Corruption in Chinese Academia

As an academic there is a notion that, stuck in our ivory tower, we are immune to the vagaries and temptations of capitalism. More so for economists who would never enter academic life for the money given the large number of lucrative outside options available.

It is a shame therefore to see that even academia in China has embraced rampant capitalism so readily.

This recent article from China.Org.Cn (H/T Cal Poly MBA Trip)

Academic Dishonesty: Corruption in Chinese Universities

The academic world has traditionally been considered a realm of pure scholarship virtually free from temptations to abuse administrative power and control more often seen in the political or business sectors.

However, duty-related offences committed by college and university teaching staff have become a growing problem in recent years, mostly involving corruption and bribery in student enrollment and capital construction, the People's Daily reported on April 17.

The problem is particularly severe in the capital city of Beijing and provinces of Shaanxi, Hubei, and Sichuan where colleges and universities are centralized, the newspaper reported.

Records from the Haidian District Court of Beijing show, between 2004 and 2006, it handled 20 criminal cases involving 28 teaching staff. These cases came from 14 colleges and universities, with the maximum amount involved in a single case being 1 million yuan (US$129,473).

It appears that most of the corruption is related to basic bribe taking for contract work. More intriguing is:

People's Daily also provided examples from southwest China's Sichuan Province. In 2004, a series of textbook purchase corruption cases were uncovered involving 36 teaching staff in 13 colleges and universities and a total of 12 million yuan (US$1.55 million).

So how is it done and could it happen (or does it happen) in the UK or US? It would appear not.

"A director of a university's asset management department has the power to independently examine and approve deals up to 1 million yuan each time," explained Zhou Xuebin, a division chief from the Hubei Provincial Department of Finance. "Although the financial department is responsible for examination and approval of the budget reports submitted by colleges and universities and the allocation of funds, the latter mainly decide themselves how to spend the money."

The answer to the problem appears to be "increased regulation" - does this always have to be the answer? The final paragraph hits the nail on the head.

"Corruption and duty-related offences committed by college and university teaching staff cause more than just financial losses," stressed Gao Jinzhang, an official from the Hubei Provincial Commission for Discipline Inspection of the CPC. "More importantly, they exert a bad influence on students and this has a direct bearing on the future of the country."