Civil Society and Reconstruction Of

CIVIL SOCIETY AND RECONSTRUCTION OF NATIONAL KNOWLEDGE GOVERNANCE SYSTEM -- GROWTH AND ROLE OF UNOFFICIAL KNOWLEDGE DIFFUSION MECHANISM

Deng Zhenglai

As we all know, a most important institutional arrangement which the state relies on for social governance has been the monopoly of knowledge production and diffusion since the Communist Party of China was at the helm of the state in 1949. The article is designed to summarize some theoretical views. The author starts with the review of the construction of the system and the investigation of the process of the gradual disintegration and deformation of the system, then gives a detailed account of the current basic conditions on the basis of the materials from the investigation of experience and finally tries to explain the matters which have been discovered from research in experience on the basis of the theory of interaction between civil society and the state.

I. Construction of Knowledge Governance System after the Communist Party of China was at the Helm of the State in 1949

Any country can strive for the political socialization of the whole society according to its own interests and intentions and through various means and institutions, with a view to transforming a specific political ideology into the conscious code of conduct for its citizens in the process of political socialization and constructing a political culture which can maintain and consolidate its rule. As a result, its legal authority is generally recognized and accepted, the costs for its social rule are lowered and its social stability is maintained.1 In a sense, a process of political socialization can be regarded as a process of national control and governance of the process of knowledge production. From this we can see that fundamentally speaking, the state takes political socialization measures to establish a system of knowledge governance. On the one hand, the state uses the political ideas which reflect or conform to its intentions to dominate knowledge producers and production sites and diffuse and disseminate to the public the knowledge which is produced by these producers at these production sites through specific convenient institutional arrangements. On the other hand, the state puts a stop to the production activities which are detrimental to its legal rule through various official or unofficial institutional arrangements and ban all possible activities of harmful and even subversive knowledge diffusion and dissemination. Therefore, one of the important institutional arrangements which the state relies on for social governance is the governance of knowledge production and diffusion. How a system of knowledge governance should be established and what system should be established become an important component of the formation of state organs. The effects of the system of knowledge governance in practice and the readjustment and reform of this system by the state become an important link for the development of state organs.

1 However, the model and effects of the system of knowledge governance do not depend on the will and determination of state leaders according to their wishful thinking, although their will and determination play a crucial role in the process of the construction and operation of the system of knowledge governance. From the survey of the Chinese society before and after 1949, we can find that under a specific economic system, the resources including economic material and institutional resources which the state can use and the methods of the use of these resources often exert a decisive influence on the establishment and development of the system of knowledge governance.

Before 1949, state organs found it hard and even impossible to establish an integrated knowledge governance system in old China. Because of urban free market economic system and structure, the state found it impossible to monopolize and control the whole system of knowledge production and reproduction including educational, research and publication and distribution institutions. Politically, the state found it impossible to exercise comprehensive and rigorous control. The state established a press censor system and formulated corresponding laws and regulations for the purpose of containing political opposition and issued licenses for books, newspapers and periodicals, censored them and closed down the publishers who violated regulations. In actual life, the cases of closing down periodicals, newspapers and bookstores only for purchase and sale and for publication for political reasons occurred from time to time. But the final outcome was that this censorship often existed in name only. The publishers which were closed down often started publication soon under some pretexts, and operation in violation of regulations became a common phenomenon which existed despite repeated prohibitions. Another reason for the failure to establish an integrated system of knowledge governance was the unimpeded communication at home and abroad. Non-permanent residents were able to run newspapers and bookstores in China, and foreign newspapers and books had no difficulties in entering China. So control became more difficult. First, the state was unable to overcome certain misgivings in handling matters involving foreigners. Second, the domestic political opposition was engaged in anti-system activities under some pretexts. Moreover, there were separatist regimes of local warlords first and then the armed based areas established by the Communist Party of China. The Republic of China never had the chance to truly centralize national administrative power. The state found it impossible to establish a system of governance of the process of knowledge production existing in those separated geographical areas.

After the Communist Party of China was at the helm of the state in 1949, fundamental changes took place and a different situation arose. In comparison with the political forces which controlled state power, it was obvious that the leaders of the Communist Party of China attached vital importance to the above-mentioned knowledge governance system and conscientiously began to establish and improve the governance system throughout the country. As early as May 1951, the Communist Party of China held the First National Conference on Publicity Work, at which it decided to

2 incorporate all the links and matters concerning the process of knowledge production into the categories of culture and education, determined the system of unified leadership by the Publicity Department of the Central Committee of the Communist Party of China and proposed a shift from “shock” actions launched for waging wars and opposing the Kuomintang rule to routine work undertaken by permanent organizations.2 From then on, the basic framework of the system did not undergo great changes. The National Conference on Publicity Work or the National Conference Attended by Heads of the Publicity Departments of the Party at Different Levels or Political Divisions has become an institutional arrangement so far.

