Where is corruption most prevalent?

At a first, indiscriminate glance, the Corruption Perceptions Index (CPI), published annually by TI, seems to confirm the stereotypical notion that corruption is predominantly a problem of the South. While the Scandinavian countries come out on top, most of sub-Saharan Africa ranks at the bottom. It would not only be wrong to conclude, however, that - according to the CPI 2008 - Somalia and Myanmar are the most corrupt countries in the world; it would also be counterproductive. The index is not intended to brand any one country or territory, or to pit the North against the South. Rather, it is a tool to raise public awareness of the problem and promote better governance. Corruption is as much a problem of the North as it is of the South. Recent scandals in Germany, France, Japan, the US or the UK attest to that. It is well-established checks and controls that make the difference in proportion. People are as corrupt as the system allows them to be. It is where temptation meets permissiveness that corruption takes root on a wide scale. Such an environment is more likely in the emerging democracies of the South and East. There, administration and political institutions are still weak and pay scales are generally very low, tempting officials to "supplement" their income. In dictatorial systems, meanwhile, administrative and political institutions are nothing but an extension of the usurper's corrupt practices.

The North also carries part of the responsibility for the situation in the South due to its role as the bribe-payer. After all, it is largely Northern corporate interests that supply the bribe payments. Until recently, governments of the North not only tolerated these corrupt practices, but they even rewarded them with tax deductibility. Fortunately, the 1999 OECD Anti-Bribery Convention has made the bribing of foreign officials a criminal offence. TI has addressed this aspect with its Bribe Payers Index (BPI), the logical complement to the CPI. In addition to the question of the regional pervasiveness of corruption, the issue of corruption by sector is often raised. The BPI provides statistical evidence as to which business sectors are most prone to corruption. According to these results, the problem of corruption is particularly prevalent in public works and construction, followed by the arms and defence industry. The sector with the least detected corruption was agriculture.

What are the costs of corruption?

The cost of corruption is four-fold: political, economic, social, and environmental. On the political front, corruption constitutes a major obstacle to democracy and the rule of law. In a democratic system, offices and institutions lose their legitimacy when they are misused for private advantage. Though this is harmful in the established democracies, it is even more so in newly emerging ones. Accountable political leadership can not develop in a corrupt climate. Economically, corruption leads to the depletion of national wealth. It is often responsible for the funnelling of scarce public resources to uneconomic high-profile projects, such as dams, power plants, pipelines and refineries, at the expense of less spectacular but fundamental infrastructure projects such as schools, hospitals and roads, or the supply of power and water to rural areas. Furthermore, it hinders the development of fair market structures and distorts competition, thereby deterring investment. The effect of corruption on the social fabric of society is the most damaging of all. It undermines people's trust in the political system, in its institutions and its leadership. Frustration and general apathy among a disillusioned public result in a weak civil society. That in turn clears the way for despots as well as democratically elected yet unscrupulous leaders to turn national assets into personal wealth. Demanding and paying bribes become the norm. Those unwilling to comply often emigrate, leaving the country drained of its most able and most honest citizens. Environmental degradation is yet another consequence of corrupt systems. The lack of, or non-enforcement of, environmental regulations and legislation has historically allowed the North to export its polluting industry to the South. At the same time, careless exploitation of natural resources, from timber and minerals to elephants, by both domestic and international agents has led to ravaged natural environments. Environmentally devastating projects are given preference in funding, because they are easy targets for siphoning off public money into private pockets.

How do you define corruption?

Transparency International (TI) has chosen a clear and focused definition of the term: Corruption is operationally defined as the abuse of entrusted power for private gain. TI further differentiates between "according to rule" corruption and "against the rule" corruption. Facilitation payments, where a bribe is paid to receive preferential treatment for something that the bribe receiver is required to do by law, constitute the former. The latter, on the other hand, is a bribe paid to obtain services the bribe receiver is prohibited from providing.

What is "transparency"?

"Transparency" can be defined as a principle that allows those affected by administrative decisions, business transactions or charitable work to know not only the basic facts and figures but also the mechanisms and processes. It is the duty of civil servants, managers and trustees to act visibly, predictably and understandably.

EDITORIAL

Making monsters
Philippine Daily Inquirer
11/19/2010

It became clear in the traumatic aftermath of the gruesome massacre in Ampatuan, Maguindanao, a year ago: the rule of violence that was associated with the Ampatuan family in the province could not have been possible without sins of omission or commission of the Arroyo administration. A report prepared by the New York-based Human Rights Watch and issued this week is a useful and sobering reminder of that fundamental but often-fudged fact.

THE STATE OF THE NATION (Part 1)

A Situationer: Perfecto Yasay Jr.

Sometime last August, I found myself between two friends doing a post mortem of the results of the presidential elections over a cup of coffee. “What is wrong with our country?” asked the fellow on my left. Without batting an eyelash the friend on my right sarcastically replied: “Everything is terribly wrong with the Philippines today!”

THE STATE OF THE NATION (Part 2)

Purpose of the Separation of Church and State by: Perpecto Yasay

Before I share with you my views about the critical issues that beset the nation, let me briefly clarify the concept of the “separation of Church and State” so that we may have an idea of how we can carry out our prophetic mission, distinctly and separately from what government must do in the performance of its responsibilities, and also identify areas where mutual cooperation can be pursued towards the easing of our difficulties without one hampering, preventing or undermining the efforts of the other.

THE STATE OF THE NATION (Part 3)

Poverty as a Fundamental Pressing Problem

by: Perpecto Yasay

I believe that the fundamental and critical problem that plagues the country is poverty. I say fundamental because once we have eradicated the principal causes of poverty we would have removed the formidable impediment to our development and progress, paving the way to improving the quality of life of our people, strengthening their hope and confidence in the future, and nurturing and unleashing their potentials for nation building. Critical because, unless we are able to eradicate the causes of our poverty, the continued sufferings and uneasiness of our people can further fan the flames of violence leading to the dismemberment and demise of our Republic as we know it.

THE STATE OF THE NATION (Part 4)

by:Perpecto Yasay

The Causes of Poverty

We all know that our land is profuse with natural resources. A good number of our country’s tycoons and privileged families figure as among the wealthiest in the world, but we have not been able to harness this richness or curtail the growing poverty among our people mainly because of serious inequitable distribution or sharing of the nation’s income, wealth and resources; incessant conflicts, high population growth rate and systemic corruption.

THE STATE OF THE NATION (Part 5)

by: Perpecto Yasay

Unrestrained Corruption

Corruption, which should be defined as the use of public resources and/or public power for personal benefit is evidently one of the main governance issues that contribute to the growing poverty of our people.