.

PROFILE

SHABBIR H. KHANDWALA

COLUMN FOR THE RECORD
COMPANY PROFILE 1- ZRG CALL CENTER AT WORK: BANK ALFALAH CALL CENTER
2- SAMSUNG ELECTRONICS - WORLD'S FASTEST GROWING BRAND IN THE WORLD.
SOCIETY 1- PERFORMANCE MEASUREMENT AND GOOD GOVERNANCE
2- GLOBAL CORRUPTION
ENVIRONMENT TREES PLANTING IN DESERT AREAS OF COUNTRY

 

GLOBAL CORRUPTION

As viewed through Transparency International

.
By Prof. Dr. KHAWAJA AMJAD SAEED
e-mail: kamjadsaeed@yahoo.com

Nov 10 - 16, 2003 
. 

 

 

Corruption is rampant throughout the world. The scope extends to developed and developing countries. The magnitude of corruption, however, varies from country to country. Empirical research shows that basically there are two causes of corruption namely: need and greed. Whereas needs can be met by reviewing pay packages, no package can take care of the greed which has no end. Perception of those who are corrupt is very different. They think that what they receive as graft does not fall within the domain of corruption. They consider the receipts from corruption as their entitlement. Consequently their appetite to collect money through corrupt practices continues to be increasing to their personal benefits and to the detriment of the society. Further moral deterioration continues and the image of the country at home and abroad continues to be tarnished.

By and large, most of the ruling governments, backed up by bureaucracy and other constituents of the government, continues to harp on the theme that there is no corruption.

In the above backdrop, Transparency International (TI) launched the first Corruption Perceptions Index (CPI) in 1995. Subsequently, TI continues to release CPI on annual basis. The latest one released by TI is CPI 2003**.

CPIS 2003

Downloaded material from web** states that a CPI 2003 score relates to perceptions of the degree of corruption as seen by business people, academic and risk analysts and ranges between ten (highly clean) and zero (highly corrupt). A total of 17 surveys were used from 13 independent institutions and atleast three surveys were required for a country to be included in the CPI. In this respect, a Survey used refers to the number of surveys that assessed country's performance. In the above CPIs index, 133 countries were included in the CPI 2003 score. Using CPI which is a poll of polls, the minimum number of surveys carried out were three and the maximum were seventeen. In the year 2001, the survey was restricted to 91 countries and in 2002, this number was 102. This number was 133 in year 2003.

A rating scale from 0 to 10 was used. The higher the scale, the lesser is the perception about corruption. Inversely the lower the scale, the higher is the perception about the level of corruption. Based on research of the data released by TI, major findings are as under:

1) Finland was the least corrupt country in the world. It obtained 9.7 out of 10.

2) There were six countries which included nine or above nine out of ten. This included: Finland, Iceland, Denmark, New Zealand, Singapore and Sweden.

3) Ninety Five (95) countries out of 133 obtained a score of less than five.

4) Eleven (11) countries obtained less than two out of ten and were consequently in higher corrupt nation bracket. These included: Indonesia, Kenya, Angola, Azerbaijan, Cameroon, Georgia, Tajikistan, Myanmar, Paraguay, Haiti, Nigeria and Bangladesh.

The following frequency table, presenting a comparison of CPI 2001 and CPI 2002 compared to CPI 2003 has been prepared:

Table No. 1
CPI 2001 & CPI 2002 COMPARED TO CPI 2003

Group

CPI 2003

CPI 2002

CPI 2001

8.0 - 9.7

15

14

13

6.0 - 7.9

13

13

13

4.0 - 5.9

25

22

20

2.0 - 3.9

68

46

41

1.3 - 1.9

12

07

04

TOTAL

33

102

91

Source: Computed from data downloaded from www.transparency.org

 

 

The average for 2003 is 3.8 and Pakistan CPI is 2.8.

5. Out of a total of 133 countries, the following table gives the position of 16 countries in three blocks. The data given below indicates categories of countries where the corruption is the least, is moderate and is the highest.

Table No. 2
THE LEAST, MODERATE AND THE HIGHEST CORRUPT COUNTRIES

 

Country

Scale (Maximum 10)

Block - I

1.

Finland

9.7

2.

Iceland

9.6

3.

Denmark

9.5

4.

New Zealand

9.5

5.

Singapore

9.4

6.

Sweden

9.3

Block - II

7.

Taiwan

5.7

8.

Italy

5.3

9.

Malaysia

5.2

10.

South Korea

4.3

11.

Brazil

3.9

Block - III
12. India 2.8
13. Russia 2.7
14. Pakistan 2.5
15. Nigeria 1.4
16. Bangladesh 1.3

Source: Computed from data downloaded from www.transparency.org

PAKISTAN'S POSITION

CPI for the year 1999 ranked Pakistan as No. 3 a highly corrupt nation by TI's CPI 1999 index. The situation marginally improved as TI's CPI 2000 ranked Pakistan as No. 5. The situation further improved to rank 12 based on TI's CPI for 2001. The situation greatly improved in TI's CPI for 2002 when Pakistan was ranked as 77. Based on data released by TI through their Corruption Perceptions Index (CPI) 2003, Pakistan ranked 93 with 2.5 score. Seven (7) surveys were used and standard deviation was 0.9. We are still below the average and have the challenge to go a long way to reduce the extent of corruption. However, we are steadily moving towards lesser corruption as our rank is improving. All the stake-holders must contribute towards lesser corruption with passage of time. All the stake-holders must contribute towards the noble cause of reducing corruption through transparency, moral rearmament, contentment and enforcement of law as a crack down to nab the corrupt segments. The job should be initiated on priority basis and all institutions including National Accountability Bureau should play their productive role to uproot the corruption.

The author is Principal, Hailey College of Banking and Finance, Constituent College of the University of the Punjab, Lahore.

 

 

http://www.transparency.org