GLOBAL CORRUPTION
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As viewed through Transparency International

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By Prof. Dr. KHAWAJA AMJAD SAEED
e-mail: professor@kamjadsaeed.edu.pk

Feb 07 - 13, 2005
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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 and national exchequer. Furthermore, moral deterioration continues and the image of the country at home and abroad stands tarnished.

By and large, most of the ruling governments, backed up by bureaucracy and other constituents of the government, continue 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-2004.

CPI-2004

Downloaded material from http://www.transparency.org states that a CPI 2004 score relates to perceptions of the degree of corruption as seen by business people, academic and risk analysis and ranges between ten (highly clean) and zero (highly corrupt). A total of 18 surveys were used from 12 independent institutions and at least 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 index, 146 countries were included in the CPI-2004 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 2003 and in 2004 it was 146.

A rating scale from O 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 seven countries which included nine or above nine out of ten. These included: Finland, Iceland, Denmark, New Zealand, Singapore, Sweden and Switzerland .

3) One hundred and six (106) countries out of 146 obtained a score of less than five.

4) Seven (7) countries obtained less than two out of ten and were consequently in higher corrupt nation bracket. These induced: Azerbaijan, Myanmar, Paraguay, Haiti, Nigeria, Chad and Bangladesh

MAJOR REVELATIONS

Major revelations of Transparency International Corruption Perceptions Index 2004 are summarized as under:

1. Corruption is rampant in 60 countries

2. The public sector is plagued by bribery.

3. While launching TI CPI-2004, the Chairman of TI said: "Corruption in large-scale public projects is a daunting obstacle to sustainable development and results in a major loss of public funds needed for education, healthcare and poverty alleviation both in developed and developing countries."

4. The Chairman further stated: "If we hope to reach the Millennium Development Goal of having the number of people living in extreme poverty by 2015, governments need to seriously tackle corruption in public contracting. TI estimates that amount lost due to bribery in government procurement is at least US$400 billion per year worldwide.

5. A total of 106 out of 146 countries scored less than 5 against a clean score of 10. Sixty countries scored less than 3 out of 10, indicating rampant corruption.

6. Corruption is perceived to be most acute in Bangladesh, Haiti, Nigeria, Chad, Myanmar, Azerbaijan and Paraguay. All these countries have a score of less than 2 out of 10.

7. Oil rich Angola, Azerbaijan, Chad, Ecuador, Indonesia, Iraq, Kazakhjstan, Libya, Nigeria, Russia, Sudan, Venezuela and Yemen have extremely low scores. It is generally perceived that public contracting in the oil sector is plagued by revenues vanishing into the pockets of Western oil executives, middlemen and local officials.

8. Countries with a score of higher than 9 out of 10 (very low levels of perceived corruption) are predominantly rich countries, namely Finland, New Zealand, Denmark, Iceland, Singapore, Sweden and Switzerland.

9. Since last year, an increase perceived corruption can be observed for Bahrain, Belize, Cyprus, Dominican Republic, Jamaica, Kuwait, Luxembourg, Mauritius, Oman, Poland, Saudi Arabia, Senegal, Trinidad and Tobago.

10. A fall in corruption was perceived in Austria, Botswana, Czech Republic, El Salvador, France, Gambia, Germany, Jordan, Switzerland, Tanzania, Thailand, Uganda, United Arab Emirates and Uruguay.

STATISTICAL ANALYSIS

The following frequency table presents a comparison of CPI 2001, CPI-2002, CPI-2003 and CPI-2004:

Table No. 1
CPI-2001, CPI-2002, CPI-2003 COMPARED TO CPI-2004

Group

CPI-2004

CPI-2003

CPI-2002

CPI-2001

8.0 - 9.7

16

15

14

13

6.0 - 7.9

17

13

13

13

4.0 - 5.9

25

25

22

20

2.0 - 3.9

81

68

46

41

1.3- 1.9

07

12

07

04

TOTAL

146

133

102

91

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

The average for 2004 is 4.11 and Pakistan CPI was 2.1.

Out of a total of 146 countries, the table-2 gives the position of 15 countries in three blocs. The data indicates categories of countries where the corruption is the least, is moderate and is the highest. Five countries have been identified in each of the above three blocs:

 

 

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

COUNTRY

SCALE (MAXIMUM 10)

BLOC-I

1. Finland

9.7

2. New Zealand

9.6

3. Denmark

9.5

4. Iceland

9.5

5. Singapore

9.3

BLOC-II

6. Taiwan

5.6

7. Cyprus

5.4

8. Qatar

5.2

9. Malaysia

5.0

10. Turkmenistan

4.9

BLOC-III

11. India

2.0

12. Paraguay

1.9

13. Myanmar

1.7

14. Nigeria

1.6

15. Bangladesh

1.5

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

PAKISTAN'S POSITION

Based on data released by TI through their Corruption Perceptions Index (CPI) 2003, Pakistan had 2.5 score. Unfortunately, CPI for 2004 for Pakistan is 2.1 and out of 146, Pakistan has ranked 129 bracketed with Cameroon, Iraq and Kenya. We are still below the average and have the challenge to go a long way to reduce the extent of corruption. All the stakeholders must contribute towards lesser corruption with passage of time. They must contribute towards the noble cause of reducing corruption through transparency, moral rearmament, contentment and enforcement of law as a crackdown 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.

APPOINTMENT AS ADJUNCT EMERITUS PROFESSOR IN MANAGEMENT

Prof. Dr. Khawaja Amjad Saeed, Principal, Hailey College of Banking & Finance, University of the Punjab has been appointed as "Adjunct Emeritus Professor in Management" at Birla Institute of Management & Technology (BIMTECH), New Delhi, India.

Prof. Dr. Khawaja Amjad Saeed has an outstanding Professional and Academic Record. He was the first Chartered Accountant to branch into teaching and has authored over 30 books. He has participated in over 1000 Conferences/Seminars/Workshops at home and abroad. He is a member of all the six professional Institutes of Pakistan i.e. Institute of Chartered Accountants of Pakistan (ICAP), Institute of Cost and Management Accountants of Pakistan (ICMAP), Institute of Corporate Secretaries of Pakistan (FICS), Institute of Marketing Management (FIMM), Institute of Taxation Management (FITM), and Institute of Chartered Secretaries and Managers. Having served the University of the Punjab as Founder Director of Second Business School of the Country namely, Institute of Business Administration, he also served as Pro Vice Chancellor of the University of the Punjab.

On the basis of his excellent professional and academic credentials and most outstanding career, Birla Institute of Management & Technology (BIMTECH) has honored him with "Adjunct Emeritus Professor".

The Birla Institute was established in 1988 as a wing of the Birla Academy of Art and Culture. It offers Post Graduate Diploma in Business Management (PGDBM), Master of Business Administration (Insurance), Insurance & Risk Management (PGDIRM), Retailing & Merchandising Management (PGDRMM) and Entrepreneurship & Family Business (PGDEFB). It also offers Ph.D. Programme and D. Litt. Programme in Management and Insurance. We are accredited for pioneering in the full time postgraduate education in Insurance & Risk Management, and Retailing Management. Institute has various collaboration with foreign universities for research, faculty and student exchange programmes and also with industry for knowledge sharing.

 

 

Earlier Prof. Dr. Khawaja Amjad Saeed served as Adjunct Professor of Graduate School of Management, Swinburne University of Technology, Melbourne, Australia (1999-2003). He is already serving as Adjunct Professor of Institute of Management Technology, Ghaziabad, India since 1995 onward.