Hello.
For anyone out there who has had this conversation with me, they will know that I feel very strongly about the destabilizing force that the gap between rich and poor is creating in China. Those who have moved in to the cities in search of a better life has more or less found some version of it, those who have stayed behind in rural China have fallen even further behind. The question is why?
China's political leaders have, for the last 30 years, have focused entirely on developing China's cities. And, for the most part they have done a good job. But their focus on China's urban centers has left behind some 70% of the countries population (rural residents) who still have to deal with an often kleptocratic and corrupt local government. So if the gap between rich and poor is so great and the life quality between China's urban and rural residents so large, how does China keep it's 700 million farmers happy? What keeps them loyal to the system that consistently see's them losing out to urban residents? It's a question I have never been able to answer.
One of the most interesting developments in China over the last five years or so has been the media's aggressive push to publish corruption scandals in Chinese newspapers throughout the mainland. In the past year alone there have been several full page spreads about massive corruption at China's SOE's as well as within the government ranks. Leading me to ask the same question again, what keeps this current system afloat? Stability? Fear?
Earlier this year, while 700 million Chinese were living day-to-day, the world learned that the Chairman and CEO of China's High-speed Rail Network at embezzled over USD 100 million and held 18 mistresses; a life style and an amount of money that could never be comprehended in rural China. To top it off his position was mainly a political posting in a publicly traded State Owned Enterprise.
With the gap between rural and urban residents getting bigger, how much longer will people stand for this kind of rampant corruption that exists in China? Perhaps the bigger question, beyond corruption, is just the blatant stupidity shown on a weekly basis by China's privileged class. Below is an article by Reuters that indicates a Sinopec Executive has been disciplined for spending over USD 230,000 on alcohol for a lavish party. Many of the bottles of local alcohol cost USD 1,500 each, as much as 5 times the annual income of a farmer in rural China. Another example of insane decision making by a privileged member of China's SEO elite.
At some stage the political and economic elite in China are going to have to realize that their jobs and careers, and perhaps this country's stability, are at risk because of the corruption, embezzlement and impotent legal system that exists in China. Institutions need to be stronger than the men/women who hold positions of power. Corruption by government officials and SEO executives is a slap in the face to much of China's 1.3 billion people who are striving to create a better life for themselves and their families.
Also make note of the story below: where did the executive get the USD 230,000 for the alcohol purchase? Was the party a corporate sanction party or a personal party? Was the executive using ill gotten corporate money or personal money? Is there a corruption inquiry going on? There are a lot of unanswered questions here. My guess, knowing how things work in China, is that this guy bought the booze using company money and it was sanctioned by corporate bosses and the alcohol was used for corporate smoozing. The equivalent of a big weekend in Vegas. But once the purchase popped up in online chat rooms someone needed to "take the fall" to save the public reputation of the company.
________________________________________________________________
Original Story: http://www.reuters.com/article/2011/04/25/us-sinopec-drinks-idUSTRE73O3VX20110425
Copyright: Reuters
April 25th 2011
BEIJING (Reuters) - Chinese oil refining giant Sinopec has demoted a top executive who bought 1.6 million yuan ($245,900) of wine and spirits after details of the purchase leaked onto the Internet and sparked an uproar over extravagance at the state-owned firm.
Sinopec, which is Asia's top refiner, said Monday that it had demoted Lu Guangyu, who was general manager at the company's operations in the southern province of Guangdong, for "seriously harming Sinopec's image."
The company also fined Lu an unspecified sum and ordered him to pay back 130,000 yuan for alcohol he and his associates had already drunk, it said in a statement on its website (www.sinopecgroup.com).
His purchases included 480 bottles of Moutai, an expensive Chinese liquor traditionally drunk at state banquets, Sinopec said, adding it had re-sold bottles which had not already been drunk.
Some of the bottles cost almost 12,000 yuan each -- far more than the average Chinese earns in a month.
State media and China's spirited internet users said the purchase of the alcohol, which was meant for internal company use, was especially galling considering how much gasoline and diesel prices had risen recently.
Many Chinese are also struggling to make ends meet as inflation climbs. Consumer prices rose 5.4 percent in the year to March.
Sinopec Corp is the company's listed arm. ($1 = 6.507 Chinese Yuan)
________________________________________________________________
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts
Friday, April 29, 2011
Friday, March 05, 2010
Ryan Pyle Blog: Grand Corruption
Hello.
It appears that China may be full of corruption. I know, I was shocked as well. But what is even more surprising is that on the front page of the China Daily, the main government mouthpiece, the editor put the mug shots of 4 dodgy bastards who used to be in charge of State Owned Enterprises (SOE) that have been caught for corruption. Let's push through the list and see what we come up with.
First, the headline is "Rampant Corruption". I love that.
The first man on the list is the once invincible Zhang Chunjiang; aged 50. He was the Vice-Chairman of China Mobile, the world's largest mobile phone company, and apparently he falsified accounts that involved some RMB 20 billion ( USD 3 billion) when he was the head of another giant SOE named China Netcom. The best part about this was that after is blatant corruption at China Netcom he was rewarded with the role of Communist Party Official of China Mobile, meaning he had almost no role. I hold shares of China Mobile on the Hong Kong Stock Exchange and I find the company structure, the management and the politics involved in the company to be grossly lacking morals. Come on shareholders. Rise up!
The second man on the list is Chen Tonghai; aged 61. This dodgy dude was sentenced to death for taking over RMB 200 million (USD 30 million) in bribes. He was the former Chairman of Sinopec, one of China's largest oil companies, and one of the countries most powerful SOE's. I also own some shares of Sinopec on the Hong Kong Stock Exchange. Is it not unbelievable that publicly listed companies have Chairman and directors acting so blatantly against shareholder value?
