CORRUPTION AS AN IMPEDIMENT TO THE DEVELOPMENT OF MODERN ENTERPRISE

[From Edward A. Ross, The Changing Chinese, 1911]

MASON GENTZLER, J (1977) Changing China, Nova York, Praeger, pp. 113-114

The courage of the Chinese capitalist is chilled by the rapacity of officials unchecked by law court or popular suffrage. The case of Fujian shows how irresponsible government paralyzes the spirit of enterprise. For half a century Fujianese have been wandering into the English and Dutch possessions in Southeastern Asia, where not a few of them prosper as merchants, planters, mine operators, contractors and industrialists. Some of them return with capital, technical knowledge, and experience in managing large undertakings. Yet aside from a saw mill—the only one I saw in China—I hear of not one modem undertaking in the province. The coal seams lie untouched. The mandarin lay it to the difficulty of getting the coal to tidewater. The Fujianese rich from his tin-mining in Perak—there are thirty Chinese millionaires in the Malay States—tells you it is dread of official "squeeze."

The country back of Swatow is rich in minerals. But what probably would happen to a retired Singapore contractor so rash as to embark on a mining venture there? The clan of Hakkas in the neighborhood of the ore deposit would demand something for letting him work it unmolested. The local mandarin would have to be squared. The lijin officials would sweat him well before letting his imported machinery go up the river. The magistrate of every district his product touched in going down to the coast would hold him up. Finally, at any moment, his operations might be halted by an outbreak of superstitious fear lest they were disturbing the earth dragon and spoiling the luck of the community. Small wonder a high imperial official confessed to me—in confidence—that not one penny of his fortune ever goes into a concern not under foreign protection.