CHINA NEXT FOR REVOLUTION?

Twelve of these children's parents left the village to work in big cities in coastal areas. "More than 20 million children live with their grandparents or other relatives because their parents have migrated." (Website for this image http://corruptpractices.blogspot.com/)

China is like Tunisia or Egypt.

In October 2010, the son of Li Gang, a top police officer, killed a pedestrian while allegedly drink-driving.

As he sped off, he shouted: "report me if you dare.

"My dad is Li Gang!"

The phrase became famous.

(China Drunk-Driver Case Hits a Nerve)



On 22 January 2011, a group of animators in Beijing released a satirical cartoon called "Greeting Card for the Year of the Rabbit.

In this cartoon, a boy dreams of violent revolution against a corrupt, abusive government run by tigers.

"The tigers are a thinly veiled representation of Chinese authorities." (China Nerve)

Photo: http://nomoreccp.wordpress.com/

The Economist points out some of the problems facing China. (Asia's new aristocrats.)

1. China has 800,000 dollar millionaires.

BUT

China has 400m people who live on less than $2 a day.

The disparity between rural and urban incomes is vast.

2. The children of some of China's leaders 'have amassed huge fortunes in murky ways'.

3. 'The party's tentacles are everywhere'.

People must avoid offending it.

'The party is accountable neither to voters nor to the law.'

'There is little to prevent its bosses from abusing their power.'

In Corruption Threatens China's Future, Minxin Pei describes corruption in China.

Reportedly, in China, "roughly 10 percent of government spending, contracts, and transactions is estimated to be used as kickbacks and bribes, or simply stolen." (Corruption Threatens China’s Future.)

The Chinese are said to be the Jews of Asia.

And just as certain Jews are controversial in the USA, and in Russia, certain Chinese are controversial in Asia.

In countries like Indonesia, certain Chinese-Indonesian businessmen are less than popular because of an an alleged lack of scruples and an alleged worship of money.

China_from_the_Eyes_of_the_Flying_Tigers_1944-1945_54.jpg‎

China's achilles' heel may be a lack of scruples by certain businessmen.

Wong Kwong-yu, also known as Huang Guangyu, was China's richest man.

He was chairman of the national retailer GOME which makes electric appliances.

He was eventually arrested as part of a probe into share price manipulation.

(Corruption Charges for China's Richest Man? - BusinessWeek)


Other top tycoons, such as Yang Bin, Gu Chujun and Zhen Zhongyi, have previously 'come to grief' for alleged corruption or corporate mismanagement.

China's banks have developed a reputation for wobbly deals.

In 2008 it was reported that the Chinese government had had to "take some US$130 billion in problem assets and inject over US$20 billion in capital into the Agricultural Bank of China..." (Going, going, GOME)

In Indonesia, ethnic Chinese make up less than 4 percent of the population but reportedly control around 70 percent of the major businesses.

Reportedly, twelve of the 15 wealthiest families are Chinese.

Chinese oligarchs are influential in countries such as Thailand, the Philippines and Malaysia.

~~

CORRUPTION

Goldman Sachs was the top Obama donor (CNN.com)

Goldman Sachs reaped $6B after making its $1M Obama contribution.

Senator Carl Levin claims: 'Banks such as Goldman Sachs...bundled toxic mortgages into complex financial instruments, got the credit rating agencies to label them as AAA securities, and sold them to investors, magnifying and spreading risk throughout the financial system, and all too often betting against the instruments they sold and profiting at the expense of their clients.' (Goldman Sachs bosses.)

In Soviet Russia, the communist party centralised the collection of bribes.

In South Korea, bribes are paid by business leaders to a president's campaign fund.

But, in many countries, different ministries, agencies and levels of local government all set their own bribe rates independently. (Corruptionc)

At Inside Indonesia 92, Apr-Jun 2008, Ari Kuncoro, who lectures in economics at the University of Indonesia and who has a PhD from Brown University USA, wrote 'Corruption Inc'

He makes the following points:

1. Economists Shleifer and Vishny, in 1993, distinguished between centralised and decentralised bribery.

Decentralised bribery is worse for economic growth than centralised bribery.

2. In Suharto's Indonesia, corruption was centralised and predictable.

Corruption was controlled by the Suharto family and the top military leadership, in partnership with the big businesses run by the Chinese-Indonesians.

3. In 2001, after the fall of Suharto, Indonesia had a decentralisation program.

More power was given to the regions.

Today, a lot more people are demanding bribes - including local politicians, officials, soldiers and police.

4. President Susilo Bambang Yudhoyono made tackling corruption his central campaign promise.

But, the judicial system and the civil service remain somewhat corrupt.

"The scandalous acquittal by the South Jakarta court of former Bank Mandiri director E. C. W. Neloe ... is just one example."

In 2006, a bribery scandal involved the Chief Justice of the Supreme Court Bagir Manan.

5. There have been successes.

For example, in 2006, former Minister of Religion Said Agil Husein al-Munawar was jailed for seven years for corruptly using Mecca pilgrimage money.

Several former or current directors of state enterprises are now also in court or jail.

6. At a lower level, anti-corruption prosecutions are having some effect.

7. In provincial governor elections in West Java and North Sumatra, 'evidently corrupt and inept incumbents' were soundly defeated.

8. In 2008 it was revealed that the central Bank of Indonesia paid large bribes to national parliamentarians debating a new finance bill.

While the deputy governor of the bank was detained, catching 'the big fish' in parliament proved to be more difficult.

President Yudhoyono publicly disapproved of the anti corruption body's method of 'sting' operations.

9. One big issue is political party funding.

Much of the parties' money is thought to come from corrupt government officials.

10. Lawmaker Al Amin Nasution was arrested in 2008 for receiving a bribe from Riau Islands provincial officials in return for persuading the Ministry of Forestry to change the status of some land sites in Bintan Island.

Many Indonesians believe the arrests so far have only exposed the tip of an iceberg.

11. "As long as corruption in core national institutions of the state is addressed only half-heartedly, the prospects for substantial improvement remain dim...

"In order to succeed nationally, the anti-corruption drive must be accompanied by sweeping reforms in the judicial system and the civil service."