Corruption cost China $86 Billion in 2003

The Carnegie Endowment for International Peace reported that based upon estimates, China has lost $86 Billion to corruption. We have discussed this issue before.

I quote:

The report by Minxin Pei, the director of the China programme at the
Washington-based policy study group, says the sums of money expropriated by
corrupt officials have risen “exponentially” since the 1980s and cost more than
last year’s entire education budget.

“The odds of an average corrupt official going to jail are at most
three out of 100, making corruption a high-return, low-risk activity,” the
report says Mr Pei, however, sees corruption not just as a stage of development
but as a failure of political reform.

“The Chinese government has consistently resisted steps to further
reduce the role of the state in the economy, increase judicial independence and
mobilise the power of the media and civil society, even though international
experience shows that only such full-fledged efforts can root out systemic
corruption,” he said.

I agree with Mr. Pei. Given the fact that the legal system and public officials are all part of the party, it is simply impossible for them to reform this issue. And given the huge amount of demonstrations against forcible expropriations of land, and other abuses of law, it soon will reach a point that corruption will cause the dead hand of the communist state to shiver.


All this to be taken with a grain of piquant salt!!!