ABSTRACT
This chapter follows on from the previous chapter to argue that network governance permits the exchange of resources that are differentially valued by different actors, which allows for the negotiation of win-win outcomes by transacting differently valued “goods” in the process of negotiating agreements about governing. This chapter provides evidence that resource exchange between key actors that are networked by the SOE schools make a significant and positive contribution to the process of policy implementation in China. It provides an alternative approach to solve the education problem, which is different from the most common and directed method of administrative force of governments. The chapter explores the main actors and their goals, perceptions and strategies in this policy arena. It reports seven problems that have been solved through resource exchanges between actors. These problems are disqualified teachers, excess teacher, retired teachers, teacher salaries, school funding, school assets and non-teaching staff arrangements in the General Education Department of Railway Bureaus.