The third mug shot on the front page of the China Daily belongs to Kang Rixin; aged 56. He is a dead ringer for Chairman Mao; but actually he is the former General Manager for the China National Nuclear Corporation; meaning that he is in charge of building all of China's Nuclear power plants. Classy. He somehow misappropriated RMB 1.8 billion (USD 2.5 billion). It's amazing that China can still champion it's legal system and system of SOE's when it appears everyone is just in the business to help themselves.
The last, but surely not the last, is Wang Yi; aged 52. He was the Vice President of the China Development Bank and he was expelled from the party for taking some RMB 10 million (USD 1.5 million) in bribes. Seems to be the least worst.
A few notes. One, everyone knows this happens and executives of SOE's are essentially the same as political figures. It's obscene that the government can claim any moral high ground when basically all of these companies executives are politically placed. Sure, the odd fat cat is knocked off his perch; but for every corrupt executive that gets nailed there must be hundreds that get missed. What boggles my mind is the newspapers and the media never seem to know where all the money went and nobody seems to be working "around the clock" to account for all his assets. Is that offside? Shouldn't be. Everything from his Ferrari to his diamond studded dog collar should be auctioned off. Corporate China is a mess and nobody wants an independent legal system where lawyers can go after these high rollers. A sad state of affairs.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
It appears that China may be full of corruption. I know, I was shocked as well. But what is even more surprising is that on the front page of the China Daily, the main government mouthpiece, the editor put the mug shots of 4 dodgy bastards who used to be in charge of State Owned Enterprises (SOE) that have been caught for corruption. Let's push through the list and see what we come up with.
First, the headline is "Rampant Corruption". I love that.
The first man on the list is the once invincible Zhang Chunjiang; aged 50. He was the Vice-Chairman of China Mobile, the world's largest mobile phone company, and apparently he falsified accounts that involved some RMB 20 billion ( USD 3 billion) when he was the head of another giant SOE named China Netcom. The best part about this was that after is blatant corruption at China Netcom he was rewarded with the role of Communist Party Official of China Mobile, meaning he had almost no role. I hold shares of China Mobile on the Hong Kong Stock Exchange and I find the company structure, the management and the politics involved in the company to be grossly lacking morals. Come on shareholders. Rise up!
The second man on the list is Chen Tonghai; aged 61. This dodgy dude was sentenced to death for taking over RMB 200 million (USD 30 million) in bribes. He was the former Chairman of Sinopec, one of China's largest oil companies, and one of the countries most powerful SOE's. I also own some shares of Sinopec on the Hong Kong Stock Exchange. Is it not unbelievable that publicly listed companies have Chairman and directors acting so blatantly against shareholder value?
The third mug shot on the front page of the China Daily belongs to Kang Rixin; aged 56. He is a dead ringer for Chairman Mao; but actually he is the former General Manager for the China National Nuclear Corporation; meaning that he is in charge of building all of China's Nuclear power plants. Classy. He somehow misappropriated RMB 1.8 billion (USD 2.5 billion). It's amazing that China can still champion it's legal system and system of SOE's when it appears everyone is just in the business to help themselves.
The last, but surely not the last, is Wang Yi; aged 52. He was the Vice President of the China Development Bank and he was expelled from the party for taking some RMB 10 million (USD 1.5 million) in bribes. Seems to be the least worst.
A few notes. One, everyone knows this happens and executives of SOE's are essentially the same as political figures. It's obscene that the government can claim any moral high ground when basically all of these companies executives are politically placed. Sure, the odd fat cat is knocked off his perch; but for every corrupt executive that gets nailed there must be hundreds that get missed. What boggles my mind is the newspapers and the media never seem to know where all the money went and nobody seems to be working "around the clock" to account for all his assets. Is that offside? Shouldn't be. Everything from his Ferrari to his diamond studded dog collar should be auctioned off. Corporate China is a mess and nobody wants an independent legal system where lawyers can go after these high rollers. A sad state of affairs.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Monday, March 01, 2010
Ryan Pyle Blog: Ethics? What Ethics?
Hello.
After 13 years, the Communist Party has decided to brush up their ethics code book. And why not, the country has changed significantly since 1997 and government officials need to be brought on board to the new expectations people have for them.
As the original article indicates, see below, Party members are to avoid: Money making deals, property speculation and lavish expenditure. They should not accept gifts or use their influence to help family members. So basically they are being asked to stop doing all the fun things that being a party member allow you to do in China. No more lavish weddings with rows upon rows of pimped out cars that 99% of regular Chinese folks could never afford. No more over the top funerals. No more, no more, no more. While stuff like this may seem obvious to you and I, many in the lower and middle ranks of government here will be taken aback by these new regulations. Yes, there is a different style of thinking in this country when it comes to governing; which seems ancient in so many ways.
If you think Wall Street has an image problem? Corrupting the financial system and hurting Main Street, driving up unemployment and walking away with record bonuses; well that doesn't even compare to the frustration directed by ordinary Chinese people at their government officials. With no vote, no media freedom, no freedom of speech and no freedom of association; there is absolutely no check on government power at any level. No front page New York Times story to shame officials in to resigning, no Wall Street Journal expose about officials stealing millions from State Owned Enterprises. If there is a story about corruption it has been explicitly ordained by the powers that be in Beijing; no one is caught by surprise.
While the Party uses it's own disciplinary committee to remove members and jail the occasional bad apple, it's generally seen as a joke. And the idea of an independent commission, or regulatory body, just doesn't fly in this part of the world. So publicly introducing a new ethics code book is a nice step by the Party, but sadly it won't change a thing, but it is not entirely the fault of individual officials; one might say that it's "the systems" fault and it needs a massive overhaul.
What I mean is that the biggest reason for the immense amount of corruption in China is that government officials are paid next to nothing for their service to the public. So they rely on cars, drivers, kickbacks, bribes and whatever else to make up the difference. And for years, since imperial China, this has been accepted practice. The problem is now that the economy is red hot and these kickbacks are often amounting to millions of US dollars; which just looks bad. Government officials wearing USD 30,000 luxury watches and children at private school in Switzerland are becoming the norm. The regular people, in this developing nation, are pretty feed-up.