But more importantly, the knowledge governance system constructed by the Communist Party of China relied on an entirely different political and economic basis. So it was manifested in an entirely different model and form. First, there was a complete political unity, so that the orders of the Communist Party of China were carried out smoothly. Second, a few movements were launched in the ideological sphere, so that any opposition with different ideology found it hard to exist. Lastly, the most important thing was that the process of the establishment of a “socialist planned economy” in the economic field helped remove the process of free or at least semi-free knowledge production so that a comprehensive and rigorous system of knowledge governance was established for a short span of several years.

This system involved all aspects and links of knowledge production. From the investigation of human and material resources involved in knowledge production, we can find that to knowledge producers, the state under the leadership of the Communist Party of China continued to run the original state educational institutions which ceased operation owing to chaos caused by war after 1949 and nationalized the existing civilian-run educational institutions by “closing down, suspending operations, merging and changing operations”, so that all educational institutions and research institutes were finally nationalized in 1958. At the same time, the state made other non-teacher free intellectuals engaged in knowledge production become professional ones who were restrained by posts and who worked in units by establishing the writers’ association and other associations, so as to control these knowledge producers under a typical socialist system of units. The state easily controlled all the indispensable material resources for knowledge production through the application of the comprehensive planning system. From the investigation of the three links of production, distribution and consumption in the process of knowledge production, we can see that the link of production included the schools and research institutes in which producers worked and the publishing houses in which intermediaries worked became “socialist units”, so that the state exercised effective control over them. With regard to the two links of consumption and distribution, distribution was an object which the state concentrated on improving mainly by comprehensively transforming the organs for distributing and selling newspapers, periodicals and books and incorporating them into the national knowledge governance system. Under these circumstances, solving the problem of knowledge distribution naturally helped tackle the issue of consumption,

3 the next link. Therefore, to be more exact, the state exercised the control and management of knowledge production and reproduction and knowledge diffusion and distribution in the process of materials flow involved in knowledge production.

To be specific, while establishing the governance system for knowledge distribution and diffusion, the state mainly used the following two methods. First, the state restricted, transformed and even banned all private bookstores and booksellers through joint state-private ownership. Second, the state established the nationwide Xinhua Bookstore system with the functions of state monopoly for purchase and marketing from the central to county levels and the China Bookstore system in some large and medium-sized cities on the basis of the original book distribution system in base areas established by the Communist Party of China. The two systems had division of work in their scope of business. The former exclusively dealt in newly published books, and the latter exclusively dealt in old books and second-hand redistributed books. Therefore, they actually included the diffusion and distribution of the whole new knowledge, and they actually controlled the distribution of the results of the past knowledge production, resulting in a monopolistic control over knowledge distribution. This is a specific social phenomenon of China which is different from that of other countries.

It is obvious that in comparison with other means of governance, the control of the link of knowledge distribution and diffusion is a system which requires low costs and easy management and produces great positive results. On the one hand, the establishment of this system is accomplished while the whole national economic structure undergoes transformation, so there is little political obstruction. On the other hand, the establishment of this system is superficially related to economic matters without causing much concern. Great positive results are produced. First, all the books are actually re-censored in a highly centralized way and through the function of state monopoly for purchase in the Xinhua General Bookstore (this is a supplement to the official censorship system). Second, it is easy to ban and recover the “bad books” discovered later through the function of monopoly of sale. Therefore, these functions of the Xinhua Bookstore have been weakened so far, but they have not been completely lost. The state tries to continue to support and utilize the function of the “main channel” through preferential policies if possible.

II. Process of Change in Knowledge Governance System Centering on Book Distribution since the Policy of Reform and Opening up Was Implemented

The knowledge governance system featuring the state’s complete and thorough control of the process of knowledge production which was established after the Communist Party of China was at the helm of the state began to undergo changes. This occurred during the transition to market economy and in the process of opening under relatively favorable political conditions. To be specific, the depth, scope and speed of changes in all the links of knowledge production are not the same. Comparatively speaking, with

