ON (CORRUPTION IN INDIA & IT’S COMPARISON WITH OTHER ASIAN COUNTRIES) Submitted in the partial fulfillment of the Degree of masters
of business admini stration SUBMITTED BY:BY:Name : FARAZ ALAM GUIDED MISS Page 1
INTROUCTION : CORRUPTION CORRUPTION IS A TYPE OF STRATEGIC ACTION IN WHICH TWO OR MORE ACTORS UNDERTAKE AN EXCHANGE RELATION BY WAY OF A SUCCESSFUL TRANSFER OF MONEY PROMOTING OF GENE (MATERIAL) OR POWER (POLITICAL AS OR STATUS ) OR (GENETIC), WHICH SIDESTEPS LEGALITY OR MORALITY OR CIVILITY TO REGULATE THE MENTIONED BEFOR E , RELATION . I T IS A STRATEGIC INTERACTION OR AN ART OF NONVIOLENT NEGOTIATION . GOALS . SOCIAL ACTION IS STRATEGIC WHEN IT IS AIMED AT THE SUCCESSFUL REALIZATION OF PER SONALLY DEFINED CORRUPTION THREATENS PEOPLE AND THEIR GOVERNMENTS . I T MAKES SOCIETIES UNFAIR . I T IS ARG UED THAT BRIBERY IS A NEGOTIATED RENT , AS THE BEGINNING OF ALL ILLEGALITIES AND TYRANNY . THERE IS NO MORE POWERFUL ENGINE OF INJUSTICE AND CRUELTY , FOR BRIBERY DESTROYS BOTH FAITH AND S TATE. CONSEQUENCE OF CORRUPTION THUS IS NOT ONLY STATE CAPTURE BUT ALSO THE SERIOUS MIND CAPTURE. CORRUPTION IS UNIVERSAL. I T IS PRESENT IN DEVELOPED AND DEVELOPING COUNTRIES , IN THE BURE AUS OF PUBLIC OR PRIVATE SECTORS , AND IN NONPROFIT OR CHARITABLE ORGANIZATIONS . MANAGEMENT ONLY CHANGES ITS RESIDENCE. PEOPLE AS IT IS SOMETIMES MADE OUT . SHIFT FROM GOVERNANCE TO CORRUPTION IS NOT MERELY IN THE MEDIA OR IN THE MINDS OF
BUT IT IS IN THE SYSTEM ALL ACROSS THE PUBLIC SERVICES , IS WHAT THIS STUDY HIGHLIGH TS . AND THE USERS AND PROVIDERS OF THOSE PUBLIC SERVICES KNOW WHAT NEEDS TO BE DONE TO ADDRE SS THE PROBLEM AS THIS STUDY HAS BROUGHT OUT . OBJECTIVES . CORRUPTION PLAYS A CENTRAL ROLE IN POLITICS THUS STATE RENT SEEKING AND RENT GIVING ARE MAJOR OBSTACLES IN THE PROCESS OF PLANNED CHANGE OF ECONOMIC LAYERS . A PROMISE OF DEMOCRACY REMAINS UNDONE . HOWEVER IT DOES ALLOW SELECTIVE CHANGE IN ECONOMIC -CYCLE OF AN INDIVIDUAL, AN INDIVIDUAL HOUSEHOLD AND A BUSINE SS. OBSERVE IN REAL LIFE. CORRUPTION IS USUALLY A KEPT SECRET AND THEREFORE THE BEHAVIOR OF THE CORRUPT AGENT NEAR IMPOS SIBLE TO THE CHARACTER OF RENT- SEEKING HAS ALL THE QUALITIES ONE CAN ASK FOR SUCH AS CHARM AND ACTING TALENT TO CREATE A MIRROR IMAGE OF THE TRUTH I. E ., OF AN ACTO R ; BOOK KEEPING I . E ., OF AN ACCOUNTANT ; TO UNDERSTAND AND MANIPULATE RULES AND REGULATIONS AND ABILITY TO PROTECT , I. E . OF A CUSTODIAN . CAMPAIGNS AGAINST CORRUPTION HAVE NOT MET WITH MUCH SUCCESS. IT IS A WORRISOME D EVELOPMENT. WHEN THE MAJORITY OF PEOPLE OPERATE UNDER SUCH A SYSTEM, INDIVIDUALS HAVE NO INCENTIVE TO TRY TO CHANGE IT OR TO REFRAIN FROM TAKING PART IN IT. Overview Taking a worldwide perspective, countries like New Zealand and the Scandinavian countries are "models of integrity" for the world in terms of their corruption c ontrol. Page 2
And almost all of the most corrupt countries are developing nations and many of them are in Asia. Among the Top 20 most corrupt states in the world, a half of t hem are in Asia; Myanmar (Burma), Afghanistan, Kyrgyzstan, Turkmenistan, Tajikis tan, Indonesia, Bangladesh, Cambodia, Laos and Pakistan are all on the list, acc ording to the Worldwide Governance Indicators. And India and China are the two " most corrupt trade nations" among the world s Top 30 exporting countries. Corrup tion is a way of life across Asia. While talking about high-level corruption in Asia s three largest countries -- India, China and Indonesia -- there is a sayin g, "In India, corruption is under the table; in China, it is over the table; and in Indonesia, corruption includes the table." Whichever way one may wish to rea d the proverb, "what remains undeniable," says Chan Akya of Asia Times, "is that corruption is more firmly rooted in Asian culture than is commonly acknowledged ." Take a look at today s China. As John Lee of the Center for Independent Studi es in Sydney, writes, "While the Chinese state is rich and the Chinese Communist Party powerful, civil society is weak and the vast majority of people remain po or. According to studies by the Chinese Academy of Social Sciences, stealing fro m the public purse by officials amounts to about 2 percent of GDP each year, and it is rising." Another China corruption watcher, Hong Kong-based Political and Economic Risk Consultancy (PERC), painted an even gloomier picture, "Graft is en demic in China: according to the most conservative estimates, the magnitude of c orruption ranges from 3 percent to 5 percent of annual GDP." A 5 percent of Chin a GDP amounts to approximately $1.5 trillion Yuan ($225 billion in U.S. dollars) or one half of China s GDP annual growth . In today s China, it is no secret th at those who have power enjoy countless "fringe benefits." A $500 per plate dinn er is done in the name of official business, a $5,000 overseas trip is made in t he name of research or study and a $50,000 government car is purchased for priva te use only. If China s authoritarian one-party state has pushed corruption ahea d, India s democratic multiparty system might be worse. As Chan Akya puts it, "I ndians do not have a choice when it comes to corruption as most of their politic al parties (with the notable exception of the communists) offer simply varying l evels of corruption. The choice is therefore to vote for the communists and risk economic stagnation, or vote for another party and hope that the benefits of gr owth exceed the cost of corruption." So there is some good news for the corrupte d Chinese officials or something they could be proud of: On the PERC s Corruptio n Index, China is not the most corrupt country in the region. China scored 8.33 on a scale of 10 (10 represents the worst possible score), Indonesia topped the list with a score of 9.33, with India s 9.3 following close behind. Even two of America s most important allies in East Asia, South Korea and Taiwan, are not ex empt from corruption. Former South Korean president Roh Moo hyun committed suici de in late May when he was caught up in corruption investigations. Then in Septe mber, in what the media called a "trial of the century," Page 3
INCLUDING FRAUD AND EMBEZZLEMENT . CORRUPTION ATTACKS THE FUNDAMENTAL VALUES OF HUMAN DIGNITY AND POLITICAL EQUALITY OF THE PEOPLE AND HENCE THERE IS A PRESSING NEED TO FORMULATE A FUNDAMENTAL HUMAN RIGHT TO CORRUPTION . India is now no longer considered a soft state. t he number of ministers with an honest image can be counted on fingers.FREE SERV ICE . SOLICITING OR ACCEPTANCE OF AN INDUCEMENT OR REWARD . RIGHT WITHIN TH E FRAMEWORK OF THE I NDIAN THE THIS WOULD PROVIDE THE COMPARATIVE BASIS TO ELEVATE THE RIGHT TO CORRUPTION . bribe was paid for getting wrong things done but now bribe is paid for getti ng right things done at right time. not absolute. politics and criminals. Others argue that Asia s "corruption cultu re" is based on traditional Asian emphasis on "rule of man. Why are Asian politicians and bureaucrats so corrupt? Some analysts bel ieve that in Asian culture.FREE SERVICE TO THE STATUS OF A FUNDA MENTAL ONE IS OF THE DEFINITIONS OF THE TERM CONSTITUTION . AND OTHER TYPES OF MALFEASANCE THAT A PUBLIC OFFICI AL CAN COMMIT ALONE . It has now become a consideration state where everything can be had for a consideration. Whether a cultural flaw or a symptom of a sick state. At one ti me. however. CORRUPTION IS " GIVING SOMETHING TO SOMEONE WITH POWER SO THAT HE WILL ABUSE HIS POWER AND ACT FAVOURING THE GIVER ". the severity of corruption in Asian states and the fa ilure to contain such endemic corruption among political leaders and government officials poses one of the most serious threats to Asia s future economic develo pment and political stability.Taiwan s former president Chen Shui-bian was sentenced to life in prison for cor ruption." and law is seen as malleable. DEVELOPMENT OF A FUNDAMENTAL HUMAN RIGHT TO A CORRUPTION -FREE SOCIETY WIL L BE OBSERVED INITIALLY FROM AN INTERNATIONAL PERSPECTIVE SO AS TO ELEVATE THE V IOLATION OF THIS RIGHT TO THE STATUS OF AN INTERNATIONAL CRIME . THE
. IN INDIA. corruption helps "grease the wheels" of an otherwise inefficient bureaucracy and economy. Today. ANOTHER DEFINITION "THE OFFERING ." not "rule of law. IT INCLUDES BRIBERY AND EXTORTION WHICH IN VOLVE AT LEAST TWO PARTIES . WHICH MAY INFLUENCE THE ACTION OF ANY PERSON ". GIVING . Corruption in India Corruption in India is a consequence of the nexus between Bureaucracy.
