Corruption in China’s economic reform: a review of recent observations and explanations

Abstract

Corruption is a universal phenomenon of public institutions. It is markedly more pervasive in developing and transitional societies. China, with rapid economic growth for two decades, has been deeply troubled by the problem of official corruption at all levels in the public sector. The paper reviews the literature in the last 15 years which examines Chinese corruption from either a theoretical or empirical approach, by qualitative or quantitative methods in observation. Based on more than 30 studies with a focus on the related topic, the review covers issues of Chinese corruption data and statistics, theoretical explanations and China's strategies of fighting corruption as well as critique.

Underpaid and Corrupt Executives in China’s State Sector

“…A direct economic implication is that high-level corruption is potentially much more damaging to the overall economy, as people in high positions are better positioned to expropriate much more significant volumes of funds for their own benefit. On the other hand, a political implication is that a widespread corruption at the highest levels may threaten the very legitimacy of the CPC regime (Yu 2008). It is therefore not difficult to understand the intensified efforts to reign in corrupt practices in recent years.…”

Official Corruption During China’s Economic Transition: Historical Patterns, Characteristics, and Government Reactions

“…"Today, no one, including the Chinese Communist Party leaders, would deny that corruption has become a fatal problem of China's economy and a cancer of the Chinese society" (Yao, 2002, p. 281). The problem has attracted the attention of the academic community (Sun, 2004;Yu, 2008). Even though published research has provided some insights into corruption, many of the patterns of corruption, especially in different stages of economical reforms and basic characteristics of corrupted officials remain largely unknown.…”

Introduction: White-Collar and Corporate Crime in Asia

“…Corruption, a universal institutional phenomenon, is especially pervasive in developing and transitional societies (Yu 2008;Zimring and Johnson 2007). China, the most populous country in the world and a growing superpower, has experienced both unprecedented economic development during the past two decades and attendant rampant corruption at all levels in the government and in the private sector (Yu 2008).…”

“…China, the most populous country in the world and a growing superpower, has experienced both unprecedented economic development during the past two decades and attendant rampant corruption at all levels in the government and in the private sector (Yu 2008). Zhang et al (2008:127) have pointed out that, "White-collar crime and official corruption in particular have been a serious concern in China and have attracted wide attention during the course of the nation's economic reform."…”

“…Olivia Yu (2008) has reviewed theories offered to explain the causes of Chinese corruption and economic criminality, and suggests that the escalation in the number of these problems is an unintended consequence of reform policies. The phenomenon can be interpreted in terms of a number of prevalent criminological perspectives, including: (1) social control theory which emphasizes the importance of conditions such as attachment to parental values in preventing individuals from engaging in illegal activities; (2) anomie theories which view crime as resulting from normative deregulation, social structural strain, and lack of legitimate opportunities combined with an overriding cultural ethos that stresses the need for wealth and its associated acquisitions; (3) rational choice models which consider the role of criminal opportunities in motivating and enabling particular forms of crime; and (4) cultural explanations that focus on traditions or values among persons from different backgrounds and varying experiences (Yu 2008:167).…”