Politics in China’s Las Vegas: Political Development and Participation in the Macao Special Administrative Region Eilo YU Wing-yat Department of Government and Public Administration University of Macau (This paper is from the research project entitled “Social Groups and Organizations in Macao: Formal and Informal Politics” funded by the Research Committee, University of Macau, Cativo No.: 2495. This is a draft, please do not quote.) 1 Introduction The development of Macao has attracted international attention since its return to motherland China in 1999. Before the handover, Macao suffered an economic recession; for example, the GDP showed negative growth in 1998 and 1999, -7.8 percent and -4.2 percent, respectively.1 Due to the Asian Financial Crisis, the number of tourists to Macao dropped dramatically. 2 The gaming industry, which is the major sector of Macao’s economy, encountered difficulties in the casino business. Gangster fights and violence were triggered because of the vested interests from lucrative casinos and VIP rooms.3 Consequently, stability was under fire as bombs and assassinations were taken into the streets. The poor economy was perceived as the source of Macao’s instability before the handover; thus, the MSAR government urged economic revitalization as a way to retain and maintain territorial stability. On one hand, the Macao government decided to liberalize the gaming industry by introducing three gambling concessions for the operation of casinos. That measure broke the 3-decade monopoly of the Socidade de Turismo e Diversões de Macau (STDM). The government believed that competition would encourage the gaming industry market and contribute to Macao’s rapid economic growth. On the other hand, the central government of the People’s Republic of China (PRC) has allowed many more mainlanders to travel to Macao after the handover that stirred the region’s economic development.4 Since 2002, Macao’s economy has enjoyed double-digit growth,5 which in 2003 reached 30 percent. In 2006, Macao’s GDP per capita surpassed that of Hong Kong, and its gambling income outstripped the Las Vegas Strip, up to 6.99 billion US dollars. Macao can be deemed a Las Vegas in China and will probably become the greatest gaming city in the world in terms of gambling volume. Many people believed that Macao’s amazing economic growth would ease the socioeconomic difficulties of the masses and thereby attribute to social harmony. 1 See the website of the Statistics and Census Service, MSAR government, available at http:// http://www.dsec.gov.mo/index.asp?src=/chinese/indicator/c_pib_indicator.html Date of access: 9 October 2007. 2 In 1997 and 1998, there were -14.1 percent and -0.7 percent drops in tourists traveling to Macao, respectively. See the website of the Statistics and Census Service, MSAR government, available at http://www.dsec.gov.mo/index.asp?src=/chinese/indicator/c_tur_indicator.html Date of access: 9 October 2007. 3 For a discussion on gangster fights and violence due to casino interests in Macao before the handover, please see Lo Shiu-hing, “Gambling and Organized Crime: Towards the End of the Stanley Ho Connection?” China Perspectives, No. 26 (Nov./Dec. 1999), pp. 56-65. 4 According to Antonio Ng, a legislator of MSAR, many more tours were allowed by the central government just after the handover in order to sustain the economy of Macao; personal interview with Ng, 16 November 2004. On the other hand, Beijing introduced the individual travel policy in June 2003, which said that mainlanders no longer needed to visit Hong Kong and Macao by joining travel tours, but could make their private trips to the two SARs by applying for individual travel certificates from the mainland authorities. As a result, the number of mainland travelers to Macao increased drastically and Macao’s economy received a boost. 5 See the website of the Statistics and Census Service, MSAR government, available at http:// http://www.dsec.gov.mo/index.asp?src=/chinese/indicator/c_pib_indicator.html Date of access: 9 October 2007. 2 However, rapid economic growth brought greater social discontent in the MSAR. Demonstrations and protests had not been prevalent in Macao society in the past. However, they have recently been organized more frequently, and they tend to be confrontational against the authorities. The two May 1 demonstrations in 2006 and 2007 marked the public’s anger against the government over the rapidly changing socioeconomic circumstances. Paradoxically, economic development did not help social harmony and stability improve in Macao’s case; instead, it intensified social conflict. In Chinese society, many people believe that economic development is conducive to social and political stability. However, the situation in Macao disproves this typical Chinese belief. Why should Macao suffer such instability as a result of the breathtaking economic development after the handover? What elements contribute to the unrest in Macao’s society? This paper will adopt Huntington’s theory on political modernization to explain the phenomenon of instability in Macao. According to Huntington, rapid economic development will bring instability, rather than contribute to stability in a modernizing society. Drastic economic development comes with rapidly changing sociopolitical circumstances in a developing society because new social and political forces emerge and challenge the authorities, which are monopolized by a small group of elite.6 The political institutions are not strong and well enough organized to accommodate sociopolitical demands from the masses. Political confrontation, disorder, and instability will be the result.7 This paper delineates why and how rapid economic growth is linked to the instability in Macao society, along with the political challenges from the new social and political forces encountered by the MSAR authorities. It argues that Macao society is on its way to modernization—urbanization, rapid economic development, and an increasingly educated population. The traditional political institution, which is a closed system and restricted to a minority power elite, is incapable of handling new social and political demands from residents. Social harmony suffers and instability results. This paper will conclude that to cope with instability in the wave of modernization, the MSAR has to steer the process of political modernization and institutionalization in a way that accommodates the demands of mass participation in the regime. Rapid Economic Development vs. Political Modernization According to Mancurr Olson, Jr, rapid economic growth:8 1. “disrupts traditional social groups (family, class, caste), and thus 6 Samuel Paul Huntington, Political Order in Changing Societies (New Haven and London: Yale University Press, 1968), p. 4. 7 Ibid., p. 5. 8 Mancur Olson, Jr, “Rapid Growth as a Destabilizing Force,” Journal of Economic History, vol. 23 (Dec. 1963), p.532; citied from Ibid., p.49-50. 3 increases the number of individuals who are declass … and who 2. 3. 4. 5. 6. 7. 8. 9. are thus circumstances conducive to revolutionary protest.” produces nouveaux riches who are imperfectly adjusted to and assimilated by the existing order and who want political power and social status commensurate with their new economic position; increases geographical mobility which again undermines social ties, and, in particular, encourages rapid migration from rural areas to cities, which produces alienation and political extremism; increases the number of people whose standard of living is falling, and thus may widen the gap between rich and poor; increases the incomes of some people absolutely but not relatively and hence increases their dissatisfaction with the existing order; requires a general restriction of consumption in order to promote investment and thus produces popular discontent; increases literacy, education, and exposure to mass media, which increase aspirations beyond levels where they can be satisfied; aggravates regional ethnic conflicts over the distribution of investment and consumption; increases capacities for group organization and consequently the strength of group demands on government, which the government is unable to satisfy. Olson’s indication has demonstrated that rapid economic development leads to social mobilization, which generates new political demands from the community toward the authorities. Social mobilization refers to a process in which “major clusters of old social, economic, and psychological commitments are eroded or broken, and people become available for new patterns of socialization and behavior.” 9 In other words, social mobilization means the change in societal attitudes from old and traditional values to the standards of modern society. Economic development improves literacy and education, and the emerging nouveaux riches demand their rights in the political institutions from which they are currently excluded. At the same time, other sectors of the population will suffer from rapid economic growth, and therefore, income inequality will become a serious problem. Although some people may enjoy an absolute increase of income, their purchasing power will decline because of inflation. In a society that is undergoing socioeconomic modernization, inequality is prevalent in that the power elite manipulates, if not controls, the mechanism of resource distribution. These inequalities Karl W. Deutsch, “Social Mobilization and Political Development,” American Political Science Review, vol. 55 (Sept. 1961), p. 494; cited from Ibid., p. 33. 9 4 in resource distribution will become obvious. Furthermore, social mobilization refers to a shift in the majority’s attitude towards corruption. Paternalism was prevalent in pre-modern society, and the masses might have paid more attention to government performance and policy outcomes than to the decision process. Dynamics between authorities and the power elite, which might have involved unethical trading and corruption, were given less heed. Perhaps the general population’s conceptions about these unethical phenomena were vague. However, social mobilization will inspire a public outcry against corruption and other unethical behavior in the polity.10 It frees individuals’ dependencies on patrons and authorities and drives the human spirit for self-actualization.11 As those who have suffered under economic development become inspired to participate in the regime and fight for their interests, they make new demands on the authorities.12 The authorities are pressured to institutionalize the polity and extend opportunities for mass participation in the policymaking process. The goal is for the public to be able to influence and determine government policy for the sake of the general interest. In sum, the disruptive effects of social and economic modernization on political institutions are twofold. 