There are many myths about Page 4
.APPROPRIATION OF PUBLIC ASSETS FOR PRIVATE USE AND THE EMBEZZLEMENT OF PUBLIC FUNDS BY POLITICIANS AND BUREAUCRATS HAVE SUC H CLEAR AND DIRECT ADVERSE IMPACT ON INDIA S ECONOMIC DEVELOPMENT THAT THEIR C OSTS DO NOT WARRANT ANY COMPLEX ECONOMIC ANALYSIS .
M ORE IMPORTANT .7 IN 2002 TO 3.
. Onl y people from underdeveloped or developing countries are prone to corruption. THE SIZE OF INDIA’S PARALLEL ECONOMY AT 40 % OF GDP DOES PROVIDE FERTILE GROUND FOR CORRUPTION . AND SEN IOR BUREAUCRATS WHO ARE SELD INVESTIGATED OR PUNISHED . We will have to guard against all these crude fallacies while planning measures to fight corruption. POLITICAL PATRONAGE GAVE AN AURA OF INVINCIBILITY AND RESPECTABILITY TO CORRUPTION AND DEPRIVED IT OF ALL MORAL AND LEGAL FEARS . AS WITH MANY DEVELOPING NATIONS. INDIA BECAUSE IT IS PERCEIVED TO BE A LOW RISK AND HIGH PROFIT CORRUPTION FLOURISHES BUSINESS . which have to be exploded if we really want to combat it.corruption.4 IN 2008. THE CONVICTION RATE IS HARDLY WHAT IN 6% IN CRIMINAL CASES . L ACK OF TRANSPARENCY IN ADMINISTRATION PROVIDES AN OPPORTUNITY FOR PUBLIC SERVANTS TO MI SLEAD CITIZENS AND EXTRACT BRIBES . THE CENTRAL IN THE BUREAU OF I NVESTIGATION IN THE CENTRE AND CRIMINAL INVESTIGATION DEPARTMENTS STATES AND UNION TERRITORIES HAVE BECOME POLITICAL TOOLS IN THE HANDS OF THE RULING PARTY AND GROSSLY POLITICISED THE CRIMINAL INVESTIGATION PROCESS IN THE COUNTRY . FURTHER. CORRUPTION IN I NDIA FLOWS FROM ABO VE FROM THE POLITICAL CLASS UNDER COVERS LIKE PARTY AND ELECTION FUNDS . IS WORSE . EITHER THROUGH CONSPIRATORIAL SILENCE OR THROUGH CONSPIRATORIAL LEGISLATIVE MANI PULATIONS . Some of th ese myths are: Corruption is a way of life and nothing can be done about it. LACK OF DETERRENCE AGAINST CORRUPTION AND IMPORTANCE TO WEALTH BEGOTTEN BY WHATEVER MEANS ENORMOUSLY PROMO TED CORRUPTION IN I NDIA . INDIA IS RANKED 85 OUT OF A 179 COUNTRIES IN TRANSPARENCY I NTERNATIONAL S CORRUPTION PERCEPTIONS INDEX . ALTHOUGH ITS SCORE HAS IMPROVED CONSISTENTLY F ROM 2.CORRUPTION HAS TAKEN THE ROLE OF A PERVASIVE ASPE CT OF INDIAN POLITICS AND BUREAUCRACY . CORRUPTION IS WIDESPREAD IN INDIA.
ACCORDING TO THE COR RUPTION PERCEPTION INDEX 2004 REPORT RELEASED BY TRANSPARENCY INTERNATIONAL INDI A. CORRUPTION IS INSTITUTIONALISED AS A PART OF THE DEMOCRATIC PROCESS IN THE USA AS LOBBYING AND PUBLIC RELATIONS ACTIVITIES AND THE COUNTRY PRIDES IN ITS MUSHROOMING LOBBYING AND PUBL IC Page 5
. THE GOVERNMENT OF INDIA CONVERTED THE CENTRAL VIGILANCE COMMISSION INTO A STATUTORY BODY THROUGH AN EXECUTIVE ORDER IN 1998 ON THE DIRECTIVE OF THE SUPREME COURT .IT IS ONLY THE SUPREME COURT IN INDIA SEEMS WAGING A WAR AGAINST CORRUPTION. I NDIA IS AMONG 55 OF THE 106 COUNTRIES WHERE CORRUPTION IS RAMPANT . THE SIGNIFICANCE OF CORRUPTION AS A FACTOR THAT ADVERSELY AFFECTS THE GROW TH OF A COUNTRY IS BEING INCREASINGLY RECOGNIZED . CORRUPTION IN INDIA LEADS TO PROMOTION NOT PRISON . IN THE WORDS OF I NDIRA G ANDHI. IS A WORLD PHENOMENON . C ORRUPTION IN I NDIA HAS WINGS NOT WHEELS . I T IS VERY DIFFICULT TO CATCH BIG SHARKS . C ORRUPTION . I NDIAN ADMINISTRATION IS TAINTED WITH SCANDALS .UPS . I T EXISTS IN DEVELOPED COUNTRIES TOO . A S NATION GROWS . I T RENDERED THE CVC AT LEAST STATUTORILY INDEPENDENT OF THE POLITICAL AND BURE AUCRATIC SET. THE CORRUPT ALSO GROW TO INVENT NEW METHODS OF CHEATING THE GOVERNMENT AND PU BLIC.
PEOPLE IN INDIA GOVERNMENT FOR DECENT LIVING AND EVEN SURVIVAL . THE CHIEF ECONOMIC CONSEQUENCES OF CORRUPTION ARE THE LOSS TO THE EXCHEQUER .RELATIONS FIRMS WITH MAJOR FOREIGN GOVERNMENTS INTER ALIOS AS ITS CLIENTS . AND COMPARED TO BANKRUPTCY IS MUCH GRE ATER. THE FIRMS ARE THIS NOHOW JUSTIFIES CORRUPTION OTHERWHERE. CORRUPTION IN INDIA FLOWS DOWN FROM ABOVE . VALUE SYSTEM AND THE QUALITY AND THE CONTENT OF TH E LIFE OF THE PEOPLE . NOTH ING BUT MAMMOTH BUSINESS HOUSES INDULGING IN LEGAL CORRUPTION . CHINA
. FIRST. I NDIA STILL RANKS IN THE BOTTOM QUARTILE OF DEVELOPING NATION S IN TERMS OF THE EASE OF DOING BUSINESS. AND LIMITED BY ITS EXCESSIVE LA WS . SECOND. AN UNHEALTHY CLIMATE FOR INVESTMENT AND AN INCREASE IN THE COST OF GOVERNMENT -SUBS IDISED SERVICES . I NDIAN CORRUPTION HAS SPECIAL CHARACTERISTICS THAT MAKE IT FAR MORE DAMAGING THAN CORRUPTION IN OTHER PARTS OF THE WORLD. CORRUPTION AT THE TOP AFFECTS KEY DECISIONS AND POLICIES WITH SWEEPING IMPLICATIONS WHILE CORE DEC ISIONS IN DEVELOPED COUNTRIES ARE TAKEN ON MERIT THROUGH TRANSPARENT COMPETITION . BEING POOR AND LARGELY DEPENDENT ON THE CORRUPTION LITERALLY SUCKS LIFE OUT OF T HEIR EXISTENCE UNLIKE THOSE IN DEVELOPED COUNTRIES WHOSE DEPENDENCE ON THE GOVERNMENT IS RELATIVELY NOT SO DEEP AND PROLATE . RULES . REGULATIONS AND LARGESS IN ALMOST ALL ACTIVITIES OF LIFE WITH HIGH RATES OF TAXATION ON EVERY CONCEIVABLE ITEMS AND SERVICES . THIS RENDERS CORRUPTION IN I NDIA AN EXTREMELY DANGEROUS PHENOMENON WITH TERMINAL CONSEQUENCES ON THE CULTURE .
Karnataka. Bihar st ands out as the most corrupt State.AND OTHER LOWER DEVELOPED ASIAN NATIONS . Bihar. States highlights Kerala: All 11 public services considered for the study are ranked as the least corrupt in the country. on the other hand is the most corrupt State. on all parameters and in the context of all the eleven services. THE AVERAGE TIME TAKEN TO SECURE THE CLEARANCES FOR A STARTUP OR TO IN VOKE RANKING OF STATES As per the composite ranking of states on petty corruption. Rajasthan and Assam are Afflicted with the problem and score high on the index. In fact. involving common cit izen And in the context of eleven public services. Himachal Pradesh: Most services in the State are ranked as relatively lower corrupt in the country. Maharashtra or Gujarat. Page 6
. Kerala stands out as the leas t corrupt State In India. Madhya Pradesh. Himachal Pradesh is less corrupt – even compar ed to States like Tamil Nadu.
