Solutions to Corruption in China

Transparency International reports on a new study on reducing corruption in China, spearheaded by the Anti-Corruption and Governance Research Centre in Tsinghua University (ACGRC).  The apporach blends the international experience of the National Integrity System (NIS) with ACGRC’s knowledge of Chinese political, economic, and social environment.  What exactly is NIS?

The NIS consists of the key institutions, laws and practices that contribute to integrity, transparency and accountability in a society. When it functions properly, the NIS combats corruption as part of the larger struggle against abuse of power, malfeasance, and misappropriation in all its forms. The NIS approach provides a framework with which to analyse both the extent and causes of corruption in a given national context, as well as the adequacy and effectiveness of national anti-corruption efforts. By diagnosing the strengths and weaknesses of a particular integrity system, an evaluation based on the NIS can help inform anti-corruption advocacy and reform efforts.

The full report is available here.  Particularly interesting is the recommendation relating to the private sector:

It was only after 1978, when the country started economic reform and the transition process, that the private sector developed rapidly and civil society also gained some ground. They are expected to play an increasingly important role in China’s public affairs management, as is occurring worldwide. The state should continue to retreat from over-regulating and over-intervening in the economy, giving more space to the private sector and civil society to play their roles. Meanwhile, China’s private sector and civil society have not given enough attention to corruption. If their roles are to be brought into full play, such attention would help promote public oversight but also enhance the restriction on power of the government. This will, in turn, facilitate internal integrity and self-discipline in the private sector and civil society and create a social culture with high probity and integrity.

Also interesting is the review of the recent institutional changes to combat corruption.  For example, the Chinese government put in place mechanisms to address the ‘conflict of interest’ problem, which stems from government officials holding positions in the private sector while in a public office:

China has imposed increasingly strict requirements on government officials taking up posts in businesses and enterprises.  In 2004, for example, the CCP CCDI and the CCP Central Organisational Department issued a joint circular instructing Party committees, governments and related departments at all levels not to give approval for Party and government officials to take up concurrent posts in enterprises.

The document is a very extensive review of Chinese institutions in regards to good governance and anti-corruption.  A must read for anyone who works on China.

Published Date: December 28, 2006