China Translated

The 17th Congress of the Communist Party concluded a couple of weeks ago.  Expectations for the meeting were relatively high.  On the personnel front, it was expected that President in waiting Xi Jinping would be inducted into the top ranks of the committe that controls the military.  On the governance front, further steps to reinvigorate the Communist Party’s governance capacity were widely expected. 

In the end, there was no annoucement on personnel changes and Xi Jinping will have to wait a while longer before being allowed to drive one of the People’s Liberation Army’s many tanks.  On the governance front, hopes for an extension of village elections to the township level where frustrated, but there was some evidence of progress in another area - improving the transparency of governance.

In the report of the meeting, the Party promises to take another step to require top leaders and, crucially, their relatives - including those living overseas, to disclose their financial affairs.  The idea is that the discipline of transparency will prevent the worst excesses of corruption.  This is what Caijing editor Hu Shuli had to say on the subject (my translation of the Chinese, though I see from the Cajing website that they also have an English version):

‘The recent meeting of the Communist Party top leadership concluded with some stern words on the capacity of the party to govern.  The public document concluded that the party’s ability to innovate, to maintain meaningful links to the people, and to consolidate its governance of the whole country have been seriously weakened.  With the country preparing to celebrate its 60th anniversary, these are words to rouse the deaf and bring enlightenment to the benighted.

The report of the meeting also said: ‘firmly opposing corruption is the first, last, and most important governance task of the party.’  It goes on to promise: ‘thorough implementation of the regulation concerning ‘leadership cadres reporting of their important affairs’ including rental and investment income, and the financial affairs of spouses, and children, including those who are living overseas.’  Improving transparency in this way, and placing a higher requirement on the Party, is an important step toward addressing corruption.

This system of throwing light on the affairs of government leaders, and holding them to public account has a long tradition in European government and is now used in many countries around the world.

In its ‘regulation concerning inner party supervision’ and ‘compendium on constructing a healthy system of punishments and precautions to prevent corruption’ the Party has already made a start in its fight against corruption.  In 1995, there was a regulation concerning reporting of leaders salaries.  In 1997, there was a regulation on reporting the important financial affairs of Party leaders.  In 2001, there was a regulation  requiring provincial leaders to report on their family’s financial affairs.  Another regulation in 2006, on disclosing leaders important financial affairs, continued to strengthen the framework.  This step by step process has delivered the system on reporting leaders financial arrangements that has now been consolidated in this year’s regulations.

From the beginning of 2008 to today, Xinjiang, Zhejiang, and Hunan have all published first attempts at disclosing leaders’ financial affairs.  These are early attempts and there is considerable room for improvement.  But the enthusisatic support of the public will provide the encouragement for continuing to improve on these early efforts.

The extension of the regulations to include families and especially those living overseas is an important development.  5 years ago, a Commerce Department report revealed that 4000 corrupt officials have, over the years, escaped the country with more than USD50bn.  Many of them did so whilst still in office in China by channeling resources to relatives working or studying overseas.  The new regulation will expose this practice to public scrutiny.

Reform is progressive, but it must continue to progress.  There is still a consisderable gap between the standard of transparency represented by the new regulation and that enjoyed in other countries around the world.  In the scope of reporting of leaders’ financial interests, and the availability of the reports to the public, there is still a considerable distance still to go.  Practice and experience will improve performance in this area.

But perhaps more rules governing transparency don’t get at the root of the problem.  China is not lacking in well written rules.  What we are lacking is an organic system for maintaining proportion in our governance.’

I think the final point is the crucial one.  Efforts to improve party self governance are all well and good.  But an ‘organic system for maintaining proportion in governance’ would require the party to be open also to public supervision. 

In the absence of independent supervision of the party there are two reasons why transparency will be of limited value.  First, who will ensure the rules on transparency are followed?  The Party itself.  And leaders are hardly likely to publish reports saying ‘last year I stole $1m and sent the proceeds to my brother in the USA.’  Corrupt cadres will do their best to hide their misdeeds and the only people able to hold them to account will be their fellow party members. 

Second, in other countries, transparency in governance equips citizens to better decide who they wish to govern them.   In China, it is not clear to what end transparency will aim.  Even if it transpires that all the Party’s leaders are venal, absent the ballot box to what use will the people it governs put this information?

You can see the complete text of the editorial here.

Communist Party, Law