The original story is below:
Copywrite: BBC News
Original Link: http://news.bbc.co.uk/2/hi/asia-pacific/8533410.stm
_________________________________
By Quentin Sommerville
BBC News, Beijing
In China, the Communist Party has issued a new 52-point ethics code, in an attempt to control growing corruption among officials.
The code bans members from property speculation, money-making deals, and lavish expenditure.
The last set of rules was issued 13 years ago.
Corruption has become an increasingly hot topic among the public - graft often tops the list of issues of most concern for ordinary Chinese citizens.
Party officials should work hard to serve the people and avoid accepting gifts or using their influence to benefit
family members, according to the new ethics code.
The guide bans lavish weddings and funerals, and overseas tours.
Officials should also stay out of profit-making deals, the code says. But few do.
Some of the most senior party officials in China have been on the take - property speculation has been particularly popular.
The richer the country gets the bigger the sums involved.
Spending lavish amounts on government buildings or flash cars is also banned.
In some provinces, party and government headquarters are indistinguishable from plush five star hotels.
The latest luxury sedans are often used to ferry around officials.
China's one-party system has struggled to deal with endemic corruption, much to the annoyance of the general public.
_________________________________
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
After 13 years, the Communist Party has decided to brush up their ethics code book. And why not, the country has changed significantly since 1997 and government officials need to be brought on board to the new expectations people have for them.
As the original article indicates, see below, Party members are to avoid: Money making deals, property speculation and lavish expenditure. They should not accept gifts or use their influence to help family members. So basically they are being asked to stop doing all the fun things that being a party member allow you to do in China. No more lavish weddings with rows upon rows of pimped out cars that 99% of regular Chinese folks could never afford. No more over the top funerals. No more, no more, no more. While stuff like this may seem obvious to you and I, many in the lower and middle ranks of government here will be taken aback by these new regulations. Yes, there is a different style of thinking in this country when it comes to governing; which seems ancient in so many ways.
If you think Wall Street has an image problem? Corrupting the financial system and hurting Main Street, driving up unemployment and walking away with record bonuses; well that doesn't even compare to the frustration directed by ordinary Chinese people at their government officials. With no vote, no media freedom, no freedom of speech and no freedom of association; there is absolutely no check on government power at any level. No front page New York Times story to shame officials in to resigning, no Wall Street Journal expose about officials stealing millions from State Owned Enterprises. If there is a story about corruption it has been explicitly ordained by the powers that be in Beijing; no one is caught by surprise.
While the Party uses it's own disciplinary committee to remove members and jail the occasional bad apple, it's generally seen as a joke. And the idea of an independent commission, or regulatory body, just doesn't fly in this part of the world. So publicly introducing a new ethics code book is a nice step by the Party, but sadly it won't change a thing, but it is not entirely the fault of individual officials; one might say that it's "the systems" fault and it needs a massive overhaul.
What I mean is that the biggest reason for the immense amount of corruption in China is that government officials are paid next to nothing for their service to the public. So they rely on cars, drivers, kickbacks, bribes and whatever else to make up the difference. And for years, since imperial China, this has been accepted practice. The problem is now that the economy is red hot and these kickbacks are often amounting to millions of US dollars; which just looks bad. Government officials wearing USD 30,000 luxury watches and children at private school in Switzerland are becoming the norm. The regular people, in this developing nation, are pretty feed-up.
The original story is below:
Copywrite: BBC News
Original Link: http://news.bbc.co.uk/2/hi/asia-pacific/8533410.stm
_________________________________
By Quentin Sommerville
BBC News, Beijing
In China, the Communist Party has issued a new 52-point ethics code, in an attempt to control growing corruption among officials.
The code bans members from property speculation, money-making deals, and lavish expenditure.
The last set of rules was issued 13 years ago.
Corruption has become an increasingly hot topic among the public - graft often tops the list of issues of most concern for ordinary Chinese citizens.
Party officials should work hard to serve the people and avoid accepting gifts or using their influence to benefit
family members, according to the new ethics code.
The guide bans lavish weddings and funerals, and overseas tours.
Officials should also stay out of profit-making deals, the code says. But few do.
Some of the most senior party officials in China have been on the take - property speculation has been particularly popular.
The richer the country gets the bigger the sums involved.
Spending lavish amounts on government buildings or flash cars is also banned.
In some provinces, party and government headquarters are indistinguishable from plush five star hotels.
The latest luxury sedans are often used to ferry around officials.
China's one-party system has struggled to deal with endemic corruption, much to the annoyance of the general public.
_________________________________
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Thursday, October 22, 2009
Ryan Pyle Blog: The State of China's Economy
Hello.
It would appear that Chinese tycoons and corrupt officials have hijacked the Chinese economy and manipulated it for their own ends, in a political-economic system that Mr. Wu Jinglian calls "crony capitalism".
Who is Mr. Wu, and why should we care?
Well, he is a 79 year old economist and has just been the subject of an excellent profile by David Barboza of the New York Times.
Mr. Wu, or "Market Wu" as he was known after advising Deng Xiaoping in the 1980s, has begun speaking out against China brand of Capitalism with Chinese Characteristics. While calling for an economic clean up, he has even gone so far as to push for a British-style democracy, advocating that political change in China is inevitable. And yes, Mr. Wu's sharp criticism has landed him in hot water with the current regime; so much so that he has been officially branded a SPY by Chinese state run media; although the actual authorities in China deny any investigations involving Mr. Wu.
Stories like this one, by David, offer an incredible and unique glimpse in to how China has progressed since 1979 and where China is headed. Mr. Wu clearly holds the keys to all the good economic gossip. Ten years ago, or even five years ago, men like Mr. Wu would have never spoken out for fear of retribution. But more and more Chinese folks with an insiders scoop or something unique to say seem to no longer be afraid of speaking their mind, or calling a spade a spade.
