Guangxixue lubricated graft in Sri Lanka

Ubiquitous Chinese corruption facilitated top-echelon felons

in Lanka

This correspondent at the same spot on the banks of the Li

by Kumar David-April 11, 2015, 1:39 pm

Why cant the scourge of corruption, flagrant family nepotism and rampant
abuse of power everywhere be exposed in the exemplary way the
Weliamuna Board of Inquiry (W-BoI) has done for Sri Lankan Airlines? All
along I tamely swallowed the Prime Minister and Presidents lame excuse
that "Ho, haa things must be done properly; the authorities must
cautiously build a strong justiciable case". Blah, CID sloths, the tortoises in
the Bribery Commission and the lame Attorney General crawl like snails,
but W-BoI has shown that a no-holds-barred public inquiry, armed with a
mandate to question witnesses and probe documents, can shine light,
build a prima face case and urge prosecution of ex-chairman Nishantha
Wickramasinghe and ex-CEO Kapila Chandrasena. A BoI is not a court of
law and its findings are not conclusive but the public outcry for
transparency prior to court proceedings has been sated. The findings
confirm every detail of what was previous public knowledge; so many
alleged cases of scandalous graft, including China financed mega-projects,
are likely to be true.
Why no investigations elsewhere MRs Highways Ministry where project
"expenditure" was blown up by orders of magnitude, Basil Rs ministries,
defence, petroleum, and anything Sajin, Namal and such others touched?
The reason is that PM and President are giving the public the kokapennanawa run-around. Weliamuna and his team are high calibre, but halfa-dozen more could have been put together if the political will existed; but
Ranil-Sirisena lack the killer instinct. The Rajapaksas had Fonseka in the
cooler in a trice, hauled him before a mock-trial and stripped him of all but
his underpants with the speed of greased lightening. En passant exposing

the armys top echelon as the abode of some Generals happy to defecate
on uniform and epaulette and make themselves a cats paw of powerful
political personalities. Sirisena argues, quite credibly, that had he lost the
elections he would have ended up six-feet under; thats the Paksa-style
killer instinct!
Guangxi and guangxixue
The two words are not to be
confused. Guangxi refers to a
personalised network of giving
and receiving favours; it means
more than connections or
relationships and carries a
cultural flavour long-rooted in
history. It is not bribery, abuse
of power, or manipulation of
authority; for this guangxixue
(actually, guangxi studies) has been adopted by some Western scholars.
Guangxi refers to favours and services including the face to return a favour
if one receives one. It has influence in political and official relationships
and in business and was significant even in the austere Mao period due to
strong social ties and a collectivist outlook. Foreign leaders are recipients
of guangxi as China builds networks, but greedy and adroit blackguards
exploit it for guangxixue. In meddling with private project companies there
is a lot of space under the proverbial table.
I was chatting to a winsome wench on the banks of the river Li in scenic
Guangxi Province (same English spelling as guangxi but different Chinese
character) who was amazed that I located the exact spot where the
photograph adorning the back of the twenty Yuan note was taken. Money
talks and I was quizzed: "If cooperation agreements were signed after
consultation and consensus and the Chinese side did nothing wrong, why
are you stopping the Colombo Port City project? The company is losing
$380,000 a day". It is not easy to explain to foreigners why they should be
penalised when the blackguards are on our side. I had to emphasise the
likely complicity of the project company in siphoning and laundering
project money from Chinese lending agencies to recipient country leaders
overseas bank accounts, and contentious land sovereignty issues. Now
however Colombo is silent on guangxixue; government pronouncements
raise only environmental and sovereignty concerns.
The perception of corruption is of utmost public concern in the post-Mao