4 regard to knowledge producers and production sites, a few freelance writers, academic researchers and so-called civilian-run research institutes appeared because the state lost the complete control and monopoly of economic resources. But because of the system, this change just began without producing scale effect. Although the varieties of books increased from 10,000 in 1978 to 90,000 in mid-1990s and the total number of copies printed increased from 3.7 billion to 6.4 billion,3 of which a large number of the books which were popular in the intellectual circles were planned and written by these independent and freelance writers and academic researchers. With regard to knowledge distribution and diffusion, an entirely different situation occurred. The state did not relax control over the press – the intermediary between knowledge producers and knowledge distributors. On the contrary, the state tightened control over it. But at the same time, the state slightly lifted control over pure book distribution. To be more exact, the state began to allow individual bookstalls and civilian-run bookstores to exist and develop. So far, the national sales network of the state-owned Xinhua Bookstore system has not undergone great changes and has had 12,000 stores.4 On the contrary, there are countless individual bookstalls and civilian-run bookstores throughout the country. According to incomplete statistics, there are over 800 civilian-run bookstores throughout the country. The original institutional arrangement for the monopolistic control of knowledge distribution is being gradually disintegrated in this process.

From the whole process, we can see that the process of change in the knowledge governance system centering on book distribution is increasingly obvious with the emergence and development of individual and private business operations. From 1979 when the state began to allow the self-employed persons to exist until now, the development of individual and private business operations in China has experienced the five stages. At every stage, changes in the process of knowledge production centering on changes in the distribution of books, newspapers and periodicals have experienced different stages of development:

The first stage was from 1979 to 1982. It is a period of the emergence and restoration of the self-employed persons.5 At this stage, as the first group of the self-employed persons emerged, there were also the individual pedlars mainly engaged in dealing in newspapers, periodicals and books – small individual bookstalls who operated on streets and lanes. This is mainly because the original Xinhua Bookstore system which operated in a unified and planned way was imperfect and the method of sales was too rigid and was not able to meet social demand for book distribution. We can say that the drawbacks of the original planning system and a series of the defects caused by these drawbacks lay a basis for the emergence of individual bookstalls. At the same time, solving the problem of employment pressure of the urban population, raising people’s living standards, admitting the operation of diverse forms of ownership on condition that the overall arrangements in the national economic plan and allowing their existence according to the method of “making good omissions and deficiencies” are the state’s basic policy-related macro considerations for permitting the self-employed persons including individual bookstalls to develop to some extent.

5 The second stage started at the end of 1982.6 The Fifth National People’s Congress held at the end of this year revised the Constitution and made it clear that the self-employed persons are supplementary to the socialist economy and determined their corresponding legal status. Therefore, the development of the self-employed persons reached the first peak in 1983. So this stage was a period of upward sustained development. During this period, the number of individual bookstalls increased considerably. Individual bookstalls were widely scattered particularly in large and medium-sized cities. But in comparison with the self-employed persons engaged in other business activities, the operation scale of individual bookstalls still expanded slowly, mainly because such supporting market conditions as the formation of primary and secondary book wholesale markets, the growth of experienced book distributors and operators and the contribution of large capital did not produce scale effect.

The third stage was marked by the Third Plenary Session of the Twelfth Central Committee of the Communist Party of China held in 1985. It determined the concepts for reform of the economic structure with stress on the cities and set forth the theory of “socialism with Chinese characteristics”. This gave a new impetus to the development of the self-employed persons. So the development of the self-employed persons and private business operations reached the second peak. A new stage of the steady development of the self-employed persons began. But things were complicated in the field of book distribution. On the one hand, with the deepening of the reform and opening up, the emergence of a large number of civilian-run research institutes basically weakened the state monopoly and control of the field of knowledge production, as knowledge production sites which mainly included institutions of higher learning were very active. The initial manifestation is the emergence of the “series boom”. Many series which were published at that time have still been influential so far. Their varieties, wide range of subjects and diverse forms have been unknown before. This provides a wealth of knowledge sources for the field of book distribution and greatly promotes the prosperity and development of individual bookstalls. At the same time, the operating conditions of individual bookstalls were also improved notably. There were large concentrated primary or secondary book wholesale markets outside the Xinhua Bookstore system for the first time in all large and medium-sized cities. Some individual bookstalls began to develop store business operations on the basis of capital accumulation at the preceding stage. Some staff members and workers of the original state-owned bookstores began to contract the operation of the original state- owned bookstores according to individual business operation. This further helped civilian-run bookstores emerge. These operators of civilian-run bookstores showed a high quality and self-possession, contributed more capital, began to establish a network for connecting the groups of knowledge producers and were even involved in the planning and writing of some books. As a result, the “free salons” for intellectuals emerged in some bookstores. But on the other hand, the individual and civilian-run booksellers encountered specific difficulties in their business operations because the movement of “eliminating bourgeois ideological pollution” occurred and the slogan of “promoting material progress and ideological and cultural progress” was put forward.