In Mr. Wu's case he is obviously in the twilight of his career and doesn't seem to fear anything; let alone retribution by the government. So what does this aging economic insider have to say about China? In a nutshell, that economic reforms in the early 1980s have been responsible for fueling growth and altering the course of an entire nation. But that rapid growth also opened the flood gates to official corruption. And that the government is prone to meddle in the market too often and this: widens the income gap, protects inefficient monopolies and as led to an air of cronyism between big business and politics.
Mr. Wu after being banished to the farms of Central China during the Cultural Revolution returned to reach the highest levels of influence, advising Deng Xiaoping and Jiang Zemin on macro economics and how to clean up massive State Owned Enterprises. Having always been quick to strike, Mr. Wu isn't holding back any punches indicating that China must really being to change it's ways or the country's future is far from guaranteed - global stock markets take note. Mr. Wu sees a traditional battle between Maoists and Reformers in the current government tearing this country apart, with Maoists pushing for central planning and Reformers wanted to line their own pockets. After seeing so much change since 1979 you might expect Mr. Wu to be an optimist, but he is not; indicating that cronyism and corruption are undermining the future of China.
The original article by David Barboza of the New York Times can be found by following this LINK.
Let's seriously hope people people like Mr. Wu start popping out of the woodwork; their stories are profound, historically important and make for a great read.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
It would appear that Chinese tycoons and corrupt officials have hijacked the Chinese economy and manipulated it for their own ends, in a political-economic system that Mr. Wu Jinglian calls "crony capitalism".
Who is Mr. Wu, and why should we care?
Well, he is a 79 year old economist and has just been the subject of an excellent profile by David Barboza of the New York Times.
Mr. Wu, or "Market Wu" as he was known after advising Deng Xiaoping in the 1980s, has begun speaking out against China brand of Capitalism with Chinese Characteristics. While calling for an economic clean up, he has even gone so far as to push for a British-style democracy, advocating that political change in China is inevitable. And yes, Mr. Wu's sharp criticism has landed him in hot water with the current regime; so much so that he has been officially branded a SPY by Chinese state run media; although the actual authorities in China deny any investigations involving Mr. Wu.
Stories like this one, by David, offer an incredible and unique glimpse in to how China has progressed since 1979 and where China is headed. Mr. Wu clearly holds the keys to all the good economic gossip. Ten years ago, or even five years ago, men like Mr. Wu would have never spoken out for fear of retribution. But more and more Chinese folks with an insiders scoop or something unique to say seem to no longer be afraid of speaking their mind, or calling a spade a spade.
In Mr. Wu's case he is obviously in the twilight of his career and doesn't seem to fear anything; let alone retribution by the government. So what does this aging economic insider have to say about China? In a nutshell, that economic reforms in the early 1980s have been responsible for fueling growth and altering the course of an entire nation. But that rapid growth also opened the flood gates to official corruption. And that the government is prone to meddle in the market too often and this: widens the income gap, protects inefficient monopolies and as led to an air of cronyism between big business and politics.
Mr. Wu after being banished to the farms of Central China during the Cultural Revolution returned to reach the highest levels of influence, advising Deng Xiaoping and Jiang Zemin on macro economics and how to clean up massive State Owned Enterprises. Having always been quick to strike, Mr. Wu isn't holding back any punches indicating that China must really being to change it's ways or the country's future is far from guaranteed - global stock markets take note. Mr. Wu sees a traditional battle between Maoists and Reformers in the current government tearing this country apart, with Maoists pushing for central planning and Reformers wanted to line their own pockets. After seeing so much change since 1979 you might expect Mr. Wu to be an optimist, but he is not; indicating that cronyism and corruption are undermining the future of China.
The original article by David Barboza of the New York Times can be found by following this LINK.
Let's seriously hope people people like Mr. Wu start popping out of the woodwork; their stories are profound, historically important and make for a great read.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Monday, August 31, 2009
Ryan Pyle Blog: Poll "Prostitutes Trusted"
Hello.
A recent online survey in China ranked Prostitutes as more trustworthy than Politicians. Without getting in to the nitty gritty, the least trusted category includes: real estate developers, agents, secretaries, entertainers and directors.
The article is pasted below.
Copy Write BBC World
________________________
Politicians were deemed less trustworthy than prostitutes
China's prostitutes are better-trusted than its politicians and scientists, according to an online survey published by Insight China magazine.
The survey found that 7.9% of respondents considered sex workers to be trustworthy, placing them third behind farmers and religious workers.
"A list like this is at the same time surprising and embarrassing," said an editorial in the state-run China Daily.
Politicians were far down the list, closer to scientists and teachers.
Insight China polled 3,376 Chinese citizens in June and July this year.
"The sex workers' unexpected prominence on this list of honour... is indeed unusual," said the China Daily editorial.
"At least [the scientists and officials] have not slid into the least credible category which consists of real estate developers, secretaries, agents, entertainers and directors," the editorial said.
Soldiers came in fourth place.
________________________
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
A recent online survey in China ranked Prostitutes as more trustworthy than Politicians. Without getting in to the nitty gritty, the least trusted category includes: real estate developers, agents, secretaries, entertainers and directors.
The article is pasted below.
Copy Write BBC World
________________________
Politicians were deemed less trustworthy than prostitutes
China's prostitutes are better-trusted than its politicians and scientists, according to an online survey published by Insight China magazine.
The survey found that 7.9% of respondents considered sex workers to be trustworthy, placing them third behind farmers and religious workers.
"A list like this is at the same time surprising and embarrassing," said an editorial in the state-run China Daily.
Politicians were far down the list, closer to scientists and teachers.
Insight China polled 3,376 Chinese citizens in June and July this year.
"The sex workers' unexpected prominence on this list of honour... is indeed unusual," said the China Daily editorial.