13 First, new social classes emerge because of socioeconomic development; they tend to be independent from authorities and patrons and try to challenge the old, traditional leaders. Second, new values and norms are nurtured and confront the old ones. Conflicts between traditional and new, emerging groups will intensify, accompanied by the inevitable political struggles.14 As a result, demands for political participation will be encouraged as the inspired masses become more independent from the authorities and mobilize to fight for their own interests. If the political institutions do not have the capacity to facilitate channels for public participation, the populace will become more confrontational and challenge authorities outside of the institutions. Hence, these circumstances will lead to political instability. In other words, if the political demands generated because of social mobilization cannot be accommodated into the political institutions with sufficient channels for participation, people will become frustrated. They will distrust the traditional institutions, which are dominated by power elite. Thus, they will mobilize politically and confront the authorities. The result is that social harmony will be undermined. Huntington further argued that the political decay of institutions could 10 Robert N. Kearny, Politics and Modernization in South and Southeast Asia (Cambridge: Schenkman Publishing, 1975), pp. 3-4. 11 Scott C. Flanagan and Lee Aie-Rie, “Value Change and Democratic Reform in Japan and Korea,” Comparative Political Studies, vol. 33, no. 6 (June 2000), pp. 632-633. 12 Samuel Paul Huntington, Political Order in Changing Societies (New Haven and London: Yale University Press, 1968), p. 57. 13 Ibid., pp. 37-39. 14 Claude Ake, “Modernization and Political Instability: A Theoretical Exploration,” World Politics, vol. 26, no. 4 (July 1974), p. 583. 5 occur if authorities fail to respond to pressure for political reform. He remarked Modernization and social mobilization, in particular, thus tend to produce political decay unless steps are taken to moderate or restrict their impact on political consciousness and political involvement. Most societies, even those with fairly complex and adaptable traditional political institutions, suffer a loss of political community and decay of political institutions during the most intense phases of modernization.15 In other words, if social frustration cannot be eased in rapid economic development, it will generate a demand for political participation.16 Political modernization will be propelled by rapid economic development. Political institutions are expected to open to mass participation; otherwise, political instability and decay will be the consequences. To Huntington, the polity has to be institutionalized in order to cope with political demand and participation in the wave of modernization. He indicated that political institutionalization involves four elements: adaptability, complexity, autonomy, and coherence.17 First, adaptability refers to the ability of the organization to respond to the changing environmental circumstances. Organizational procedures, as well as management, can change correspondingly to cope with environmental demands and the higher level of institutionalization. Second, the more complicated organizational structure means its capacity to deal with various demands from society. Third, organization has to be independent from various social and political forces. In other words, the authorities should not pay excessive attention to particular social groups or forces when making policy.18 Fourth, organizational coherence means the unity of institutions that resolve problems and disputes. Institutions must be unified during modernization in order to deal with complex social demands and interests. The disarticulation of various units inside government institutions undermines their capacity to deal with the many social demands that arise due to socioeconomic modernization. Organizational coordination is crucial and must be enhanced within the government.19 In sum, the institutionalization of the governing body has to achieve an open, transparent, fair, and coherent organization that accommodates the demands for public participation. In this way, the government will be able to resolve the disputes and conflicts that result from socioeconomic modernization. 15 16 17 18 19 Ibid., p. 86. Ibid., p. 54. Ibid., pp. 12-24. Ibid, p. 20. Ibid., p. 23. 6 Macao’s Rapid Economic Development and Social Mobilization After its return to the motherland in 1999, Macao has experienced rapid economic growth. Between 1996 and 1999, during the years just before the handover, Macao’s economy was stagnant and experienced negative growth (see Table 1). Due to the Asian Financial Crisis, the number of travelers to Macao dropped significantly and the casino business suffered. Gangsters fought for their interests in casinos, and gangland violence triggered a governance crisis for Portuguese rulers. Politically and economically, Macao society went through a rough patch during the late transition. Table 1: Number of Mainland and Hong Kong Travelers to Macao and their Per Capita Spending in Macao, 1996-2006 Overall Mainland Hong Kong No. of Annual Travelers Growth No. of Travelers* Per Capita Spending No. of Travelers* Per Capita Spending (Million) Rate (Million) (MOP) (Million) (MOP) 1996 8.2 5.1% 0.6(7.4%) 5.2(63.9%) 1997 7.0 -14.1% 0.5(7.6%) 4.7(67.2%) 1998 6.9 -0.7% 0.8(11.6%) 2896 4.7(68.0%) 884 1999 7.4 7.1% 1.6(22.1%) 2661 4.2(56.8%) 386 2000 9.2 23.1% 2.3(24.8%) 2401 5.0(54.1%) 934 2001 10.3 12.2% 3.0(29.2%) 2648 5.2(50.6%) 937 2002 11.5 12.2% 4.2(36.8%) 2655 5.1(44.2%) 957 2003 11.9 3.1% 5.7(48.3%) 2847 4.6(38.9%) 947 2004 16.7 40.2% 9.6(57.2%) 2991 5.1(30.3%) 969 2005 18.7 12.2% 10.5(55.9%) 3078 5.6(30.0%) 898 2006 22.0 17.6% 12.0(54.5%) 3215 6.9(31.6%) 955 2007 27.0 22.7% 14.9(55.2%) 3142 8.2(30.4%) 1078 Note: ‘*’ The number in parenthesis is the portion of Mainland/Hong Kong travelers out of the total number of travelers to Macao. Source: The website of Statistics and Census Service, MSAR government which is available at “http://www.dsec.gov.mo/index.asp?src=/chinese/indicator/c_pib_indicator. html”. Date of access: 4 March 2008. Nevertheless, the Chinese government introduced various measures that contributed to the prosperity of the MSAR after the handover. On one hand, the People’s Liberal Army (PLA) was deployed to Macao to help maintain the public security and keep order when necessary. Antonio Ng Kuok-cheong, a legislator of MSAR, indicated that the gangsters were pressured and stopped their fights on the street 7 because of the PLA’s threatened maneuvers.20 Indeed, the gangster war disappeared after the handover, and public order was recovered in Macao society. On the other hand, the central government introduced policies that were favorable for the revitalization of MSAR’s economy. For instance, it allowed an increasing number of mainland tourists to visit the territory. Before the handover, less than a million mainlanders traveled to Macao annually. However, the number of travelers from the mainland rose drastically after the handover. When the Chinese government introduced the scheme for individual travelers and allowed mainlanders to visit Hong Kong and Macao without joining organized tours in 2003, the mainland become the dominant source of visitors to Macao (see Table 1). The number of mainland visitors to Macao has increased from 2005 onwards; in that year, it reached over 10 million. Importantly, mainland visitors outspent travelers from other regions of origin (see Table 1). Furthermore, the extension of casino franchises in 2001 has been beneficial for Macao’s economy. The liberalization of the gaming industry has attracted foreign capital investments in Macao. For example, the American Venetian and Wynn groups received concessions for casino operation and invested in the gaming and tourism sectors in the territory. The gaming industry became the dominant economic sector that contributed half of Macao’s GDP (see Table 2). In addition, over half of the government revenues came from the gaming tax (see Table 3). The gaming industry has become the backbone of Macao’s economy, the means for stimulating rapid economic growth, and the main sector that contributes financially to the MSAR government. Macao’s economy enjoyed remarkable growth along with the boom in its gaming industry. The employment situation also improved significantly as the unemployment rate dropped from 6.8 percent in 2000 to 3.8 percent in 2006 (see Table 4). At the same time, employees enjoyed better wages. The median monthly income of Macao residents increased from MOP$4,914 in 1996 to MOP$6,701 in 2006, a 36.4 percent growth. At the end of 2007, the unemployment rate dropped further to 2.9 percent as the median monthly income rose to over MOP$7,900.21 The liberalization of the gaming industry not only helped revitalize Macao’s economy by absorbing foreign direct investment, but the economic miracle also bolstered the legitimacy of Chief Executive Edmund Ho’s first term in governing the MSAR. 20 According to Ng, local gangsters worried about their vested interests in Macao and the Mainland that might be affected by the possible maneuvers of the PLA and Beijing. Therefore, they halted their fights in the street. Personal interview with Ng, 6 November 2004. 21 Macao Daily News, 28 February 2008, A12. 