economic transformation: the way that they deal with the process of urbanization will have tremendous consequences for the years to come because it is creating so much tension and social conflict." Even away from coastal areas, government-driven urbanization is taking place everywhere in China—even in provinces with vast expanses of remote land like Xinjiang. "This is exactly why you want to study government," maintains Zhou. "Because they play a key role in this process." Understanding China's government institutional structures, its decision-making processes, and the way that resources are mobilized will lead the way to better understanding about the future impact of these decisions that are now so rapidly changing both the rural and urban landscape.

From how failure drives innovation to the role of government in supporting entrepreneurship, two expert professors at Stanford led a training session for executives from Chinese state-owned enterprises (SOE) as part of the 2011 Cisco China 21st Century Enterprise Leader Program (ELP) hosted by Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) on March 22, 2011.

Professor William F. Miller, Co-Director of SPRIE, kicked off the session with a stimulating presentation on Silicon Valley's habitat for innovation. He pointed out that turning technology into business was the essence of Silicon Valley, and a favorable business, social and political environment in the region had facilitated the process. Despite the emergence of other venture capital locations, Silicon Valley scooped up almost 40% of venture deals and dollars across the U.S. in the last quarter of 2010, according to the MoneyTree Report.

The "restless pioneer spirit" of Stanford had always played a crucial role in the effective interaction between research institutes and industry, Miller argued.

Following Miller's discussion of features of Silicon Valley's entrepreneurial habitat, William Barnett, Thomas M. Siebel Professor of Business Leadership, Strategy, and Organizations at the Stanford Graduate School of Business, shared his thoughts on how to discover successful business models.

"Having great technologies is not enough," said Barnett. "Entrepreneurs are like scientists. Successful business models are learned from failures." Barnett encouraged the leaders present to create a working environment within which failure would be tolerated. He further urged them to accelerate the learning process by asking what might go wrong.

The purpose of the SPRIE session, which is part of a 12-day US-based program organized by Cisco Systems and China's State-owned Assets Supervision and Administration Commission (SASAC), is to help the SOE executives understand how to foster innovation and to drive operational excellence. The delegation is composed of SASAC officials, Peking University professors and leaders from 17 SOEs in China, including Southern Power Grid, Three Gorges Corporation, China Telecom, China Unicom, China Mobile, China FAW Group, Harbin Electric Corp., Anshan Iron and Steel Group, Baosteel Group, China Ocean Shipping Company, China Eastern Airlines, China Oil and Foodstuffs Corporation, State Development and Investment Corporation, China Merchants, China Railway Group and China Railway Construction.

 

On February 25 and 26, the Center on Democracy, Development, and the Rule of Law at Stanford University, in partnership with the Canadian Department of Foreign Affairs and International Trade, hosted a symposium titled, "Addressing the Accountability Gap in Statebuilding: The Case of Afghanistan." This event brought together leading experts, government officials, diplomats, practitioners, and academics to examine the problems of accountability, corruption, and election fraud that have risen in the wake of international statebuilding efforts in Afghanistan.

This unique forum allowed participants-both Afghan actors and members of the international community- who are heavily involved in building the institutions of the Afghan state, to participate in an honest exchange with their peers to surface challenges and generate recommendations to improve the practice of statebuilding moving forward. 

Panels were designed around the following questions: how to establish accountability in statebuilding, address electoral fraud evidenced in 2009 and 2010, manage powerbrokers who monopolize informal governance networks, coordinate anti-corruption efforts, and develop a political strategy for Afghanistan's future. What surfaced throughout these presentations and discussion was the issue of the "double compact" in Afghanistan-the failure of Afghans to self-govern and the failure of the international community to construct the institutions of a functioning state.

Participants proposed a new framework for governance that adopts a more participatory approach with the international community, Afghan government, and the public as equal partners in statebuilding endeavors. While challenges emerged there were also a number of key recommendations and strategies proposed  that can be pioneered by this influential group of policymakers and practitioners to ease the transition of responsibility to the Afghan government in 2014.  

The keynote address was delivered by former Afghan Minster of Finance and 2009 presidential candidate Dr. Ashraf Ghani, to an audience of more than 100 students and members of the local community. Dr. Ghani provided an honest and pragmatic account of the parallel and conflicting systems driven by the international community, which have given rise to systemic failure and corruption in Afghanistan.

"We are dealing with a crooked playing field," Dr. Ghani said recognizing that both the Afghan and international community were jointly responsible for this outcome. "When the field itself is crooked the nature of reform and change that we must initiate are very different. "

Dr. Ghani spent considerable time discussing the outsourcing of development to Washington-based firms that manage million dollar contracts and outsource technical work to foreign technocrats. This in Dr. Ghani's opinion does little to strengthen the internal capacities of the state, provide training opportunities to Afghans or allocate resources effectively to the general public.

Dr. Ghani stressed the importance of speaking honestly about these dysfunctions in the development system, "We need to start talking truth to each other if we are going to deal with this phenomenon. This double failure now is the genesis of the present."

Dr. Ghani channeled the sentiments of the Afghan public into the room by emphasizing the uncertainty that defines their lives. "Today it is the sense of injustice that drives conflict," Dr. Ghani said. "The level of conflict is driven by injustice. What Afghans yearn for is normalcy-the sense that the lives of our children and grandchildren will be better and what my generation endured will not be repeated."

The level of conflict is driven by injustice. What Afghans yearn for is normalcy-the sense that the lives of our children and grandchildren will be better and what my generation endured will  not be repeated.                    -Dr. Ashraf Ghani 

 Looking forward, Dr. Ghani advised that accountability mechanisms and feedback loops must be implemented to ensure that the necessary auditing and accounting mechanisms are in place to control corruption and ensure transparency. In addition, he called for one coherent system of rules that must be developed and agreed upon to govern development and prevent parallel systems from circumventing these rules. Finally, he advised adopting national programs that model the success of the National Solidarity Program, which reduced child mortality rates by 16%.

Dr. Ghani commented on the unique position that Afghanistan occupies at the crossroads of Asia, in the middle of "four huge hubs of change," China, India, Russia, and the Gulf. "A new regional era has to be created, if France and Germany could overcome hundreds of years of conflict we must create another sense of opportunity."

Dr. Ghani concluded by placing the hope and responsibility for Afghanistan's future in the hands of its younger generation, "We must talk about the generation compact in Afghanistan, our sons and daughters-both literal and figurative-are the source of growth and the source of dynamism...The women of Afghanistan, the youth of Afghanistan, and the poor of Afghanistan are the three numerical majorities that have been reduced to political and economic minority. Without investing in women, investing in youth and tackling the challenge of poverty, we are not going to have stability."

At the end of the two day symposium, participants collectively called for a comprehensive political strategy to facilitate the peaceful and legal transfer of power in 2014, which marks the end of President Karzai's term in office. With this important milestone in the near future, the international community remains committed to working with their Afghan counterparts to introduce political reform measures that will strengthen accountability mechanisms between the Afghan state and society. 

As Dr. Ghani eloquently stated at the end of his presentation, "We have to have an agenda of the future, we must engage in writing the history of the future."