"At least [the scientists and officials] have not slid into the least credible category which consists of real estate developers, secretaries, agents, entertainers and directors," the editorial said.
Soldiers came in fourth place.
________________________
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Friday, August 14, 2009
Ryan Pyle Blog: The Presidents Son
Hello.
Some blogs make me giggle, others can bring tears to my eyes. This one falls somewhere in the middle. I just wanted to write a bit about how similar China's version of paternal capitalism is with that of the United States. In a BBC article earlier this week it was reported that Hu Jintao's son runs a company that makes airport security scanners. His company is knee-deep in Africa; and Namibia recently launched a bribery case against his firm.
When reading this I instantly thought of George Bush Senior and his son. George Bush Junior got in all kinds of trouble as a private business man in Texas before his father had lost his patience bailing him out of trouble and decided to help engineer his political career; and the rest is history.
But Hu Jintao's case is a little bit different. It is common knowledge in China that all the big political bosses in the Communist Party have children who are surprisingly capable business men and women; go figure. It seems that most of the top leaders have sons who run massive investment companies, property companies or in some cases even state-run energy companies. But the message that this sends to people in China does much more damage than the small bribery cases in Africa.
You see, China is desperately trying to clean itself up. Corruption is blatant and everywhere, and while top leaders in Beijing have cleaned themselves up considerably, they've just simply passed the buck (literally) on to their very powerful children; who oddly enough don't have any interest in politics as long as business is good. The message this sends to small county governors in the Chinese countryside is that if the big guys up top can get their cake and eat it to, then I'm going to do the same. And of course "the people" suffer.
Capitalism, or state run capitalism, is a killer without independent checks and balances, and China likes the balances tipped just the way they are. So is China's push to stamp out corruption real? Sure, but it is selective at best and corrupt at worse.
Last year during the Olympics I was losing my mind waiting in line ups at airports around China as bags were x-rayed after they were collected from the baggage claim, as an extra security measure. At least now I know why there were twice as many xray machines in the airports then most would need. You gotta spread the wealth. The BBC story is below.
__________________________________
Copywrite BBC
China firm in Namibia bribe claim
Nuctech is a leading supplier of airport security scanners. Namibia is investigating allegations of bribery over a government contract with a Chinese state-owned firm that has links to President Hu Jintao's son.
Namibia's anti-corruption commission said it would like to question Hu Haifeng, but that he was not a suspect. Hu Haifeng was president of the firm, Nuctech, until last year.
Nuctech is suspected of bribing a Namibian consultancy in connection with a $56m (£34m) deal to supply scanners to Namibia's ports and airports. The co-owners of consultancy Teko Trading, Teckla Lameck and Kongo Mokaxwa, and Nuctech's Africa representative Yang Fan, were arrested last week and are still in custody. Teko Trading is alleged to have received $13.2m from Nuctech.
The Chinese firm is a global leader in X-ray scanners and security devices. Hu Haifeng, 38, was president of the firm until last year when he was promoted to a post with Tsinghua Holdings, the group that controls Nuctech and a number of other companies.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Some blogs make me giggle, others can bring tears to my eyes. This one falls somewhere in the middle. I just wanted to write a bit about how similar China's version of paternal capitalism is with that of the United States. In a BBC article earlier this week it was reported that Hu Jintao's son runs a company that makes airport security scanners. His company is knee-deep in Africa; and Namibia recently launched a bribery case against his firm.
When reading this I instantly thought of George Bush Senior and his son. George Bush Junior got in all kinds of trouble as a private business man in Texas before his father had lost his patience bailing him out of trouble and decided to help engineer his political career; and the rest is history.
But Hu Jintao's case is a little bit different. It is common knowledge in China that all the big political bosses in the Communist Party have children who are surprisingly capable business men and women; go figure. It seems that most of the top leaders have sons who run massive investment companies, property companies or in some cases even state-run energy companies. But the message that this sends to people in China does much more damage than the small bribery cases in Africa.
You see, China is desperately trying to clean itself up. Corruption is blatant and everywhere, and while top leaders in Beijing have cleaned themselves up considerably, they've just simply passed the buck (literally) on to their very powerful children; who oddly enough don't have any interest in politics as long as business is good. The message this sends to small county governors in the Chinese countryside is that if the big guys up top can get their cake and eat it to, then I'm going to do the same. And of course "the people" suffer.
Capitalism, or state run capitalism, is a killer without independent checks and balances, and China likes the balances tipped just the way they are. So is China's push to stamp out corruption real? Sure, but it is selective at best and corrupt at worse.
Last year during the Olympics I was losing my mind waiting in line ups at airports around China as bags were x-rayed after they were collected from the baggage claim, as an extra security measure. At least now I know why there were twice as many xray machines in the airports then most would need. You gotta spread the wealth. The BBC story is below.
__________________________________
Copywrite BBC
China firm in Namibia bribe claim
Nuctech is a leading supplier of airport security scanners. Namibia is investigating allegations of bribery over a government contract with a Chinese state-owned firm that has links to President Hu Jintao's son.
Namibia's anti-corruption commission said it would like to question Hu Haifeng, but that he was not a suspect. Hu Haifeng was president of the firm, Nuctech, until last year.
Nuctech is suspected of bribing a Namibian consultancy in connection with a $56m (£34m) deal to supply scanners to Namibia's ports and airports. The co-owners of consultancy Teko Trading, Teckla Lameck and Kongo Mokaxwa, and Nuctech's Africa representative Yang Fan, were arrested last week and are still in custody. Teko Trading is alleged to have received $13.2m from Nuctech.
The Chinese firm is a global leader in X-ray scanners and security devices. Hu Haifeng, 38, was president of the firm until last year when he was promoted to a post with Tsinghua Holdings, the group that controls Nuctech and a number of other companies.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Wednesday, May 20, 2009
Ryan Pyle Blog: Job Opening in Linfen
Hello,
I recently read something in the media back in April that made me stop and think. The article made a specific reference to the two jobs of Mayor and Party Secretary for the city of Linfen, which have both been vacant for six months, in coal rich Shanxi province in Central China.
