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Introduction
Defining corruption
The results of the studies mentioned above may have been different if the
definition of corruption applied was not a fixed, uniform one, but based
offices in France and the United States this century in the calculation of the
corruption index, the result may again have been different. Likewise, if the
studies had been undertaken two hundred years ago, such practices may
not have been categorised as corrupt, and the results would be different
again.
Gould (1991) and Gardiner (1993) have argued that there is no single
public role abuse for private gain, but Nye (1979:417) proposed a more
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essay.
(a) Monopoly
Alfiler (1986), Rose-Ackerman (1987), and Mackintosh (1992) point out that
since the public sector, with its limited capacity, on the one hand, is the
other hand, need those particular services, corrupt practices easily occur.
Public sector products, including, for instance decisions and licences, are
worsened by expanding role of the state and the fact that official
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Gray (1979) describes bribes as the market price which should be paid by
Indonesia, March 1995:2-4), for example, that requests for an official licence
fee of five to ten million rupiah (AUD $3,000-6,000). At present, this senior
another factor luring public servants into corruption (Tinbergen, 1993 inter
alia). In the case of Indonesia, Schrool (1980), Pauker (1980) and Soedarso
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country in the European context), and also compared the prices of certain
goods and services in both countries. Tansil concluded that although the
prices of basic goods and services in Indonesia and Greece are similar, the
salaries of the Greek police are four times higher than those of
Indonesians.
of the law' (Schwarz, 1994:135). Not only on the road, but also on many
occasions off the road, the police will try to 'tax' the ones needing their
services. Schwarz mentioned his own experience. When his car was stolen
collect on his car insurance. A police captain would only 'help' prepare the
there are many Indonesian public servants at this level who perform their
duties honestly. The need to supplement a low income can not remain a
for example, whose salary, together with other incentives and privileges,
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nepotistic forms (Olowu, 1993 inter alia). The most obvious Indonesian
military personnel, but also occurs in selection for entry to schools and
many cases no longer follow Weber's model; that is, the bureaucrats be
selected on the basis of merit. Rather, it is based on patronage and how big
patronage system has also caused internal pressure to increase the size of
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corruption. The more apathetic the society is toward the corrupt practices,
(as is the case in many developing countries), the more widespread the
government graft and bribery will be (ICAC, 1994; Ali, 1985). Although a
tolerate corruption. Two factors may explain this phenomenon. Firstly, the
people are apathetic because they have lived with corruption for such a
II, when the arbitrary reduction of salaries through inflation meant that in
less than four years the Indonesian rupiah sank to one sixtieth of its
previous value. Since then, corruption has remain a stubborn feature of the
republic.
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colonialism linger on. Public servants are seen as the masters who are
always right, who never make mistakes and therefore can be blamed for
to say that government employees are the 'owners' of the nation and the
general public their servants.
which may function as a check on the abuse of power by the state. The
The elections, for example, which have been conducted five times during
Soeharto's presidency have been neither free nor fair because it is evident
that bribes and cheating are at work in various forms (Liddle, 1992 inter
by the government, and MPs from the opposition parties who might enjoy
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Assembly (MPR), which decides who should govern the country, only 400,
elections which give the people a 'vote' not a 'say' (Stanley, 1992:2), hardly
effect any real change in the way Indonesia is governed (Frederick and
The press, which has been a very effective means in preventing the
also suffering in Indonesia. Although there are more than 200 press
for being ‘irresponsible’. The latest media closure occurred in June 1994,
when two leading Indonesia news magazines, Tempo and Editor, along
with the tabloid Detik, were banned. Although the government gave the
believed that these three weeklies were banned because they openly
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From the evidence offered in the previous section, it could be argued that
public sector.
or selling off state's assets (Samson, 1994; Lane, 1993). The underlying idea
is not to pit the private sector against the public sector, but rather to
establish competition in order to minimise the monopoly provision of
public goods and services, and to ensure the public accountability of all
contracted with public financing when supply is contestable. The ‘exit and
for minimising corruption. Public consumers will readily exit from goods
and services offered by the public sector where a cheaper, better and
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university, and even to have a discussion among more than five people,
one needs a permit from the authorities (Gaffar, 1995). Since this licencing
there would be fewer vehicles for corruption. This may, however, have
public corruption is less likely to occur if the rules which govern local
officials are at least in part defined by local norms, evincing local support
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Bahl and Linn (1994) offer a number of factors to explain why central
Sumatra and Kalimantan) the land is very fertile and rich in mineral
resources. By retaining central authority, the government is able to shift
the wealth and revenues from the richer to the poorer provinces.
relocating public servant from the headquarters to the field, and by using
special incentives to keep senior officers in the field. Finally, central
for independence in the 1950s and 1960s, such as the Aceh Independence
1994).
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applied. The practice of recruiting the unemployed into the public sector
package.
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citizens may not know that public servants are corrupt, that corruption is
costly to society, and that corruption affects them. Secondly, improper and
counts and that public servants are supposed to look out for themselves
alone. Thirdly, the public may lack opportunities to express its intolerance
situation with those of a public sector, citizens may feel that they gain
more from corrupt government than they would from an honest system,
and may lose more from taking action than they would gain (Gardiner
and Malec, 1989:108-9).
four concerns. Both the Hong Kong and the New South Wales
expensive, of course, but one must be considered against the larger sums
of public money which will be saved if the programs are successful (Clark,
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‘blow the whistle’ when they become aware of specific instances of corrupt
behaviour, to support honest candidates for public office, and to work for
public integrity.
The last, but probably the most important factor determining the success
public and private sectors. The more democratic a country, the more likely
mechanisms will be put in place to monitor the performance of
Free press, that is, a press not subject to being banned or censored by the
them. In Japan, for example, the mass media exercise strong influence on
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which finally forced the 'popular but high-handed' Prime Minister Kakuei
according to Jain (1988), parliamentary control over the executive has been
effective not only in general political control, but also in detailed
Political reform towards democracy is not only the most important anti-
South Korea and Thailand, have become effective fighters for democracy) -
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current political system in which they can buy protection via personal
the institutions charged with maintaining the status quo (Schwarz, 1994).
in Indonesia will only be realised if the initiative comes from the old but
Conclusion
the public sector in delivering certain services; poverty and low public
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