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By Mashuqur Rahman and Umme Perveen Iftikhar   
Monday, 01 October 2007
Article Index
The Corruption Surprise
Page 2

When Transparency International published its Corruption Perceptions Index—or CPI—for 2007, the leading English daily in Bangladesh greeted the news with a deliberately positive headline: “Bangladesh improves on its graft image: Climbs up to 7th position from bottom of TI’s corruption index.” Indeed it is an improvement, considering that Bangladesh had tied for the third lowest spot last year.

What’s important, position or perception?

The perception that underlies Bangladesh’s gain in rank remains exactly the same as before. Both in 2006 and in 2007 Bangladesh received a CPI score of 2.0. In other words, Bangladesh showed no improvement in corruption between 2006 and 2007. The country’s ranking improved only because seven countries of the world became more corrupt this year: Cambodia, Central African Republic, Papua New Guinea, Turkmenistan, Venezuela, Equatorial Guinea and Laos. In addition, four new countries (Afghanistan, Tonga, Uzbekistan and Somalia), also with worse corruption than Bangladesh, were added as new entrants to the list.

Policymakers and the media engaged in a hair-splitting exercise to figure out what’s more important, the rank or the score. But given the self-censorship in the country, few had the courage to say outright that the rank is an outcome of indexing. What is important is that the perception of corruption in Bangladesh remains as strongly negative as before.

That conclusion, not made forcefully in public, would be an embarrassment to the caretaker government, which has been fighting a “war on corruption.” Indeed, like authoritarian governments almost everywhere, it legitimizes its existence primarily to its anti-corruption drive. Cleaning up politics is the pretext on which it has stretched the limits of constitutional interpretation by delaying the election date till the end of 2008. But now the world’s leading corruption watchdog comes out to say essentially that the anti-corruption effort has had little or no effect so far. How can this be tackled?

Madness of the method

Not wanting to provoke the government, TIB (Transparency International Bangladesh) had to play a delicate line. It noted that the unchanged score “proves that at least corruption is not increasing in Bangladesh,” and attributed that success to the government’s anti-corruption efforts. It then explained: “Included in this year’s index were data collected until the end of July 2007, which means CPI 2007 was relatively more influenced by the data from 2006” [1].

Government spokespeople had got their ammo. The timeframe, mid-2006 to mid-2007, is claimed as a major reason why this report should not be given much importance. Questions were also raised about the methodology, especially the fact that the index is based on a perception of corruption rather than ‘actual’ corruption.

Image
Corruption levels around the world. Darker areas are more corrupt, as perceived by surveys. (c) Transparency International.
But perception does not arise out of the blue. Most businesses have experience in having to provide bribes to secure deals, or simply be allowed to do business without hassle. Some report that their fear of terrorism is now replaced by a fear of the government.

Moreover, a perception of corruption is not a fluke. CPI is not something done once by one organization. It is a two-year rolling average of fourteen corruption-related surveys done by eleven independent organizations. Perception is crucial to investment decisions, and perception is precisely what this index tracks; hence the name Corruption Perceptions Index. Therefore the perception of the business community is not a mitigating factor to explain away the CPI score, it is the score.

Another common talking point was to say that a low score is misleading, since 90 percent of the people are not corrupt [2]. TIB should have been more forthcoming about this allegation. The survey is not concerned with corruption of the population at large. Its focus is solely on corruption in the public sector. When it says that Bangladesh scores low, it is essentially saying that Bangladesh’s public officials are perceived as more corrupt than those in most other countries.

Image is everything

Bangladeshi policymakers, past and present, have all been extremely image-conscious. As a result, they have often blamed the messenger instead of heeding the message. A pooh-poohing of TI’s report, therefore, is not surprising. The government’s stance is that the perception of the community at large is irrelevant, for it knows exactly who is corrupt, how far, and how to deal with them. In this, our self-appointed graft-busters consider themselves uniquely capable, for, in the words of the Chief Advisor, “a nonparty caretaker government doesn’t suffer from the burdens of political patronage” [3].

With this logic, the government used the "anti-corruption" drive to undertake a political purge, with little respect for due legal processes. In public, it created the impression that Bangladesh was becoming more and more corrupt under successive democratic governments led by politicians, and therefore a forceful intervention was in order.

Taking account vs taking credit

A look at how Bangladesh fared between 2001 and 2007 in Transparency International’s own numbers tells a startlingly different story. The graph below includes data from 2001 when TI first started tracking the CPI score for Bangladesh [4].

Image
Bangladesh's improvement stalls in 2007. Data Source: Transparency International. Graphic by Mashuqur Rahman
Notice that Bangladesh improved every year on the CPI score except in 2007. From 2001 to 2006 Bangladesh was under democratic rule, and contrary to the meme that has been nurtured by Bangladesh’s current government, Bangladesh improved steadily. If past trends had continued, 2007 should have shown an improved CPI score. However, the military government’s “anti-corruption” drive has instead stopped Bangladesh’s slow climb out of corruption.