First a bit of background. Linfen is a particularly nasty place (which I have no pictures of!). It ranked #1 on CNN's most polluted cities in the world list in 2008. It's a coal, cement and pulp and paper kind of place. In one interview a television correspondent asked a woman, who was holding a young child, if she knew the sky's color is actually blue; she had no idea, she believe the sky's natural color was gray. She'd never been outside of Linfen.
While Linfen is particularly dirty it is also known for lapses in safety and environmental planning. The township has been the site of several massive accidents in the past few years from coal mine collapses, which kill miners, to massive reservoirs of toxic sludge breaking their dam and engulfing entire villages. For the last few years the job of mayor or party secretary in Linfen has been a game of musical chairs, no one seems to last more than a year before a major environmental "incident" causes several of the main leadership to resign or be fired.
Now the inner workings of the Communist Party is a black box to outsiders like myself. We have virtually no idea what is going on and the power politics involved. For years it was my assumption, and perhaps the assumption of much of the media that I was reading, that Party Secretaries of townships and counties were local, and heavily involved in business. To contrast that the provincial Party Secretaries are from different provinces and tend to rotate every 3-5 years.
So if local Party Secretaries can operate in area's they have grown up in, and have at their disposal vast powers and business connections why is it that the job of Party Secretary and Mayor for Linfen is still vacant, six month after the last environmental incident claimed the last duo? Perhaps the power of local Party Secretaries and Mayors are no match for the power politics being played by coal and cement producers throughout the province. My best guess is that coal mine owners and cement factory owners bypass local governments and townships and report straight to provincial Party Secretaries, who in turn for their loyalty are allowed to work freely throughout the province.
That would mean that a lot of local town and county officials are caught between a rock and a hard place, unable to introduce change and or safety standards, if that was the case, and completely responsible for anything that happens on their turf; for which they would have absolutely no control over. But surely the vacant posts in question would yield back handers and opportunities to exercise influence for financial gain; but with all that being frowned upon at the moment from Beijing, it's clear that some government posts are just completely unattractive. I never would have thought that.
Is anyone reading in to this situation differently? Anyone heard anything else on the topic?
Sorry this post has little to do with photography, but I tend to find these sorts of political plays in China incredibly interesting.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
I recently read something in the media back in April that made me stop and think. The article made a specific reference to the two jobs of Mayor and Party Secretary for the city of Linfen, which have both been vacant for six months, in coal rich Shanxi province in Central China.
First a bit of background. Linfen is a particularly nasty place (which I have no pictures of!). It ranked #1 on CNN's most polluted cities in the world list in 2008. It's a coal, cement and pulp and paper kind of place. In one interview a television correspondent asked a woman, who was holding a young child, if she knew the sky's color is actually blue; she had no idea, she believe the sky's natural color was gray. She'd never been outside of Linfen.
While Linfen is particularly dirty it is also known for lapses in safety and environmental planning. The township has been the site of several massive accidents in the past few years from coal mine collapses, which kill miners, to massive reservoirs of toxic sludge breaking their dam and engulfing entire villages. For the last few years the job of mayor or party secretary in Linfen has been a game of musical chairs, no one seems to last more than a year before a major environmental "incident" causes several of the main leadership to resign or be fired.
Now the inner workings of the Communist Party is a black box to outsiders like myself. We have virtually no idea what is going on and the power politics involved. For years it was my assumption, and perhaps the assumption of much of the media that I was reading, that Party Secretaries of townships and counties were local, and heavily involved in business. To contrast that the provincial Party Secretaries are from different provinces and tend to rotate every 3-5 years.
So if local Party Secretaries can operate in area's they have grown up in, and have at their disposal vast powers and business connections why is it that the job of Party Secretary and Mayor for Linfen is still vacant, six month after the last environmental incident claimed the last duo? Perhaps the power of local Party Secretaries and Mayors are no match for the power politics being played by coal and cement producers throughout the province. My best guess is that coal mine owners and cement factory owners bypass local governments and townships and report straight to provincial Party Secretaries, who in turn for their loyalty are allowed to work freely throughout the province.
That would mean that a lot of local town and county officials are caught between a rock and a hard place, unable to introduce change and or safety standards, if that was the case, and completely responsible for anything that happens on their turf; for which they would have absolutely no control over. But surely the vacant posts in question would yield back handers and opportunities to exercise influence for financial gain; but with all that being frowned upon at the moment from Beijing, it's clear that some government posts are just completely unattractive. I never would have thought that.
Is anyone reading in to this situation differently? Anyone heard anything else on the topic?
Sorry this post has little to do with photography, but I tend to find these sorts of political plays in China incredibly interesting.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Wednesday, May 06, 2009
Ryan Pyle Blog: New Complaint Policy
Hello,
It would appear, according to a domestic newspaper story, that senior party officials in provinces across China have been asked by the central government in Beijing to meet with petitioners about complains in an effort to help reduce social disputes and civil unrest, as well as help stem the flow of petitioners to Beijing from the provinces. See the Story Link Here.
Social unrest is, without a doubt, the number one concern in the eyes of government officials throughout the country. Some people out there might question my saying that, but every economic policy that comes out has the effect of quelling some possible protest somewhere.
Social unrest is common occurrence in China, even though protests or demonstrations are officially illegal. Therefore regular people have no outlet for their dissatisfaction of local government officials; close your eyes and image an old fashioned kettle boiling up and whistling away with steam pipping out. It is easy to see how people can see that aggressive, desperate action is the only action.
But in a year of the 60th anniversary of the People's Republic of China, the government is trying to show the people that while the party is unelected, they are responsible and they care. It's far fetched, but even a bit of dialog is better than the thuggish bullying, ignoring and imprisonment that has been the unofficial policy for the last two decades. You see most government officials get a report card at the end of every year and social unrest in a region under your watch is highly frowned upon, so everything is done to avoid the people taking to the streets.
