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Thursday, December 13, 2012


Corruption and Communism

            Mancur Olson’s book, Power and Prosperity would predict that communist countries are at a much greater risk for corruption than are democratic societies with a free market.  It then comes as no surprise that when Mr. Xi, the new leader of the communist party in China, made his first speech he pointed out that corruption is one of the main concerns surrounding the success of his party.  This corruption comes as a result of market contrary policy.  Everyone inside a communist country will at some point see a reason to break the laws, even those who help to lead the country.   It should not be surprising then that the last leader of the communist party is accused of wide spread corruption.  The final straw for him was actually an accusation of involvement in a murder.  This may be a little outside of what Olson predicted would happen in a communist party, but we can see how corruption such as skimming off the top could lead to a crime as serious as murder.  It could very easily happen in an attempt to conceal the initial crime of stealing from the regime.
            Respondents to Mr. Xi’s speech pointed out that nearly every new leader of the communist party has mentioned combating corruption, but non have been able to limit it.  This would be inline with what Olson would predict, the system of communism fosters corruption so it will be impossible, or nearly impossible, to get rid of.  If what Olson says about corruption and communism is true, and so far all evidence what point to it is, then communist China will continue to have problems with corruption until they become so sclerotic that they eventually can no longer “pay the bills.”

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