Int'l survey rates RP's corruption severe

By Doris C. Dumlao
Inquirer News Service

NOT ONLY was the Philippines ranked among countries with severe corruption problems -- its rating in a new survey even sank lower compared to last year's.

On a scale of one to 10 -- with 10 as the "cleanest" -- the Philippines got a score of 2.5 based on the 2005 Corruption Perceptions Index (CPI) released yesterday by global corruption watchdog Transparency International (TI).

The Philippines was thus among 70 countries -- comprising nearly half of those included in the TI index -- that scored less than 3 on the latest CPI, indicating a "severe" corruption problem.

The country ranked 117th, a sharp fall from its 102nd place in last year's survey.

"Corruption isn't a natural disaster: It is the cold, calculated theft of opportunity from the men, women and children who are least able to protect themselves," said David Nussbaum, TI's chief executive.

"Leaders must go beyond lip service and make good on their promises to provide the commitment and resources to improve governance, transparency and accountability."

RP is 117th among 159

Among the countries included in the index, corruption was perceived as most rampant in Chad, Bangladesh, Turkmenistan, Burma (Myanmar) and Haiti, which scored 1.7-1.8. They were also among the poorest countries in the world.

The Philippines' score deteriorated from last year's 2.6 in the coalition's CPI.

Out of 159 countries rated, the Philippines placed 117th in a tie with Afghanistan, Bolivia, Ecuador, Guatemala, Guayana, Libya, Nepal and Uganda.

More than two-thirds of the 159 nations surveyed by Transparency International scored less than five in this year's rating.

The 'cleanest'

On the other hand, the top 10 scorers were Iceland (9.7), Finland and New Zealand (9.6), Denmark (9.5), Singapore (9.4), Sweden (9.2), Switzerland (9.1), Norway (8.9), Australia (8.8) and Austria (8.7).

The United States ranked 17th with a score of 7.6 and Japan shared the 21st ranking with Chile at 7.3.

The CPI is a composite survey, reflecting the perceptions of business people and country analysts, both resident and nonresident. The composite survey also draws on 16 different polls from 10 independent institutions.

But the index provides only a snapshot, with less capacity to offer year-to-year trends.

The 2005 index bears witness to the double burden of poverty and corruption borne by the world's least developed countries, TI said.

Major cause of poverty

"Corruption is a major cause of poverty as well as a barrier to overcoming it," said TI chair Peter Eigen.

"The two scourges feed off each other, locking their populations in a cycle of misery. Corruption must be vigorously addressed if aid is to make a real difference in freeing people from poverty."

Extensive research shows that foreign investment is lower in countries perceived to be corrupt, which further thwarts their chance to prosper, according to TI.

But when countries improve governance and reduce corruption, they reap a "development dividend" that, according to the World Bank Institute, can include improved child mortality rates, higher per capita income and greater literacy.

The TI report noted that 19 of the world's poorest countries had been granted debt service relief under the Highly Indebted Poor Countries (HIPC) initiative, testifying to their economic reform achievements. However, not one of these countries scored above 4 on the CPI, indicating serious to severe levels of corruption.

Greed, mismanagement

The coalition said these countries still faced the grave risk that money freed from debt payments now entering national budgets would be forfeited to greed, waste or mismanagement.

It said the commitment and resources devoted to qualifying for HIPC must also be applied to winning the fight against corruption.

Stamping out corruption and implementing recipient-led reforms are thus seen as critical to making aid more effective, and to realizing the crucial human and economic development goals that have been set by the international community.

An increase in perceived corruption from 2004 to 2005 can be measured in countries such as Costa Rica, Gabon, Nepal, Papua New Guinea, Russia, Seychelles, Sri Lanka, Suriname, Trinidad & Tobago and Uruguay.

Graft in rich countries

Conversely, a number of countries and territories show noteworthy improvements -- a decline in perceptions of corruption -- over the past year. They include Estonia, France, Hong Kong, Japan, Jordan, Kazakhstan, Nigeria, Qatar, Taiwan and Turkey.

The report said wealth was not a prerequisite for successful control of corruption.

A new long-term analysis of the CPI carried out by corruption expert Johann Graf Lambsdorff showed that the perception of corruption had decreased significantly in lower-income countries such as Estonia, Colombia and Bulgaria over the past decade.

In the case of higher-income countries, such as Canada and Ireland, however, there has been a marked increase in the perception of corruption over the past 10 years, showing that even wealthy, high-scoring countries must work to maintain a climate of integrity.

Sharing the burden

Similarly, the responsibility in the fight against corruption does not fall solely on lower-income countries, the report said.

The TI said wealthier countries, apart from facing numerous corruption cases within their own borders, must share the burden by ensuring that their companies were not involved in corrupt practices abroad.

It also said offenders must be prosecuted and barred from public bidding.

Government secrecy

The opportunity for ensuring sustainable progress also lies in the hands of the World Trade Organization, which needs to actively promote transparency and anticorruption in global trade, the coalition stressed.

"The lessons are clear: risk factors such as government secrecy, inappropriate influence of elite groups and distorted political finance apply to both wealthy and poorer countries, and no rich country is immune to the scourge of corruption," the report said.