In several extreme cases it is reported that people traveling with petitions, or official complaints, to Beijing from their province are often caught and jailed without trial; in an effort to keep Beijing officials in the dark about what is actually happening in the countryside. A nasty side effect of virtual independence, by local officials, to run their fiefdom as they see fit. In one banner case last year the New York Times wrote of a local official who was arresting petitioners, who were trying to out government officials on illegal land seizures and pollution, and sending them in to psychiatric hospitals. A page straight out of Stalin's book, the only problem is that this is 2009 and that kind of behavior shouldn't be acceptable for leading government officials in an emerging super power, and owner of the world's third largest economy. But as long as China continues to buy US treasury bills, mum's the word.
So in an effort to calm the extremes the party leadership in Beijing is trying to create a communications bridge between upset folks and their government officials, essentially this is the only option in a country that has a one party system that also dominates the legal system. Will it work? My guess is no. I don't think government officials have the right set of morals or characteristics to be sensitive to these cases; in most cases they'll be brushed off as impediments to progress and GDP growth. A painful and short sighted view, but as someone on the ground I just can't see things changing much.
An old political philosophy professor at the University of Toronto used to always tell me that "Power tends to corrupt, and absolute power corrupts absolutely...", a line from Lord Acton in his open letter to Bishop Creighton in 1887. And in the case of China this phrase nails it. Chinese officials operate in a world with no political competition, no media freedom, as well as control of the banks, police and courts. If that is not absolute power what is?
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
It would appear, according to a domestic newspaper story, that senior party officials in provinces across China have been asked by the central government in Beijing to meet with petitioners about complains in an effort to help reduce social disputes and civil unrest, as well as help stem the flow of petitioners to Beijing from the provinces. See the Story Link Here.
Social unrest is, without a doubt, the number one concern in the eyes of government officials throughout the country. Some people out there might question my saying that, but every economic policy that comes out has the effect of quelling some possible protest somewhere.
Social unrest is common occurrence in China, even though protests or demonstrations are officially illegal. Therefore regular people have no outlet for their dissatisfaction of local government officials; close your eyes and image an old fashioned kettle boiling up and whistling away with steam pipping out. It is easy to see how people can see that aggressive, desperate action is the only action.
But in a year of the 60th anniversary of the People's Republic of China, the government is trying to show the people that while the party is unelected, they are responsible and they care. It's far fetched, but even a bit of dialog is better than the thuggish bullying, ignoring and imprisonment that has been the unofficial policy for the last two decades. You see most government officials get a report card at the end of every year and social unrest in a region under your watch is highly frowned upon, so everything is done to avoid the people taking to the streets.
In several extreme cases it is reported that people traveling with petitions, or official complaints, to Beijing from their province are often caught and jailed without trial; in an effort to keep Beijing officials in the dark about what is actually happening in the countryside. A nasty side effect of virtual independence, by local officials, to run their fiefdom as they see fit. In one banner case last year the New York Times wrote of a local official who was arresting petitioners, who were trying to out government officials on illegal land seizures and pollution, and sending them in to psychiatric hospitals. A page straight out of Stalin's book, the only problem is that this is 2009 and that kind of behavior shouldn't be acceptable for leading government officials in an emerging super power, and owner of the world's third largest economy. But as long as China continues to buy US treasury bills, mum's the word.
So in an effort to calm the extremes the party leadership in Beijing is trying to create a communications bridge between upset folks and their government officials, essentially this is the only option in a country that has a one party system that also dominates the legal system. Will it work? My guess is no. I don't think government officials have the right set of morals or characteristics to be sensitive to these cases; in most cases they'll be brushed off as impediments to progress and GDP growth. A painful and short sighted view, but as someone on the ground I just can't see things changing much.
An old political philosophy professor at the University of Toronto used to always tell me that "Power tends to corrupt, and absolute power corrupts absolutely...", a line from Lord Acton in his open letter to Bishop Creighton in 1887. And in the case of China this phrase nails it. Chinese officials operate in a world with no political competition, no media freedom, as well as control of the banks, police and courts. If that is not absolute power what is?
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Sunday, March 22, 2009
Ryan Pyle Blog: Corruption & Construction
Hello,
Today I wanted to address infrastructure spending. With all this stimulus money being tossed around, much of it earmarked for infrastructure and construction, I thought we should stop for a minute and take note that the collective world is throwing hundreds of billions of dollars at perhaps the doggiest industry on the planet.
A recent article in Fortune Magazine (02/16/2009) reported that, according to Transparency International, a non-governmental organization, the construction industry is the most corrupt industry in the world. An example of this comes from Halliburton, who recently forked out US$599 million in fines to the US Government to settle charges concerning construction related bribes in Nigeria. Wasn't former Vice President of the United States Dick Cheany the former CEO of Halliburton prior to his eight years in public office?
While the Fortune Magazine article focuses on the anti-corruption measures by construction company Fluror, I thought it might be interesting, in this space, to take a look at how all that tax payer stimulus money will be spent. After bailing out the banks the next biggest expenditure in the United States is likely to be construction, whether it be building roads, expressways, bridges, schools, and factories. Does it not raise any flags within the government that the construction industry is such a mess? Now perhaps in the United States there are more regulations and transparency in the bidding process for government contracts, but there is certainly going to be a lot of back dealing; and perhaps that is acceptable because of the great rush everyone is in to repair the economy and put people back to work, but maybe not.
