China Still Relies on Connections

An interesting article in today's Financial Times concerns the fall of Bo Xilai and his relationships while still party head in Chongqing. He relied heavily on recommendations from friends and family matters rather than following the party bureaucracy or other channels. This is always a problem in political rather than business settings, although big business often likes working with politicians in this way. Competing for access to an important political figure may be better than competing in marketplace. It happens here too, but fortunately not as often as in much of the world.