Income Tax and Municipalities rank among the top corrupt in the country. Schools. West Bengal: Water Supply service in the State is ranked as the most corrupt in the country. Page 7
. Schools and Income Tax figure high in the corruption rankings. Police. Jharkhan d: On the corruption index all the services in the State are much better ranked than the parent State Bihar. Maharashtra: Municipal servic es in the State rank among the top five corrupt in the country. Chhattisgarh: On the corruption index all the services in the State are much better ranked than the parent State Madhya Pradesh Punjab: PDS. Land Administration and Police figure among the top corrupt in the country. Haryana: Schools. Orissa: Judiciary ranks among the top four corrupt in the country Uttar Pradesh: Electricity.Gujarat: Overall the State is ranked as less corrupt in comparison to other Stat es. Andhra Pradesh: Govt Hospital and Water Supply services are ranked more corr upt in comparison to other services in the State . Del hi: PDS in Delhi is ranked as the second most corrupt in the country Tamil Nadu: While over all the State ranks 12th on the Corruption Index. This i s surprising given that the State has one of the best health infrastructure and also ranks quite high on the Education Development Index. However certain services like Education. Judiciary and Municipal ser vices are ranked more corrupt in comparison to other services in the State. Hospital. Land Administration and Judiciary a re relatively ranked as more corrupt in comparison to others services in the Sta te.
India is ranked 72nd out of 91 countries in th e Corruption Perception Index. The mid-1960s are perceived to be the g reat divide in the history of governance administration in India. the State still ranks as third most corrupt among States included in the survey. Bihar: All the servi ces are ranked among the most corrupt in the country. Electricity & Schools rank among the least corrupt in the country. It paved the w ay for the blurring of the Gandhian and Page 8
. Corruption in India not only poses a significant danger to the quality of gove rnance. Rajasthan: Judiciary ranks among the less corrupt in the country Ka rnataka: The state ranks fourth on the corruption index because key services lik e Income Tax. but also fundamentally shake the people s trust and belief in the G overnment of India and its institutions. The recent revelations of corrupt practices in defence purchases and related contracts not only tend to undermine the security of the I ndian state. 2001. but also threatens in an accelerated manner the very foundations of its democracy and statehood. prepared by Transparency International (TI) . Municipalities & RFI figure among the top corrupt servi ces in the country. Madhya Pradesh: Despite initiating reforms in service delivery. Judiciary.Assam: Police is the most corrupt in the country. Not surprising that it is the second most corrupt State. However. Only Municipal services are ranked relatively better than other services. Electricity figures among the top corrupt. J&K: Except Hospital & RFI. most other services rank among most corrupt in the countr y. Corruption and its impact on governance in India Corruption affects India at all levels of governmental decision-making and in th e distribution of state largesse.
even when made. Corruption and indiscipline survive on each other s willingness to accommodate.Nehruvian era of principled politics and the emergence of a new system of politi cs that began to tolerate and even encourage dishonesty and corruption. India s experience with corruption has shown that laws. Page 9
. The scam s and scandals of the 1990s revealed that among the persons accused of corruptio n were former Prime Ministers.s reach them (Consultation Paper on Probity in Governance. the problem of corruption brings out numerous responses. which are available in plenty even as the p resent government enacted the Prevention of Terrorism Act. cannot by themselves ensure effective and transpare nt administration if the political and administrative leadership that is entrust ed with their enforcement fails to do so and abuses its powers for personal gain (Sunil Sondhi.C. sugar and kerosene meant for the public distribution system (PDS) and for welfare schemes for the poor. regu lations. goes into the black market. however s ound and excellent they are. This may be the case with several other laws. The rest ar e misappropriated by members of the political and official classes and unscrupul ous dealers and businessmen. rules.C.that would only amount to pa ying lip service to the law. As a lawyer. or for that mat ter the case of anti-terrorism laws. I am mindful of the inherent weaknesses of any law or le gal response if the enforcement mechanism is weak . He has stressed that if there is no discipline in society. 2000).s). my response would inevitably involve changes in the laws and in this case an amendment to the Constitution. Corruption affects governance in a significant manner a nd it is anti-poor.s) and the Scheduled Tribes ( S. Gunnar Myrdal has described Indian society as a "soft soc iety". N ational Commission to Review the Working of the Constitution. For instance.T. and were followed by delayed trial s that resulted in morally ill-deserved but legally inevitable acquittals. While I propose this amendment. tolerate an d provide encouragement. 2001). We see mo re and more examples of acquittals in corruption cases.T. including the Scheduled Castes (S. a soft society is one that does not have the political will to enact laws that are necessary for its progress and development and/or do es not possess the political will to implement the laws. Corruption has flouri shed in India because of the drawbacks of the criminal justice system. were backed by incomplete and inefficient investigation. a substantial portion of foodgrains. Governors and even members of th e judiciary. Chief Ministers. and one where there is no discipline. According to him. procedures and methods of transaction of government business. Hardly 16 per cent of the funds meant for th e S. Several corruption-relat ed cases filed in India in the recent past were poorly founded upon.s and the S. Like other social evils. no real or meaningful development or progress is possible. mostl y criminal laws that are already in place to punish the corrupt.
extractive and el itist government was maintained.Corruption in Pakistan Two crises played a major role in the genesis of corruption in Pakistan. the evacuee property distribut ion created several opportunities for corruption and in the following two decade s corruption was facilitated by the over-regulated Industrialization policies. The British tradition of pervasive. Civil servants filled the vacuum created du e to the lack of experienced politicians and took over governance of the country . Dictatorial rule coup led with the Press and Publications Ordinance further diminished the lack of pub lic accountability. intrusive. Devaluation and the oil crises eroded purchasing power. T he level of temptation was enhanced by the increased inflow of foreign aid for h uge infrastructure projects under military rule from 1958. inexperienced politicia ns and a professional civil Service. the Sp ecial Police Establishment. This was made worse by the fact that eminent politicians wer e weeded out through the Elected Bodies (Disqualification) Ordinance 1959. The weaken ed and insecure civil servants were asked to take on greater responsibility for running the nationalised units. The migration resulted in vacuum in a number of area s creating weaknesses having lasting effects that triggered the initial phase of corruption. World war II led to an alarming increase in the procurement related corruption leading to the creat ion of the first specialised anti corruption agency in the Sub-continent. Pakistan inherited a weak economy. On independence. running ministries even assuming the posts of Prime Minister. Natio nalisation in the seventies combined with civil services reforms and a purge of over thirteen hundred civil servants proved a critical trigger point. Governor General and President. In 1947. All these factors combined Page 10
. the sec ond world war and the mass migration as result of partition. It was difficult for them to resist demands of p olitical inductions into these corporations as the state took over the role of t he primary employer.
Legal initiatives st arted with the Prevention of Corruption Act 1947. is difficult to measure. However. they are themselves infested with corruption and lac k capacity for the task assigned to them. Anti Corruption agencies created after the independence include the FIA t hat replaced the Pakistan Special Police Establishment (PSPE) in 1975. the organisation failed because of its misuse for political victimisation. but is significant. However. In fact. Awareness of the issue of corruption has existed. supplementing the Ehtesab Commission created in 1996. The remittances fr om the Gulf and resultant consumption spree had a strong demonstration effect an d the desire to become rich overnight spread across the society. in financial terms. as eviden t from anti-corruption drives undertaken from time to time. A ccording to one reliable source. they were used for strong arming opponents of the government. The Ehtesab Bureau wasted the opportunity to construct a sustainable and fair mechan ism for rooting out high level corruption. they were perceived as exercises in political victimis ation. The Ehte sab Act was also replaced by the NAB Ordinance. However. Impact of corruption The particular deadliness of the disease of corruption lies in its self-perpetua tion – any corrupt act sets in motion a vicious cycle in which the impact of corru ption becomes the source for further acts of corruption. So widespread became corruption in ACAs that various governments had to resort to new institutions such as Inspe ction Commissions. The National Accountability Bureau (N AB) of the new government replaced the Ehtesab Bureau in November 1999. Direct loss to the publ ic exchequer. Laws like Public Representativ es (Disqualification) Act 1949 and the Elected Bodies (Disqualification) Ordinan ce 1959 were introduced to disqualify corrupt public representatives from holdin g public office. estimated revenue lost by corruption Page 11
. the wo rst indulgence was seen in the period 1985-99 when the political elite broke all shackles of law and morality to indulge in rapacious loot and asset building. Despite the presence of these organisa tions. In time. desp ite being backed by a strong law. and opportunities of. The provi ncial ACEs (initially the West Pakistan Anti Corruption Establishment formed in 1961) were established after the break up of one unit in 1970. The Ehtesab Bureau was established in 1997. these organisations have proved to tally ineffective. Hampered by compl icated procedures and political interference. The Bureau assumed responsibilities for inv estigation while the Commission was given the task of prosecution. corruption was on the rise. corruption. The ACAs themselves were not unaffected and b ecame victims of the malaise they were meant to control.to increase incentives for. F ive governments were dismissed on charges of corruption during this era with no change in attitudes. The Ehtesab Act of 1997 thus lost public credibilit y because its focus was seen as exclusively on leading political opponents.
