19 Oct '12, 9am

CHINA: Corruption Is Good

October 19, 2012: Corruption and its impact on popular support (or toleration) of Communist Party rule is now less worrisome than the damage the misgovernment is doing to the economy. A large chunk of the economy is still composed of state-owned firms and these are generally inefficient, unprofitable and kept alive by loans (that often do not get paid back) and special favors (that anger many Chinese). All this damage is catching up with the government as the rate of economic growth continues to decline. From ten percent four years ago, it’s now 7.4 percent annual growth. Without this growth, there is a lot less support for the police state government in China. There are also growing suspicions (and evidence) that the government has been manipulating economic data to hide how much worse the economy is actually doing. A growing debate within the Communist Party concerns how...

Full article: http://www.strategypage.com/qnd/china/articles/20121019.aspx

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