8 Table 2: The GDP of Macao, 1996-2006 GDP (Billion MOP) GDP Per Capita (Thousand MOP) GDP Contributed from Gaming Industry (Billion MOP) 1996 52.8 (1.0%)* 127.2 - 1997 53.2 (0.8%)* 127.6 - 1998 49.4 (-7.3%)* 116.9 - 1999 47.3 (-4.2%)* 110.6 - 2000 49.0 (3.6%)* 113.7 - 2001 49.7 (1.5%)* 114.5 - 2002 54.8 (10.3%)* 125.1 22.8 (41.6%)# 2003 63.6 (16.0%)* 142.8 29.5 (46.4%)# 2004 83.0 (30.5%)* 181.6 43.5 (52.4%)# 2005 92.9 (12.0%)* 195.2 47.1 (50.7%)# 2006 114.4 (23.0%)* 227.5 57.5 (50.3%)# Note: ‘*’ The number in parenthesis is the annual GDP growth rate. “#” The number in parenthesis is the percentage of gaming income to the GDP. Source: The website of Statistics and Census Service, MSAR government which is available at “http://www.dsec.gov.mo/index.asp?src=/chinese/indicator/c_pib_indicator.html”. Date of access: 9 October 2007. Table 3: MSAR Government Revenue, 2001-2006 Government Revenue (Billion MOP) Government Revenue from Gaming Tax (Billion MOP) 2001 15.6 6.3 (40.4%) 2002 15.3 7.8 (50.9%) 2003 18.4 10.6 (57.6%) 2004 23.9 15.2 (63.5%) 2005 28.2 17.3 (61.3%) 2006 37.2 20.7 (55.6%) 2007 40.7 29.3 (72.0%) Source: The data between 2001 and 2006 are from the Macao Statistics Yearbook, various years. The 2007 figure is from the website of the Finance Service Bureau, MSAR Government: “http://www.dsf.gov.mo/Con_Pub/c_ConPub_Fs.htm”. Access Date: 4 March 2008. 9 Table 4: Macao’s Unemployment Rate and Median Monthly Income, 1996-2006 Unemployment Rate Median Monthly Income (MOP) 1996 4.3% 4,914 1997 3.2% 5,221 1998 4.6% 5,050 1999 6.3% 4,920 2000 6.8% 4,822 2001 6.4% 4,658 2002 6.3% 4,672 2003 6.0% 4,801 2004 4.9% 5,167 2005 4.1% 5,773 2006 3.8% 6,701 Source: The website of Statistics and Census Service, MSAR government which is available at “http://www.dsec.gov.mo/index.asp?src=/chinese/indicator/c_pib_indicato r.html”. Date of access: 9 October 2007. Indeed, Edmund Ho’s administration enjoyed a fruitful period in ruling the MSAR during his one-and-a-half terms. Its success in liberalizing the gaming industry revitalized the economy of Macao and legitimized the rule of the MSAR government. However, the revitalization of Macao, along with the growth of the gaming industry, triggered new challenges for the ruling authorities. Demonstrations and protests took place more frequently in Ho’s second term. The two May 1 demonstrations in 2006 and 2007 signified the public discontent with ruling authorities. Thousands of residents participated in these demonstrations that were radically provocative against the authorities. The police-demonstrator confrontations turned to chaos. A gunshot from a policeman in the 2007 Labor Day demonstration marked the MSAR government’s failure to manage public grievances and the rising grudge against authorities. 22 Disregarding their patriotic sentiments, thousands of Macao residents demonstrated on the anniversary day of Macao’s handover to the PRC, and on the National Days in 2006 and 2007. Paradoxically, just as Macao began to enjoy incredible economic development with better job opportunities and salaries, the general public became critical and confrontational with authorities. 22 In the demonstration, the protesters were urged to walk through the central business and tourist areas. The police forces tried to stop them out of fear that the demonstration would disrupt business activities. Finally, the marchers clashed against the police roadblock and a policeman opened fire to halt the procession. 10 The various demonstrations in 2006 and 2007 reflected the growing social frustration triggered by rapid economic development. Macao residents encountered problems and difficulties spurred by rapid economic growth. On one hand, many felt that the environment had worsened and the quality of life had decreased. For instance, economic development brings environmental pollution. The various gambling licensees invested in numerous casino and hotel projects; many construction sites appeared in the Macao territory and brought air and noise pollution. Moreover, the neon light displays of the casinos created light pollution. In addition, the transportation system could not keep up with the economic growth. Neither the road system nor the public transportation system had the capacity to fulfill the proliferating demands. People complained that buses and taxis were never available during serious traffic jams; yet the flood of tourists generated tremendous demands and burdens for public transportation. Many newly rich residents bought their own vehicles to ease their transportation needs. A vicious cycle in the transportation system was observed as a result. Residents also complained that casinos and slot machine shops had penetrated into the residential areas, becoming menaces to public order and sowing the seeds of gambling problems in the local community. Undoubtedly, Macao residents encountered challenges and problems in the face of rapid economic development. In another area, although many Macao residents enjoyed better incomes and salaries in the booming economy, others found that they did not benefit from the boom. Workers in the labor class complained that they still could not found jobs. They alleged that the companies tried to import labor; some recruited mainlanders to work illegally in Macao because their pay was lower. The local labor force grumbled that they were only substitutes for migrant workers. 23 Once a company applied for import labor from elsewhere, it would probably lay off the local people. Indeed, many local laborers participated in the 2006 and 2007 demonstrations and voiced their grievances about unemployment. Furthermore, economic development set off high inflation rates. The property market experienced a hyper rise of prices. Although many residents had absolute increases in their incomes, they could not afford to buy their own apartments. In addition, many small and medium-sized enterprises also suffered during rapid economic development as they encountered the problem of wage increases. The casinos could provide higher pay to attract personnel, but the smaller businesses were financially incompetent. At a result, they could not recruit the appropriate people to fill vacancies. Many business owners also contended that they could not receive import labor quotas, as most were granted to big corporations.24 Finally, some owners decided 23 The author talked to many demonstrators who were from the labor class in the May 1 and October 1, 2007 demonstrations. Many of the protesters complained about the import labor policy of the MSAR government, as well as its incapability to fight against importation of illegal workers. 24 Macao Daily News, 16 November 2006, A3. 11 to end their businesses because they lacked human resources. Despite the fact that economic development helped improve the income of some people, many Macao residents failed to benefit. According to the Macao Quality of Life Survey conducted by the University of Macau, the University of Hong Kong, and the Chinese University of Hong Kong in 2005, most residents were not happy with various social phenomena such as income inequality, juvenile delinquency, problem gambling, drug abuse, and prostitution.25 The survey result indicated that only 28.5 percent of the respondents felt satisfied with their quality of life; the majority (61.2 percent) only considered it a fair situation.26 In other words, most Macao people did not really feel that their lives had improved to the level of satisfaction. Rapid economic development created new problems in society; these included inflation, hyper rise of property prices, transportation problems, and income inequality. Interestingly, the emerging middle class tended to be less happy with the changing circumstances. Respondents from younger generations, as well as those with better educations, shared lower satisfaction ratings of their quality of life.27 In addition, they were less satisfied with the MSAR government’s performance, corruption, social fairness, and inequality.28 Similarly, the lower class was less satisfied with their quality of life compared with other social classes; they were also dissatisfied with the level of social fairness and inequality.29 Although the emerging middle class may have enjoyed better income salaries, they encountered other social problems that the government did not tackle. As with the lower class, the entire middle class may not have benefited—and some possibly even suffered—from Macao’s economic development; they also considered that they were not treated equally and fairly by the authorities. Public satisfaction with the MSAR government may have been attributed primarily to economic achievements. However, the unresolved social problems could intensify social conflict and become a time bomb for the explosion of social unrest, hence wounding the governance of MSAR. With the growth of the economy, Macao residents tended to have higher expectations for the government to solve the various social problems. However, the 25 In the 2005 Quality of Life Household Survey, Wan, Wong, and Law indicated that over half the respondents showed their dissatisfaction with these phenomena in Macao society. See Wan Po-san, Timothy Wong, and Law Wing-kin, “Shehui Suzhi (Quality of Society),” in Wong Siu-lun, Yeung Yue-man, Wan Po-san, and Zheng Wan-tai, eds., Aomen Shehui Shilu: Cong Zhibiao Yanjiu Kan Shenghuo Suzhi (The Reality of Macao Society: Understanding Quality of Life with Social Indicators; Hong Kong: Asia-Pacific Institute, Chinese University Press, 2007), p. 48. 26 Ibid., p. 39. 27 Ibid., p. 43. 28 Ibid., pp. 43-45. 29 In Wan, Wong, and Law’s survey, they used a 5-point scale (1 is very dissatisfied, 2 is dissatisfied, 3 is fair, 4 is satisfied, and 5 is very satisfied) to measure public satisfaction regarding various issues. The average scores from the lower class respondents were 2.88 and 2.62 on the questions of social fairness and social inequality. Ibid. 12 MSAR political institutions seemed to lack the capacity to meet such demands. As a result, public grievances stirred political participation, and people took to the streets to fight for their interests and demands. In the past, Macao society had always been associated with the concept of social harmony. Residents tended to avoid confrontation with the authorities. Their goal was to maintain stability, and they believed that a stable society was conducive to economic development. In various studies, Yee and his colleagues adopted the categorization developed by Gabriel Almond and Sidney Verba30 to measure the mass political culture in Macao. Yee et al. argued that the majority adhered to “subject” type: minimal participation, in which citizens were both aware of public and government affairs and subject to the output of government institutions.31 People in Macao did not actively participate in politics; they tolerated, if not accepted, a paternalistic government. In their various studies on Macao’s political culture, Yee et. al. consistently argued that residents in Macao have always felt politically powerless and considered themselves incapable of influencing government policy. 