coercive b ureaucracy impedes healthy businesses. The legal system affords little or no protection to s mall and medium sized businesses with a crippling effect on private sector devel opment. Unnecessary. This reduces revenue for public purposes. and 45% in income tax. customs and sales tax respectively. the amount of revenue loss can go over Rs. The blatant disregard for law and the oste ntatious asset accumulation and display by the top public office holders has led to a decline in the moral standards and values of the society. World Bank esti mate of revenue lost in Pakistan because of smuggling in 1992-93 was US$ 5. 48%. 104 billion in 1995-96. adequate remu neration for the public sector. resort to extra-judic ial methods has been on the rise. and where risks can be pre dicted with confidence. Furthermore.40-45 billion in 1989-90 and Rs. the law breaker is rewarded and tho se who obey the law are marginalised. There has been a loss of legitimacy of state institutions in th e eyes of the populace. The excessively intrusive public sector further reduces incentives for investment. Ahmad and Ahmad (1995) estimated revenue loss in Pakistan because of blac k economy at Rs. have shown little improvement in the p ast decade and are amongst the worst in the region. the waste of th e development aid has saddled the country with high debt which. while the country remains under developed and p overty stricken. In particular. Mafias like land grabbers. squeezes out. as grand corr uption distorts key developmental decision-making with choices influenced by pri vate benefits and not by public needs.08 bi llion. Other indicative statistics are equally alarming. Where the police are themselves corrupt. at approximately 40% of budgetary expenditure. above all. The concept of performance and meritocracy is subverted: 70% of the respondents who had tried Page 12
. Pakistan’s human development indicators suc h as literacy rates and infant mortality. timber s mugglers and narcotics dealers work through syndicates. ‘Qabza Group’. The corrupt are no longer ostracized and they enjoy respect in society on the basis of wealth ac cumulated through illegal means. If this perception is taken as true. I n the absence of inexpensive and effective legal remedies.is 64%. amongst other things. The private sector and commercial enterprise has been stifled by corruption. Corruption in the police and judiciary has contrib uted to the breakdown of law and order. Business depends crucially on operating i n a climate where contracts can be made and enforced. encourages massive wastes and increases costs to consumers. The big gest casualty of corruption has been the development process. co-opting public officia ls. the impact of aid received during the last 50 years has been minimal. obstructive and. 200 bill ion per annum. Laws are seen as oppressive and justifie d solely in the interests of those who abuse them for their selfish interests.
seems to have dimi nished subsequently. and op erate without fear of ACAs since FIA and Anti Corruption Establishments (ACEs) h ave been ineffective and NAB’s primary focus has been on mega corruption. for three main reasons. This is supported by stakeholders. Pervasive. and system ic corruption is now at an unprecedented scope in the country’s history. Thirdly. Ho wever. rather than targeting either the underlying causes or the systemic weaknesses on which corruption thrives. Corruption in Afghanistan Corruption. Governors and Ministers are generally perceived to be men and women of integrity who set a good example. Secondly. the fear is that mega corruption will rear its ugly head once again after the installation of the political government. current measures are seen to be incomplete because they rely on enforcement . as it is realised that NAB could not possibly catch all the corrupt. military rule has instilled a sen se of discipline.for admission at educational institutions had not achieved this through fair pra ctice. the deterrent effect of NAB in particular. will not have become su fficiently institutionalised to withstand the restoration of democratic processe s and institutions. there a ppears to be a consensus that the extent of petty/middling corruption has been d ented very little by the strong leadership and the current accountability drive largely because most low ranking officials commit corruption out of need. When this statistic is extrapolated it is clear that Pakistan is cheating itself of future potential. who believe that mega corruption appea rs to have declined significantly since 1999. if starting from a high baseline. the President. and Page 13
. Afghanistan’s dominant role in worldwide opium and heroin produ ction. Moreover. and state and democracy-building objectives. Impact of government’s anti-corruption drive Only on the question of whether corruption had increased did Pakistan score bett er than its neighbours. is of little co mfort. entrenched. Essentia lly. which. defined as “the abuse of public position for private gain” is a signific ant and growing problem across Afghanistan that undermines security. it was also noted that although corruption had declined in the first year of military rule. development . the fear of NAB has served as a deterrent to many. therefore. First. There is a general concern that government reforms have been driven purely by military rule and. Thirty ye ars of conflict that has weakened underdeveloped state institutions and the coun try’s social fabric. Furthermore.
The I ntegrity Watch Afghanistan (IWA) 2006 survey of 13 provinces reported that two-t hirds of families had paid bribes within the last six months. through networks of corrupt practi ces and people that reach across the whole of government to subvert governance. systemic and by all accounts now unprecedented in scale and reach. Afghanistan fell from a ranki ng of 117th out of 159 countries covered in 2005. humanitarian and de velopment assistance all increase Afghanistan’s vulnerability to corruption. and finally to 176th out of 180 countries in 2008 . Corruption in China Corruption in China is concentrated in the sectors with extensive state involvem ent: infrastructural projects. IWA. which is even more detrimental. Over and over.1 One third of families paid more than that in bribes. judge. interview and survey respondents noted the failure of the Afghan National Police (ANP). Afghans also overwhelmingly believe that nepotism and/or bri bes are required to gain government employment. and punish corruption at any level. This view is apparent in the country’s declining (worsening) ranking in the Trans parency International Corruption Perception Index. and court system to detec t. entrenched. often the officials and agencies that are supposed to be part of th e solution to corruption are instead a critical part of the corruption syndrome. real estate. these networks ensure that the guilty are not brought to justice. Corruption has become a system. to172nd of 180 countries in 20 07. the average cost of bribes reached up to $100 for all families that paid them. Attorney General’s Office (AGO). government Page 14
. Particularly perniciously. sale of land user rights. corru ption has become more than the standard issue bribery.the tremendous size and diversity of international security. and ABC/BBC/IRD survey research shows that th e sectors of government people come into contact most often with for work or tra vel determines the organizations that they believe is most prone to soliciting o r accepting bribes.the fifth most corrupt c ountry in the world. Asia Foundation. Although only 44 p ercent of respondents felt corruption had “some” to “extremely high” impacts on their fa milies. Causes and Impact of Corruption in Afghanistan The domestic and international consensus is that corruption has become pervasive . The pervasive nature of corruption and its impact on Afghan households are apparent from surveys. The Dimensions. prosecute. nepotism. and extortion i n government. Seven years after the fall of the Taliban government. which more than half of respondents noted was a “serious burden” on their fam ilies.
The pervasiveness of such corruption can be seen in the downfall of many local officials in charge of transportation and urban planning. a prefe ct party boss. 265 senior local officials in Heil ongjiang— they included a governor. On average . and rural households. I n a 2003 survey of 3. local officials use illegal (and sometimes violent) means to acquire farmland at low prices and later sell the user rights of the land to developers in exchange for bribes. Half of provinc ial transportation chiefs in China have been sentenced to jail terms (some have even been executed) for corruption. misuse of funds. netted 24 million yuan during 1997–2002. state-owned enterprises.067 corruption cases found that about half of the officials or indiv iduals engaged in corruption related to infrastructural projects and land transa ctions. China’s financial sector is similarly beset by corruption. particularly in less dev eloped regions. Although the Chinese government does not pr ovide aggregate data. and bribery. five deputy governor–level officials. borrowers paid bribes equal to 9 percent of the loan amount.561 employees in banks. Unhe ard of in the 1980s.procurement. Like maiguan maiguan. and large-scale fraud are routine in Chinese banks. in 2005. theft. Kickbacks for loan approval. and the pa rty bosses in half of the prefects in the province—were involved in selling and pu rchasing government appointments. financial services. since the mid-1990s. the government uncovere d more than one million cases of illegal acquisition of land between 1999 and 20 05. and heavily regulated industries. In one extreme case. brokerage houses. they found 767 billion yuan in misused funds. maiguan maiguan has become common. China’s banking regulators uncovered 584 billion yuan in misused funds. 82 percent of respondents said that corruption was “pervasive or quite pervasive” in financial institutions. insurance companies. massive theft by insiders. Corruption is also widespread in the acquisi tion and transfer of land. Corruption of loc al state institutions. A large nu mber of top executives in China’s largest banks have been jailed for corruption. Typically. Sample surveys suggest that 20–65 percent of all Page 15
. and rural credi t cooperatives. A 2006 study of 3. In 2004. private fi rms. A survey of sixteen cities co nducted by the Ministry of Land Resources in 2005 found that half of the land us ed for development was acquired illegally. brokerage houses. coll usion among local ruling elites (corruption cases involving groups of officials who cooperate and protect each other) is another sign of political decay— and is a lso a post-1990 phenomenon. is another cause for concern. The chief perpetrator in this scandal. According to the head of the Regulato ry Enforcement Bureau at the Ministry of Land Resources. frequent press reports indicate that this practice has tai nted many jurisdictions. kickbacks. The absence o f a competitive political process and a free press in China makes these high ris ks sectors even more susceptible to fraud. primarily through the practice of maiguan maiguan (buying and selling appointments in the government).
Most of the chiefs of the city’s main bureaucracies. collus ion has transformed entire jurisdictions into local mafia states. In China. the state sector accounts for more than 35 percent of GDP. Fuyang. controls the nation’s largest corporations. some of the m have even been executed. owns trillions of dollars in fixed assets. have been removed for corruption. PARTIALLY REFORMED ECONOMY International experience shows that corruption is closely related to the state’s involvement in the economy .corruption cases could be classified as collusive. lax enforcement efforts by the government. monopolizes key industries such a s banking. Hundreds of local officials have been punished for co rruption. and natural resources. Today. Despite severe punis hment against officials in high profile cases. In the worst instance. (The most recent example wa s the execution of China’s chief drug regulator who took $1 million in bribes for approving more than a thousand drugs. Causes of Corruption Endemic corruption in China originates in the country’s partially reformed economy .) Yet appearances are deceiving. Collusive corruption appears to be most common in the financial sector. a city with a population of 9 million located in Anhui Province. In addition. and makes hundreds of billions of dollars in new investments each year. official Page 16
. One study found that about 60 percent of all financial corruption and crime cases involved multiple collusive perpetr ators. the state remains deeply and extensively entrenched in the economy despite three decades o f economic reform. Such a hybrid economy creates a fert ile ground for corruption because officials wielding the power of approval can e asily abuse it for illicit personal benefits. including successiv e police chiefs. has the dubious disti nction of producing a succession of corrupt party chiefs and mayors. the state also controls key prices (most importantly the int erest rate and land prices) and tightly regulates certain economic activities (r eal estate development and infrastructure). power generation. countries where the state controls significant economic resources and interven es extensively in the economy tend to have more corruption. LAX ENFORCEMENT Casual observers a re often impressed by the apparently harsh penalties (lengthy jail terms and dea th sentences) imposed on corrupt officials in China. many of them of dubious effectiveness and six of them outright fakes. and the CCP’s reluctance to adopt sub stantive political reforms.
