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Blat and Guanxi: Informal Practices in Russia and China

  • Alena Ledeneva (a1)
Abstract

This paper compares informal practices used to obtain goods and services in short supply and to circumvent formal procedures in Russia and China, and assesses their changes and continuities during the market reforms. I divide my presentation into four parts. The first tackles similarities between blat and guanxi under socialism: language games and idioms that referred to these practices; similar pressures of the shortage economy that forced individuals to satisfy their needs through informal exchanges; and the contradictory role of informal practices—they supported but also subverted the socialist systems. In the second part I shift my focus to the differences between blat and guanxi that stem from different cultural traditions in the two societies. These traditions determine the moral force of reciprocity, the degree of codification of informal practices, and their legitimacy. The third part illustrates differences in market reforms in China and in Russia. Finally, I compare blat and guanxi practices as responses to these reforms and discuss both intriguing similarities and significant differences in the new forms of guanxi and blat. Thus, the post-Soviet reforms have changed informal practices so much that blat has almost lost its relevance as a term that describes the corrupt use of personal networks in contemporary Russia. In contemporary Chinese society, by contrast, guanxi has deeper roots in kinship structures and traditions, and both the term and guanxi practices continue to be important.1 The partial nature of reforms in China and the persistence of communist rule may account for some of this difference, but we must also consider a range of historical and cultural factors that shape and help reproduce informal practices.

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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

J. Berliner 1957. Factory and Manager in the USSR. Cambridge, Mass.: Harvard University Press.

T. W. Dunfee and D. E. Warren . 2001. Is Guanxi Ethical? A Normative Analysis of Doing Business in China. Journal of Business Ethics 32, 3: 191204.

Doug Guthrie . 2002. Information Asymmetries and the Problem of Perception: The Significance of Structural Position in Assessing the Importance of Guanxi in China. In, Thomas Gold Doug Guthrie , and David Wank , eds., Social Connections in China. Cambridge: Cambridge University Press, n.p.

C. Hsu 2005. Capitalism without Contracts versus Capitalists without Capitalism: Comparing the Influence of Chinese Guanxi and Russian Blat on Marketization. Communist and Post-Communist Studies 38: 309–27.

S. Michailova and V. Worm . 2003. Personal Networking in Russia and China: Blat and Guanxi. European Management Journal, 21, 4 (Aug.): 509–19.

Andrei Shleifer and R. Vishny . 1992. Pervasive Shortages under Socialism. RAND Journal of Economics 23: 237–46.

S. S. Standifird and R. S. Marshall . 2000. The Transaction Cost Advantage of Guanxi-Based Business Practices. Journal of World Business 35, 1: 2142.

Yan Sun . 1999. Reform, State, and Corruption: Is Corruption Less Destructive in China Than in Russia? Comparative Politics 32, 1: 120..

W. Y. Wang 2000. Informal Institutions and Foreign Investment in China. Pacific Review 13, 4: 525–56.

I Yeung and R Tung . 1996. Achieving Business Success in Confucian Societies: The Importance of Guanxi Connections. Organisational Dynamics 25, 2: 5465.

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Comparative Studies in Society and History
  • ISSN: 0010-4175
  • EISSN: 1475-2999
  • URL: /core/journals/comparative-studies-in-society-and-history
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