final corruption in china

7/30/2019 FINAL Corruption in China

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Corruption In China


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China and Corruption: Quick

Facts

In 2011 the anti-corruption group Transparency

International ranked China 78th out of 178 countries

in its corruption perception index, worse than

countries like Romania, Turkey. Economist Wang Xiaoli has estimated that the

unreported and untaxed gray income of

government officials was about $800 billion.


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Corruption takes many forms: bribes, kickbacks, fees, hurry

up money, sweetheart deals.

Holiday corruption is a term used to describe bribes given in

the form of traditional gifts during holidays such as the lunar

New Year often in the form ofhongbao, red envelopes that

traditionally contain gifts of money.

One American businessman told Newsweek, "Clients tell us

that acting illegally is the way it's done in China."


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Although corruption does not seem to affect Chinas

economic growth it does undermine the soundness of

the system and make it vulnerable to instability,

crises and even collapse. It also makes investors suspicious and reluctant to

invest their money.


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What is Corruption?

The notion of corruption varies with time and place.

According to Chinese official terminology, the core

element of the definitionof corruption in todays

China is the notion of the use of public authorityand public resources for private interests (Yi Quan

Mu Si).


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3 TYPES OF CORRUPTION

IN CHINA

Three types of corruption are common in China:

graft, rent-seeking, and prebendalism


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Types of corruption in China

Graft- is the most common

Refers to bribery, embezzlement, and theft of public

funds.

Graft involves something of value given to, andaccepted by, public officials for dishonest or illegal

purposes.


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3 Types of corruption in China

Rent Seeking-

Refers to all forms of corrupt behavior by people

with monopolistic power.

Public officials, through granting a license ormonopoly to their clients, get "rents"additional

earnings as a result of a restricted market.


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Prebendalism -

when incumbents of public office get privileges and

perquisites through that office.

Prebendal corruption doesn't necessarily need to beabout monetary gain, but may include usurpation of

official privilege, backdoor deals, clientelism,

cronyism, nepotism


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Why does corruption thrive in

China?

The co-existence of dual economic systems during

the whole transition period provides plenty of

incentives and opportunities for corrupt practices.

The loopholes in, and weakness of, regulatorypolicies and institutions, certain policy failures, all

contribute to the growth of corruption


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Corruption and Economic

Development

Seeking money from ministries (Pao Bu Qian Jin)

has become an unwritten but successful measure for

advancing local economic development, while the

bribery of public officials by other public officials forpublic, rather than private interests (Gong Hui) is

an open secret as a means for seeking funds and the

other favours from the central government.

Such practices lead to the spread of corruption from

local to higher levels.


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Local economic development depends to a large

extent on the degree to which local government can

obtain preferential treatment in the form of loans and

financial subsidies, from the national government andits ministries.


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According to Chinas official record, during 1997-2002, thereare totally

861917 corruption cases under investigation

842760 corruption cases concluded

846150 people punished by communist laws, of which137711 expelled from the communist party

M t di t


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Measures to eradicate

Corruption

The CCP has tried a variety of anti-corruption

measures, constructing a variety of laws and agencies

in an attempt to stamp out corruption.

Such measures are largely ineffective, due to the

insufficient enforcement of the relevant laws.

The strict controls placed on the media by the Chinese

government limit the discovery and reporting ofcorruption in China. Nevertheless, there have been

cases of whistleblowers publicizing corruption in

China.


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Alternatives to Bribery: Ethical

Response

Company would rely

more on governmenteffort

Using government

lobbying and high-levelvisits

Require an investment

of time and energy

Problem (especially

bribery related) would

be resolved quickly

Establishing a good

relationships with the

right people

ConsProsAlternatives

Promoting fair trading


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Utilitarian ethics ::A set of ethical beliefs based onmaximizing good for the greatest number of people

Rights of the parties

Does the action respect the rights of the individualsinvolved?

Justice or fairness :: The quality of being fair and

reasonable.

Does the action respect the canons of justice orfairness to all parties involved?

Ethical Response


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THANK YOU!

Jyoti Belani PG-11-004

Apurva Chougule PG-11-005

Amruta Dhavale PG-11-008

Rachna Panchal PG-11-035

final corruption in china

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