Less than 6 percent were criminally prosecuted. half of those convicted of corruption received suspended sentences and did not serve any jail time.200 laws. Even low-level officials have the opportunity to amass an illicit fortune of tens of millions of yuan. It has routinely issued tough-sounding directives and regula tions designed to curb corruption at the local level. Key Findings: • Though the Chinese government has more than 1. nearl y 80 percent of the 130. Therefore. Beijing has favoured a top-down approach. appointing central government officials to head provincial antigraft commissions.200 laws. but their implementation appears ineffective and spotty. implementation is spotty and ineffective. rules. and directives ag ainst corruption. F AILURE TO ADOPT POLITICAL REFORM In combating corruption. Only 20 percent were expelled from the party. The government has more th an 1. the Chinese government has consistently resisted steps to further reduce the role of the state in the economy. In recent years. and directives against corruption on the books. Page 17
. Beijing has introduced new topdown measures such as rotat ing provincial anticorruption chiefs. the odds of an average corrupt official going to jail are at most 3 out of 100. making corruption a high-return. Corruption in Ch ina is concentrated in sectors with extensive state involvement. and d ispatching inspection teams to the provinces to check up on provincial party bos ses. and key state-owned enterprises report directly to the CDIC. out of fear that a more comprehensive approach would threaten the supremacy of the CCP. agencies. At the same time. making anticorruption chiefs in ministri es. These centralizing initiatives. real estate. though welcome. • The amount of money stolen throu gh corruption scandals has risen exponentially since the 1980s. have only limited effects. For example. such as infrast ructure projects. The odds of a corrup t official going to jail are less than three percent.enforcement data indicate that Beijing punishes only a very small proportion of party members and government officials tainted by corruption. and mobilize the power of the media and civil society even though inter national experience shows that only such full-fledged efforts can root out syste mic corruption. increase judicial indep endence.000 CCP members disciplined and punished by the CC P annually since 1982 got at most a warning. making corruption a high-r eturn. in response to g rowing public outrage. In recent years. low-risk activity.000–190. rules. government procurement. lowrisk activity.
The direct costs of corruption could be as much as $86 billion each year.and financial services. allows 1 0 per cent of the value of forfeited properties in corruption cases to be alloca ted to the office of the ombudsman and for other purposes. government should devote resources to tracking reported cases of cor ruption in China. The absence of competitive political process and free pr ess make these high-risk sectors susceptible to fraud. on its non-applicatio n to impeachable public officers: officers. to increase the prescription period for its violation from fiftee n to thirty years. particularly foreign in vestors who risk environmental. and the rising cost of health care. waste. President Gloria Macapagal-Arroyo signed Exec utive Order 662-A. and education. and financial liabilities. An ame ndment to section 6 of Act 1379. are now exempt from the Anti-Graft and Corrupt Practices Act. public health. Corruption in Philippines Several anti-corruption bills have been filed in the Philippine Congress. An amendment to section 13 of Act 3019. including those who can be removed o nly by impeachment. and mus t compete against rivals who engage in illegal practices to win business in Chin a. Page 18
. otherwise known as the Anti-Graft and Corrupt Practices Act. • The U. and bri bery. deterioration of social services. headed by the Government Procurement Policy Board. comment on. members of congress and members of the Supreme Court and app eals court. and insist on reforms to Chi na’s law-enforcement practices and legal procedures before tracking Chinese fugiti ves in the United States and recovering assets they have looted. record and monitor the procurement activities of national government agencies. An ame ndment to section 11 of Act 3019. C orruption both undermines social stability (sparking tens of thousands of protes ts each year). kickbacks. human rights. government owned and -controlled corporations. and damage to the en vironment. • China’s corruption also harms Western economic interests. • The indirect costs of corruption (efficiency losses. and contributes to China’s environmental degradation. In order to enhance t ransparency in public procurement. theft. amending Executive Order 662.S. increase legal cooperation with China (to prevent illegal immi gration by corrupt officials and money laundering). credibility and morale) are incalculable. education. housing. to create the Procurement Trans parency Group. otherwise known as the Forfeiture Law. The group will evaluate.
A recent s tudy by the Social Weather Stations social research institution. the private sector has cultivated various corrupt practices in order to obtain sign ificant and continuing concessions and advance its private interests. the survey Page 19
. based on its 20 07 ‘Survey of Enterprises on Corruption’. Corruption and the private sector in the Philippines Graft and corruption are a fact of life in the Philippines. with roughly half the managers revealing that ‘most’ or ‘almost a ll’ firms in their line of business give bribes to win government contracts. there was a willingness of managers to contribute to the fight against corruption. Finally. budget. volume . keeping only one set of books. It will also incorporate a research programme to provide qualitative and quantitative resear ch into corruption and include a virtual library to provide access to informatio n on corruption and curricular support for the development of integrity courses to be accredited by the University of the Philippines. The group will be interested in the mode of procurement. The survey fou nd that. the first of its kind in Asia. compa red to only one-fifth giving bribes for private sector contracts. wh ich trains trainers. state universities and colleges and local gov ernment. The survey measured managers’ readiness to donate money to an anti-corruption fund and found that. Moreover. although in practice the amount donated ha s decreased in recent years. Meceditas Gutierrez. supplements anecdotal evidence and paints a picture of corruption through the eyes of private sector managers. while ‘only a minority of companies follow the basic honest business prac tices of demanding and issuing receipts. compared to only one in tw elve who saw ‘a lot’ of corruption in the private sector. It will be funded by the Millennium Challenge Corporation – Philippine Threshold Programme through the Asia Foundation. and payi ng taxes honestly’. a half intended to donate for these purposes over t he next two years. susceptibility to problems or anomalies and the importance of the project to t he development activities of the Philippines. the survey found that three out of five managers saw ‘a lot’ of corruption in the public sector.government financial institutions. to establish a C enter for Asian Integrity in the Philippines.3 Th e virtual academy will be incorporated into the Philippine Ombudsman Academy. On 27 August 2008 a memorandum of understanding was signed by the ombudsman. Bribery was highlighted as a particular issue. since liberation alm ost every administration has suffered its sensational graft cases. In terms of the extent of corruption in the sector. investigators and prosecutors about integrity.
Under this ordinance a wide range of crimes. The amendment brings pro curement for any foreign or development/cooperative organisation under the juris diction of the act. therefore. They were prepared by the commi ssion in order to impose these rules upon the commission staff. the execution of work and civil servant duties. The National Identity Registration Authority Ordinanc e 2008 was promulgated on 15 May 2008 to facilitate the establishment of the nat ional identity registration authority. On 28 January 2008 the Public Procurement Rules 2008 were en acted to ensure the transparency and accountability of the process. while earlier ef forts by the previous government were considered by stakeholders including civil society organisations to be detrimental to their independence. on 2 December 1999. T he national identity card will also facilitate transparency in transactions for various utility services. The L ocal Government Commission Ordinance 2008 was promulgated on 13 May 2008 in orde r to institutionalise the decentralisation and empowerment of local government. On 15 July 2007 the Public Procurement Act (Amendment) 2007 was passed. while corruption in the private sector is still a big prob lem. On 16 June 2008 the government amended the Supreme Jud icial Commission Ordinance 2008. The ordinance establishes a permanent local government commission to oversee the decentralisation process while ensuring accountability and transparency in loca l government institutions. The main objective of the national identi ty card is to establish a digital database for preparing a credible voter list.found that in the National Capital Region (Metro Manila) bribing for government contracts has declined and best practices in record-keeping have improved. have been made nonPage 20
. Some years earlier. The previous two gover nments delayed implementing the directives as many as twenty-eight times. that. the private sector is showing some willingness to become part of the soluti on. arms-running and financing terror attacks. This d evelopment represents the most significant step towards achieving full independe nce of the judiciary On 11 June 2008 the Anti-Terrorism Ordinance 2008 was promu lgated. the App ellate Division of the Supreme Court had given twelve directives to the governme nt in a landmark judgment in the Masdar Hossain case on the separation of the ju diciary (see the Global Corruption Report 2007 and 2008). including money laundering. in order to eliminate false voting and track the records of criminal offences. Corruption in Bangladesh The Anti-Corruption Commission (Staffs) Service Rules 2008 were approved by the government and came into effect on 15 June 2007. It se ems. including pr oject tender and approval.
tools and procedures . To ensure transparency and acc ountability in local government elections. Individuals are now allowed to donate up t o R1 billion . as laws have traditionally been passed with no engagement with citizens The Money Laundering Prevention Ordinance 2008 provides that the courts will not take into consideration any money-laundering case without the sa nction of the Anti-Corruption Commission. subj ect to the confiscation of illegally amassed wealth and property. and any criminal records. On 8 June 2008 the government promulgated the Truth and Accou ntability Commission Ordinance 2008. several anti-corruption organis ations have voiced concerns about the loophole left in political parties’ financin g. Those granted clemency are to be barred from election to public office for five years. In addition. Corruption in Indonesia With the 2009 general election in sight. accountability and good governance. assets and lia bilities. Although such laws are urgently needed to c larify election and political party regulations. election expenses and their source. The laws on presidential elections and on tools and procedures are curr ently being discussed in parliament. president ial elections and local government and local elections . Another la w covering local and general elections was ratified on 31 March 2008. Th e draft law was circulated for public discourse and response – a unique move in th e Bangladeshi context. The ord inance will not apply to those already convicted. a tenfold increase from the previous Page 21
. The House of Representa tives (DPR) ratified the law on political parties on 19 January 2008. The new law on political parties allows for increased individual and corporat e contributions to political parties. This ordinance would mark a significant victory for civ il society organisations in Bangladesh. such as sources of income. On 18 Ju ne 2008 the Council of Caretaker Advisors approved in principle the Right to Inf ormation Ordinance 2008. the Election Commission approved the City Corporation (Election Ethics) Rules 2008 and the Powrasava (Election Ethics ) Rules 2008 on 17 June 2008. general elections . The five laws re late to political parties . The rules include provisions to disclose basic gen eral information regarding candidates. The amendm ent of the law on local government and local elections was adopted by parliament in April 2008 and will take effect one month after it has been signed by the pr esident. a set of regulations is being developed to amend and regroup five different laws under a package law .bailable offences.9 The ordinance provides clemency for corrup t individuals on the basis of voluntary disclosure and confession of guilt. this ordinance will allow the Bangladesh Bank to seek cooperation with financial intelligence units of ot her countries or provide them with similar support. which have long advocated such a law as a prerequisite for ensuring transparency.
Although political parties are obliged to submit a financial report to be audited by public accoun tants. it is still unclear how donations made before the opening of the special account or ou tside the campaign period can be accounted for. almost five years after the first d raft was submitted to parliament. The NPPO is mandated to regu late public Page 22
. and it also has a strategic role to play in complementing existing anti -corruption laws. un der Presidential Decree no. financial management and rep orting procedures now depend on the parties’ own internal regulations. This is of particular concern. as it does not clearly define what would consti tute ‘misuse’. Donations b y party members are unlimited.limit. raises conc erns about the capacity of the General Election Commission (KPU) to monitor and detect irregularities in political party financing efficiently. This is the first comprehensive law regulating the public’s right to information and outlining the obligations for public agenci es in terms of information disclosure. however. The long-awaited law on freedom of information was ratified on 3 April 2008. Nevertheless. to establish an indep endent National Procurement Policies Office (NPPO). 80/2003 on public procurement. coupled with the absence of a standard reporting format. The law on general e lections requires all candidates and political parties to open a single account for donations within three days of their official nomination. are not subject to the obligations. Several limitations have been identified. The law has institutionalised the Information Commission as an indepe ndent regulating agency mandated to handle disputes related to disclosure obliga tions defined by the law. fro m R750 million to R4 billion – R5 billion for a general election campaign. given that the law does not prevent different companies from the same group. Moreover. previous civil society monitoring initiatives revealed that the corporate financing of political parties through employees’ accounts or through fi ctional companies set up by a holding company was a common practice. notably national oil and mining comp anies. from donating to political p arties. there is no standard reporting format. There is also an article on the crimi nalisation of misuse of public information that is perceived as an attempt to re strain the freedom of the media. Indeed. or employees of the companies. the law has set in motion moves towards increased trans parency. and does not cover private donations. A new Presidential Instruction was issued in December 2007. which some argue could have the effect of paving the way for seat-buying. A significant increase was also approved for corporate contributions. An external audit by a public accountant is imposed only in the case of government funding to political parties. According to the same law. The lack of available accredited a ccountants. inc luding the fact that state-owned companies. The law regulates the kind of information to be disclosed as well as the type of information that can be exempted and for how long.
1 Legal and accounting professionals are subject to the former obligations but not the latter. while officials’ lack of understanding of procurement regulations and tender pr ocedures causes significant delays in budget implementation (20 per cent of 2007’s national procurement budget was still unspent by November 2007). According to the Commission for the Eradication of Corruption (KPK). The National D evelopment and Planning Agency expects that improved regulatory and supervisory frameworks could help curb corruption and increase the efficiency of public proc urement by 30 to 40 per cent. but can issue recommendations or report c ases only to relevant authorities. but. the Diet (parliament) enacted a final version that relieves legal and accounting professionals from the reporting obligations. The law introduces an audit system for the financial reports of political organisations that will start in fiscal year 2009. along with a political funds report. The NPPO. has not been granted the author ity to handle complaints and arbitrate litigations. The law as amended requires ‘Diet member-re lated political organisations’ to submit receipts for expenditures greater than US $100. and it sets up an e xpert committee to study and review the audit system. The amendment mainly addresses political organisations related to Diet members. however.procurement and address inefficiency and under-spending of national and local bu dgets. Complaints are instead submi tted to the head of the relevant public department for arbitration. was enacted in January 2008. A bill for revising the Politic al Funds Control Law. even though the complicated issue of la wyer and accountant disclosure was not resolved. as well as to report any suspicious transactions to the financial authorities. The legislation therefore is a step forward. The National Ombudsman Office welcomes complaints. arou nd 30 per cent of the national procurement budget is lost to corruption each yea r. and these receipts in principle are subject to disclosure if a re quest is filed. Corruption in Japan The Act on Prevention of Transfer of Criminal Proceeds came into force partially in April 2007 and fully in March 2008. leasing and real estate businesses. and other operators except for lawyers to en sure client identification and secure transaction records. faced with strong opposition espec ially from bar associations. to the Ministry of Internal Affairs a nd Communications and to prefectural election commissions. An origi nal draft covered all these professions. The act obliges financial institutions.000 or less. aimed at increasing the transparency of funding flows to l awmakers. Corruption in Malaysia Page 23
. Beginning in 2009 tho se political organisations will be obliged to keep receipts for expenditures of ¥1 0.
lost its two-thirds parliamentary majo rity. to b e appointed by the Supreme Ruler (head of state) on the advice of the prime mini ster. however. it lost four more states to the opposition compared to the 20 04 election. among other things. Penang s tate has introduced several measures to improve the regulatory environment with regard to government procurement . For the first time since 1969 the ruling party. especially in addressing corruption. Finally. It is the first state government to impl ement the open tender system for government procurement and contracts. All these reforms have yet to be implemented. in civil works. specifically to clean up the decaying state of Malaysian institutions.The twelfth general election in Malaysia. In a spe ech given at the ASEAN (Association of South East Asian Nations) Integrity Dialo gue5 on 21 April 2008. The board would advise the MCAC on administrative and operational matters. The 2008 election results sent a very clear signal to the ruling party about the level o f popular dissatisfaction with. he introduced a proposal to protect whistleb lowers and witnesses. contractors are able to bid in an open tender process and to review the successful contractors and object if they Page 24
. in what is referred to as a CAT – a Competent. the unbearable effects of co rruption. In 2004 the administration headed by Abdu llah Ahmad Badawi had been voted in with the strongest ever mandate for an incum bent. As an exa mple. In addition. sent shock waves throughout the country. the Anti-Corruption Agency (ACA) would be restructured to becom e a fully fl edged Malaysian Commission on AntiCorruption (MCAC). Badawi proposed the following measures to address public concerns. It has failed in many areas. Accountable and Transparent – government.6 Th is was part of its ongoing collaborative effort with UNDP Malaysia to develop th e necessary human capital and knowledge resources within the institute. The MACA is intended to be the regional hub f or anti-corruption capacity and capability building to fight corruption. accountability and good governance and were able to capitalise on the disconten t of the people. by prom oting best practices in investigation. to make it five in total. First. held on 8 March 2008. the Bar isan Nasional (National Front) coalition. The MCAC would report to a newly set up independent Corruption Prevention Advisory Board. The Malaysian Anti-Corruption Academy (MACA) was launched by th e prime minister on 12 April 2007. Second. however. National Integrity Syst em: A Guiding Framework and Corporate Social Responsibility: Our First Look. The main opposition parties (which have subsequently restyled themselv es as the Citizens’ Coalition – Pakatan Rakyat) ran on the platform of transparency. monitoring and enforcement and by venturi ng into new areas such as forensic accounting and forensic engineering. the prime minister proposed setting up a Parliamentary Committee on the Prevention of Corruption. The Malaysian Institute of Integrity (MII Institut Integriti Malaysia) also stepped up its efforts when it launched two major publications.
