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Survey Finds China's Wasteful Government Spending

5 years ago11 views

Corrupt bidding policies in China have resulted in wasteful government spending. That's according to a new survey by the Chinese Academy of Social Sciences. It focused on Guangdong, Heilongjiang, Jiangxi and Fujian provinces and found that 80% of products surveyed were bought well above the market price.

A case in point: 18 million yuan was spent on over 2000 laptops. But at market price that should have been under 14 million yuan.

[Gong Shengli, Chief Researcher of Guoqing Neican]:
"The government has many projects, from railways, highways to power plants. But in a proper market economy, the bidding process should be open, fair and just. Normally the lower bids will win. But in China projects are usually given to higher cost bids. But why bother with the process if you're going to give it to a high cost bidder. It shows the process is just a formality."

The amount of money that Chinese government has been spending on these bids has soared. In 2002, the Chinese government spent 100.9 billion yuan. By 2011, that number surged to 1.13 trillion yuan. That's a ten-fold increase.

The survey results are released amidst a very public campaign against waste, corruption, and extravagance.

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