6 With regard to institutional construction, the state began to use a new method of governance. The Bureau of Culture established a new “office for special business operations”. All functional departments related to market management set up a joint “office for eliminating pornography and cracking down on speculation and profiteering” under the unified leadership of the Publicity Department of the Party Central Committee and the Press and Publication Administration. This trend of development culminated because political disturbances occurred in 1989. Therefore, a group of the individual bookstalls or civilian-run bookstores involved in the political disturbances closed down.

The fourth stage started against the background of political disturbances in 1989. The political disturbances created unexpected new difficulties to individual booksellers and pedlars. But individual bookstalls and civilian-run bookstores still developed steadily at least in terms of number without serious setbacks, because their means of life was stable and development at the preceding stage played an inertial role. Soon a new round of the rapid development of the market economy impelled because Deng Xiaoping delivered talks during his visit to the South in 1992 gave a new impetus to the development of the individual and private sectors of the economy, including individual bookstalls and civilian-run bookstores. Therefore, their development entered a new stage.

The fifth stage began in 1993 and was a new one with the feature which was different from that of other stages. On condition that the number of individual and civilian-run bookstores basically remained unchanged and especially the number of individual bookstalls even decreased slightly, the quality of individual and civilian-run bookstores was raised notably. Because of economic development, standardized urban management and a sharp increase in book operating costs, a large number of the individual bookstalls which operated on streets and lanes and in small residential areas had different difficulties in their business operations, and some even began to do other businesses. But at the same time, a large number of new civilian-run bookstores emerged. Their operation scale and level were raised notably. Therefore, this poses an obvious challenge to the national knowledge governance system to some extent. This also indicates the trend of future development. In this sense, these civilian-run bookstores are different from those which appeared in the mid- and late 1980s. They can be called the second generation of civilian-run bookstores.

III. Investigation of Experience from Three Civilian-Run Bookstores

In this research, the author chooses the three civilian-run bookstores, that is, the Wansheng Bookstore, the Fengrusong Bookstore and the Guolinfeng Bookstore located in Beijing as the objects of investigation. As their common features, they have formal and large business sites, many stable book buyers and consumers and formal and standard operating ideas and system, maintain extensive and close ties with the intellectual circles and begin to conduct the comprehensive organization and operation

7 from knowledge production, distribution and consumption.

These features mean that they are the typical bookstores at the new stage of development. Because they represent new civilian-run bookstores, they not only have direct ties with the national knowledge governance system which functional government departments at all levels implement, but also maintain an extensive and close interaction. Because they become the objects of implementation of the state’s institutional arrangements for knowledge governance, the state pays more attention to these bookstores and focuses on their study. Therefore, through the analysis of these bookstores, we can clearly know that the new reality poses a challenge to the government’s policy-making and that the government makes the corresponding policy- related response.

The author mainly uses the method of in-depth interview and conducts the necessary documentary research with regard to the investigation of experience about the three civilian-run bookstores. At the same time, the author also selectively investigates and interviews some other civilian-run bookstores and individual bookstalls, so as to make comparison and ensure the accurate results of investigation. The following is introduction to the three civilian-run bookstores and the main history of their development:

The Wansheng Bookstore

It was established in September 1993, it conducted business operation on a trial basis in the same month and it formally operated on October 31. At first, it was located outside the northern wall of Beijing Institute of Technology at Beisanhuan. At the end of 1994 the proprietor of the store forced it to move out on the grounds that the rent should be increased (one-time rise of 300%) because Sanhuanlu is open to traffic. It had to move to an alley outside the eastern small gate of Beijing University. But the group of people who had become the readers of the bookstore for over one year still gave great support to it. So its operation scale did not fell but rose, and it expanded gradually. It operated meticulously, enjoyed a good reputation and produced positive operating results. Its development reached a peak from 1995 to 1997. But the operators of the bookstore found that there were no conflicts between commercial operation and cultural undertakings. So they began to consider the readjustment of its operating strategy at the end of 1997. They tried to achieve management standardization and functional specialization. They did this from March 1998.

By September 1999, the Wansheng Bookstore which was an enterprise engaged in book sales at first had become a comprehensive enterprise which dealt in books and ran other non-profit cultural undertakings. It has Guangyu Book Co., Ltd. mainly engaged in commercial operation, Wansheng-Dongfang Publication Department and the Internet bookstore which is developing. It publishes the Academic Thought Review, a periodical for reviewing cultural thought through cooperation and runs “Zhengze (Academic

8 Thought) Fund”. It has “Wansheng Bookstore” which is retained as its image and the Wansheng Reading Space, a book mail order magazine. It has three bookstores, including two bookstores outside the eastern small gate of Beijing University and a bookstore in Xidan Concert Hall. It also has a bookstore in Chongqing which is called Chongqing Wansheng Bookstore. Other undertakings, for example, Guangyu, have also independent offices. To sum up, Wansheng has the business site totaling about 4,000 square metres, including warehouses, offices and stores, fixed assets worth 2 million RMB yuan and over 60 staff members. Shortly after it was established, it had only a store with over 40 square metres, 4 staff members and capital worth 300,000 RMB yuan.

