Both China and Indonesia are undergoing economic transformation. ChinaÆs economic reforms and rapid growth have spawned new opportunities and incentives for corruption. Indonesia is undergoing its worst economic crisis that has spawned natural, economic, financial and political crises. In both countries corruption is systemic. In Indonesia, corruption is so prevalent and widespread that it is known by the acronym KKN for ôcorruption, collusion and nepotismö (Marshall, 1998, 1). In China, corruption is also systemic but officials are reluctant to discuss it or disclose information. Nevertheless, the Economist (2002) notes that ôevery case that comes to light further exposes a system that breeds corruption at every levelö (1). This analysis will look at corruption in both Indonesia and China, including the kinds of corruption that exist and the causes for them. A conclusion will address some measures for reform that would aid each country in reducing the current levels of corruption.
The government of Indonesia has been more receptive to cooperating with international specialists on anti-corruption efforts than the Chinese government. There are three main reasons driving the government to accept such efforts. First, Indonesia is experiencing the worst economic crisis in its history. This has prompted crises that include financial, political, and social. Second, the governmentÆs credibility among the international community and among citizens as rapidly eroding. This comes in the midst of managing a political transition. Third, the World Bank has recently earmarked $14 billion in aid to help Indonesia manages its economic crisis, but, as the director of the World Bank East Asia and Pacific Region notes, ôWithout the assurance of the fundamental soundness and freedom from corruption of government programs, the continued support by the World Bank, and international community, cannot be guaranteedö (Marshall, 1998, ...