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The Chinese MafiaOrganized Crime, Corruption, and Extra-Legal Protection$
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Peng Wang

Print publication date: 2017

Print ISBN-13: 9780198758402

Published to Oxford Scholarship Online: March 2017

DOI: 10.1093/acprof:oso/9780198758402.001.0001

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Why the State Fails

Why the State Fails

Conflicts between Law and Guanxi

(p.57) 3 Why the State Fails
The Chinese Mafia

Peng Wang

Oxford University Press

Chapter 3 investigates why the Chinese government fails to provide equal, sufficient, and efficient protection to those who need it by examining the consequences of permitting guanxi—a Chinese form of social network—to coexist with the formal legal system. A detailed examination of conflicts between guanxi and the formal legal system offers a unique perspective for the understanding of why China fails to satisfy citizens’ growing demand for protection. A thorough review of the existing literature also suggests that the juxtaposition of law and guanxi does not necessarily result in a positive outcome, and demonstrates that the negative impact of guanxi practice on formal institutions results from the increasing intertwinement of guanxi practice and corruption.

Keywords:   corruption, guanxi, law, legal reform, judicial corruption, mafia emergence, property rights, social transition, state failure

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