The Fengrusong Bookstore

It started business operation in October 1995. It was first established in a room between the southern big gate and the southern small gate of Beijing University. It had the registered capital worth 100,000 RMB yuan jointly contributed by its founders. It had 40 square metres and two staff members. In January 1996 Beijing University pulled down the southern wall to start new undertakings. After the construction of the “Resource Building” was completed, the Fengrusong Bookstore moved to the basement in the west. At that time, it had the reregistered capital worth 500,000 RMB yuan. It had business site totaling 860 square metres and a warehouse totaling 600 square metres. When its development reached the peak from 1997 to the first half of 1998, it had 80 staff members. Now it has still over 50 staff members.

Its operators took pains to conduct business operation. Shortly after its establishment, it purchased in bulk the academic works which had been overstocked by various publishing houses for a few years and put many newly published academic works on shelves. Its scale was the largest for a time in Beijing. In addition, it was close to the street and the school and enjoyed an advantageous location. Its readers increased with each passing day and it enjoyed a good reputation. Its development reached the peak from 1996 to the first half of 1997. This laid a foundation for its current development. After it succeeded in initial business operation, it tried to expand its business. In early 1997 it opened a wholesale bookstore in Xizhimen. In May 1997 Wangfujing Xinhua Bookstore – the largest bookstore in Beijing was pulled down, to establish a new bookstore. The Fengrusong Bookstore seized the opportunity to open a branch in Wangfujing and intended to attract the original readers of the Xinhua Bookstore to expand its strength. But its operating principles, experience, style and taste obviously failed to meet the needs of the original flowing readers who bought books at random. Although books intended for children and books on life were put on shelves, it failed to achieve positive operating results. After it suffered economic losses, in August 1998 it firmly terminated its business operation. But its operators were not willing to give up. After the project of the second-phase expansion of the Haidian Book Centre was completed, at the end of August in 1998 it opened a new bookstore called the “Wenhao Branch Bookstore” in the “Haohai Building” and planned to focus on future business

9 operation here. It concentrated on the promotion of sales in more stores and intended to expand its business operation. Shortly after it was established, because most of the books were from a branch bookstore in Wangfujing and it considered winning a good reputation rapidly, it openly announced the sharp decrease of prices to sell books. But this was strongly opposed by the Guolinfeng Bookstore, another civilian-run bookstore and other small bookstores. It debated with the Guolinfeng Bookstore. At the same time, the method of the book flow in the bookstore determined that most of the newly published academic books were from the general bookstore. Books in the Wenhao Branch Bookstore were put on shelves at a low speed, so the operating results were not satisfactory.

It revised its operating principles in early 1999. Its operators closed down the Wenyuan Branch Bookstore in Xizhimen and the Wenhao Branch Bookstore in the Haohaig Building and focused on operating the Fengrusong Bookstore.

The Guolinfeng Bookstore

Guolinfeng Book Co., Ltd. started business operation in May 1997. Because it was supported by Guofeng Company, from the very beginning it contributed large capital to independently lease the whole basement in the business building constructed in the second-phase project of the Haidian Book Centre. Its business site was 1,300 square metres. It put about 40,000 books on shelves. It also had two warehouses with an area of about 300 square metres. It had 50 staff members. In May 1999 it began to publish the Guolinfeng, a monthly magazine. Three issues of the magazine have been published so far.

Although the three civilian-run bookstores have different features, comparatively speaking, they have more in common. Generally speaking, their common features are as follows:

First, they are clear about their status and try to emphasize their cultural traits.

Second, they seek long, stable and close ties with their readers and try to play a role in catering to the readers’ tastes and likes.

Third, they seek to maintain a good interaction with the competent government departments if possible. Because of all these features, the three civilian-run bookstores are different from other bookstores.

