Critiques on the Weberian Model of Modernization: The Case of Chinas State Industry Reform

Abstract

Weberian model of modernization presumes that economic progress requires the replacement of traditional institutions and values with a modern burearcracy and a culture of law. Since the early 1990s, Chinese government not only introduced a variety of Western style "modern enterprise system" but also made efforts to establish a sound economic legal framework to provide the elements necessary for economic actors to carry out activities in a more market-oriented environment. However, this research shows that the introduction of impersonal market mechanism and its practices as well as the introduction of laws to support the market system have not caused the decline of informal-personal practices in China's state industry sector.