I blogged on the 10’s of thousands of uprising in China that go unnoticed in the press (Western or Chinese) every year. Much of this is tied to corruption. Hu Jintao commented on the growing income inequality at the recent 17th Party Congress, but part a large chunk of that inequality comes from party officials acting like little emperors in the provinces. The scholar, Pei Minjin, believes that CCP officials acquired money through graft to the tune of 3% of China’s GDP. That is outrageous, and remember that China has the 4th largest economy by gross GDP in the world, and will likely surpass Germany, to become the 3rd largest within a year. Is there a wonder why China has so many billionaires for a nation were the average income per capita is around $3K USD? Even if you break down the number of billionaires per 10,000 people it is quite large given China’s overall level of development. Most of this money is earned, a lot of it is due to the overinflated stock market, but a lot is also due to ill-gotten gains.

Here is a great (short) paper on corruption trends in China:

Corruption Threatens China’s Future