Rent seeking behaviors by bureaucrats and ruling parties not only serve to enrich those groups but also decompose the institutions designed to protect the interests of citizens. This paper seeks to explore the mechanisms of corrupt state extraction and its effects on governance and stability. This has proven to be particularly problematic in Asia, as the difficulties of corporate relocation to these areas have demonstrated. While many states have made efforts to encourage trade liberalization, they have also often continued to intervene haphazardly to capture the benefits of that liberalization. This process directly effects long-term state stability in the region. The example of Wukan village in China demonstrates the tension between state control, often preserved via undemocratic means, and the viability of that control as an enduring strategy.
Corruption as a source of state failure