10 IV. Research Findings and Theoretical Discussions

The main issues which are found from the previous review of history and investigation of experience and which are worth discussing are as follows:

1. Process of Development of Civil Social Organizations Represented by Individual and Civilian-Run Bookstores against the Background of Reform and Opening up

Throughout the process of the development of individual and civilian-run bookstores and this special case, we can see that the general process of the emergence and development of individual and civilian-run bookstores is closely related to the economic development and reform in the country. To be more exact, As components of the self-employed persons and privately-run enterprises, the development of individual and civilian-run bookstores is checked and restricted by the reform situation and the progress of reform. Comparatively speaking, because of the particularity of business items, the development of individual and civilian-run bookstores is even slower than the average speed of development of general self-employed persons and privately-run enterprises. From the results of investigation of experience, we can find that the basic impulse of the operators or founders of individual and civilian-run bookstores to choose jobs comes from the stimulation from institutional readjustment for “letting some people prosper” and results of this readjustment under the conditions of reform and opening up. In this sense, we can regard the emergence and development of individual and civilian-run bookstores as a “process of natural growth” which accompanies economic restructuring and which mainly originates from the impetus of national economic development.

In the “process of natural growth”, the economic restructuring which focuses on cultivating market forces and structure makes it possible for common citizens to obtain economic resources and expand scope of business, and the reform of the legal system which focuses on the legal person system recognizing private property right provides a guarantee for the economic activities and capital accumulation of common citizens. The two aspects promote the development of individual and non-state sectors of the economy. But the growth of individual and non-state sectors of the economy only provides the necessary but not sufficient conditions for the emergence of civil social organizations. In other words, these individual or privately-run enterprises or quasi- enterprises are different from state- or collectively-owned enterprises, but their operating methods and results do not necessarily result in the emergence of civil social organizations. However, under China’s existing institutional arrangements and particularly because of the gradual feature of reform and the characteristics of coexistence of old and new systems, individual and civilian-run bookstores and especially the civilian-run bookstores become civil social organizations in the process of their development. In other words, they have the features and functions of civil social organizations in the process of their development. Because this is China’s unique condition, we can call this a “special assignment process”.

11 The main reason why the “process of natural growth” and “special assignment process” simultaneously appear with regard to the Chinese individual and civilian-run bookstores is that on the one hand, as special economic sectors, they operate in the economic field and are subject to the national system of governance of economic affairs and that on the other hand, they operate in the field of knowledge production and are subject to the original national system of monopolistic governance of knowledge production and diffusion. Therefore, what occurs in the “process of natural growth” can produce special results. If we say that the economic restructuring makes it possible for common citizens to obtain economic resources and expand scope of business, this even makes it possible economically for common citizens to directly or indirectly engage in knowledge production and diffusion and causes a shock to the state monopoly which basically relies on the original system of governance in this field. If we say that the reform of the legal system provides a formal guarantee for the economic activities and capital accumulation of common citizens, this even provides a formal guarantee for their business activities, capital accumulation and expanded reproduction in the field which has been subject to state monopolistic governance and causes a shock to the formal or informal state laws and regulations which are implemented to ensure monopolistic governance in this field. In addition, there is another consequence, that is, with the deepening of economic restructuring, the original trade monopolistic organs engaged in knowledge production and diffusion which are controlled according to the state unified planning such as the Xinhua Bookstore and China Bookstore systems also enter the market. They compete with other operating units. These auxiliary organs which function as the necessary means of state governance are transformed into the operating units which lose the feature of the system of governance and which are at least semi-economic. To survive a sharp competition, they have to change their operating principles and methods if necessary and operate as individual and civilian-run bookstores do. This is especially true in remote areas or cities which first experiment with the reform.

Conflicts with the monopolistic governance system implemented by the state in the field of knowledge production and diffusion, especially the efforts to maintain the original control made by the original state governance organs and the attempts to oppose the control made by individual and civilian-run bookstores who are impelled by the various interests in their business activities constitute the complex interaction in this specific field between the state and the civil social organizations represented by individual and civilian-run bookstores.

2. Process of “Undesired Expansion” Caused by Interaction Between the Civil Society and the State

Our investigation of experience and theoretical analysis show that this complex interaction is manifested in the process of “undesired expansion”. The “undesired expansion” means that the whole process of the development and the results show that

12 all parties involved in the process participate in the process with their own intentions and obtain the results which are not anticipated and planned at every stage and the final stage. If we first simply regard this interaction as a bilateral game between one party, the state and the organs for governance of knowledge production and diffusion and the other party, individual and civilian-run bookstores which participate in business activities in this field, perhaps we can get a better understanding of the emergence and development of this “undesired expansion”.

