Guanxi And Corruption

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Having analysed the parameters of guanxi, the same attention must be afforded to corruption. Within such an exploration there are several key questions which must be addressed. The first is whether there has been an increase in corruption, or if corruption has simply been afforded greater attention in recent years. The second issue concerns definition. According to the World Bank, corruption is “the abuse of public office for private gain.” (World Bank 1997). Accordingly, ‘corruption’ might simply be considered guanxi involving state officials. Yet, as observed by Haller and Shore (2005), this definition is over simplistic; not only does it reduce corruption to a problem of dishonest individuals, but also assumes ‘public office’ and ‘private …show more content…
The April 1952 Statute of Penalties for Corruption lists a large array of acts ranging from theft, fraud, accepting bribes and “any other activities that use one’s position to benefit oneself.” (Kwong 1997: 12). However, by 1979 bribery was classed as distinct from corruption, instead it was regulated as dereliction of duty. Concurrently, corruption acquired a narrower meaning; tanwu in article 155 of the 1979 Criminal Code was now classed as a property crime (Kwong 1997:12-3). While the official accepting the shoes could be considered taking advantage of his position for personal gain, the central immaterial connection guanxi created cannot be framed as corruption under a legal definition. Very often officials operate in a grey areas where what is exchanged is not material property. Instead, trades involve conveniences, opportunities, and services that enable future benefit. Within the gift of shoes, if good guanxi is established, the official reciprocates is likely to be immaterial: help navigating local bureaucracy; access to opportunities for trade; or a useful introduction. Indeed, guanxi does not always involve tangible gifts. This is evident in an ethnographic example noted by Wank. He outlines how one businessman helped a young official with bride selection. This calculated show of care created good guanxi and “favourably disposed the official to the entrepreneur” (Wank 1999:90). …show more content…
Free from the time-consuming vetting and delays inherent in passing a law, administrative regulations can plug loopholes with greater speed (Kwong 1997: 20). They are consequently able to take a reactive approach. This enables a more exhaustive definition of corruption, one in which the relevance of guanxi is more clear-cut. Taking into account administrative regulations, the gift of shoes can be understood differently. In terms of the material aspect of the exchange, while the manager’s tactful decision to ask for a small amount of money might lessen the severity, it does not render it distinct from corruption. The 1988 Provisional Regulations on the Penalties of Corruption and Bribery of State Personnel defines the following as corrupt: “accepting gifts, commissions (kickbacks) and administrative fees or soliciting other forms of income not specified by the state” (Kwong 1997: 77). By using this definition, the shoe factory guanxi can certainly be understood as soliciting or accepting a form of income outside of state salary. What is clear from a study of administrative regulations are the similarities between corruption and guanxi; while both are widespread they are also a departure from normative understandings of bureaucratic workplace

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