OPINION -- Beijing Review

SPENDING SPREE: Young people buy trendy cars at an auto exhibition in Nanjing over the May Day holiday. Many young people today like buying high-end products (XINHUA)

Fund Misuse

The National Audit Office recently published the auditing results of state agricultural allocations in 10 provinces and municipalities. The results show serious problems in the use of the funds. The 10 provinces and municipalities misused 2.69 billion yuan ($384 million), and 58.4 million yuan ($8.34 million) was used for building homes for civil servants and buying government cars.

As far as China's vast rural areas are concerned, no matter how much money is allocated, it is never enough. However, because of corruption, only limited investment ever reaches its intended destination.

The misuse of huge amounts of state funds indicates that it is not just the work of a few corrupt officials, but that there are serious loopholes in the system. Although auditing takes place, it only happens after corruption happens and losses are already incurred.

Farmers are undoubtedly the ones who want to know the whereabouts of the funds most, as the money is for their benefit. It's regrettable that they are always kept uninformed. From top to bottom, the entire process is carried out behind closed doors. Unless this changes, misuse by governments at various levels will increase. If farmers are told how to get funds and how much they are entitled to, most corruption could be prevented. Otherwise, officials will of course misuse funds secretly.

The Chinese habit of depositing money in banks is now the target of widespread criticism, as it flies in the face of boosting domestic spending. Banks are enthusiastically providing mortgage-free small loans, while the China Banking Regulatory Commission, the top industry watchdog, plans to set up consumer finance companies on a pilot basis in major cities including Beijing and Shanghai.

Young people need cash for a whole range of things like marriage, home decoration and travel. The small loan programs of banking institutions will help to meet this need for cash and spur on consumption. While this is not a bad idea, banking institutions seem to have focused on the wrong target. In order to encourage the use of credit cards, banks raise the overdraft limit again and again. Many young people are already in deep debt. This is a result of the love for fashion and luxurious items that have become endemic among young people.

Right now we should not be encouraging the public, especially the young, to overspend. Boosting domestic demand does not mean making it easier for young people to get into debt.

Instead, the current financial turbulence is something that should make the young think more carefully about their consumption habits. Rational consumption is always important for a country's healthy economic operation.

Students, who want to be recruited into the No.1 Middle School in Shaanxi Province's Tongchuan City, can only do so if their parents are civil servants. According to the school management, the new campus is built for children of local civil servants.

It's understandable why some schools are interested in civil servants' children. Civil servants possess privileges and power that the others do not. So to recruit the children of the privileged class will help the schools concerned win more favorable policies and benefits.

When a school is labeled as exclusive, it will naturally charge higher fees and the school can thus make more profits.

Nowadays, many schools pursue similar recruitment policies and all Tongchuan No.1 Middle School has done is to make the practice regular.

As a public service, compulsory education is supposed to ensure the equal access to education of all citizens. If quality educational resources only serve the small group of the privileged class, where is equality in compulsory education?

In a foreign-invested company in Shenzhen, Guangdong Province, a new rule stipulates that employees can only go to the toilet during two fixed periods and the toilet duration is limited to 15 minutes. Since the company has 300 or so employees but 16 toilet seats, each staff member only has 48 seconds to do their business on average.

Although the rule was rescinded one day after it was put into practice because of the strong opposition from employees, it shows the employer's indifference toward the rights and dignity of staff workers. Such an irrational rule, which violates the Labor Law, is serious enough for the company to be severely punished. It's unacceptable to let this go just because the rule was short-lived. If this company is not made an example, more companies will follow suit and laborers' rights will be exposed to bigger dangers.