The government’s intent of reducing corruption is noble. But its complete monopoly on state power, its shelter behind emergency laws, track record of arbitrary detentions without due-process rights, and its intimidation of freedom of expression all conspire institutionally to undermine the goal of reducing corruption.

The crucial missing element of fighting corruption is accountability. What the TI data show is the result of an unaccountable government’s “anti-corruption” drive. As with all dictatorial governments, the results are predictable. It is no coincidence that at the bottom of TI’s list this year is Burma, one of the world’s longest ruling military dictatorships.

Corruption in Bangladesh cannot be eliminated by decapitating the political leadership, and it certainly cannot be done by an unaccountable military-led government. There is no question that individuals in past governments engaged in massive corruption. But what encouraged that is the tyranny of a few within those governments. As long as power in Bangladesh remains concentrated, reducing corruption will be difficult. Rounding up politicians in the name of an “anti-corruption” drive may grab headlines, but the deeper damage caused by the application of draconian laws and the complete disregard for the rule of law will only breed more corruption. Our past gives us every reason and every right to be very suspicious of any government run by a few and accountable to none.


Notes:

1. The Daily Star, September 27, 2007
2. New Age, September 27, 2007
3. Time, March 22, 2007
4. According to TI, the 2001 CPI score is an outlier based on a small number of surveys, but we have left the data in for completeness.


Image  About Mashuqur Rahman  |  About Umme Perveen Iftikhar





Comments (50)
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1. 01-10-2007 14:42
 
wow - finally someone with the guts to put things right. you guys are doing a great job. one question i have is that yes, there was no progress this time, but still we're at 2.0 which is much better than in 2001. but your main point is right. all this craziness about corrupt politicians, but in reality where's the improvement? right now everyone in dhaka (incl. me) is afraid to speak up or to do anything. as soon as emergency goes away, you'll see whether there has been real progress or whether it'll all people just keeping quiet because no one wants to stir the pot. great artticle.
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2. 01-10-2007 21:52
 
Very critical but good article. I'm sure the score will improve next year.
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Neehal
3. 02-10-2007 08:58
 
come on guys, give this govt a chance. they're doing a good thing by jailing these corrupt politicians and all you can do is criticize
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Jibon Maney Jontrona
4. 02-10-2007 15:42
 
#3, Io, this government is jailiing them way before proved guilty, then they're making it almost impossible for them to defend themselves properly. It's not justice the way it should be done, but it's basically another type of corruption. And who is this ctg accountable to? No one. They make their own laws, then they say people have violated those, then they make their own courts and own punishment, and they can do whatever they like and they can do whatever they want to anyone else. Can you really trust that situation?
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Purana Paltan
5. 02-10-2007 13:46
 
the chart is interesting. i think there was no way except improvement because things were so bad in 2001. we should not compare to that period. we should look ahead.
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Rubel Chowdhury
6. 09-10-2007 14:02
 
This shows the hollowness of CTG. They're basically after politicians. For businessmen, they now say they want a Truth Comission. Different laws for different people. This is all ridiculous, this is not how justice should have been done, this is not justice, it's political purging, like these two writers said. There's no due process. People need to open their eyes to the massive conspiracy that's going on in the country.
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Paris
7. 11-10-2007 00:58
 
Brilliant piece!
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Sushanta Dey
8. 12-10-2007 14:52
 
i sincerely hope that this type of analysis is something the present bangladeshi government is able to understand. they seem to be immune to these things. they just find their goals and then they carry it out without analysis. their whole economic policy is proof, like trying to lower prices by threating people with their shotgun. we need analytical people for bangladesh to make good policies instead of just following emotions and blind trust that corruption is now low because of this government's credit
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rupa mallick
9. 17-10-2007 00:32
 
Check out this story and thread on Mukti's blog on this issue.  
 
http://jrahman.wordpress.com/2007/10/11/on-corruption/
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Purana Paltan
10. 18-10-2007 15:57
 
unfortunately i think rupa mallick (#8) is right. CTG is not interested in analysis. they just think they know all truths. look at how smug moeen is sounding
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Paris
11. 19-10-2007 15:58
 
Mashuq is one of my favorite bloggers. He did a splendid job here
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12. 19-10-2007 16:10
 
Check out his latest blog entry on the mysterious money flowing around Trust Bank, in which Gen Moeen and his brother have the top posts.  
 
http://www.docstrangelove.com/2007/10/18/coming-to-america-junta-banking-edition/
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Purana Paltan
13. 19-10-2007 20:52
 
The sooner this goverment " run by a few but accountable to none " goes , the better it is for the country. 
 
People should open up mouth and speak loudly againt the nepotism of fakhruddin and illegallity of the his being CA and his government.
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14. 20-10-2007 15:12
 
More on General Moeen 
 
General Moeen U. Ahmed had his education in Sargodha Public School, Pakistan [ http://www.ppss.edu.pk/ ]. Another link of Sargodha school shows a few well placed alumni, including General Moeen himself: http://www.ppss.edu.pk/achievements.htm 
After being repatriated in '73/'74 from Pakistan, the Bangladeshi top army brass joined Bangladesh Air Force as a flight cadet and was sent to USSR for training, but withdrawn on medical ground. Later he joined Bangladesh Military Academy with 1st batch. 
 
In 1996 this general took active role in favor of BNP against failed Nasim coup. All through he sailed with the wind. He served in Pakistan as the Defence Attache during 1991 election. Returned immediately after BNP came to power and promoted and so on and soforth. It is noteworthy, his friend Syed Iskander having all the dirty laundry is still roaming free. Is it a kind of returning obligations ? 
 
Some observers think he doesn't possess the courage and initiative to take /shoulder bold major steps alone, rather he likes to fire from someone else's shoulder....He would look for an exit plan. 
 
No wonder, Iftekhar Chowdhury was recommended by Army as Advisor as he was pushing all the Peacekeeping commitments for Bangladesh Army in his official capacity.
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15. 20-10-2007 20:23
 
i think its funny that gen. moeen and all his people are saying theyre crusade is to get rid of corruption. but now there's a lot of rumours about him too, taking a 99 lac taka loan. then paying back 66 lacs within a year mysteriously. very interesting. all these people who are supporting a military will get surprised when it comes out the corruption of this government too. i liked this line most - "As long as power in Bangladesh remains concentrated, reducing corruption will be difficult." true
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Ehsan M.
16. 01-11-2007 13:54
 
Hmmm... the picture is getting clearer about the 'success' of this anticorruption drive. This is from Daily Star. 
 
Dhaka goes down with glaring graft 
Slips to 107th place in global competitive index 
Staff Correspondent 
 
 
Bribing of high-ranking politicians, political parties, and senior bureaucrats by businessmen rose substantially last year, bringing the country's ranking in Global Competitive Index (GCI) 2007-'08 down by 15 places compared to its ranking in 2006. 
 
According to the World Economic Forum (WEF) report released yesterday, Bangladesh ranked 107th out of 131 countries this year while in 2006 its ranking was 92 out of 125 countries. 
 
Bangladesh also slid down by 19 positions in the Business Competitiveness Index (BCI) of 2007, ranking 118th compared to its last year's ranking of 99. 
 
"Undocumented payments for awarding of public contracts were widespread in the country and the situation further aggravated," said the WEF report which was released here by the Centre for Policy Dialogue (CPD).  
 
"It is frustrating that all the survey results are giving negative indications. It's not good for the economy," CPD Executive Director Mustafizur Rahman said at a news briefing while disclosing the report. 
 
He identified rampant corruption in the country, inefficient bureaucracy, poor infrastructure, and policy instability as the main reasons for the bleak business environment. 
 
The global report was based on perceptions of top executives of business organisations in 131 countries. The report placed India in 48th position in the GCI, while the positions of Pakistan, Sri Lanka, China, and Vietnam are 92nd, 70th, 34th, and 68th respectively. 
 
Among the South Asian countries India ranked 31st in the BCI, while Pakistan and Sri Lanka ranked 79th and 52nd respectively. 
 
The chapter on Bangladesh was prepared by CPD in collaboration with WEF through interviewing 99 top Bangladeshi business executives during the period between February 2006 and January 2007. 
 
About 60 percent of the businessmen interviewed for the report perceived that undocumented extra payments or bribes from one private firm to another to secure businesses are very common in Bangladesh, and the practice is spreading. The report said although the corporate ethics of Bangladesh changed a bit, they are still among the world's worst. 
 
It went on to say that bribes are also common in connection with public utilities, export-import, and annual public contracts. A similar situation prevails in annual tax payments too. 
 
The issues considered for the global perception survey included government and public institutions, infrastructure, innovation and technology, financial environment, business operation and sophistication, education and human capital, and corruption. 
 
"In terms of all indicators, Bangladesh's ranking has slid down considerably," the report said. Bangladesh is among the bottom 10 countries in terms of institutional efficiency where it ranked 126th, in higher education and training its ranking is also 126th, while in technological readiness it ranked 125th.  
 
Bangladesh's rank is relatively better regarding its market size putting it in the 36th position, in financial market sophistication it ranked 75th, while in terms of labour market efficiency its ranking is 76th, the report said. 
 
Referring to the business environment in the country, the report said a very low level of public trust in financial honesty of politicians, and favouritism of government officials for well connected firms and individuals while deciding policies and contracts -- are the key reasons for the country's poor performance in the BCI. 
 
Mustafizur Rahman, however, was optimistic about the country's performance in next year's GCI as the present government already had taken some reform measures. "We hope to get a better picture in the GCI of 2008," he said.  
 
A sense of apprehension and uncertainty prevails among businessmen, he said adding, "However, if the initiatives taken by the government work properly, it might give us better results."
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17. 01-11-2007 15:23
 
Same problem with this report too. it is based on survey of businessmen. they will naturally say things are bad. But that is not the true picture of corruption in bangladesh. People are better off now than b4.
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18. 31-10-2008 04:02
 
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