The penalty for corruption in China is death. That is just the most controversial aspect of a very public, largely ineffective campaign to combat cronyism and bribery in the ranks of government officialdom. Prime Minister Wen Jiabao, who is colloquially known as "Grandpa Wen" because of his popularity, has led the charge, calling corruption the single greatest threat to the ruling Communist Party.
That makes this latest report awkward, to say the least. Two days ago, The New York Times published an investigatory article alleging that the Wen family and their close associates have amassed $2.7 billion (Dh9.9 billion), mostly during his term as prime minister.
China's foreign ministry has denied the report, saying that it was politically motivated, and it's important to note that the Times does not claim that Mr Wen actually broke any laws, or was even aware of his relatives' business ventures.
For an anti-corruption crusader, in a country that is hypersensitive about wealth disparity and the perks of public office, it is an unfortunate stain on his reputation however.
This case threatens to be larger than Mr Wen, who is scheduled to leave office after the November 8 party congress in any event. The Chinese public is justifiably outraged at the pervasive graft in society, from bribes demanded by the lowest bureaucrat to the profiteering of the politically connected super rich.
Another scandal earlier this year saw Bo Xilai, the former party chief of Chongqing, one of China's largest cities, toppled on corruption-related charges (and allegations that his wife had murdered a British business associate). Mr Bo was formally expelled from the national congress on Friday. But the scandal, which has been called Beijing's worst crisis since the 1989 Tiananmen massacre, has hardly been forgotten.
The contradiction between the Communist Party's public statements and the cronyism that riddles the upper echelons is a poorly kept secret. Beijing has blocked the online edition of The New York Times to quash the recent report, but Chinese internet users are ingenious at navigating around the censors. Most people who are interested will be able to read up on Mr Wen's family fortunes.
What happens in China affects the rest of us. Despite its authoritarian political system, the country has engineered extraordinary growth over the past three decades and is a dynamo of the global economy. The political elite may have profited enormously, but they also carried off an economic miracle of sorts. Ordinary Chinese have every right to demand probity from officials whose greed is endangering that progress.
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Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
England v West Indies
England squad for the first Test Cook, Stoneman, Westley, Root (captain), Malan, Stokes, Bairstow, Moeen, Roland-Jones, Broad, Anderson, Woakes, Crane
Fixtures
1st Test Aug 17-21, Edgbaston
2nd Test Aug 25-29, Headingley
3rd Test Sep 7-11, Lord's
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
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