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Paper Abstract: Examines corruption in both countries. Economic transformation of both countries. China's economic reforms and rapid growth; new opportunities and incentives for corruption. Indonesia's economic, financial, political and social crises; widespread corruption. Anti-corruption efforts. Types of corruption that exist. Reform measures that would aid in reducing corruption on economic, legal and political levels. Paper Introduction: Both China and Indonesia are undergoing economic transformation. China’s economic reforms and rapid growth have spawned new opportunities and incentives for corruption. Indonesia is undergoing its worst economic crisis that has spawned natural, economic, financial and political crises. In both countries corruption is systemic. In Indonesia, corruption is so prevalent and widespread that it is known by the acronym KKN for “corruption, collusion and nepotism” (Marshall, 1998, 1). In China, corruption is also systemic but officials are reluctant to discuss it or disclose information. Nevertheless, the Economist (2002) notes that “every case that comes to light further exposes a system that breeds corruption at every level” (1). This analysis will look at corruption in both Indonesia and China, including the kinds of corruption that exist and the cause Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Politicalinstitutions must become more democratic in both nations. (Sep 19, 1998). In China,corruption is also systemic but officials are reluctant to discuss it ordisclose information. . As Johnston (2 2)argues: "The result is that anti-corruption efforts, rather than opening upthe state to the social and political implications of its policies, amountto the reassertion of the hegemony of a low-capacity Party-state thatfacilitates corruption by maintaining numerous monopolies, inhibitingaccountability, and providing few restraints upon discretion" (14). The lack of a civil society that is willing or able to holdpublic and political officials accountable exists in both Indonesia andChina. Second, the government's credibility among theinternational community and among citizens as rapidly eroding. (Mar 13, 2 2). Legalinstitutions must be reformed and economies must be made more open. Such a formula accurately describes theconditions in China that encourage corruption at all levels. As Harahap (1999) argues: "Incentives for corruptionare provided by the high level of funds and resources under thediscretionary control of officials, combined with poor formal laws oncorruption, the lack of credibility of law enforcers, and the poorconditions of civil service employment" (3). Both China and Indonesia are undergoing economic transformation.China's economic reforms and rapid growth have spawned new opportunitiesand incentives for corruption. M. Corruption also remains a systemic problem in both countries due todeeply embedded cultural values and historical patterns of leadership.Nepotism, favoritism, and protection of corrupt officials occurs in bothcountries. Among these are a lack of mediafreedom, strict controls on anti-government demonstrations, and a shroud ofsecrecy that keeps the actions of public and political officials hiddenfrom scrutiny or accountability. According to Xinhua News Agency (2 2),"All government officials are required to declare such major personalmatters as building of purchasing of housing, sending children to studyabroad, wedding ceremonies of their children, that is, putting all themajor activities under the scrutiny of the public" (1). Robert Klitgaard has created a formula that sums up the conditionsnecessary for corruption: monopoly plus discretion minus accountability =corruption (Johnston, 2 2, 13). Publicdisclosure of economic activities or other possibly corrupt activities ismandated by the Sunshine Policy. The definition of political corruption in China. To this end a group of organizational leaders in Indonesia made apledge to create a corruption-free Indonesia that included the followingpledges: . So,too, economic reforms have increased the capacity for discretion as newopportunities they have provided make accountability even more difficult toimplement. Corruption is detrimental to Indonesia in many ways. Available: http://home/swipnet.se/~w-48538/chapter2.html, 1-5. Strategies for preventing corruption in Indonesia. Within the Sunshine Policy, 35 tasks are highlighted for fightingcorruption. This has prompted crises that include financial,political, and social. ReferencesAnonymous. Further, accountability means being politically loyalto those in power, not accountability of actions by those in power. First, Indonesia is experiencing the worst economic crisisin its history. Available: http://www.transparency.org/activities/country_projects/pledge_eng.html , 1-2.Anonymous. Verylittle accountability exists for government actions in either country.Indonesian corruption is so systemic that Transparency International rankedthe country 8 of the 85 countries on its Corruption Perception Index,while the Political and Economic Risk Consultancy, Ltd. The Chinese communist leadership viewscorruption as moral degeneration of single institutions and individualofficials. In Indonesia, corruption is soprevalent and widespread that it is known by the acronym KKN for"corruption, collusion and nepotism" (Marshall, 1998, 1). Known as the Sunshine Policy, the government hopesits mandates will help it create a government clean of corruption. A pledge for corruption-free Indonesia. There are three main reasons driving the government to acceptsuch efforts. This is the moralist-normative perspective on corruption thatNimerius (1997) explains "defines corruption as inherently bad, as a lackof moral commitment among officials, and focuses on the detrimental effectsof corruption on public morals, institutional discipline, and public trustof officials" (1). Other measures include an opening of administrative affairs,public recruitment of government officials, and auditing of officials whilethey hold office. Declarations of wealth or incomeare nonexistent and political officials can keep private businessactivities hidden. Asia Pacific School of Economics and Management, (Working Papers), 1- 9.Johnston, M. In China corruption stems from many of the same causeswe have seen that produce it in Indonesia. This comesin the midst of managing a political transition. While such reformsare long overdue and encouraging, such encouragement is tempered by China'shistory of high-ranking public and political figures being selective intheir enforcement, prosecution, and punishment of such figures. Therefore, corruption has not been reduced by such measuresbut merely pushed further down the line of command. New groups and new demands are emerging in both countries inways that limit the government capacity to effectively manage them.Legitimate channels between government officials, entrepreneurs andcitizens need to be established in each