Lesson 2 from China

I would like to bring you back to the 1930s, the days of Shanghai Tang or Shanghai Bund. Those were glorious days of a new but corrupt China under the Kuomintang. Chiang Kai Shek was presumably the President of China and the corrupt elite who thought more of themselves, preserving their personal wealth was the order of the day. There was no accountability and the wealth of the nation was like the private wealth of the elite, Chiang’s family and the Soong family were infamous. The line between what belonged to the country and what belonged to these families were non existence.

No one knew how much money was in the national coffer. They became private fortunes. And when the Kuomintang fell, these families took everything they could and fled. The CCCP were equally blur as to how much were taken out of the country, stolen, by the Kuomintang and the Soong family. The senior Soong was the finance minister then. Without knowing how much was lost, there was nothing that the CCCP could do. And with a hostile West in support of the Kuomintang, the CCCP could not send out hit men like the Israelists to track down the criminals.

Fast forward to 2050 when Singapore still exists but decadent and run by a corrupt govt like the Kuomintang. And the nation’s wealth, the reserves, was still in the country’s two sovereign funds. And the people still did not know how much were in these two funds. Then came the dreadful day when the govt collapsed, brought down by a popular uprising. And the fund managers, the people entrusted with the nation’s reserves in the two sovereign funds, just scooted with the money.

When that happened, when no one knew who were vested with the authority to move the funds, and when no one knew how much was at stake, and if the funds, the nation’s reserves, were to be shipped out of the country, how are these money to be recovered? How would the new govt go about tracking down the people responsible for the money and how much money they have taken out?

This may be a moot point now. But if the non transparent style and policy of managing our national reserves continue into the future, come 2050, there will be a little problem. It would be old China once again. Money stolen and gone, and no one is wiser, except the ones holding the money bag.