I n order to speed up the process .are not satisfied. thereby maintaining transparency. the Penang government has issued a directive whe reby all administrators and state executive councillors are not allowed to make any new land applications. The Sp ecial Court in Nepal was established in 2002 to handle corruption cases. Offe nces punishable under the act include unauthorised involvement in banking transa ctions. and irregular ities in banking and financial transactions. all Nepalese are guaranteed free access to public information. tampering with accounting books. With the exception of in formation specifically categorised as confidential. fraud in electronic transactions. and has established a Working P rofessional Committee comprising individuals from five different professional bo dies to improve land procedures. accounta bility and respect for the people’s right to be informed. Five categories of information are exempt fro m disclosure requirements: security and foreign policy. Due to the slow pace of legal proceedings. The Anti-Mon ey Laundering Act 2008 was Page 25
. penalties range from three months’ to four years’ imprisonment. The Banking Offence Act 2007 was promulgated to control and mitigate the risks and impacts associate d with. Depending on the scale of the trans action. fraud in the valuation of assets. Furthermore. cases are piling up in the court. and to enhance public trust in. commercial and banking privacy. banking and financial transactions. and personal priv acy (including that which threatens life. the misuse of bank loans and credits. property. It has also invited professionals to serve on various boards. health and security). Corruption in Nepal The Right to Information Act 2007 seeks to give free public access to any inform ation related to the public interest. such as the Penang State Appeals Board. ethnic or communal relations. amendments were made to the Special Court Act 2002 allowing the court to be flexible in determining the number of sitting judg es required instead of being limited to the existing three. criminal investigations. however.
the government has established a Public Procurement Monitoring Office (PPMO). smuggling. Nepal is a signatory to the UNCAC but ratification has bee n pending due to the country’s political situation. investment in terrorist acts and other crimes punishable under international tr eaties and conventions signed by the government. Nearly $2 billion dollars. transparent and participatory. The Good Governance Act 2008 w as enacted in February 2008. in some of the countries is intensifying--affecting virtually every aspect of life among people. International watchdog Political and Economic Risk Consultancy que ried expatriates in 13 Asian countries and territories. or roughly 13 percent of the Philippines annual bu dget.enacted in January 2008. Nepal ranks 116th among 125 countries assessed by the OECD for integr ity in public procurement. complaint-handling procedures and establis hing Good Governance Units within each ministry. The law’s objective is to make public administration more people-oriented. Philippine Expatriate busine ssmen in Asia perceive the Philippines as the most corrupt country in the region . Among several areas prone to corruption. indeed. mandato ry public hearings and social audits. is lost to corruption in the country each year. As provided for by the new Proc urement Act 2007. With a score of 2. Its judicial system is believed to be ineffective at prosecuting and punishing individuals for corruption when abuses are uncovered. The law opens up avenues to combat corruption cases inv olving property amassed through illegal means.8 on a scale of 1 to 7. accountable. The act lays the groundwork for ratifying the UNCAC. according to the United Na tions Development Program. and classified 10 countr ies as the most severely corrupt countries in Asia. Some of the go od governance and anti-corruption clauses include the development of a code of c onduct for public servants. Corruption has Page 26
. The PPMO is a high-level policymaking body designed to streamlin e the public procurement system. public procurement is said to be the most susceptible. Conclusion The impact of corruption continues to grow in the following Asian countries Corr uption in most of the Asian countries isn t getting much better and. methods for resolving conflicts of interest. including tax evasion. Local corruption monitors confirm that graft and bribery in the Philippines rema in rampant.
from the Bureau of Customs down to the tra ffic police officers who pull over motorists to demand bribes.penetrated every level of government. as the most corr upt political leader in the world in the past 20 years. India Corruption happens because they have a system that allows such corruption to flo urish. It s a country that as high as 62 percent of citizens think that the corr uption is not a hearsay. Thailand’s ex-Prime Minister Thaksin Shinawatra has used very rough methods to con trol the media.Wh ile huge amounts of money will be lost during the implementation of projects due to corruption. has ruled this country w ith an iron fist for more than three decades. Indonesia Not onl y on Asia s top 10 list. It is prevalent among st almost every section of the society at every level. which should be one of the most powerful watchdogs against corru ption. Vietnam A country where its light-fingered bureaucrats cream off at least 20% of infrastructure spending. Thailand The Problem of corruption has be en around for a long time in Thailand and its roots are deep in the culture . All the leading candidates have ma de fighting corruption a central theme of their campaigns but none have been cle ar on how they will solve the problem. Former president Suharto. Indonesia has l ost more than $2bn due to corruption. In the past two years. more will be lost while trying to fight against it and stop it. but they in fact had the firsthand experience of paying bribe or “using a contact” to get a job done in a public office. It is not anymore confined to politicians or the government machinery alone. Indonesia has also been categorized as the number 5 of the 96 most corrupt nations in the world. Corruption has been identified as one of the governmen t s main challenges. Korea Page 27
. Vietnamese is now battling corruption at all levels.
political c orruption in Japan has become a major concern for the general public. as well as gradually becoming soc ially widespread. Malaysia When we say money politics. Korea’s image was radically changed from a mod el developmental state with good governance to a country with rampant corruption and cronyism China Corruption in China became increasingly serious during the e arly period of its social transition. Since the years of the bubble economy an d the ensuing economic and political turmoil after the bubble burst. Here we have local "muscle" being used to gain access to political and economic spoils which are used to legitimiz e community standing Japan Asia s 3rd least corrupt country.Since the financial crisis of 1997. vastly preferable in the e yes of the Taiwanese to no government at all. it granted them official titles to sustain the ficti on of central control. Since the government could not control its tough citizens. corru ption cases have shown that having a “love affair” often coincided with the first st eps of corruption. people don’t get the real picture. Taiwan was a n otoriously violent and lawless frontier society. Local government by gangsters. resulting in severe economic losses and hu ge challenges to China’s government institution. It is buying votes to get ele cted to the leadership of UMNO. the dominant party in the Barisan National that rules the nation Taiwan Taiwan s problem lies in its own history. the most r ecent case is Abe cabinet s scandals Hong Kong Asia s 2nd least corrupt country Singapore Page 28
. Also. it was found that the spouse (usually the wife) and the c hild played an important role in senior officials’ acts of corruption. it is nothing but bribery and corruption. Bribery has become the main accusation of corruption against C hina’s senior officials.
financial markets and civil service Page 29
.S. Illicit facilitation payments and inf ormal fees are required to access even the most basic government services. But it s working in only a spotty fashion. Cambo dia Corruption is pervasive through all levels of society in this country where two-thirds of the population earns less than $2 a month and one-third earns less than $1. international groups charged that judges in the trial of top former Khmer Rouge leaders had bought their positions. suddenly suspended and detained the nation s chief justice. Pakistan Since t he U. In February. the government seems to be taking active steps to combat corrupt ion. removi ng even today s rudimentary controls on use of public revenues. President Perve z Musharraf. provides enormous aid to the country as a frontline power in the war aga inst terrorism. who persist in r epression of civil society at every level. International aid donors includ ing USAID under the Donor Coordination Group of Cambodia have warned of diversio n of large chunks of the $500 million or more in international aid provided to t his nation. No one has ever been prosecuted under a skeleton anti-corruption law. Known for strictly constraint of its government officials Other Asian Countries Have Severely Corruption Problems: Myanmar Corruption is perceived as widespread in this vicious dictatorship run w ith an iron hand by a strong-willed clique of military leaders. The system of illicit "facilitation" payments by businesses and indi viduals may only intensify as oil found off the coast replaces donor aid.One of the least corrupt nations on the world. Early this year. apparen tly because of his failure to sanction illegal detentions of terror suspects and overturning corrupt privatization of steel mills. Corruption remains rife in th e judiciary.
ARTICLE 1 Page
how h ave the government handled the problem so far? Pei first admitted that there are enormous research difficulties in attaining high quality. Pei’s policy brief assesses cor ruption in China based on five key questions: How serious is the corruption? Wha t are the trends? What are the symptoms? What are the causes? And finally. various domestic surveys conducted at both elite and mass lev els have consistently ranked corruption as one of China’s top political challenges and social problems. For example. anti-corruption measures f rom the government remain ineffective due to the insufficient enforcement of tho se laws. indicato rs assembled from a variety of sources presented a sobering picture of the situa tion. has grown. Nevertheless. 2007 IN CHINA: HOW BAD IS IT? Minxin Pei. 2007. Daniel Kaufmann TUESDAY. The presentation was followed by a critique from Daniel Kaufmann. Director of China Program Minxin Pei discussed his latest policy brief Corruption Threatens China’s Future in a seminar hosted by the Carneg ie Endowment. Lack of Page 31
. NOVEMBER On November 20. Meanwhile. and standar dized survey data on the severity of corruption in China. measured in monetary term.CORRUPTION 20. and involvement by mid-level (or eve n senior) officials has increased as well. reliable. Director of Global Program at the World Bank Institute and also a leading author ity on corruption and governance around the world. A large number of anecdotal evidence collected from press reports over the past decade also conveys the impression that the cost of corrup tion.
such as inf rastructure projects. financial services. According to data provided by the report. most of the cases ar e concentrated in critical sectors with extensive state involvement. Pei doubted there would be any major progresses. in some of the cases corruptions have been taken in forms of ostensibly l egal official expenditures (or “privatized official consumption”). For example. Daniel Kaufmann from the World Bank commented Pei’s policy brief with three questions. For example. theft. and as long as the government continues to limit the role of the media and NGOs in maintaining government integrity. many of the corrupted loca l officials have transformed their jurisdictions into virtual “mafia states. data can be interpreted in various ways to reach different c onclusions. more and more local governments have started to build massive administrative office buildings that resemble luxurious mansions. Secondly.” where they collude with criminal elements and unsavory businessmen in illegal activiti es Although the central government in Beijing has constantly come up with new la ws and initiatives to battle against corruption. First o f all. But what do es this tell us? Does it mean that the U. and government procuremen t. Pei also pointed out that corruption in China has evolved in two major ways. and bribery. corruption would stil l be one of the largest threats to China’s future. Pei’s report estimates that the direct costs of corrupt ion in China are about 3 percents of annual GDP. First of all. therefore making corruption a high-return.S and Russia. Page 32
. how has the data been interpreted in the report.transparent.S has the highest crime rate in the wor ld? In other words. Such lenien cy of punishment has been one of the primary factors that make corruption a very serious problem in China. regardless the accuracy of data itself? Int erpreting data is very tricky. Worse yet. real estate. the odds of a corrupt official end up in jail are less than 3 pe rcent. the top two countries with highest p er capita rate of imprisonment due to corruption are U. As long as the Central Commission of Discipline Inspection rem ains in.transparency regarding the operational procedure within the Central Commission o f Discipline Inspection further complicates the picture. leaving unclear how all egedly corrupt officials are discipline and punished. kickbacks. low risk activity. The absence of competitive political process and free press makes these highrisk sectors even more susceptible to fraud.
