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BIZCHINA / Biz Media Digest |
Trade: Bribes push up prices(China Daily)
Updated: 2007-08-31 09:33 Commercial corruption, which also contributes to the increasing prices of commodities, should be eliminated, says an article in Qilu Evening News. The following is an excerpt: Officials from Carrefour, the world's second biggest retailer, recently caught staff members in Beijing engaged in what could be commercial corruption. The employees were suspected of taking bribes from suppliers. This incident may take on more significance when placed against the big picture of the economy. The prices of most of the commodities on the market have increased since the beginning of the year. When the authorities try to regulate the market, they cannot ignore the factors inside businesses that drive prices up to an unreasonably high level. In the Carrefour incident, the bribes taken from suppliers will naturally be passed on to the costs of the commodities, which will be reflected in the prices of goods at the supermarket. In other words, the customers are actually paying the bribes. By eliminating commercial corruption, the authorities can maintain the market order and promote the public welfare. Therefore, stamping out commercial corruption should become an important part of the efforts to rein in price rises. Besides multinational companies like Carrefour, investigators should also keep an eye on domestic businesses, which outnumber foreign invested ones. The punishments handed down to people who engage in commercial corruption should also be harsher than they currently are.
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