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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Emmanuel Macron's "moralisation of politics" comes at a heavy price for his allies

"Fake" jobs in French politics, season 3 episode 1.

Something is rotten in the state of France. No political party – at least none that existed before 2016 – seems immune to the spread of investigations into “fake” or shady parliamentary jobs. The accusations sank centre-right candidate François Fillon’s presidential campaign, and led to Marine Le Pen losing her parliamentary immunity in the European parliament (and proxy wars within her party, the National Front). Both deny the allegations. Now the investigations have made their way to the French government, led by Edouard Philippe, Emmanuel Macron’s Prime Minister.

On Wednesday morning, justice minister François Bayrou and secretary of state for European affairs Marielle de Sarnez announced their resignation from Philippe’s cabinet. They followed defence minister Sylvie Goulard’s resignation the previous day. The three politicians belonged not to Macron's party, En Marche!, but the centrist MoDem party. Bayrou, the leader, had thrown his weight behind Macron after dropping his own presidential bid in April.

The disappearance of three ministers leaves Emmanuel Macron’s cross-party government, which includes politicians from centre left and centre right parties, without a centrist helm. (Bayrou, who has run several times for the French presidency and lost, is the original “neither left nor right” politician – just with a less disruptive attitude, and a lot less luck). “I have decided not to be part of the next government,” he told the AFP.

Rumours had been spreading for weeks. Bayrou, who was last part of a French government as education minister from 1993 to 1997, had been under pressure since 9 June, when he was included in a preliminary investigation into “embezzlement”. The case revolves around whether the parliamentary assistants of MoDem's MEPs, paid for by the European Parliament, were actually working full or part-time for the party. The other two MoDem ministers who resigned, along with Bayrou, also have assistants under investigation.

Bayrou has denied the allegations. He has declared that there “never was” any case of “fake” jobs within his party and that it would be “easy to prove”. All the same, by the time he resigned, his position as justice minister has become untenable, not least because he was tasked by Macron with developing key legislation on the “moralisation of politics”, one of the new President’s campaign pledges. On 1 June, Bayrou unveiled the new law, which plans a 10-year ban from public life for any politician convicted of a crime or offence regarding honesty and transparency in their work.

Bayrou described his decision to resign as a sacrifice. “My name was never pronounced, but I was the target to hit to attack the government’s credibility,” he said, declaring he would rather “protect this law” by stepping down. The other two ministers also refuted the allegations, and gave similar reasons for resigning. 

Macron’s movement-turned-unstoppable-machine, En Marche!, remains untainted from accusations of the sort. Their 350 new MPs are younger, more diverse than is usual in France – but they are newcomers in politics. Which is exactly why Macron had sought an alliance with experienced Bayrou in the first place.

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