32 To ease the problems of daily life, many residents relied on services provided by social groups and their own personal networks with authorities.33 However, it should be noted that the political inactivity of people in Macao does not necessarily imply their satisfaction with the region’s political system and institutions. In their 1991 and 2006 surveys, Yee et. al. indicated that 30 percent of the respondents always expressed dissatisfaction with Macao’s political and legal systems.34 In addition, Macao’s residents have been socialized politically by the Hong Kong mass media.35 Many people in Macao read Hong Kong newspapers and watch TV news reports from that region. The Hong Kong mass media have been trying to play the role of watchdogs of the government. In the Tung Chee-hwa regime, the Hong Kong 30 For a discussion of Almond and Verba’s categorization of political culture, please see Gabriel A. Almond and Sidney Verba, The Civic Culture: Political Attitudes and Democracy in Five Nations (Princeton: Princeton University Press, 1963). 31 Yee and other scholars conducted surveys in various years to measure the political culture of Macao’s people. See Herbert S. Yee, Liu Bolong, and Ngo Tak-wing. “Macau’s Mass Political Culture,” Asian Journal of Public Administration, vol. 15, no. 2 (1993); Herbert S. Yee, “Mass Political Culture in Macau: Continuity and Change.” Issues & Studies, vol. 35, no. 2 (1999); Herbert S. Yee and Liu Kwok-man, “Dazhong Zheng zhi Wenhua (Mass Political Culture),” in Wong Siu-lun, Yeung Yue-man, Wan Po-san, and Zheng Wan-tai, eds., Aomen Shehui Shilu: Cong Zhibiao Yanjiu Kan Shenghuo Suzhi (The Reality of Macao Society: Understanding Quality of Life with Social Indicators; Hong Kong: Asia-Pacific Institute, Chinese University Press, 2007). 32 In their three surveys on Macao political culture, Yee et al. reached a similar conclusion that Macao’s people were politically inactive and felt powerless to influence the government. 33 Personal interview with Leong Kam-chun, a legislator in colonial Macao, 22 January 2005. 34 Herbert S. Yee and Liu Kwok-man, “Dazhong Zheng zhi Wenhua (Mass Political Culture),” in Wong Siu-lun, Yeung Yue-man, Wan Po-san, and Zheng Wan-tai, eds., Aomen Shehui Shilu: Cong Zhibiao Yanjiu Kan Shenghuo Suzhi (The Reality of Macao Society: Understanding Quality of Life with Social Indicators; Hong Kong: Asia-Pacific Institute, Chinese University Press, 2007), p. 304. 35 Sonny Lo Shiu-hing and Herbert S. Yee, “Legitimacy-Building in the Macau Special Administrative Region: Colonial Legacies and Reform Strategies,” Asian Journal of Political Science, vol. 33, no.1 (June 2005), p. 57. 13 government encountered problems due to various crises. The media reported the public criticisms and demonstrations against the authorities and tried to make the government become more accountable to the public. The appearance of the Hong Kong media cultivated the political sensibility of Macao audiences and encouraged the latter to voice their demands through political participation. Therefore, Macao residents were spurred to become more politically active because of their own inclinations toward public grievances, as well as from the cultivation by the Hong Kong media. Learning from their Hong Kong counterparts, people in Macao began to raise their concerns regarding the openness, fairness, transparency, and accountability of the government. Rapid economic development has created new problems and challenges for Macao’s population. They have not adapted to the changing environmental circumstances and have higher expectations of the government concerning their livelihood issues. They have become cautious toward the internal governmental resource distribution mechanism, which was a nontransparent, relatively closed system. Many people in Macao argued that the system was biased in favor of the power elite and those who maintained good relationships with them. The Ao Man-long case reinforced public perceptions about the corruption of government officials at both the grassroots and senior levels. Ao, the former Secretary of Transportation and Public Works, was arrested for taking bribes from land developers and government project contractors. In the court trails, officials responsible for land projects and government project tenders indicated that their superiors, who were instructed by Ao, required them to adjust the grading of particular bidders arbitrarily so that the latter could win contracts on government projects. Ao’s case shed light on the huge amount of bureaucratic discretion and the lack of proper institutional mechanisms for checks and balances within the Macau government. In another example, the Audit Commission of the MSAR investigated the financial accounts and management of the Organizing Commission of the East Asian Games. This commission was fully funded for the 2005 East Asian Games in Macau by the MSAR government. The Audit Commission alleged that various malpractices by the Games’ organizer resulted in serious over-budgeting problems. According to the Commission’s report, the overall expenditure for the Games was MOP$4.4 billion, 50.6 percent over the budget. Moreover, the Games’ organizer was found to have wasted governmental resources. Many facilities for the Games had to be reconstructed due to the poor quality of the original designs. Some people argued that the reconstruction work would provide opportunities for contractors to make extra money. Indeed, the public generally perceived that the power elite took advantage of governmental institutions for their own benefit, while the masses suffered from various social problems due to rapid economic development. Thus, they began to spotlight the problems inherent in governmental institutions in attempts to foster fair and equal 14 mechanisms for distributing public resources. As stated above, the rapid economic growth in Macao and its attendant social problems have prompted the social mobilization of its citizens. At the same time, their Hong Kong counterparts, who tended to be critical toward the authorities, encouraged their participation in the protests. The general population in Macao became more active in influencing government processes. Macao’s Institutional Deficiency and Political Participation Macao’s political institutions have been plagued by performance problems since the colonial era. The civil service has always been criticized for its inefficiency and poor quality of service. On one hand, the quality of many civil servants was questionable, as nepotism and the influence of personal relationships were obvious within the bureaucracy.36 The Portuguese tried to appoint their friends and supporters in reward for political support. A merit system has not yet been established in Macao’s civil service, and many workers are poorly educated. On the other hand, government officials retain huge discretionary powers and are subject to fewer checks and balances from external bodies. Choy has argued that corruption became part of the daily activities in the colonial Macau bureaucracy. 37 Performance problems and bureaucratic irregularities were not eased; instead, they were automatically transferred to the MSAR government. Unfortunately, the performance of the MSAR government has suffered further due to the inexperience of its officials. In the colonial government, Portuguese officials occupied all senior positions. Macanese, who are hybrids of Portuguese and Chinese, filled the middle-ranking posts. Local Chinese citizens merely worked within the lower governmental levels.38 The Portuguese authorities accelerated the localization of civil service and promoted more local Chinese to higher ranking levels in the late transition. As a result, many low-ranking Chinese officials were promoted to senior positions to fill the vacancies left by the Portuguese, years before the handover. However, many of them did not have sufficient management experience to operate the administration. For instance, the MSAR authorities explained that the malpractice and over-spending in the East Asian Games was primarily due to the inexperience of officials. The MSAR government administration has encountered problems of quality among civil service workers, many of whom were poorly educated and lacked proper training and experience. The problems have been further compounded because a system 36 Lo Shiu-hing, Political Development in Macau (Hong Kong: Chinese University Press, 1995), pp. 120-127. 37 Choy, Chi-keung, “Guoduqi Aomen de Gonggong Xingzheng” (Macau’s Public Administration during the Transition Period), in Herbert Yee, ed., Aomen: Chaoyue 99 (Macau: Surmounting 99; Hong Kong: Guang Jiao Jing, 1993), p. 59. 38 Herbert Yee, Macao in Transition: From Colony to Autonomous Region (New York: Palgrave, 2000), pp. 41-56. 