• The amount o f money stolen through corruption scandals has risen exponentially since the 198 0s. contrac ts. says a new report from the Carnegie Endowment. Corruption in China is concentrated in sectors with extensive state involvem ent. such as infrastructure projects. 55. rule s. government procurement. lax enforcement efforts. but holds major implications beyond its borders for foreign investment. Even low-level officials have the o pportunity to amass an illicit fortune of tens of millions of yuan. Key Findings: • Though the Chinese government has more than 1. Minxin Pei. is corruptio n the root of all problems that plague China’s political system today. Pei paints a sobering picture of corruption in China. an expert on economic reform and governance in China. OCTOBER 2007 Resources Failur e to contain endemic corruption among Chinese officials poses one of the most se rious threats to the nation’s future economic and political stability. He examines the root causes for China’s rampant corruption—partial economic reforms. argues that corruption not only fuels social unrest and co ntributes to the rise in socioeconomic inequality. lowrisk activity.Kaufmann then reminded the audience that corruption has plagued China for decade s. The absence of competitive political process and free press Page 33
. The odds of a corrupt official going to jail are less than three percent. and reluctance by the Communist Party to adopt political reforms—and the ensuing economic losses and jeopardized financial stabi lity. and f inancial services. and directives against corruption. where roughly 10 percent of government spending. or simply stolen. In Corruption Threatens China’s Future. how much more damag e could corruption do to China? Has China beaten the odds? Finally. implementation is spotty and ineffective. real estate. yet its economy continues to perform robustly. international law. and transactions is estimated to be used as kickbacks and bribes. and environmental protection. or is it me rely a symptom that caused by other factors? ARTICLE 2 CORRUPTION THREATENS CHINA’S FUTURE Minxin Pei CARNEGIE ENDOWMENT POLICY BRIEF NO.200 laws. Therefore. making corruption a high-return.
Media. pg. human rights.S. credibility and morale) are incalculable. and financial liabilities. sparked a social revolution. and bribery . waste. education. Most agencies in the mainland operate under a US$70 gif t ceiling . and must co mpete against rivals who engage in illegal practices to win business in China. and education. deterioration of social services. kickbacks. Other measures multinational agencies use to prevent Page 34
. Asia is moving "in the direction of greater openness and transparency". Corru ption both undermines social stability (sparking tens of thousands of protests e ach year). public health. The direct costs of corruption could be as much as $86 billion each year.make these high-risk sectors susceptible to fraud. says WPP CEO Martin Sorrell. and contributes to China’s environmental degradation.” ARTICLE 3 ABSTRACT The cost of doing business in Asia David Blecken . 2009. government should devote resources to tracking reported cases of corrupt ion in China. increase legal cooperation with China (to prevent illegal immigrat ion by corrupt officials and money laundering). growth will falter. which often forms part of a salary package. 5. or deterred Wester n investors. • Chi na’s corruption also harms Western economic interests. theft. housing. and insist on reforms to China’s l aw-enforcement practices and legal procedures before tracking Chinese fugitives in the United States and recovering assets they have looted. and the rising cost of health care. “Corruption has not y et derailed China’s economic rise. particularly foreign invest ors who risk environmental. “Eventual ly. and damage to the enviro nment. • The indirect costs of corruption (efficiency losses.” writes Pei. But it would be foolish to conclude that the Chinese system has an infinite capacity to absorb the mounting costs of corruption. Hon g Kong: May 21. with items above that va lue placed in a communal fund as a rebate to ensure individuals are not accused of corruption. 1 pgs ABSTRACT (SUMMARY) When it comes to corruptio n. • T he U.
13 pgs ABSTRACT (SUMMARY) This article stu dies the effects of social institutions on organizational corruption at the soci etal level by focusing on the possible interactions between the institutional pi llars that have been identified in past research.corruption include separation of reporting lines between CEOs and CFOs. this article tests the interactive effects of social in stitutions among Page 35
. Kyeungrae Kenny Oh . 327. 18 pgs ABSTRACT (SUMMARY) How does one understand the differences and similarities of corruption among various Asian countries? W e use a recent framework developed by Rodriguez. Asia Pacific Journal of Management. 24. Singapore: Mar 2007. WL Chris Chu . ARTICLE 5 ABSRACT Institutional Pillars and Corruption at the Societal Level Ji Li . pg. 1. Based on these three instituti onal aspects or pillars. Jane Moy . Using this framework. Iss. while fewer fir ms would bribe when arbitrariness is high. we ask why some Asian countries are able to achieve high levels of economic growth in the midst of high level c orruption while other countries suffer from economic stagnation. Kevin Lam . Iss. Uhlenbruck. and Eden (2005) to suggest that corruption has to be examined from two different dimensions: pervas iveness and arbitrariness. 97. Journal of Business Ethics. We specifically suggest that more firms would bribe when pervasiveness is high. 83. internal audits and centralization to ensure standardized procedure across the network. ARTICLE 4 ABSTRACT Corruption in Asia: Pervasiveness and arbitrariness Seung-Hyu n Lee . 2. We also look into the implications on foreign direct investment. pg. Dordrecht : Dec 2008. Vol. Vol.
"The score this y ear is not particularly flattering but we can take consolation from the fact tha t the country s score has not gone from bad to worse. The results suggest that the three institutional pillars have significant interactive effects on organizational corruption at th e societal level. 03:23am IST T opics: • • India Corruption NEW DELHI: Even as the Madhu Koda scam dominates headlines.7 en in 2001 to 3. Asian Page 36
. t Speaking on the issue. expert analysis was sourced f rom African Development Bank. A silver e bo ter lining to this dismal ranking ok C Sa Pri E is that with an integrity o ve nt m score of 3.4.societies throughout the world. India h as improved its credibility score from 2. TII chairman Admiral (retd) R H Tahiliani said. Transparency Interna tional India s (TII) corruption index released on Tuesday Sh Fa T has ranked Ind ia 84th out ar ce wit of 180 countries.resident and nonresidents -and business leaders. ARTICLE 6 India 84th out of 180 on index of corruption TNN 18 November 2009. The evaluation of the ex tent of corruption is based on opinion from country experts -. Also. In 2009. A discussion of the implications of the research findings for researchers and practitioners is given. India is the m ail least corrupt country in m south Asia excluding Bhutan. the perception of pu blic officials and politicians in India has dipped further.4 in 2009. The corruption index measures perceived levels of public sector corruption in a country.
Nepal (2. Singapore.retire-asia. Sweden and Switzerland are the top 5 honest countries.5. a clear indication that corruption is percei ved to be rampant.4).co.google. Denmark. According to TII. Bangladesh (2.html&ei=wVYXS5iwOorU7A OSlJzIDw&usg=AFQjCNErWyghMekYU5p6A 2xWpKxXI_MoOg Page 37
. While China ranks 79th with a score of 3. nearly half of the 180 countries have scored three or even lower points.adb.org%2FDocuments%2FBooks%2FControlling-Corruption %2Fdefault.4. Iraq. Resident business leaders whose opinions ar e reflected in the survey are IMD.in/url? sa=t&source=web&ct=res&cd=3&ved=0CBYQFjAC&url=http% 3A%2F %2Fwww. Bhutan (5).com/corruption. Bibliography http://www. Maldives (2 .worldscibooks.asp &ei=wVYXS5iwOorU7AOSlJzIDw&usg=AFQjCNGRK8dzzpOs4qEU h5T4H2EqBm0ztQ http://www. Bertelsmann Foundation. Economist Intelligence Unit. Global Insight and World Bank.1). Freedom H ouse. New Zealand. Haiti.3). Myanmar and Somalia have recorded the lowest sco re of less than 1.6. Tahiliani said the low score could directly impact foreign direct in vestments in the country which was needed for India to build infrastructure. Pak istan has a score of 2.5) and Sri Lanka (3.shtml http://www. Transparency International has found that there is a strong coorelation between corruption and poverty. jeopardising the global fight again st poverty.in/url? sa=t&source=web&ct=res&cd=5&ved=0CBwQFjAE&url=http% 3A%2F %2Fwww.com%2Feastasianstudies %2F5169.Development Bank. Political and Economic Risk Consultancy and t he World Economic Forum.google.co.
org%2FDepts%2Fdhl%2Fevents%2Fanti_corruption%2Ftoc %2Ftoc5.co.anticorruptionasia.http://www.google.un.com/default.carnegieendowment.in/url? sa=t&source=web&ct=res&cd=10&ved=0CC4QFjAJ&url=http %3A%2F %2Fwww.org%2Fpublications%2Findex.shtml http://www.google. org/wiki/Corruption http://www.pdf& ei=wVYXS5iwOorU7AOSlJzIDw&usg=AFQjCNFH5beL9a6N9BOu0KI wnjIrHVxf_A http://www.com/corruption.co.in/url? sa=t&source=web&ct=res&cd=1&ved=0CAsQFjAA&url=http% 3A%2F %2Fwww.retire-asia.html Page 38
.co.in/url? sa=t&source=web&ct=res&cd=2&ved=0CA4QFjAB&url=http%3A%2F %2Fwww.org%2Fevents%2F%3Ffa%3DeventDetail%26id %3D1079&ei=ilc XS7u8MZLs7AOzvqDPDw&usg=AFQjCNEecgVmeuD0IJq0hx9Mju 5IgOP58w http://en.carnegieendowment.cfm%3Ffa%3Dview %26id %3D19628&ei=ilcXS7u8MZLs7AOzvqDPDw&usg=AFQjCNEaBLi8GJao1j3Ovoqh3 CAweixJGQ http: //www.wikipedia.google.