Strange bedfellows: Dynamics of government‐business relations between Chinese local authorities and Taiwanese investors

China poses a theoretical challenge in that corruption and rent‐seeking activities have not hindered foreign direct investment and economic development. Studies in development have documented the problems of rent‐seeking. International capital presumably hesitates to step into a Third‐World country such as China, which cannot protect private property rights with a comprehensive legal framework. However, for the last decade in China export promotion, foreign capital, and industrial development have proceeded simultaneously. This research argues that local officials helped investors overcome the problem of high transaction costs during a period of institutional uncertainty and local informal rules supplied foreigners with effective protection of property rights under corrupt circumstances. By controlling rent‐seeking activities, local officials created a wide variety of ad hoc patronage for private and foreign investments within their administrative domain. In return, local governments received extrabudgetary payments for the official patronage. This article provides an in‐depth case study of the so‐called joint venture between Taiwanese enterprises and Chinese local authorities in the Pearl River Delta, the institutional bases for their collaboration and the dynamics of the relationship under institutional change.     

Democratization without decentralization: Local government in Hong Kong

The literature on democratization tends to neglect the question of decentralization. The case of the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China shows that there can be partial democratization without decentralization. Democratization in Hong Kong took place in the mid‐1980s and 1990s, when more directly elected seats were introduced to political institutions at the territorial, municipal and district levels. However, democratization has not been accompanied by an attempt to decentralize administrative and political power to the institutions at the local level. These political institutions, including the Urban Council (UrbCo), Regional Council (RegCo) and District Boards remain relatively weak vis‐à‐vis the executive branch of the government. The recent attempt by the HKSAR government to abolish the UrbCo and RegCo represents a move toward centralization of administrative and political power. Moreover, District Boards remain consultative and politically powerless. It is the dynamic relationship between democratization and decentralization at which future research should be directed.     

B. reviews and notes of recent bibliographies

i. Oman and Southeastern Arabia: A Bibliographic Survey. By Michael Owen Shannon. Boston, Mass., G.K.Hall & Co., 1978. pp.xvi, 165. $18.00.

ii. Türk Dili ve Edebiyati Ansiklopedisi: Devirler/Isimler/ Eserler/Terimler. Istanbul, Dergah Yayinlari, 1977. TL600 (for 2 vols.).

iii. Arab‐Israeli conflict: a historical, political, social and military bibliography. By Ronald M.De Vore. Oxford, Clio Press, 1976, pp.273. £10.45.

Conflict in the Middle East from October 1973 to July 1976: a selected bibliography. By Michael Rubner. Los Angeles, Center for the Study of Armament and Disarmament, California State University, 1977. pp.83. $3.00.

The Palestine Question: a select bibliography. Compiled from the holdings of the Dag Hammarskj?ld Library, United Nations. New York, United Nations, 1976. pp.63. £3.25 (Distributed in the U.K. by H.M.S.O.).

iv. Middle East Contemporary Survey: Volume I 1976–77.

Edited by Colin Legum. Tel Aviv, Shiloah Center for Middle Eastern and African Studies, University of Tel Aviv, and New York and London, Holmes and Meier, 1978. pp.xxiv, 684. £32.50.

v. The Modern Middle East: A Guide to Research Tools in the Social Sciences. By Reeva S.Simon. Boulder, Colorado, Westview Press, 1978. pp.xv, 283. £6.10.

vi. Gustav Meisels, Reference Literature to Arabic Studies, a bibliographical guide. Tel Aviv, University Publishing Projects Ltd., 1978. pp.xiv + 251.

vii. Saudi Arabia (World Bibliographical Series Vol.5).

Compiled by Frank A.Clements. Oxford and Santa Barbara, Clio Press, 1979. pp.xiv, 195. £16.75.

viii. The Records of the British Residency and Agencies in the Persian Gulf. IOR R/15. (India Office Records: Guides to Archive Groups). By Penelope Tuson. London, India Office Library and Records, 1979. pp.xix, 188. Pl.6. Index. £21.95.

ix. Modern Syria: An Introduction to the Literature. Compiled by C.H.Bleaney. Durham University, Centre for Middle Eastern and Islamic Studies (Occasional Papers Series, no.6). 1979. £4.00.

x. The Encyclopaedia of Islam. New Edition: Encyclopédie de 1'Islam. Nouvelle édition. Index to Volumes/aux [sic: read ‘des‘] Tomes I‐III. Compiled by/Établi par H.& J.D. Pearson. Edited by/Publié par E.van Donzel. Leiden, Brill/Paris, G.P.Maisonneuve & Larose S.A., 1979. pp.viii, 195. 60 guilders.     

A. Reviews and notes of recent bibliographies

i. Middle East and Islam: A Bibliographical Introduction (Bibliotheca Asiatica 15). Edited by Diana Grimwood‐Jones, for the Middle East Libraries Committee [MELCOM]. Revised and enlarged edition. Zug, Inter Documentation Company, 1979. pp. ix, 429.

ii. Middle East Studies and Libraries. A Felicitation Volume for Professor J.D. Pearson. Edited by B.C. Bloomfield. London, Mansell, 1980. pp. xi, 231.

iii. Cultures of the Islamic Near East: A Guide to Introductory Readings for the Non‐Specialist. By John W. Bagnole. Washington, D.C., America‐Mideast Educational & Training Services, Inc. (Occasional Paper, No. 4), 1978. pp. ii, 79. $4.00

iv. The Modern Arab Woman: A Bibliography. By Michelle Raccagni. Metuchen, N.J. & London, The Scarecrow Press, 1978, pp. x, 282.