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Derek Scissors, Heritage Foundation, on China’s legislature potentially having more rich members than any other country.
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They've got a collective -- what these 160 people 221.
A billion dollars joining us now is Derek says -- from The Heritage Foundation.
Derek -- is eight to talk receipt and I say it can't last -- so you.
I think you're right I think the party has a choice here of dealing with what is now systemic baked in corruption.
Or it eventually is going to fail not tomorrow not the next day we're talking about a short term problem.
But we're talking about a long term problem that they either have to change.
Or they're gonna fall now a 160 people most of them billion as suddenly hundreds of million as put it like that.
Not did they make them money within the government being.
Corrupt within the government is that how they got the money.
Well this actually brings up that's the size of the problem -- two different groups here there's the group that made their money in the government meaning.
They are -- have a government position -- party position and they also have a position is running a large state owned enterprise.
And then there's the group that made their money outside of the government -- outside of the party and was brought in.
The party decided to bring in up all the rich people in the country.
And that has advantages but one of the disadvantages is now there's no one to present except the party they have the power and they have the money.
What's the end game what will be the catalyst for real change.
Well I you know the the parties -- is going to be backed into a corner this is not something they can run from there they're gonna have to decide.
Not to have yet another anti corruption slogan effort it -- something that that matters and take on all these people who made all this money and say you can't do this anymore.
Or eventually they're popular unrest -- just going to get worse and worse and worse there's been a moderate increase in popular unrest the last few years.
But the situation as you mentioned the concentration of wealth -- -- party has gotten worse.
Unrest is just going to get worse they either have to take on this corruption.
Or eventually the party will fall what form does this on rest take.
Just online postings.
Oh or is it outside demonstrations.
Well -- death when demonstrations there's it's been a huge increase in popular protest they're not yet violent usually but.
Before -- now the party has said look it's local corruption -- those local officials we here in Beijing where not like that.
But all this information is coming out and it's slowly filters and to China that the richest people the people who benefited most from the corruption are actually at the top.
You mentioned a 160 would -- -- the 220 billion most of those are national government officials.
So those local protests that have been contained so far if the party doesn't address this problem they're gonna spread and they're gonna go national again we're not tighten up tomorrow.
And -- -- -- a long term problem but one the party cannot avoid what how.
Happens if if -- China cannot maintain its explosive growth rate.
It used to grow it ten or 11% to yeah did that for a decade now it's down to maybe 7% growth if it fell to just face it for all 5% growth.
Back could be a catalyst for serious political unrest could not.
Yes because at 10% growth a lot of people are getting richer and -- some people in the party -- -- super rich that's okay because most of us are doing really well.
At 7% they're fewer people doing well at 4% they're still fewer -- -- get more and more the people saying wait a minute.
My -- is actually not getting any better and meanwhile back guy in the party is a billionaire this is intolerable.
So if they can't hold the growth the growth is a payoff to the people saying yeah area -- corrupt and rich but you're doing okay.
If they can't hold the growth they don't get the -- I'm gonna pay off anymore and you're gonna get more and more resentment.
Derek scissors that Heritage Foundation that's fascinating stuff -- please come back and keep us up to date on what could be an explosive situation -- thank you very much indeed so.