15 for checks and balances has not yet been established to regulate bureaucratic behavior. Furthermore, the MSAR government institutions are disarticulated, rather than being internally coherent; they also lack the capacity for interdepartmental cooperation and coordination. The protection of sightlines around the Guia Fortress is an example. Virtually no communication existed between the Cultural Affairs Bureau and the Land, Public Works, and Transport Bureau to balance land development initiatives with the protection of Macau’s World Heritage. The latter approved a land project to erect skyscrapers that would probably block the view of the Guia Lighthouse, part of Macau’s World Heritage. The Cultural Affairs Bureau, which is responsible for watching over Macau’s World Heritage, did not interfere with the event until the civil society generated tremendous noise against the project and complained to the United Nations. The event proved that the two departments did not coordinate to protect Macau’s World Heritage. In another instance, the Labor Affairs Bureau, Judiciary Police, and Gaming Inspection and Co-ordination Bureau failed to cooperate in a fight against the phenomenon of illegal workers in casinos. Although each of the three departments has jurisdiction, they passively resisted enforcing the law in the casinos and instead tried to shift the responsibility to the others. In addition, the Civic and Municipal Affairs Bureau, Land, Public Works, and Transport Bureau, and Public Security Police Force should share the task of improving the traffic situation. However, transportation issues continue to worsen as the three departments fail to cooperate. The promotion of the new Road Traffic Law is another example that illuminates the incoherence within governmental institutions. Various departments and units have different interpretations of the new law that managed illegal parking.39 Departments are able to ignore the existing institutional regulations and develop their own administrative practices. Obviously, the Macau government has been burdened with problems of parochialism and ethnocentricity, in that departmental communication and cooperation are not channeled to improve performance. Politically, the Macao government was heavily dependent on informal politics, which emphasized interpersonal networks, to rule the territory. No political party exists in the polity. Instead, social groups have been the key actors in the informal politics.40 39 It is noted that many Macao residents did not pay fines for tickets for illegal parking because there were no penalties or sanctions for their failure to pay ticket fines. However, the MSAR government introduced the new Road Traffic Law on 1 October 2007, which stated that residents could no longer renew their vehicle licenses if they failed to clear their fines for parking tickets. Many questioned whether this measure would only apply for those tickets issued after the implementation of the new Road Traffic Law; or if it meant that all parking tickets had to be counted, no matter when they were issued—before or after the new Law. However, the authorities had different explanations. The police forces only mentioned that drivers had to clear the fines for all their tickets, which could be interpreted as that tickets issued before and after the new Law would be counted. Some legislators explained that the legislation was only effective for tickets issued after the new Law. Yet, there was no united view on the new Law by the authorities. 40 Herbert Yee, Macao in Transition: From Colony to Autonomous Region (New York: Palgrave, 2000), p. 16 Some traditional patriotic organizations have built up networks inside the government, as well as at the grassroots level, since the colonial era. Particularly, to an extent, they substituted for the role of government and served residents at the grassroots. During the colonial era, the Macao Chinese community depended on the various social services provided by pro-Beijing groups, as the colonial government tried to pay a minimal role in society. Their middleman role between government and the local Chinese community was legitimized because of their substantive social and grassroots works. After the handover, the MSAR government absorbed these pro-Beijing forces into the government institutions. For instance, the Kaifong Association, Federation of Trade Unions (FTU), Women’s Association of Macao (WAM), and Macao Chamber of Commerce (MCC) were dominant pro-Beijing organizations in Macao. Their representatives serve in various government agencies. In 2005, 10 out of 29 members, who were from these pro-Beijing organizations, were selected into the legislature. In addition, their representatives serve in the Executive Council, which is the top policymaking body of the MSAR. The MSAR government appointed many members from these organizations into its consultative committees. Among the 40 government consultative committees, at least 20 consist of members from the four dominant pro-Beijing organizations. 41 There were 157 representatives (37.7%) from these organizations out the total 416 appointed members in all consultative committees (see Table 5). In addition, the MSAR government provided huge amounts of financial support to these organizations. It is noted that the MSAR governmental departments and foundations subsidize individuals, social groups, and public agencies for their social services and activities. In 2006 and the first three quarters of 2007, the four dominant pro-Beijing organizations received MOP$85.8 million and MOP$109.9 million, respectively (see Table 6). Although the government funded over 1,000 individuals and organizations annually, these four organizations received 4.1% and 8.1% of total government subsidies in the above periods. Yet, the MSAR government granted privileges to these pro-Beijing organizations as they formed coalitions with the authorities to support the latter politically.42 Lou noted that the MSAR government has adopted a corporative approach to managing the various forces in Macao society.43 The traditional pro-Beijing groups were treated as the leading organizations that coordinated 159; see also Yu Wing-yat, “Formal and Informal Politics In Macao Special Administrative Region Elections 2004-2005, Journal of Contemporary China, vol. 16, no. 52 (August 2007), pp. 417-441. 41 The author sorted the member lists of all government consultative committees and could identify 20 out of the 40 organizations that consisted of representatives from pro-Beijing organizations. 42 Au Kam-san, a pro-democracy legislator in Macao, questioned whether the government’s providing a huge subsidy to the pro-Beijing group was fair, or if it was biased toward them. Journal Va Kio, 10 September 2007, p. 2. 43 Lou Sheng-hua, Zhuanxing Shiqi Aomen Shetuan Yanjiu: Duoyuan Shehui Zhong Fatuan Zhuyi Tizhi Jiexi (A Study of Macao’s Social Groups during the Transitional Period: Corporatism in a Pluralistic Society; Guangzhou: Guangdong Renmin Chubanshe, 2004). 17 different interest groups in the community. In other words, the authorities tried to incorporate most social groups into the political institutions through the coordination of pro-Beijing organizations. Table 5: Number of Representatives from Pro-Beijing Organizations in Government Consultative Committees Number of members in government consultative committee Kaifong Association 23 Federation of Trade Unions 30 Women Association of Macao 12 Macao Chamber of Commerce 92 Sub-total 157 (37.7%)* Total number of government appointees 416 Note: “*” The percentage in parenthesis is the pro-Beijing groups’ portion of the total number of members appointed into government’s consultative committees. Source: The author collected the name lists of consultative committees from the MSAR Government Gazette, various issues. Table 6: MSAR Government Subsidy to Pro-Beijing Organizations, 2006-2007 (Million) 2006 2007 (1st-3rd Quarter) Kaifong Association 51.9 54.2 Federation of Trade Union 25.1 38.6 Women Association of Macao 8.8 17.1 85.8 (4.1%)* 109.9 (8.1%)* 2,081.8 1,359.2 Sub-total Total government subsidy to individuals and organizations for social activities Note: “*” The percentage in parenthesis is the pro-Beijing groups’ portion of the total government subsidy to individuals and organizations Source: The author collected the subsidies of government departments and foundations to individuals and organizations from the MSAR Government Gazette, various issues. However, the roles and functions of these traditional groups can no longer accommodate the various sociopolitical demands at the grassroots level that spring from 18 the economic modernization of MSAR. Many residents believe that the traditional pro-Beijing groups no longer represent their interests because these groups became part of the authorities. They did not oppose the government in the fights for the public interests. For instance, the riot in 2000 marked the failure of the FTU to help the labor class. A group of unemployed took to the streets voluntarily in April and May of 2000 and demonstrated against the government for its failure help them obtain jobs and subsidies. The demonstration was confrontational and clashed against police roadblocks. Finally, the police fired tear gas to disperse the masses. Jeremy Lei Man-chow, who was a participant and became a union leader, indicated that the unemployed converged on the street of their own accord with no mobilization involved.44 The demonstration emphasized the point that the pro-Beijing FTU could not help the unemployed people who finally confronted the authorities. Besides, the FTU withdrew from organizing the May 1 demonstration in 2006. According to Jeremy Lei, who was one of the organizers of that demonstration, the FTU held discussions with his groups at the very beginning about organizing the demonstration.45 However, due to the pressure from authorities, it withdrew and only held a conference for the protection of labor interests. In addition, it failed to represent teachers in dealing with their difficulties at school. A group of teachers participated in the October 1, 2007 demonstration. A leader from a pro-Beijing group indicated that the FTU recognized the problems and difficulties of school teachers. 46 However, it could not convince school management and government departments to provide more support for them. On the other hand, the Kaifong Association was also criticized of its helplessness with the grassroots sector. In the October 1, 2007 demonstration, some protestors criticized the Kaifong Association as being “noble at the grassroots,” meaning that it was no longer interested in helping the lower class people because it had already been co-opted by the government. 47 Corporatism on the part of MSAR authorities seemed to be incapable of managing the proliferation of interests from economic growth. Conflict between capitalist and labor classes tended to widen. The MCC and FTU, which represented the businessmen and labor, respectively, no longer managed their relationships with supporters. Their middleman role seemed to be dysfunctional in that it failed to balance the cross-class interests. Because of the fact that the Kaifong Association and the WAM provided different social services in the local community, they could not accommodate the proliferation of demands by Macao residents for social services.48 The media in Macao was relatively weak in checking on government authorities and protecting public interests. First, the local media was not professional enough to 44 45 46 47 48 Personal interview with Lei, 28 October 2005. Personal interview with Lei, 9 October 2006. Personal interview with a leader from a Pro-Beijing group, 4 October 2007. The author talked to some participants in the October 1, 2007 demonstration. Journal Va Kio, 14 May 2007, p. 14; see also, Journal San Wa Ou, 17 May 2007, p. 2. 19 handle the news. Many of the reporters did not investigate cases but were dependent on the information from authorities.49 Second, the media lacked resources. All Chinese newspapers receive subsidies from the government. Therefore, they tended to maintain good relationships with the authorities. Furthermore, the Macao Daily News dominated the newspaper market, as its circulation shared 80 percent of the market and absorbed 90 percent of newspaper advertisements.50 It was a pro-Beijing newspaper and avoided being critical of the MSAR authorities. Lee Kin-yun, a pro-democarcy union leader, condemned the Macao Daily News. He charged that it was working for Beijing and did not report activities and news about either his group or the democrats.51 Wan argued that the media impeded the development of civil society in Macao.52 According to the survey by Yee et al., public satisfaction with the freedom of speech and press in Macao had declined. In the 1991 survey, only 18.5 percent of the respondents were not satisfied with the situation, but 33.5 percent participated in the 2006 survey.53 However, Macao’s political institutions lacked channels for the public expression of demands, as well as for citizens’ political participation. In the past, the masses tended to tolerate, if not accept, the institutional deficiencies and accepted the paternalistic rule by authorities. However, Macao residents have undergone a social mobilization process under rapid economic development. Their attitude toward the paternalistic government transformed as they became more active in their demands for political participation. Various new independent groups emerged along with Macao’s social mobilization, and they fought together for the interests of particular groups of people. For instance, after the 2000 riot, some social activists and unemployed organized various labor groups to fight for the interests of lower class. They were independent of the pro-Beijing groups and were excluded from government institutions, with no members participating in government consultative committees. Therefore, they always took to the streets and struggled for grassroots interests outside of the government institutions. Consequently, demonstrations and protests were mobilized, and the grassroots movement became confrontational against the authorities. This institutional exclusion of new social groups led to instability in Macao, and the MSAR government encountered tremendous political pressures from the economic modernization. Many other social forces organized themselves and participated in the polity. Some civil servants’ unions Yin De-gang, “Aomen Dazhong Chuanmei Xianzhuang Yu Fazhan” (Macao’s Mass Media and its Development), in Macao 2002 (Macao: Macao Foundation, 2002), p. 425. 50 The figures were based on a 2003 marketing survey. 51 Personal interview with Lee, 4 October 2007. 52 Yin De-gang, “Aomen Dazhong Chuanmei Xianzhuang Yu Fazhan” (Macao’s Mass Media and its Development), in Macao 2002 (Macao: Macao Foundation, 2002), p. 425. 53 Herbert S. Yee and Liu Kwok-man, “Dazhong Zheng zhi Wenhua (Mass Political Culture),” in Wong Siu-lun, Yeung Yue-man, Wan Po-san, and Zheng Wan-tai, eds., Aomen Shehui Shilu: Cong Zhibiao Yanjiu Kan Shenghuo Suzhi (The Reality of Macao Society: Understanding Quality of Life with Social Indicators; Hong Kong: Asia-Pacific Institute, Chinese University Press, 2007), p. 304. 49 20 stood up and fought for their interests. For example, when the government proposed a new pension scheme for all civil servants in 2005, the Macao Civil Servants’ Association and other unions demonstrated against the new scheme. Police groups openly urged the government to improve their wages and fringe benefits. In addition, individuals organized themselves and held the government accountable for its actions. To protect the sightline of Guia Lighthouse, as mentioned above, activists mobilized the public to write complaints to the United Nations that the MSAR government had failed to shield Macao’s World Cultural Heritage. A group of teachers mobilized themselves in the October 1, 2007 demonstration and urged the authorities to square up to their problems and difficulties in school teaching. Au Kam-san, a pro-democracy legislator, indicated that Macao residents placed higher expectations on legislators to monitor the authorities. 54 Indeed, a civil society had emerged in Macao along with the rapid economic development. Individuals and independent groups tended to become more active in holding authorities accountable. The development of civil society implied that Macao’s political institutions were relatively weak in accommodating public demand; civil society activity became the alternative to politics for angry residents.55 In sum, the political institutions of MSAR could no longer deal with the complicated sociopolitical circumstances caused by economic modernization. Sequentially, public grievances against the administration turned their frustrations to the institutions, and hence, they mobilized against the authorities. Political instability would be inevitable in accordance with Huntington’s prediction. Political Modernization and Democratization Facing tremendous political pressure from the public, the Macao government introduced social policies to ease its residents’ difficulties, and institutional reforms to assuage public discontent. First, the government aims to increase expenditure in social welfare so as to satisfy the inclining public demand. For instance, it implemented 15-year free education, provided an interest-free loan scheme to university students, and increased subsidies to the elderly and the poor.56 It promised to build more public housing to meet demands from the lower and middle classes, and it planned to establish a pension scheme for all citizens. The government also decided to construct subways in the territory in order to improve the transportation system. Second, to ease the problem of nepotism inside the government bureaucracy, a new appraisal system was 54 Personal interview with Au, 8 November 2007. Sheri Berman, “Civil Society and Political Institutionalization,” American Behavioral Scientist, vol. 40, no. 5 (March/April 1997), p. 573. 56 Government Policy Plan for the Year 2008 Financial Year of the Macau Special Administrative Region of the People’s Republic of China, MSAR Government, 13 November 2007; Government Policy Plan for the Year 2007 Financial Year of the Macau Special Administrative Region of the People’s Republic of China, MSAR Government, 16 November 2006. 55 21 implemented in 2006. The new system has introduced various elements to avoid the effect of personal relationships and aims to motivate officials for performance advancement with the use of carrot and stick-based appraisal results.57 In addition, the Macao government proposed a centralized recruitment mechanism in the Roadmap for Public Sector Reform. It aimed to strengthen internal checks and balances in the recruitment process and eliminate the effect of personal relationships.58 Third, the government suggested various measures to control and restrict the power of department heads in order to avoid corruption. For example, a job rotation system has been recommended to all agency heads to give them the opportunity to explore jobs in various units every three to five years and enrich their experience within the administration.59 To an extent, job rotation can help avoid bureaucratic corruption because individuals cannot easily construct loopholes or build up their personal networks in a department. Fourth, to prevent bureaucratic corruption, the Commission Against Corruption, the anti-corruption agency in the MSAR, initiated programs with over 50 government departments that were designed to implement internal regulations and check mechanisms against irregularities.60 Fifth, the MSAR government encouraged interdepartmental cooperation and organizational reconfiguration to cope with various public and social issues. For example, a transport bureau would be established to manage and design transportation policy. In the past, several departments and units such as the Land, Public Works, and Transport Bureau, the police forces, and the Civic and Municipal Affairs Bureau were involved in traffic affairs. The government decided to reconfigure the functions of the three units and centralize the transportation policy to a single bureau. Moreover, the Culture Affairs Bureau and the Land, Public Works, and Transport Bureau established a mechanism for their cooperation in protecting Macao’s World Culture Heritage. Resident Service Centers were installed in some districts in Macau, whereby residents could receive services from various departments. Sixth, the MSAR government tried to improve its public consultative mechanisms in order to incorporate public opinion into the policymaking process. For example, government departments issued consultative papers and proposals to gather public opinion. Furthermore, with the Resident Service Centers, the Macao government hopes to set up consultative committees in different districts. Residents would be appointed into these committees, and their opinions on 57 Chan, Iuk-Va, Aomen Tequ Zhengfu Gongwuyuan Pinghe Zhidu Gaige zhi Yanjiu (A Study of the Reform of the Macau Civil Service Appraisal System), unpublished master’s thesis, Department of Government and Public Administration, University of Macau, Macau, 2007. 