Allow me to disagree. China is an opressive government, but that fact gets conveniently ignored by other countries who use it as a factory floor. My own country (Brazil) is riddled with corruption for decades and still economy moves forward driven by credit and consumption. Somalia, Zimbabwe, Sudan, Laos, Burma, just to name a few, are plagued with porvertry as result of bad governance and ethnic genocides but the only movement for change you see there is voluntary work paid by donations - you don't see USA or Europe interested in democracy there because they don't have oil to get sucked or money to buy their crap.
People, particularly rich people, do leave China in considerable numbers. The same with Brazil. States with corrupt or inefficient governments do go bankrupt, sizeable amounts of people leave one way or another, and some of them are forced to improve (for some values of improvement) as terms of their financial rescue.
All the things you mentioned do happen, the issue is that few things concerning large organizations happen fast. Even in near-perfect-capitalist Silicon Valley environment organizations as troubled as Yahoo or Palm can keep on going for quite a while.
