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World: Transparency International Chief Talks About
Corruption In CIS
By Jeffrey Donovan
Russia, Ukraine, Belarus, and the Central Asian countries rank among the
worst in a new survey of perceived global corruption by the nongovernmental
group Transparency International. RFE/RL spoke with David Nussbaum, Transparency
International's London-based chief executive.
Prague, 18 October 2005 (RFE/RL) -- The Corruption Perceptions Index is a
sort of poll of polls, pulling together and analyzing "perceptions of
corruption" from 16 leading surveys this year that questioned business leaders,
analysts, and experts around the world. Countries are ranked on a scale of 1 to
10, with 10 signifying almost no corruption. Topping this year's list were
Iceland, Finland, and other northern European countries. But the real story is
who lies at the bottom -- and why.
RFE/RL: Could you explain, in laymen's terms, how you come up with this
index?
David Nussbaum: The Corruption Perceptions Index, which Transparency
International publishes each year, is a poll of polls. So we take a whole
series, about 16 independent surveys, from around the world -- surveys of
businesspeople, risk analysts, and so forth. And they've been asked about their
views of the levels of corruption between different countries. And we take all
those results and compile our Corruption Perceptions Index, which gives a guide
as to how people perceive the relative levels of corruption in countries all
around the world -- 159 countries this year.
RFE/RL: And why should we be more focused on the perception of corruption
rather than on something more concrete?
Nussbaum: Corruption is by its nature very difficult to observe, because the
people who are directly involved don't want it to be observed. Of course, the
people who suffer from corruption are the ordinary people of the country, but
they are not always in a position to report accurately what's been happening. So
in order to get some better insight into the reality, these measures of
perception are important because they give us a guide as to what the reality is.
They're also important because business will take account of their perceptions
of corruption in assessing the risk, for example, in making an investment in a
country. I know myself from my own background as a businessperson on the board
of a company that risk is very important when considering whether to proceed
with an investment opportunity.
RFE/RL: So to take a look at this year's report, I see that Russia figures
among the countries that have registered a worsening in the perceptions of
corruption.
Nussbaum: The perception index isn't mainly designed to track year-on-year
changes, but as you mentioned, the score in Russia is worse by about 0.4 out of
10 -- from 2.8 down to 2.4 -- and that does indicate a real change in the
perceived level of corruption in Russia. And I think that probably relates to
the fact that although there have been some positive developments, overall the
transparency of government has been reduced. There's been a crackdown on
independent organizations and on the media, and so there are perhaps fewer
organizations in a position to keep an eye on government, to put pressure on
government to keep honest. And in the end, if people perceive that political
elites are able to get around the normal checks and balances that operate in an
economy such as Russia's, then this will lead them to conclude that the levels
of corruption have, indeed, increased.
RFE/RL: Hence, the connection between the lack of transparency and
corruption...
Nussbaum: Indeed, that's why our name is Transparency International, because
one of the principles that we see around the world is that where people are
happy to be open about what they're doing, about what decisions they're taking
and how they're taking them, this encourages greater levels of trust and
reliability in the way they're behaving. Whereas, if there's a great deal of
secrecy and curtailment of openness, this leads people to understand that what
they perceive to be corruption probably is corruption. And we think we're
probably right.
RFE/RL: Just to be clear, what kind of corruption are we talking about here?
Nussbaum: We're talking mainly about corruption by those with power, either
with political power or administrative power. So that would be politicians and
public officials who have to make decisions, such as allocating permits, such as
giving contracts, particularly in the area of procurement. So this is where
corruption is probably the most serious and leads to the most damage for
economic and social development.
RFE/RL: Now let's look at some of the countries that have seen progress. I
see Ukraine is in that category. And, of course, there was a much-publicized
change in government there this year. Did that have any effect on any
improvements that may have occurred with regard to corruption in Ukraine?
Nussbaum: As I mentioned, the index is measuring perceptions, so we're now
speculating as to what might have led to those changes in perceptions. But I
think there can be little doubt that the new administration in Ukraine,
following the Orange Revolution, is viewed more positively than its predecessor.
It has a well-articulated commitment to tackling corruption. And I think also
the sense among the population that having rejected the rather dubious initial
election, and the democratic transition to the new government -- this would have
led people to take a different view of the country. And the building of trust by
the people in the politicians they've elected to represent them is hugely
important in building a sense of accountability. And accountability, in turn,
leads to integrity.
RFE/RL: Is there any sort of concrete example that you can point to in
Ukraine that stands out as a step forward?
Nussbaum: I think that in Ukraine, it's probably the whole realm of changes
which the government brought about. There are countries where sometimes there's
a very dramatic step taken. An example was in Georgia, when they removed a very
substantial portion of the police force. But I think in Ukraine, it's probably
widespread than primarily focused on individual actions. And both can be
important. Symbolic actions which demonstrate commitment have to be followed by
rigorous, consistent, sustained attention to all the changes that are needed in
institutions, in the judiciary, in the police, in the public service, in the
health systems, in education, and so forth.
RFE/RL: You mention Georgia, and I'll throw Kyrgyzstan in there as well
because those are the other two countries that had so-called colored
revolutions. Yet those two countries, Georgia and Kyrgyzstan, continue to rank
pretty poorly in the index.
