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The first step is to admit you have a problem 2009-Dec-29 at 13:46 PST

Posted by Scott Arbeit in Blog.
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Audit Found $35 Billion in Fraud Among Chinese Officials, David Barboza, New York Times, 29-Dec-2009

But analysts say the Communist Party faces significant hurdles in trying to curtail corruption. Every year Beijing announces new anticorruption drives, new laws and new policies aimed at dealing with the problem. But every year the scale of fraud seems enormous, particularly in a country where the average person earns less than $50 a week.

In 2005, for instance, the National Audit Office reported finding about $35 billion worth of government funds misused or embezzled. That was the last year the office gave a national figure covering its audits, according to its Web site.

Experts say the audits revealed one thing: many in government are finding ways to steal public money.

It’s probably not a shock to find out that there’s a lot of corruption, especially as you get farther away from the Eastern power structure there. But here’s why this is a good thing: it means that the Chinese government is starting to take corruption seriously, and that is always an indication in a society that a growing middle class is demanding more rights, and starting to get them.  There was also well-publicized mafia corruption trial a couple of months ago… something fairly unlikely just a few years ago.

All good signs for the future.

But analysts say the Communist Party faces significant hurdles in trying to curtail corruption. Every year Beijing announces new anticorruption drives, new laws and new policies aimed at dealing with the problem. But every year the scale of fraud seems enormous, particularly in a country where the average person earns less than $50 a week.

In 2005, for instance, the National Audit Office reported finding about $35 billion worth of government funds misused or embezzled. That was the last year the office gave a national figure covering its audits, according to its Web site.

Experts say the audits revealed one thing: many in government are finding ways to steal public money.

But analysts say the Communist Party faces significant hurdles in trying to curtail corruption. Every year Beijing announces new anticorruption drives, new laws and new policies aimed at dealing with the problem. But every year the scale of fraud seems enormous, particularly in a country where the average person earns less than $50 a week.

In 2005, for instance, the National Audit Office reported finding about $35 billion worth of government funds misused or embezzled. That was the last year the office gave a national figure covering its audits, according to its Web site.

Experts say the audits revealed one thing: many in government are finding ways to steal public money.

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Comments»

1. seth - 2009-Dec-29 at 19:19 PST

Scott,
Congratulations on getting this blog going. Looks really sharp….I look forward to what is to come.
-seth


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