country. Corruption in China: Old ways, new realities and a troubled future. Thesecontribute to the lack of transparency and lack of integrity with respectto corrupt actions by public and political officials. A conclusion will address some measures for reform that would aideach country in reducing the current levels of corruption.Indonesia The government of Indonesia has been more receptive to cooperatingwith international specialists on anti-corruption efforts than the Chinesegovernment. However,the current financial turmoil in Indonesia presents an opportunity toaddress and fight corruption, known as KKN" (4). (Jul 2 2). Available: http://people.colgate.edu/mjohnston/MJ%2 papers%2 1/currhist.doc, 1- 16.Marshall, K. Sunshine policy to fight corruption in China's capital. Law enforcement is weak and seldom carried out against public andpolitical officials. ranked Indonesiathe most corrupt of twelve Asian countries considered (Harahap, 1999, 3). Many onlookers argue that the biggest problemcreating such widespread corruption in Indonesia stems from the enormouspower in the hands of the president and others officials, with few checkson power or balances within the executive, legislative, and judicialbranches of power. Indonesia is undergoing its worst economiccrisis that has spawned natural, economic, financial and political crises.In both countries corruption is systemic. This analysis will look at corruption in both Indonesiaand China, including the kinds of corruption that exist and the causes forthem. Without such reforms occurring, the systemicand deeply embedded practice of corruption will continue unabated in bothIndonesia and China. Always put the well-being of the people of Indonesia ahead of organizational interests, using any opportunities to fight corruption. (1997). Despite such public pronouncements and policies, manystill doubt the willingness or ability of China's government to tackle theproblem head-on in significant ways that actually reduce corruption.Despite billions of dollars gained through corrupt measures leaving Chinavia capital flight, the government continues to insist on keeping financialactivities of high-ranking political leaders veiled in silence. Most experts argue thatdemocratization of institutions must occur in tandem with reforms aimed ateconomic growth if Indonesia is to survive its current crises. Freedom of the pressis sharply curtailed, political activism is scant, and controls keepingpeople from forming non-government organizations are strict. This is not to say the Chinese government does not take measuresaimed at reducing corruption among public and political figures. (Feb 15, 2 2). As Harahap (1999) explains: "Almost everyone wholives and works in Indonesia goes along with corruption including foreigninvestors, aid donors, and international financial institutions. Constitutional reform is seen as necessary by many to help end theKKN that pervades Indonesia's economic, legal-political, and socialstructures. Nevertheless, the Economist (2 2) notes that "everycase that comes to light further exposes a system that breeds corruption atevery level" (1). Available: http://www.worldbank.org/html/extdr/offrep/eap/corgov/amkm6.html, 1-4.Nimerius, P. (Pledge, 1998, 1)China While corruption in China is also systemic, the government is not aswilling to work with international organizations or experts to promote anti-corruption reforms. As notedin the Economist (2 2), "In 1995 the party [CPC] ordered that any matterrelating to an ongoing probe into malfeasance by a serving leader was a topsecret. One of the biggest causes for corruption in Indonesia is quitesimilar to a major cause of corruption in China, the complete lack ofpractices and procedures that act as a check on government power. Such a framework is sorely absent in both Indonesia andChina. (1999). In order to help eradicate corruption each country needs tocreate constitutional reforms that forbid such practices in governingofficials. High levels ofcorruption have thwarted economic and social development, have pushed manyIndonesians into poverty, and currently threaten the stability of thenation. These efforts should bebolstered by the creation of outlets for critical viewpoints, includinggreater willingness on behalf of officials to provide access to informationwith respect to corruption. Inform people of the damage corruption is doing to the country's development and support all steps taken to improve our systems of government. Economist, 1-3.Harahap, R. Xinhua News Agency, 1-7.Anonymous. Combating corruption in Indonesia: Aide Memoire of the World Bank Team. Some experts arguethat the current crises facing the government offer an atmosphere that isconducive to change. For example, policies of delegating various responsibilities tolower levels have given officials at lower levels more power over thosethey govern. Each organization will promote honesty, transparency and integrity. Approximately one-third of the loans provided to Indonesia are lostthrough corruption, and a recent survey of Indonesians found that 68.5% ofthe people believe the law, police, and government officials could bebribed (Harahap, 1999, 3). Third, the World Bank hasrecently earmarked $14 billion in aid to help Indonesia manages itseconomic crisis, but, as the director of the World Bank East Asia andPacific Region notes, "Without the assurance of the fundamental soundnessand freedom from corruption of government programs, the continued supportby the World Bank, and international community, cannot be guaranteed"(Marshall, 1998, 2). The lack of a code of conduct for public officials makes many acceptbribes as the normal mode of operation. Greed runs rampant as those who are most powerful andmost corrupt are already very wealthy. Inboth countries the emerging markets are poorly institutionalized.According to Johnston (2 2), "In advanced economies market activities takeplace within a legal, institutional and normative framework that, to agreater or lesser degree, both regulates and protects them from officialexploitation" (6). There are no or poor measuresinstituted to audit and monitor government actions, and a governmentreluctance to disclose information about its actions. However, the government's response to the currentcrisis has been to seek help from the international community to deviseanti-corruption policies that will eliminate KKN as a reality in Indonesiansociety. Recentlythe government created a new anti-corruption policy aimed at curbingcorruption in China. Systemic corruption: Something rotten in the state of China. (Sep 2 , 1998). Whileeconomic reforms have been instituted, they have only fragmented monopoliesnot eliminated them. . Even statistics concerning official corruption are state secrets"(1).CONCLUSION The reforms needed in both Indonesia and China to reduce corruptionmust occur on the economic, legal, and political levels. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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