Nussbaum: The levels of corruption that these countries start at are
independent, of course, of what changes they are making, and what's important is
the direction they're heading and the speed at which they are able to improve.
There are different challenges in each of these countries, and I think the way
the economy works, and the degree of openness to external markets, also has some
bearings. I think in Georgia, it shows perhaps that there's a long way to go if
you want to clean things up. These kinds of changes are difficult to achieve.
Georgia certainly does show an improvement from 2 to 2.3 -- so that's a
significant step in the right direction. But when you have countries with very
low scores, signifying endemic levels of corruption, it's going to be quite some
time before you see them really being able to change fundamentally and
sustainably the whole way the country operates, because people have become used
to operating in a particular way, and to change that consistently is a big
challenge.
RFE/RL: In what way can governments be pushed to weed out corruption?
Obviously, it's there because people make money from it, and perhaps it's not in
their interests to be clean.
Nussbaum: It's in the interests of those in government who are personally
clean and are committed to integrity [to combat corruption]. But above all, it's
in the interests of the people. And we've seen that in the colored revolutions,
as you referred to earlier, where the people are conscious that they in the end
are the people that are paying the price for the corruption of a few. And in
many of these countries, there are elites who have access to power, access to
resources, who are seeking to protect that in various ways. And yet the people
who are bearing the consequences of that are scattered throughout the country,
and they will want to find ways to transmit their voice so that their voice is
heard by government and governments take actions. And the kind of actions we're
talking about are making sure that nobody has unbridled power to take,
implement, and follow through on decisions; that there are checks and balances
in place -- for example, between the judiciary and the executive -- so that the
people who make the government decisions are not the people who make the
judgment decisions in court or are able to influence those.
Or, for example, that there might need to be an independent commission
against corruption. That's been successful in some places such as Hong Kong and
South Korea, in helping to create an environment in which people can overcome
corruption, sometimes by providing, for example, channels for whistle-blowing.
So where people become aware of specific cases of corruption, they often want to
do something, but don't know what to do. And so, if a government or even a
company sets up a whistle-blowing scheme whereby people can confidentially
report matters which can be carefully checked and investigated in case there are
inappropriate allegations -- but where there are proper allegations made,
they're followed up and action is taken -- this can be an enormously helpful way
of building a more transparent society in which those that are corrupt are aware
that there's a much greater risk to them because the likelihood of being caught
is higher.
RFE/RL: Is something like that happening in Turkey, which figures among the
improved countries in this year's index?
Nussbaum: I think what's clear is that Turkey is very determined to look
toward [European Union] membership. And in doing that, it realizes that tackling
corruption and building a system of integrity right across the public sector is
going to be hugely important. And so I think that stimulates the political will
for reform. And we know from many countries around the world that that's
critical. Political will is necessary. It isn't sufficient. It doesn't mean once
you've got the politicians and the leaders of the country making the right
noises, that things will change. But unless they're personally committed to it,
it's quite difficult for change to happen throughout the country. Of course,
over the next few years, as Turkey continues those negotiations, it will be
interesting to see the degree to which this results in further reform.
But we do have examples in Eastern Europe, in some of the accession
countries, both in those that have joined the EU now and those one or two that
are wanting to join the EU, such as Bulgaria, where there's been improvement
over the last five or eight years, that the prospect of being able to join the
EU club, as it were, does galvanize the will to reform into action.
RFE/RL: What about Romania, then? The European Commission is due to report on
the country's progress this month. Are things getting better there with a new
government?
Nussbaum: There doesn't seem to be a significant change in the perceptions of
corruption there, yet. But its scores have improved very slightly over the last
few years. But the CPI tends to indicate when those changes have percolated
through to changes of perception, so there's very often a delay factor before we
see government action or other action reflected in the scores in the index.
RFE/RL: One last question. It regards a country like Turkmenistan, which
according to your survey only trails Bangladesh and Chad as the world's worse
place for corruption. What's life like for the average person in a country like
that, in terms of corruption? Are we talking about a level of corruption that
you're almost hit with it at every turn when it comes to the authorities?
Nussbaum: Unfortunately, yes, and it means that people's lives all the time
are being ruined by corruption. It means that if you want to register a birth,
you may need to pay a bribe. It means that even if you've gone to register a
death, you may have to pay something to get that through the system; that if you
want to travel, you may be subject to some harassment if you don't pay; that if
you want to get permission or authorization to do a business transaction, or
something in the construction area, permission to build -- again, all these
things may be subject to bribery. And it also means that corruption probably
becomes very embedded in the system. For example, in some countries, when people
get a job, they may be required to make a payment to get the job, and it's then
expected that they'll recoup that by bribes. So people are faced with terrible
and invidious choices.
[But] one of the encouraging things around the world is that we find that
even where people have had to put up with this kind of system for many years,
somehow underneath they know this isn't how it's supposed to be, and when things
change, both in this region and in other parts of the world, people have this
huge sense of relief and encouragement. And the challenge then is to see this
honored, and seen through by governments, political and commercial and social
leaders so that their people can lead the kind of lives that they want to lead,
as they face the future with a sense of hope, rather than frustration.
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