Anti-corruption efforts reinforce market order

3gzylon 2015-03-27

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(Global Times) 09:50, March 27, 2015

How is the impact of the sweeping anti-corruption campaign on the Chinese economy best viewed? Since China launched the far-reaching campaign to root out corruption in 2013, voices have claimed that the anti-corruption campaign may bog down the economy. Those upholding such viewpoints either believe that the anti-corruption drive is dampening domestic demand at a time when the economy is under pressure, or hold that it will frustrate officials and stagnate new projects.

However, the fact is that the tough crackdown on corruption is anything but an impediment to economic growth. The People's Daily Online recently ranked the top 10 provinces based on the number of officials who were disciplined last year. Central China's Henan Province investigated and punished 22,039 officials for violating Party discipline in 2014, while its economy grew by as high as 8.9 percent. Eight on the list witnessed an economic growth rate above the national average of 7.4 percent.

Will the anti-corruption drive affect consumption? Indeed, the impact on the luxury, high-end property and service sectors is visible in the short term. But it's unreasonable to pin the hopes of economic growth on such consumption. We have to unleash the potential of mass consumption through encouraging ordinary people to spend more.

China's anti-graft campaign has achieved much since it began and has won strong support from the public. Mainstream Chinese society believes that combating corruption could inject a new impetus into the economy, since it will create a fair and favorable environment for economic development. Renowned Chinese economist Li Yining, in a recent interview said that corruption would jeopardize market order and the credibility of the government. Li's remarks were echoed by others. They argued that the process to regulate market order is consistent with that needed to reinforce the anti-graft efforts.

Worldwide, corruption, the wealth gap and reluctance to restructure the economy are three main factors that lead to the middle income trap and economic slowdown. Corruption and the associated problem of nepotism will destroy business confidence. The only way to prevent abuse of power is to eradicate corrupt officials from the system and to "cage the power." Efforts to formulate a clean and highly efficient government can only contribute to shaping a healthy economy in the long run.

It is not only a political necessity, but also an economic imperative. China is on the right track to wipe out corruption. Trumpeting that the anti-graft campaign will derail the economy is a mere excuse to block the campaign and an attempt to protect the vested interests of the corrupt.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Du Mingming,Yao Chun)