While I don't have much direct experience in the United States on these issues I can promise you that China's US$600 billion stimulus package is going to go pear shaped in the early stages. In an earlier blog I mentioned that much of the benefactors of the stimulus money will be construction companies and firms dealing with natural resources, both industries are essentially government owned. So basically the government wrote a US$600 billion cheque to itself. Fair enough, the government manages over 50% of the Chinese economy either directly or indirectly; and at the end of the day communist leaders have no interest in transparency and no tolerance for criticism, so they don't really worry too much about what ordinary people think about these types of investments in the country. In the end the expenditure will help things, disproportionately to owners of cement and construction companies but that money will trickle down to the service economy as well. Transparent, no. Effective, that has yet to be seen.
But I worry. While the Chinese government knows how to mobilize and move people better than any government on earth, there is no doubt that the money will be used quickly and short-term construction jobs will keep migrant workers happy for a year or two, but how is that sustainable? When that money runs out will there be another stimulus package introduced? If the government fears political stability so much, and keeping migrant workers and University graduates busy, perhaps they should just call the stimulus packages "Political Stability Stimulus"; which is all it really is. Expect more money thrown at the problem in the coming months.
Furthermore, my guess is that Transparency International doesn't have very many nice things to say about the construction industry in China, and it should bother people that there could be so much potential for wasted money. In the United States ordinary people rise up and complain all the time about how "my tax dollars are being wasted". Well Chinese workers pay tax, and so do Chinese companies and so do joint venture multinational corporations; but where are the people in China asking, "are my tax dollars being wasted?". Or what about "are my middle class tax dollars being used to pacify the masses and keep the current corrupt leadership in place?" Interesting questions, no answers and no dialog.
This is what the emerging middle class should be bringing to the table, and in the future they will hopefully demand more transparency and some form of independent rule of law in China. My guess is the government already knows that and doesn't care much for making changes in the great name of "political stability and economic growth". And while stability and economic growth is important it doesn't mean that tax payers should just sit back and watch money be thrown at corrupt industries to solve short term problems.
The next 6 months should be very interesting. Many online bloggers in China were quick to point out that a significant portion of the money donated to rebuild Sichuan after it's devastating earthquake was misused, my guess is the same will be done for this stimulus package. But even if caught with a hand in the cookie jar, don't expect any government officials to be jailed. For those who are keeping score, economic growth once again trumps rule of law, anti-corruption measures and political reform.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
Today I wanted to address infrastructure spending. With all this stimulus money being tossed around, much of it earmarked for infrastructure and construction, I thought we should stop for a minute and take note that the collective world is throwing hundreds of billions of dollars at perhaps the doggiest industry on the planet.
A recent article in Fortune Magazine (02/16/2009) reported that, according to Transparency International, a non-governmental organization, the construction industry is the most corrupt industry in the world. An example of this comes from Halliburton, who recently forked out US$599 million in fines to the US Government to settle charges concerning construction related bribes in Nigeria. Wasn't former Vice President of the United States Dick Cheany the former CEO of Halliburton prior to his eight years in public office?
While the Fortune Magazine article focuses on the anti-corruption measures by construction company Fluror, I thought it might be interesting, in this space, to take a look at how all that tax payer stimulus money will be spent. After bailing out the banks the next biggest expenditure in the United States is likely to be construction, whether it be building roads, expressways, bridges, schools, and factories. Does it not raise any flags within the government that the construction industry is such a mess? Now perhaps in the United States there are more regulations and transparency in the bidding process for government contracts, but there is certainly going to be a lot of back dealing; and perhaps that is acceptable because of the great rush everyone is in to repair the economy and put people back to work, but maybe not.
While I don't have much direct experience in the United States on these issues I can promise you that China's US$600 billion stimulus package is going to go pear shaped in the early stages. In an earlier blog I mentioned that much of the benefactors of the stimulus money will be construction companies and firms dealing with natural resources, both industries are essentially government owned. So basically the government wrote a US$600 billion cheque to itself. Fair enough, the government manages over 50% of the Chinese economy either directly or indirectly; and at the end of the day communist leaders have no interest in transparency and no tolerance for criticism, so they don't really worry too much about what ordinary people think about these types of investments in the country. In the end the expenditure will help things, disproportionately to owners of cement and construction companies but that money will trickle down to the service economy as well. Transparent, no. Effective, that has yet to be seen.
But I worry. While the Chinese government knows how to mobilize and move people better than any government on earth, there is no doubt that the money will be used quickly and short-term construction jobs will keep migrant workers happy for a year or two, but how is that sustainable? When that money runs out will there be another stimulus package introduced? If the government fears political stability so much, and keeping migrant workers and University graduates busy, perhaps they should just call the stimulus packages "Political Stability Stimulus"; which is all it really is. Expect more money thrown at the problem in the coming months.
Furthermore, my guess is that Transparency International doesn't have very many nice things to say about the construction industry in China, and it should bother people that there could be so much potential for wasted money. In the United States ordinary people rise up and complain all the time about how "my tax dollars are being wasted". Well Chinese workers pay tax, and so do Chinese companies and so do joint venture multinational corporations; but where are the people in China asking, "are my tax dollars being wasted?". Or what about "are my middle class tax dollars being used to pacify the masses and keep the current corrupt leadership in place?" Interesting questions, no answers and no dialog.
This is what the emerging middle class should be bringing to the table, and in the future they will hopefully demand more transparency and some form of independent rule of law in China. My guess is the government already knows that and doesn't care much for making changes in the great name of "political stability and economic growth". And while stability and economic growth is important it doesn't mean that tax payers should just sit back and watch money be thrown at corrupt industries to solve short term problems.
The next 6 months should be very interesting. Many online bloggers in China were quick to point out that a significant portion of the money donated to rebuild Sichuan after it's devastating earthquake was misused, my guess is the same will be done for this stimulus package. But even if caught with a hand in the cookie jar, don't expect any government officials to be jailed. For those who are keeping score, economic growth once again trumps rule of law, anti-corruption measures and political reform.
--
Ryan Pyle
Photographer
ryan@ryanpyle.com
Website: www.ryanpyle.com
Archive: http://archive.ryanpyle.com
_______________________________________
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