Delegates at China's National People's Congress meeting in March 2012. Photo: Getty
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China’s billionaire politicians quadruple their wealth

Despite their low official government salaries, at this week’s National People’s Congress annual meeting, there will be 86 renminbi billionaires and China’s richest politicians have quadrupled their wealth in the past eight years. But is there a right level to set politicians’ pay?

On paper, Chinese politicians are pretty hard up compared to their US counterparts: China’s president, Xi Jinping, earns $19,000, compared to Barack Obama’s $400,000 salary, according to the International Business Times. And yet, while most Chinese politicians are at pains to hide their real incomes, the Financial Times reported that this week’s annual meeting of the National People’s Congress, the country’s legislature, will include 86 renminbi billionaires (equivalent to being worth over £97,725). According to the FT’s calculations, the country’s wealthiest politicians saw their wealth quadruple over the past eight years, while the richest 1000 people in the country saw their wealth triple – suggesting that most ordinary people in China are right that the best way to get rich is via political connections. The Chinese government’s high-profile anti-graft campaign doesn’t seem to be having much effect.

In 2012, it was estimated that the richest 70 members of China’s NPC have a larger combined wealth ($89.8bn in 2011) than that of all 535 members of the US congress, the president and his Cabinet and the nine Supreme Court judges. US politicians are not exactly poor, and according to World Bank estimates GDP per capita in the US is $51,749 compared to $6,091 in China. And, on paper at least, China’s billionaire politicians are communist officials. 

This raises some interesting questions about how much politicians ought to be paid. The most important defence against corruption is strong and well-enforced anti-graft laws combined with a much harder-to-define shift in social norms: in too many countries public officials believe themselves entitled to bribes and sweeteners and when corruption is pervasive, it becomes normal.

But there is an argument to be made that if you pay officials too little – and $19,000 to head up a country of over a billion is probably too little – this only encourages them to seek extra incomes elsewhere.

Some argue that high civil servant and politician salaries also promotes professionalism – Singapore is often held up as an example of a country that has managed to attract the brightest talent into government by offering salaries that compete with the top private-sector jobs. The counter-argument is that you want to attract people into politics who aren’t especially motivated by money.

The Economist published interesting data comparing MPs salaries to GDP per capita across various countries. Nigeria comes up top, because MPs are paid over 116 times more than the country’s per capita GDP – suggesting that high official income alone isn’t a strong disincentive against corruption. Kenya and Ghana are next on the list, with a ratio of 76 and 30 respectively. In Britain, politicians are paid around 2.7 times GDP per capita, while in the US it’s almost quadruple.

But, if Nigerian, Kenyan and Ghanaian officials were paid, say just triple per capita GDP, they’d be earning $4,655, $2,829 and $4,815 respectively. Should we also consider levelling the playing field so that officials of low-income countries aren't the paupers at the tables of international summits?

Setting the right level for official government salaries is a complex issue, but China is clearly getting it very wrong indeed. 

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland