The Hindu Business Line : Corruption index and India

A first achieved by India in the Global Corruption Barometer survey is the pessimism over the decline of corruption in the next three years or so. Of all those surveyed, 42.1 per cent felt that corruption would increase over time with 20.1 per cent expecting that it would rise substantially. Just 20 per cent felt that corruption would decrease. A whopping 55.8 per cent of those surveyed in India felt that corruption in the country would increase a lot.

INDIA comes 83rd in the latest Corruption Perception Index (CPI) drawn up by the Berlin-based Transparency International (TI), being bracketed with Malawi and Romania.

On a descending scale of 10, India's score is 2.8, China being placed 66th with a cleaner score of 3.4. Altogether 133 countries were covered by the TI survey, the list being topped by Finland (9.7).

The top five other countries were Iceland (9.6), Denmark (9.5), New Zealand (9.5), Singapore (9.4) and Sweden (9.3). The UK had a score of 8.7, the US 7.5, Japan 7, Brazil 3.9 and Russia 2.7.

According to TI, around 70 per cent of the countries surveyed scored less than five, the index focusing on perceived levels of corruption among politicians and public officials.

As much as half the developing countries surveyed scored less than three, indicating a high level of corruption. The figures indicate that corruption is pervasive in Bangladesh, Nigeria, Haiti, Paraguay, Myanmar, Tajikistan, Georgia, Cameroon, Azerbaijan, Angola, Kenya and Indonesia, the scores of all these countries being below two.

What is the methodology used to compile the figures? First, what is the definition of corruption that has been used as the yardstick for the purpose of the study?

According to the TI, the CPI focused on corruption in the public sector and defined corruption as the abuse of public office for private gain. The surveys used in the programme have tended to ask questions "in line with the misuse of public power for private benefit with a focus, for example, on bribe-taking by public officials in public procurement".

Second, "perceptions" of corruption have been relied in place of empirical data because, as TI says, such data "does not reflect actual levels of corruption: rather it highlights the quality of prosecutors, courts and/or the media in exposing corruption.

The only method of compiling data is therefore to build on the experience and perceptions of those who are most directly confronted with the realities of corruption". The CPI has relied on a number of surveys to paint its "corruption-perception" picture.

Thus, senior business people from 15 emerging market economies were asked the following questions: "How common are bribes to politicians, senior civil servants and judges?" and "How significant of an obstacle are the costs associated with such payments for doing business?

Further, CFOs and bankers, among others, were asked about the frequency of corruption in various contexts such as obtaining import/export permits or subsidies, avoiding taxes, etc.

Of slightly more interest is the TI's Global Corruption Barometer survey which was released in July last year.

The survey, which covered the general public in 47 countries, found that around 75 per cent of the nations surveyed singled out political parties as the principal institution "from which citizens would most like to eliminate corruption" followed by the police and then the medical services and education.

The Indian performance here has been interesting, to say the least, with public awareness about corruption in education taking the cake.

The survey listed Courts, Customs, Education System, Political Parties, Police, Tax Revenue, etc, and asked: "If you had a magic wand and you could eliminate corruption from one of the following institutions, what would your first choice be?"

Very significantly, the strongest response of the 30,487 people surveyed related to the political sphere with as much as nearly 30 per cent of those surveyed opting to cleanse the political systems of their respective countries of the corruption bug.

In terms of individual countries, Argentina headed the list with 58.2 per cent of those questioned targeting the political system.

Japan came second with 51.9 per cent and Turkey third with 42.5 per cent. India followed with 41.2 (along with the UK), the US following behind with 39.1 per cent.

But it is in "Education System" that India has comes out on tops with 24.9 per cent of those surveyed wanting to tackle corruption in the sector.

The important part of this finding is that India is way ahead of all the other countries in the survey as far as this sector is concerned.

The Palestinian Authority comes second with 16.4 per cent, South Korea with 15.7 per cent, South Africa with 14.4 per cent and Guatemala with 12 per cent.

Perhaps this Indian "performance" reflects in large measure the sheer size of the education sector in the country, and also perhaps the fact that the number of seats available at the different levels (schools, colleges, universities, etc) is far in excess of what is available.

Another first achieved by India in the Global Corruption Barometer survey is the number of pessimists the country has regarding the decline of corruption in the next three years or so.

Taking the total of all those surveyed, 42.1 per cent felt that corruption would increase over time with 20.1 per cent expecting that it would rise substantially.

In contrast, just 20 per cent felt that corruption would decrease. A whopping 55.8 per cent of those surveyed in India felt that corruption in the country would increase by a lot, Cameroon coming second with 39.4 per cent and Turkey third with 37.2 per cent.

This specific perception on corruption on the part of Indians is important because it reflects a view of things to come at a time when the economy appears to be looking up.

Does this mean that economic development in India will go hand in hand with an increase in corruption of all types, probably because there is more money to be shared?

Or does it indicate a total loss of faith on the part of the general public with those who are governing the country, which certainly is a far more serious issue than the first option?

Transparency International has urged developed countries to assist poor States which have demonstrated the political will to curb corruption.

One wonders whether the prescription will be applicable to India because the "political will" to put down corruption in all its forms is today conspicuous by its absence.

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