Tigers, flies and foxes

Published On: November 12, 2017 12:59 AM NPT By: Narayan Manandhar


We are squeezed between China and India, not just graphically but even in our reasoning and ideology. To the north, in China, with President Xi Jinping’s high-level purges, the anti-corruption drive is taking a distinct top-down course. To the south, in India, with the Anna Hazare mass movement, I would say the drive is basically bottom-up. It is not just Nepal that will be squeezed by these two contrasting approaches to anti-corruption. The whole of South Asia—already thought of as the most corrupt region in the world—will be influenced by what happens in China and India in the years ahead. Nepal needs to carefully read unfolding events. 

What is interesting about these two giants is that both countries are competing at the same level, in terms of (high) economic growth and (high) level of corruption (refer to the two charts alongside). We see that the two countries are neck and neck, both in terms of economic growth and corruption. The Economist had earlier warned that much of the economic growth in India could be ascribed to corruption. If so, it will be disastrous to rely on corruption as a remedy for economic growth. In the case of China, the severity of Xi Jinping’s anticorruption drive has resulted in a “chilling effect”, reducing China’s economic growth by one percentage point. Same goes with PM Modi’s demonetization scheme launched a year ago.

With Xi completing his first five-year tenure and embarking on a second one, people all around the world are keeping tab on type and severity of his future anticorruption drive. Anticorruption is not just the chief ingredient of Xi’s “China Dream”. He has pronounced his anticorruption drive as irreversible and even injected Zhao Leji, the anticorruption czar, in the seven-member Standing Committee of the Politburo. 

Aiming high 
When he came to power, Xi promised the public that he would “brandish the sword against corruption”. This included caging of high-level, almighty “meat eating tigers” and trapping of low level “flies that enjoy living on smelly, filthy, disgusting rot”. Read the former as grand corruption and the latter as petty corruption. 

During his first five-year tenure (2012-2017), reportedly, as many as 1.34 million cadres have been “disciplined” for corruption, including many high level officials and leaders. Had it not been for his Spartan life, it would be difficult to say whether his anticorruption campaign was a genuine clean-up campaign or aimed only at purging his political opponents. After tigers and flies, mention must be made here of “hunting the foxes”. The effort has repatriated more than 2,500 fugitives from 90 countries, including 48 of the “top 100” fugitives. An estimated 600 Chinese millionaires are now taking sanctuary or hiding in Canada.

China and Vietnam are two countries where corruption convicts may face death sentences. The severity of anticorruption drive in China is being reflected in not just targeting of corrupt officials; even anti-corruption activists have not been spared. Targets also include multinational companies operating in China. There are now strict codes on officers’ dinning. Golf is banned as golf courses are where high level corruption deals are negotiated.  

 Economic reform of China after 1978 and particularly after 1990s has intensified corruption i.e., high-stake corruption taking place higher up the leadership. Hu Zengrong from Bejing Broadcasting University mentions four waves of corruption sweeping across China: a) First wave was seen in the consumer market as it was opened up in early 1980s, b) Second wave was seen in the producers’ goods market with the existence of dual price mechanism, which lasted up to early 1990s, c) Third wave, between 1993 and 1995, was seen in stock market, real estate market and capital market, and d) Fourth wave, now taking place, is concentrated in restructuring of state-owned enterprises and state assets, primarily by senior officials and bosses of state-owned enterprises. 

Hard on Himalayan Viagra 
The scourge of corruption has eaten away Chinese society to such an extent that the party’s very survival, with some 90 million members, depends on the effectiveness of Xi’s anticorruption drive. President Xi has been telling prospective members not to join the party if their goal is to make money. But the bitter fact is that most would have joined the party precisely to mint money. 

It is often assumed that corruption is rooted in gambling habits of Chinese people. The gradual opening of the economy has brought in more sins like drugs, prostitution, cartels, lavish gift giving culture and money laundering. Nepal is squeezed not just because of illegal trade of red sandalwood and cross-border smuggling of gold and foreign currencies between India and China. Even trade in yarsagumba, which is directed at Chinese markets, has become synonymous with corruption in China. With intensification of the anticorruption drive in China, and decline in the market for high-end branded goods, the demand for yarshagumba will also be greatly reduced. 
President Xi is contemplating a new anticorruption agency in China. There is also a rumor that the harsh method of interrogation of corruption accused will be softened or liberalized. This has come after accusation of lack of transparency in secretive interrogation called shuanggui where cadres accused of graft and other disciplinary violations are routinely subjected to extrajudicial detention, isolation and interrogation by the anticorruption agency.

Ages ago, British politician Lord Acton had said that power corrupts and absolute power corrupts absolutely. This is being demonstrated live in present-day China.


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