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Friday, October 6, 2017

Perceptions of Corruption in China

This is another writing sample I for the same job application as the other post from a couple days ago.  It kind of was the seed for my longer research paper for a senior seminar at Bowdoin.

            Corruption and perceptions of corruption have changed drastically in recent Chinese history.  The economic reform beginning in the late 1970's marked a turning point in perceptions of corruption in China.  Before the reform, corruption (the use of official connections for personal gain) was seen as less problematic; however, Xi's anticorruption campaign has demonstrated the fact that public opinion on corruption has changed a great deal since reform.[1]  With the state's recent crackdown, meaningful criticism of corruption has become legitimized by the party.  The kind of corruption that Xi is targeting plays an important role in steering public opinion.  Instead of focusing on petty corruption at lower levels of government, Xi has targeted high level officials who are making significant amounts of money purely for their own personal gain.  Although Xi's targeting of top politicians like Bo Xilai and Zhou Yongkang is a thinly veiled attempt at consolidation of power, it sends the message that everyone, regardless of rank, might be targeted.[2]  The fact that Xi has targeted these higher level officials also serves to increase his popularity among the common people, who see him as a protector of their own interests.
            Perceptions of corruption everywhere in China have changed across time, but they have changed in different ways across the country.  Public opinion varies a great deal from region to region, especially between more developed and less developed areas of China.  Generally, populations in more rural and underdeveloped regions perceive more corruption in their own communities, while those in more developed and urban areas perceive less corruption in their own areas.  Before the reform, corruption, or the use of official connections for personal gain was seen as less problematic.  Under Mao, economy was so stagnated that it was understood that in order to acquire certain goods, some kind of network or connection with people in power was necessary for obtaining basic goods.  Lack of demarcation between public and private property in an era of strongly communist discourse made corruption more difficult to pin down.[3]  In the years following the economic reform, private enterprise began growing at ever-increasing rates.  Officials began to realize that they could profit substantially by using their influence to help certain private enterprises.  As private enterprise grew, so did official corruption, to the point that officials were becoming enormously rich at the expense of fair competition between enterprises. 
            Today, experts' understanding of corruption shows some definite trends in regional variation in perceptions of corruption.  A study of 1,637 economics and management professors found a strong link between level of development and perceived corruption.  In an assessment of perceived corruption in major cities across the country, with 1 indicating high levels of corruption and 7 indicating very clean cities, 3.8 was the average.  Shanghai was the cleanest, scoring a 5.025, followed close behind by other developed cities along the eastern coast.[4]  It isn't exactly clear why more economic experts perceived developed cities as less corrupt, but I would posit a couple of hypotheses.  First, it may simply be that, as was seen during the Mao era, when local economies are less developed (people are poorer, there is less credit to be loaned out, etc.) they are forced to use connections with government officials in order gain any capital.  Second, it may be that the kinds of corruption simply differ in these two types of locality, such that corruption in developed regions is less visible and/or less common (this is not to say it is less in degree.  For example, ten township officials in a rural area may all receive 1,000 RMB in exchange for publicly backing a certain village head candidate.  At the same time, a part secretary of a provincial level city, may receive a gift valued at 10,000 RMB from a business contact, simply to foster good relation.  One example is likely more visible, while the other is less easily detected).
            Generally, these experts tended to be optimistic regarding progress in curbing corruption in China.  Over half believed that corruption problems were improving in their locality, while a third saw no change in recent years.[5]  But Xi's anticorruption campaign can only go so far in curbing corruption.  The campaign has been successful in punishing high-profile politicians, reclaiming large amounts of assets, and likely has deterred some further high-level corruption.  But informal institutions such as patronage networks still play a hugely important structural role in local economies, and these institutions prevent fair competition between enterprise and the development of formal institutions such as intellectual property rights and legal recourse for breaches of legal contracts.  The expert respondents found that the sectors of society crucial for the development of these formal institutions were actually among the most corrupt sectors in society.  The police ranked as the third most corrupt sector, while the courts ranked fifth.[6]  By its very nature, Xi's campaign avoids these institutional problems, and reinforces and legitimizes a highly centralized system of justice that is governed not by law, but by the inevitably biased decisions of certain top officials.





[1] Wang, Shunzhu. "Anticorruption, Power Struggle, and Rule of Law in China: Random Thoughts on Xi Jinping's 'Tiger-Killing' Anticorruption Campaign." Corruption and Governmental Legitimacy: A Twenty-first Century Perspective. By Jonathan Mendilow and Ilan Peleg. Lanham: Lexington, 2016. 275-85. Print, 278.

[2] Ibid., 280.

[3] Ibid., 278.
[4] Song, Xuguang, and Wenhao Cheng. "Perception of Corruption in 36 Major Chinese Cities: Based on Survey of 1,642 Experts." Social Indicators Research 109.2 (2011): 211-21. Web, 216.

[5] Ibid., 215.

[6] Ibid., 217.

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