era; it harms social stability and economic wellness. Relatives of former

prime minister Wen Jiabo stashed millions in foreign banks and relatives of
President Xi Jinping accumulated wealth improperly. Foreign reports of
these allegations are blocked we are familiar with the methods.
Nonetheless, President Xis anti-corruption drive is robust though selective,
targeting opponents who were loyalists of previous leaders. Its fine by me
if Ranil-Sirisena bring scoundrels of the old regime to justice, even if they
are political rivals. If often heavyweights, eight are rogues, go after the
worst four first, the other six are needed to keep the ship of state afloat.
Two high profile cases are headline news. Former Politburo Standing
Committee member and Head of Security, Zhou Yongkang, will be charged
with bribery, abuse of power and disclosing state secrets it was announced
on 3 April 2015. Zhou is the highest-ranked Communist Party official ever
to be indicted for graft. At his peak he wielded immense power overseeing
the courts, police, domestic security and state intelligence. Family
members occupied high places and were involved in scandals at the
gigantic China National Petroleum Corporation, the countrys largest oil
company (state owned).
Bo Xilai, Communist Party chief in Chongqing, a huge municipality, and a
Party high-flyer was expelled, prosecuted and imprisoned. His wife was
given a suspended death sentence for the murder of British businessman
Neil Heywood. A leaked audio recording revealed Bo and his police chief
Wang discussing an investigation into Bos family and mentioned that he
may be linked to the murder. The two fell out; Wang ratted on Bo.
Corruption and economic growth
Was corruption the price of economic growth? They went hand in hand and
helped capitalists skirt regulations and an overly centralised bureaucracy.
Thriving decentralised provincial and county administrations laid out
investment and production plans and promoted infrastructure expansion
on a scale that boggles the mind unless one travels across China and sees
it. A crucial corollary, corruption too was decentralised. An all round
economic explosion, complemented by sleaze of cadres at national and
local levels, created a unity of purpose and promoted astonishing growth.
In Lanka however, corruption retards growth, represses and distorts
investment and corrodes businesses; all primary determinants of
capitalisms health. Sans orderly progress, good governance and law
enforcement, Lankas economy will grind to a halt; an incomparably
different world from China. There is a kural which goes "Vaana mayl aada

athu kanda vaankoli . . ." etc. The turkey seeing the ethereal dance of the
peacock imagines it can waltz to the same tune!
But as Yang Hengjun points out in the web journal The Diplomat of 18
March 2015, a different problem is now unraveling. Millions of bureaucrats
at national and provincial level are backing off in fear; instead of acting-up
they are not-acting at all. "For ordinary citizens, an official acting-up is
bad, but not-acting is worse. Acting-up is not chaos but following an
orderly set of unspoken rules trading money for power. Give money, get
things done; social morals are destroyed but one can still get that business
license approved. When officials are not-acting its a different matter. They
occupy posts, but dare not employ the unspoken rules; they are passive
and slow-moving. That business license is not approved and theres
nothing one can do about it! Inaction will have an impact on the economy".
Hengjun does not take the next step. President Xis anti-corruption
campaign, though unlikely to be derailed by political rivals, faces its
greatest challenge from Chinas disoriented bureaucracy. When emperors
took on the bureaucracy they lost as it was the mandarins who sustained
the stability of the state for more than two millennia. Confucius (551-487
BC) crafted a governance ethic that exalted duty, justice, integrity and
meritocracy. Lanka, lacking these traditions and having destroyed what it
had of an able bureaucracy is far more vulnerable. If it does not root-out
high-level corruption now, the rot will become endemic, and life
threatening.
Salvaging Sino-Lanka relations
It is unthinkable to let relations with China go down the tubes; China is far
too important for our economic development. While tilting back to a
balanced stance such as renewing long cherished ties with India and
repairing damaged links with the West, we must have the survival sense to
sustain friendship with China. The mandarins are no fools, they see that
our disarray is of Rajapaksa provenance and understand that the new
government must act against manifest sleaze. If the Paksas are locked up
or strung up, not a tear will be shed in the Middle Kingdom.
President Xi Jinping inaugurated the Port City project during his September
2014 visit, so suspension is a small personal setback. China is holding it up
as a link in its Maritime Silk Road and staunchly defends the project: "We
believe Sri Lanka will act in its long-term interests, advance practical
cooperation with China, properly handle relevant issues, keep Chinese
companies interested in investing in Sri Lanka and protect their lawful

rights and interests." Assistant Foreign Minister Liu Jianchao said: "It
meets Sri Lankas needs and can bring tangible benefits to the people".
Significantly he added "The new government is firmly committed to a
friendly policy towards China."
China is too important a partner - not only in economic development.
Lanka cannot turn away from China. Colombo is waffling over the project,
it does not want to alienate Beijing, but neither can it back off on key
anxieties. The sticking point is ceding land to a foreign power;
environmental issues can be fixed. Frankly, in my view, the entire concept
of turning Fort into a pseudo-Shanghai artifice of neon lights, high-rises
and a fake enclave of finance-capital will neither serve the people of Lanka
nor promote robust capitalist development. Its a harmful policy choice,
irrespective of graft, sovereignty and environmental stumbling blocks. But
alas the trap has been sprung and we are so ensnared that finding a way
out may be impossible.
Nevertheless, Sino-Lanka relations need to move beyond the maladroit
Rajapaksa quagmire and the Port City nightmare. This will keep Ranil,
Sirisena and the mandarins at Beijings Colombo Desk awake at night for a
while longer.
Posted by Thavam