With regard to the state and its governance organs, we can regard the behaviors of the state and its governance organs in the process of interaction as a decision-making process of making response to new problems and challenges which continue to arise, adapting to the new situation, modifying the relevant policies, laws and regulations and maintaining the original control. There have been experience research and conceptual results about the process of China’s policy-making in the academic circles. The famous results are the “totalitarianism” decision-making model which emphasizes omnipresent and omnipotent state governance,7 the “elite struggle model” which stresses that the policy-making results are based on differences, contention and compromise between the elite with different ideologies,8 and the “fragmented authoritarianism model” which emphasizes that bureaucrats in different departments proceed from the interests of their departments and affect policy-making.9 Although these models give some important information about and a keen insight into the process of China’s policy-making, the researchers we analyse slightly overestimate the initiative and foreseeability of state policy-making organs, policy-makers or some policy-makers and underestimate the randomness and changeability in the policy-making process. Therefore, perhaps the “garbage can” model10 is suitable for the object of our research. This model raises questions about the rational composition and hypotheses which are emphasized in the general policy-making models, and its supporters think that it is hard to keep to conventional ways of using the diachronic steps such as issue confirmation, object supposition, plan appraisal and final choice in practical life and especially in the time of reform. On the contrary, an “organized anarchy” is common. Its features are ambiguous and dubious object framework, undetermined and unverified policy-making technology and changeable participation of crucial behavioral subject. This state of affairs will produce the four kinds of independent “materials flow”, that is, issues, possible ways of tackling issues, participating policy-makers and opportunities to make choices. The policy-making results under this state of affairs rely on the specific combination of the four kinds of materials flow. This policy-making process is named the “garbage can” model because it is similar to the process of taking useful things from the “garbage can”.

In the process of the gradual disintegration of the national system of governance of knowledge production and diffusion, we can find that the policy-making results from lifting control in the economic field and the original knowledge governance system are obviously contradictory and that the attempts to tighten knowledge governance in the new situation are impeded by the principles of economic restructuring. Ambiguous

13 object and lack of integrated object are very obvious. The joint participation of the multilateral organs in the process, including the Publicity Department of the Party Central Committee, the Press and Publication Administration, the Bureau for Industry and Commerce, the Bureau of Culture, the Public Security Bureau and the Bureau of State Security fully shows that the participation of policy-makers is chaotic and changeable. Although the Book Distribution Department of the Press and Publication Administration is the unit in charge of professional work, the systematic management of civilian-run bookstores, the new thing is obviously lacking. Therefore, these departments have to support and affirm the development of civilian-run bookstores in public, notice the features of civilian-run bookstores which are different from those of individual bookstalls and the Xinhua Bookstore and regard civilian-run bookstores as the “one point and five channels” between the individual bookstalls and the Xinhua Bookstore.11 But at the same time, it is impossible for them to give any clear support to civilian-run bookstores in their routine management.

We should notice that the above-mentioned organs proceed from their roles and take different attitudes and policies towards civilian-run bookstores. The Press and Publication Administration takes the above-mentioned attitude. The relevant organs of the Publicity Department of the Party Central Committee take a suspicious and antagonistic attitude, although they cannot simply and completely ban the civilian-run bookstores which are very suspicious to them under the conditions of reform and opening up. The departments for industry and commerce and for taxation pay attention to tax payment made by these bookstores and legal business operations and are indifferent to political issues. The Public Security Bureau and the Bureau of State Security are mainly sensitive to possible underground protests and dissidents’ gathering and are indifferent to the routine operation of these bookstores. These are the phenomena of “policy-related loopholes are increased” or “the government capability is falling” described by people, as summarized in the “garbage can” model. In this sense, the “undesired expansion” has been basically established.

We can regard individual and civilian-run bookstores as a process of “accumulative and gradual change” and not a process of sudden revolutionary change and as a process of finally producing undesired political results under the influence of economic interests. This is mainly because the book market has different features after China’s reform and opening up. Because the books published with official financial support or approval are full of dry and dull political teachings which are divorced from actual life, there is a true market demand for the books which are unofficial, non-mainstream or do not reflect the themes of the times, including both the “soft” books which reflect the delight of life and foreign conditions and customs and the “hard” books which set forth different views. Individual bookstalls and civilian-run bookstores are very interested in the distribution and sale of these books mainly for the purpose of seeking profits. Under these circumstances, operators organize book writing and venture to pirate books published in Hong Kong and Taiwan and old pornographic books. Because of exorbitant profits, operators of individual bookstalls or civilian-run bookstores are

14 engaged in these business activities at all costs. As a result, this helps form a gigantic “second channel” or “secondary market” and even a nationwide unofficial book collecting and distributing centre. Of course, some of these business activities are not allowed according to China’s specific ideology and political system. The state certainly controls and puts a stop to these business activities.12 So both parties begin to engage in a long “seesaw battle”. In this battle, individual bookstalls and civilian-run bookstores begin to emerge as civil social organizations which resist the state power of control and means of governance.

