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International Law

: China Law Blog

The Upside Of China Corruption

By Dan Harris and Steve Dickinson

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Fascinating and insightful post over at Richard Spencer's blog, entitled, "When Corruption Works." The post posits that one of the reasons there were so many poorly constructed schools in Sichuan province is because there were so many schools and the reason there were so many schools was due, at least in part to corruption. Interesting analysis and well worth a read. Post also talks about the long-held view of corruption in Asia, as opposed to in Africa:
Others who have studied these things in more detail have pointed out that, for better or worse, Chinese corruption has a distinguishing feature: because it is so long associated with bureaucratic control, local officials are rather successful at ensuring that corruption can be something of a win-win situation for all sides. Take off too big a percentage of any given project to which you apply your government chop, and you discourage investment and growth: this is precisely what happens in too many less successful countries in Africa and Asia. Projects get run into the ground as the money supposed to pay for them gets siphoned off into foreign bank accounts.
Reminds me of the following parable:
An Asian and an African Minister of Infrastructure ... become friends during their conferences. The Asian minister invites to his home the African, who marvels at its beauty and asks how the Asian could afford it. ?See that bridge over there?? said the Asian minister. ?That?s right. 10%. 10%.? In the next year it is the Asian minister?s turn to visit the African and to marvel at his even more grandiose home. ?See that bridge over there?? the African minister asks, and the Asian replies, ?What bridge?? ?That?s right,? the African answers, ?100%. 100%.?
[taken from Scriptorium] Anyway, do check it out.

Full post as published by China Law Blog on June 05, 2008 (boomark / email).

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