58 Roadmap for Public Sector Reform, Public Administration and Civil Service Bureau, MSAR Government, 2007. 59 Consultative Paper for the Amendment of “General Principles for Leaders and Directors,” SAFP (Public Administration and Civil Service Bureau) and CRJ (Juridical Reform Bureau), MSAR Government, 2007. 60 Journal Va Kio, 16 November 2007, p. 22. 22 district affairs would be collected. These measures by the MSAR government would result in a more complicated and coherent institution that regulates bureaucratic behavior, promotes interdepartmental cooperation, and extends public participation in policymaking. However, democratization is still a myth in Macao’s political modernization. The authorities have been reluctant to initiate discussion about the development of democracy. The MSAR government has taken no initiative to democratize the polity in terms of universal suffrage elections. It is noted that the Chief Executive of MSAR is selected by a 300-member Election Committee which is selected by social groups and political elites while the Legislative Assembly consists of 12 directly-elected seats, 10 indirectly-elected seats and 7 appointed members by the Chief Executive. To respond to the demand from some democrats for accelerating the pace of democratization, the MSAR authorities have only consulted the public about the improvement of elections in dealing with vote-buying and other electoral irregularities.61 The government explained that the quality of elections was the foundation of a democratic polity because Macao’s elections have long been criticized for the serious problems of vote-buying and corruption. 62 In addition, pro-government elites resisted to democratic reform of government institutions. For instance, when the two pro-democracy legislators Antonio Ng and Au Kam-san tried to discuss the possible establishment of District Councils in order to improve public participation in the MSAR, they were severely criticized by the pro-government elites that their suggestion violated the Macao’s Basic Law and should not be discussed in the legislature. District Councils, which is mainly composed directly-elected seats, have been already established in the Hong Kong for over two decades and continued in the SAR era. Ironically, the Basic Laws of Hong Kong and Macao share similar articles. It is not understandable that the establishment of District Council violates the Macao’s Basic Law when the same system continues in the Hong Kong counterpart. Au Kam-sun explained that the pro-government elite opposed to District Council was obviously because they were lacking of capacity in run District Councils elections and their political significance would inevitably be undermined.63 In Beijing’s eyes, suppressing corruption is far more important for Macao’s development than holding universal suffrage elections. One would argue that if the 61 In February 2008, the Macao government issued a consultative paper for the amendment of the Voter Registration Law, Chief Executive Election Law, and the Legislative Assembly Election Law. In the paper, the government only suggested how to avoid corruption and irregularities in elections but did not touch on the issue of universal suffrage elections and the extension of public participation in the Chief Executive and legislative elections. See Endeavor for Higher Quality of Elections, Firm for Democracy Development: Consultative Paper for the Amendment of Voter Registration Law, Chief Executive Election Law, and Legislative Assembly Election Law, SAFP (Public Administration and Civil Service Bureau) and CRJ (Juridical Reform Bureau), MSAR Government, February 2007, p. 4. 62 Yu Wing-yat, “Formal and Informal Politics in Macau Special Administrative Region Elections 2004-2005,” Journal of Contemporary China, vol.16, no. 52 (August 2007), pp. 417-441. 63 Personal interview with Au, 8 November 2007. 23 authorities could not suppress money politics and electoral corruption, politics would only be a game for the economically powerful elite if universal suffrage elections were introduced. Wang Zhenmin, member of the Macao Basic Law Committee, contended that the lack of democracy was not the source of the problem in Macao politics; instead, money politics and corruption have to be tackled in order to forge fair elections and shape the political culture.64 He further asserted that the “One Country, Two Systems” implemented in Macao was different on the mainland institutions, and that the MSAR had to expend efforts to eliminate corruption.65 In other words Beijing sees corruption as a deeply rooted problem that hinders Macao’s political development. Accelerating the pace of implementing democracy would only lead to a vicious cycle, in that the extension of political participation in public elections would cause corruption and money politics to flourish. In fact, Macao’s society seems to be even less enthusiastic about the pace of democratization. In July 2007, the New Macao Society, led by pro-democracy legislators Antonio Ng Kuok-cheong and Au Kam-san, published a political reform plan and suggested an incremental model for the democratization of the Macao polity, borrowing from the plan used in HKSAR. However, the local community paid little attention to the reform plan, and there was a lack of discussion about Macao’s political reforms. Some independent unionists might not support the New Macao Society’s plan. For instance, Jeremy Lei, an independent union leader, agreed that further democratization of Macao would merely nurture money politics and wound the political development of Macao. 66 He further argued that Macao’s population merely cares about the livelihood issues and has not yet recognized the demand for democracy. Another independent unionist, Wong Pui-lam, also remarked that due to his poor educational background, democracy seemed to be distant for him. 67 Au Kam-san recognized that many independent union activists were less educated and might not articulate a need for democracy in their union activities.68 He noted that despite the general apathy toward democratic reform, he and Antonio Ng would continue the movement for democracy and pressure the authorities for reform. The pro-democracy forces in Macao seem to be weak in pushing for democratic reform in the polity. In view of MSAR authorities’ measures in response to social and political pressures from civil society, the government seemed to borrow from colonial Hong Kong’s experience. After the riots in the late 1960s, colonial Hong Kong Governor MacLehose introduced various plans to improve the social welfare. His goal was to meet the public’s demands and ease social unrest on issues such as public housing and 64 65 66 67 68 Macao Daily News, 15 December 2007, B5. Macao Daily News, 16 December 2007, B12. Personal interview with Lei, 22 February 2008. Personal interview with Wong, 30 October 2007. Personal interview with Au, 8 November 2007. 24 free education. 69 Moreover, he expended efforts toward fighting corruption by inaugurating the Independent Commission Against Corruption. In addition, the Hong Kong colonial government called for public sector reform in order to improve the performance of government administration. 70 Facing political pressure from the demonstrations in 2006 and 2007, the MSAR government improved the social welfare and aimed to strengthen internal mechanisms for checks and balances against bureaucratic corruption as well as to improve administration performance by public sector reform. Furthermore, it borrowed colonial Hong Kong’s consultative mechanism to expand public participation in government institutions. After the 1966 and 1967 riots, the Hong Kong government introduced a City District Office Scheme and set up offices in various districts. The city district offices not only provided information to citizens on public services, but they also coordinated government departments to identify livelihood problems in the districts in attempts to find solutions by working hand in hand. At the same time, various district advisory committees were established. Elites at the grassroots level would be recruited into these committees and would be allowed to express their opinions and demands concerning residents’ problems of livelihood. The Hong Kong government has tried to expand the participation channels in order to appease public frustration with the administration. Ambrose King labeled this strategy “the politics of administrative absorption.”71 The MSAR government tried to follow such Hong Kong practices by introducing Resident Service Centers and district consultative committees. Hence, it facilitated institutional channels for its communication with the masses, certainly not only with the traditional patriotic groups, but also with the new emerging social organizations that were independent of the traditional groups. The political institutions facilitated a platform to deal with the radical populations, instead of excluding them in the wave of modernization. Some independent unionists indicated that they would like to join the consultative body if the government invited them.72 The establishment of a public consultative system was, to an extent, an extension of the MSAR authorities’ patronage to include the emerging independent forces within the polity. In fact, the government selectively increased its subsidies to individual groups. For example, the monthly subsidy to the Workers’ Unions, which was 69 Norman Miners, The Government and Politics of Hong Kong, 5th ed. (Hong Kong: Oxford, 1997), pp.18-20. 70 Colin Sankey, “Public Sector Reform: Past Developments and Recent Trends,” in Jane C.Y. Lee and Anthony B.L. Cheung, eds., Public Sector Reform in Hong Kong: Key Concepts, Progress-to-date and Future Directions, (Hong Kong: Chinese University Press, 1995), pp. 15-38. 71 Ambrose Y. C. King, “Administrative Absorption of Politics in Hong Kong: Emphasis on the Grass-Roots Level,” in Ambrose Y. C. King and Rance P. L. Lee, eds. Social Life and Development in Hong Kong (Hong Kong: Chinese University Press, 1981), pp. 127-146. 