Corruption and reform in China: An analysis of unintended consequences

Although market-driven reforms are bringing hope for China's economic development, there has been an increasing visibility of corruption in the reform process. This article examines the relationship between corruption and reform in China by relating the corruption issue to certain reform policies. It finds that corruption results from unintended consequences of some intended reform policies, as these policies aimed at transforming China's socioeconomic structures at the same time inadvertently produce some political and economic conditions conducive to corruption. The unintended consequences are controllable, however, if a balanced reform agenda is developed.     

The US financial regulatory reform, causes of financial crisis and its enlightenment on China

Deficiency of the US financial regulation has stimulated the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The fundamental causes of the regulatory deficiency can be categorized as follows: excessively indebted consumption culture in a long term, permanently abolishing the regulation on financial derivatives by the US Commodity Futures Trading Commission, and the regulations before the reform not fitting for the fictitious economy. The operation of financial products is like to fly a kite. The financial product is the kite, governmental adjustment is the string, market regulation is the wind, national culture and legislature and judicature are the environment. Those coordinated elements can guarantee a healthy financial market. To construct an effective financial regulatory system in China, it is needed to make culture with Chinese characteristics, advance the coordinated development of governmental and market regulation, and promote financial legislations and related implementation.     

腐败与中国式经济增长——兼论腐败治理的社会基础

本文基于中国31个省域2002—2011年的面板数据,对中国腐败问题的影响因素及其与经济增长的相互作用进行了理论分析和实证检验。分析结果表明:公民受教育程度、公职人员工资水平对腐败的影响是一致而显著的,但财政分权、政府规模、地区投资水平与GDP增长率等变量对腐败程度的影响是不一致或不显著的;中国的高速经济增长主要来源于人口红利带来的人力资本增长和改革开放带来的固定资本投资的上升,绝非腐败的拉动使然;腐败与中国经济增长之间的关系是复杂而微妙的,二者并不存在显著的计量关系,更无必然的因果联系。最后,本文有针对性地提出腐败治理的政策建议,否定了依赖正式制度改革的制度万能论的腐败治理思路,认为只依赖正式制度的改革来治理腐败是不够的,教育和宗教等非正式制度的教化作用在腐败治理的过程中也不容忽视。     

Editoria: Corruption and democracy

Editorial Introduction

Editoria: Corruption and democracy     

Corruption,Party Leaders,and Candidate Selection: Evidence from Italy

Research indicates that voters are not particularly effective at removing corrupt politicians from office, in part because voters make decisions on the basis of many competing factors. Party leaders are much more single-minded than voters and will choose to deselect implicated legislators if it means maintaining a positive party reputation and improving the odds of winning a legislative majority. We examine renominations to Italy’s legislature in two periods marked by corruption. We compare these renomination patterns with those from the prior legislature, when corruption lacked political salience. Our analysis shows that incumbent renominations are negatively associated with the number of press mentions that link the incumbent to corruption—but only when corruption is salient to the public. Our study highlights the importance of party leaders in forcing malfeasant legislators out of office—and reducing corruption—and redirects attention from voters to political elites as a critical channel in enforcing democratic accountability.