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.
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.