Tuesday, October 20, 2009

Corruption threatens Asia's future

October 20, 2009
Xiaoxiong Yi
LancasterEagleGazette.com (USA)


Taking a worldwide perspective, countries like New Zealand and the Scandinavian countries are "models of integrity" for the world in terms of their corruption control. And almost all of the most corrupt countries are developing nations and many of them are in Asia. Among the Top 20 most corrupt states in the world, a half of them are in Asia; Myanmar (Burma), Afghanistan, Kyrgyzstan, Turkmenistan, Tajikistan, Indonesia, Bangladesh, Cambodia, Laos and Pakistan are all on the list, according to the Worldwide Governance Indicators. And India and China are the two "most corrupt trade nations" among the world's Top 30 exporting countries.

Corruption is a way of life across Asia. While talking about high-level corruption in Asia's three largest countries -- India, China and Indonesia -- there is a saying, "In India, corruption is under the table; in China, it is over the table; and in Indonesia, corruption includes the table."

Whichever way one may wish to read the proverb, "what remains undeniable," says Chan Akya of Asia Times, "is that corruption is more firmly rooted in Asian culture than is commonly acknowledged."

Take a look at today's China. As John Lee of the Center for Independent Studies in Sydney, writes, "While the Chinese state is rich and the Chinese Communist Party powerful, civil society is weak and the vast majority of people remain poor. According to studies by the Chinese Academy of Social Sciences, stealing from the public purse by officials amounts to about 2 percent of GDP each year, and it is rising."

Another China corruption watcher, Hong Kong-based Political and Economic Risk Consultancy (PERC), painted an even gloomier picture, "Graft is endemic in China: according to the most conservative estimates, the magnitude of corruption ranges from 3 percent to 5 percent of annual GDP." A 5 percent of China GDP amounts to approximately $1.5 trillion Yuan ($225 billion in U.S. dollars) or one half of China's GDP annual growth.

In today's China, it is no secret that those who have power enjoy countless "fringe benefits." A $500 per plate dinner is done in the name of official business, a $5,000 overseas trip is made in the name of research or study and a $50,000 government car is purchased for private use only.

If China's authoritarian one-party state has pushed corruption ahead, India's democratic multi-party system might be worse. As Chan Akya puts it, "Indians do not have a choice when it comes to corruption as most of their political parties (with the notable exception of the communists) offer simply varying levels of corruption. The choice is therefore to vote for the communists and risk economic stagnation, or vote for another party and hope that the benefits of growth exceed the cost of corruption."

So there is some good news for the corrupted Chinese officials or something they could be proud of: On the PERC's Corruption Index, China is not the most corrupt country in the region. China scored 8.33 on a scale of 10 (10 represents the worst possible score), Indonesia topped the list with a score of 9.33, with India's 9.3 following close behind.

Even two of America's most important allies in East Asia, South Korea and Taiwan, are not exempt from corruption. Former South Korean president Roh Moo-hyun committed suicide in late May when he was caught up in corruption investigations. Then in September, in what the media called a "trial of the century," Taiwan's former president Chen Shui-bian was sentenced to life in prison for corruption.

Why are Asian politicians and bureaucrats so corrupt? Some analysts believe that in Asian culture, corruption helps "grease the wheels" of an otherwise inefficient bureaucracy and economy. Others argue that Asia's "corruption culture" is based on traditional Asian emphasis on "rule of man," not "rule of law," and law is seen as malleable, not absolute. Whether a cultural flaw or a symptom of a sick state, however, the severity of corruption in Asian states and the failure to contain such endemic corruption among political leaders and government officials poses one of the most serious threats to Asia's future economic development and political stability.
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Yi is a professor at Marietta College and director of the China Program.

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