Government Officials Buy Housing at 4% of Market Value

ChinaGeeks translates a Southern Weekend interview with Beijing Institute of Technology professor Hu Xingdou about the purchase of low-cost housing by public officials:

SW: How do you view this phenomenon of public officials benefiting from limited housing costs?

Hu: This problem […] was very unexpected. It’s a classic case of using abusing public authority for private gain. It is a serious case of corruption.

SW: Some people say that this is a case of public officials legally benefiting [from their position]. How do you feel about this?

Hu: This is absolutely illegal. Public officials should [be treated] just the same as ordinary citizens—they should have to go out into the market and buy commercial housing. Their income is not any lower than others. There’s no reason for them to receive such benefits.

SW: Do public officials enjoy better benefits than ordinary citizens?

Hu: Public officials truly are enjoying better benefits than ordinary citizens. Such benefits include housing, government-issued cars, meal reimbursement, retirement funds, and medical insurance. The current system has turned public officials into a privileged class, which was inevitably brought about by the expansion of the government’s power. Such power has continued to grow since the introduction of policies to reform the country’s political and economic systems [starting in 1978]. This power has largely seeped into the market, and has not been restricted. Some central government departments are using their special power for private gain. Local government subordinates follow the example set by their superiors, and in many cases go even further.

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