Visitors Now:
Total Visits:
Total Stories:
Profile image
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

China’s Crony Capitalism: The Dynamics of Regime Decay

Monday, October 10, 2016 8:38
% of readers think this story is Fact. Add your two cents.

(Before It's News)


This is excellent stuff. When Minxin Pei writes about how it is easy to amass wealth politically in a one party state an image of California instantly popped into my mind. Cali and China are in no way equivalent on the crony spectrum, but as the state increasingly becomes a Democrat only state (and this is only partially because of voter preferences) the observation Pei makes will only become more true.

Regardless we are pleased to see this exploration of China, a place which we have long referred to as the Ultimate Crony Capitalist State.

(From The National Interest)

The political power controlled by the officials in a one-party state can be converted into immense wealth quickly. However, this conversion is difficult to execute without colluding partners in the private sector. Most Chinese officials who have the ability to seize state-owned assets have also incurred considerable sunken costs—their lifelong investments in their political careers in the party. Abandoning a rewarding position inside the regime is unattractive. That is why family members of these officials, but not the officials themselves, are in the private sector…

…Therefore, the optimal solution for officials eager to cash in on their political power is to set up their immediate family members in business or to find partners in the private sector. This strategy allows these officials to remain inside the regime and at the same time amass wealth through the use of their power. For private businessmen, this partnership is also attractive because it can unlock the enormous value embedded in the state-owned assets under the control of these officials.

Now what’s going on with that multi-billion dollar monorail to nowhere in the Golden State?

Click here for the article.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.