Does Poor Ethical Behavior Threaten Upward Mobility of China?

Welcome to the big time, China! A recent New York Times article dealt with China's brisk ascent up the econoladder as being threatened by a rampant spread of national fraud. The fraud issue is all about the nation engaging in broad-based bad behavior on an individual level. All the way from one particular case of a snake oil salesmen to pandemic instances of irregularities that invade virtually every nook and cranny of an upwardly mobile population looking to capitalize on the rising tide of the country's new-found prosperity. Not to fear, China, you are at an awkward age!  This anxiety over a sudden stop on the climb up the ladder is a superfluous dynamic of sudden growth. As the article points out, there are all kinds of crazy antics that go on in the United States as well. It goes with the territory. And it's not just the U.S., it's a condition that's worldwide. It always has been, as any history will attest. China's paranoia should be quelled if it puts itself up against the United States in a discussion of correlation between economic success versus moral and ethical behavior. China just jumped into the number-two spot on the global GDP list. With its economy at the $5 trillion dollar level, it is still far behind the U.S. with its $14.3 trillion economy. So, if America with its Bernie Madoffs, Gordon Gekkos, some shady politicians, and a litany of bad boys and girls ranging from celebrities to star athletes is the pinnacle of economic accomplishment, it should be understood that there are going to be pitfalls and embarrassments along the way. As the saying goes, you can't legislate morality (although you can legislate ethics!). Morality and ethics are the domain of the human heart. And out of the human heart also comes the overflowing generosity of a nation in which 80% of charitable contributions come from businesses, private foundations, religious organizations, and — yes— the individual . Among the nations of the world, the United States is the leading good-hearted giver hands-down as measured by charitable giving as a percentage of GDP. According to the Washington-based, non-partisan Center for Global Prosperity at the Hudson Institute, America gives at a rate of 1.67% of its GDP. That's more than double the U.K. at 0.73%, a distant second. Everyone else is way back. So, if there is a worry among the Chinese that their economy is never going to make it to the next rung of the ladder due to instances of poor individual conduct scattered through its population, they can relax and take heart. America is the guide-on marker for economic empowerment that China is chasing. A little advice to the Chinese: confront bad behavior where you meet it — but whatever else you are doing, keep on doing it! No need to fear a failure of growth because of occasional charlatans. There will always be snake-oil salesmen, hustlers, and crooks. It's not an indictment on a system; it's an indictment on the individual.
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