72 Personal interview with Jeremy Lei and Hoi Hing-kuo, who were leaders of the independent union, 9 October 2007. 25 led by Jeremy Lei and Ho Hing-kuo, had a double increase in 2007.73 It is noted that the MSAR government subsidized social groups and organizations for their daily operations every month; government departments set the amount on an individual basis. However, the various institutional reforms by the MSAR did not necessarily mean the expansion of space for political participation; rather, it extended the scope of co-optation by the authorities. It seems that political modernization and institutionalization in MSAR are increasingly “hongkongized,” as Lo observed about colonial Macao.74 Hong Kong’s economic development after World War II resulted in the emergence of a civil and pluralistic society.75 To address the political and social demands, the colonial Hong Kong government institutionalized the system in a way that enhanced the performance of government administration and improved its communication with the civil society. Yet, democracy, in terms of universal suffrage elections, was not necessarily on the reform agenda. Similarly, MSAR has been experiencing rapid economic development after the handover as the society becomes pluralistic and a civil society emerges. To accommodate political pressures from the civil society, the Macao authorities borrowed from colonial Hong Kong practices to modernize and institutionalize the political system, hence improving government performance. However, democratization is not regarded as the pillar and remedy for political straits. Hunter et. al. indicated that political modernization may not necessarily result in democratization and argued that it is the mass political culture steering to democratic reform.76 Nevertheless, after the political chaos in the Tung era, Beijing recognized that democratization would be inevitable for the political development of HKSAR. This shift in attitude became evident when the National People’s Congress Standing Committee announced that the Chief Executive of Hong Kong could be selected by universal suffrage elections in 2017.77 Do those events imply that Macao will have to experience several waves of political instability as the polity becomes democratized? The fascinating economy does generate the political dynamics for the modernization of Macao governmental institutions after the handover, but the society does not have a strong demand for democratization. However, it is noteworthy that when Macao liberalized its gaming industry, the globalization of Macao accelerated at 73 Lei and Ho indicated that in 2006, the government’s monthly subsidy to their group was MOP$3,000 in 2006. It was increased to MOP$6,000 after the May 1 demonstration 2007. Personal interview with Lei and Ho, 9 October 2007. 74 Lo Shiu-hing, Political Development in Macau (Hong Kong: Chinese University Press, 1995), pp. 12-13. 75 Ming K. Chan, “Decolonization without Democracy: The Birth of Pluralistic Politics in Hong Kong,” in Edward Friedman, ed., The Politics of Democratization: Generalizing East Asian Experiences (Boulder, San Francisco, Oxford: Westview, 1994), pp. 161-184. 76 Shireen T. Hunter and Huma Malik eds., Modernization, Democracy, and Islam, (Westport, Conn.: Praeger, 2005). 77 Ming Pao, 29 December 2007, A1. 26 the same time. Foreign governments, investors and international media would pay more attention on the MSAR and pressure its political institutions. Particularly, the U.S. government has already placed its eyes on Macao as the American capital has already penetrated into the casino business in the MSAR. It is worrying the involvement of U.S. businessmen in money laundry and organized crime. In 2005, the U.S. government charged that three Macao banks, namely the Bank of China, the Seng Hang Bank and the Bank of Asia Delta, involved in money laundry for the North Korea government, and pressured the MSAR government to act correspondently against cross-border crime.78 For another example, there was report that the corruption case of Ao Man-long, the former Secretary for Transportation and Public Work, was first identified by the British authorities and the latter transferred the case to the Hong Kong government.79 International labor organizations raised their concern on Macao’s labor interests after the May 1 2007 demonstration. Some independent unions approached external forces and sought advices for labor movement in the MSAR. For instance, the Workers Union seeks aids from the Hong Kong Confederation of Trade Union which tries to connect to international labor organizations and helps the movement in Macao.80 Lee Kin-yun, another pro-democracy unionist, is backed up by with Leung Kwok-hung, who is a Hong Kong legislator and provocative politicians for democracy movement, for social and political movement in Macao.81 Moreover, the Hong Kong media has paid closer attention on Macao’s development because many Hong Kong people become to look for job and investment opportunities there due to the booming economy. For instance, a Hong Kong’s newspaper Apple Daily constantly has pages covering Macao and it is critical to authorities. The Hong Kong newspapers are penetrating into the Macao market. Macao readers are socialized by Hong Kong newspapers and tend to be independent and critical to the authorities. Yet, Macao’s economic development also implies its migration to the global community while the MSAR political institutions have to be responsive to the external demand and adapt to globalization. Furthermore, the increase of social welfare and the cooptation of independent unions and groups may encourage the public as well as independent unionists to demand more from the government. Their discontent may steer their political mobilization against the authorities that pushing the government to do more for them. As a result, the emerging civil society will continue mobilize and challenge the authorities whenever and whatever their demands are not fulfilled. Au Kam-san marked that although some unions received more subsidy and support from the government, they could keep their independency from the authorities and checked the latter 78 Macao Daily News, 9 September 2005, B10. Business Intelligence, no. 16, December 2006, p.12-16. 80 Personal interview with Personal interview with Jeremy Lei and Hoi Hing-kuo, who were leaders of the independent union, 9 October 2007. 81 Personal interview with Lee, 4 October 2007. 79 27 continuously. 82 Despite the fact that the mass of Macao has not yet prioritized democracy in political modernization, it does not mean that they will not demand for in the future. According to Huntington, the modernization and democratization process will be prolonged due to the deeply rooted traditional values and culture, as in the case of Europe.83 Perhaps other waves of social mobilization will be processed in parallel with the sustainable economic development, and then the civil society of Macao will cultivate a demand for a democratic polity. Conclusion Huntington’s theory of modernization can be applicable to the situation in Macao. Economic development has triggered instability in Macao. Macao’s political institutions do not possess the capacity to accommodate changing socio-economic circumstances. Public grievances and frustration with the authorities have been intensifying while demand for greater participation in the formal political institutions is increasing. However, Macao’s politically exclusive institutions have neither assuaged mass frustration nor met demands for more comprehensive political integration; instead they have escalated social instability within Macao. To resolve the governance crisis of the MSAR, political modernization must keep pace with rapid economic development. The institutionalization of government organizations, that is, the extension of public participation and organizational re-articulation, is essential. To an extent, Macao has borrowed its political modernization strategy from Hong Kong. Hence, Macao’s political development may follow Hong Kong’s process of democratization. The “Hongkongization” of the Macao polity will become increasingly possible. Political modernization may result in democratization, but bouts of political instability may be the inevitable corollary to the process. Macao’s political modernization may also have implications for mainland China. There has been rapid economic development on the mainland. Although many mainlanders receive higher salaries and enjoy a better standard of living, many also suffer from the ills of rapid development such as inflation, pollution, and income inequality. Several regions have experienced social unrest. To accommodate the changing socioeconomic situations, political modernization and institutionalization would be expected. Macao’s polity shares certain characteristics with the mainland’s. First, the political system is dominated by the pro-Beijing elite and social groups. Second, the media tend to be less critical of the authorities. Third, bureaucratic corruption is a concern. Fourth, personal and informal political networks provide the main access to political participation. Fifth, social harmony has always been 82 Personal interview with Au, 8 November 2007. Samuel Paul Huntington, Political Order in Changing Societies, (New Haven and London: Yale University Press, 1968). 83 28 emphasized. Macao’s management of its own modernization process may affect mainland authorities’ treatment of the growing political demands in China. Perhaps it is too bold to say Macao’s modernization may serve as a model for reform in the mainland. However, Macao’s experience can certainly serve as a testimony to reconciling rapid economic development with emergent political demands. On the other hand, Beijing’s recognition of demands for further democratization in the HKSAR implies that, in the long run, the Hong Kong model may be the one that is favored in mainland China’s own road to democratization. In this way, the “One Country, Two Systems” approach not only serve the purpose for Taiwan’s reunification but also aids in the political reform of mainland China. 29