In short, both parties participating in the process of the game featuring governance and being governed obtain undesired results.

3. Process of the Most Important Change in Governance System and Technology Which Takes Place in the Field of the Reform not Envisaged by the State

The “garbage can” model concerning the national governance policy-making in the field of knowledge production and diffusion does not mean that the original governance system and technology did not undergo any change. On the contrary, this model actually reveals the orientation for the possible change in governance system and technology under the “organized anarchy”. Our investigation of experience proves this point.13 In comparison with the monopolistic governance system and means which were implemented by the state in the field of knowledge production and diffusion over the past few years, from the investigation of experience we find that there are many changes. The following are the main changes related to the emergence and development of individual bookstalls and civilian-run bookstores:

First, governance begins to focus on the publishing houses. This is a new situation under the current conditions of the change in the book distribution system. On condition that the Xinhua Bookstore system finds it hard to maintain the original distribution network,14 the expansion of book sales network and sales volume is marginal. To be more exact, this will mainly rely on the increase of individual bookstalls and civilian-run bookstores. Of the two, civilian-run bookstores will become the hot spot for growth as urban economy develops and market conditions undergo changes. This will make governance more difficult. Therefore, the state has resolved to adhere to the original pattern of all state-owned publishing houses and not to allow publishing organs with different forms of ownership to operate in this field. The state holds that only by doing this can the state control the process of knowledge production. We can say that the management and control of publishing houses is the state’s main means to govern the process of knowledge production and even has become the last means.

Second, the method of governance shifts from political punishment to economic means. In the process of the transition to the market economy, merely relying on the use or threat of use of political punishment to ban the occurrence of out-of-control phenomena

15 and the distribution of suspicious books has been ineffective to a large extent. On the contrary, the competent government departments begin to use more means of economic punishment to warn and rectify bookstores “in violation of laws and discipline”. Therefore, the Public Security Bureau and the Bureau of State Security use economic means to handle affairs under their jurisdiction and cooperate with the departments for industry and commerce and for taxation to exercise legal governance.

Lastly, the trend of governance shifts from being active, beforehand and offensive to being passive, after-the-event and defensive.

So all these generate some lasting development and changes.

16 1Notes 1 There are numerous research documents on political socialization. Although people criticize the earlier works on political socialization, the concept and theory of political socialization advanced by Almond and others are especially applicable to modern China. A. Almond: Comparative Political Systems, Journal of Politics, 18 (August 1956), pp. 391-409 and Almond & G. B. Powell, Jr., Comparative Politics: A Development Approach, Boston: 1996, Little Brown & Co. pp. -. 2 Introduction to the Meetings on Party Publicity Work and Literature (1951-1992), compiled by the General Office of the Publicity Department of the Central Committee of the Communist Party of China, Party Central School Press, 1994, pp. 11-13. 3 Summing up Experience, Deepening Reform and Promoting the Sound Development of Book Distribution (May 16, 1994), Yu Youxian, carried in Selections of Documents on Press and Publication (1994 Volume), compiled by the Press and Publication Administration, Beijing, published by China ISBN Centre, 1995, p. 300. 4 Ditto. 5 Breakthrough in the System: Study of the Self-Employed Persons in Xicheng District, Beijing, Shi Xianmin, China Social Sciences Publishing House, 1993, pp. 34-36. 6 Ditto, p. 58. 7 Barnett, Cadre, Bureaucracy, and Political Power in Communist China, New York: Columbia University Press, 1967. 8 Pye, The Dynamics of Chinese Politics, Cambridge: elgeschladerl, Gunn & Hain, 1981. 9 Lampton, Policy Implementation in Post-Mao China, 1987, Lieberthal and Oksenberg, Policy-Making in China: Leaders, Structures and Processes, Princeton: Princeton University Press, 1988. 10 Tanner, The Politics of Lawmaking in Post-Mao China, unpublished Ph. D. Dissertation, The University of Michigan, 1991. 11 See Record of Interview 19990906 and 19990916. 12 Selections of Documents on Press and Publication) (1993 Volume), compiled by the Press and Publication Administration, Beijing, published by China ISBN Centre, 1995, pp. 478-479. 13 See Record of Interview 19990920. 14 Summing up Experience, Deepening Reform and Promoting the Sound Development of Book Distribution (May 16, 1994), Yu Youxian, carried in Selections of Documents on Press and Publication (1994 volume), compiled by the Press and Publication Administration, Beijing, published by China ISBN Centre, 1995, p. 312.