Paying for the Dream of Public Ownership: Case Studies on Corruption and Privatization in China

摘要

The proceeding of privatization is a tradeoff between short-term equality and long-term efficiency. Under the existing structures of enterprise management and government powers, enterprise managers are likely to conspire with government officials to decide the way of ownership transformation and share the benefits from there. The transformation of ownership will enhance the efficiency of the company. Corruption indeed presses ahead the transformation of company ownership, whereas inequality is also aggravated during the process. Case studies are provided to demonstrate the relationship between corruption and privatization in China. Corruption and inequality are what the country pays for their dream of public ownership in 1950s. Equality, efficiency and maintaining current social and political structure cannot be achieved simultaneously during enterprise restructuring.