Managing Conflict of Interest - Organisation for Economic Co ...
Managing Conflict of Interest - Organisation for Economic Co ... Managing Conflict of Interest - Organisation for Economic Co ...
30 Managing Conflict of InterestAccording to a former Central Vigilance Commissioner of India,the tight legal restrictions on donations to political parties actuallyexacerbated the situation so that “the vast majority of politicalfunds came in the form of ‘black money’ which was not regulated bythe state and was most likely gained by earlier corrupt deals at theexpense of the state.” 20 As time went on the high ethical standardsinherited from Gandhi and from the former Indian Civil Servicebegan to slip. As a consequence of all these factors, by the 1970shigh-level corruption had become a significant feature of the Indianlandscape among both politicians and officials.When India liberalized in the 1990s, many assumed that corruptionwould lessen—particularly as administrative controls onimports and investment were abolished. This, however, does notappear to have happened: if anything, corruption worsened. Politiciansand officials have found that there are plenty of other avenues,such as public procurement, the sale of public assets, and the awardof licenses, where they can extract bribes.Other factors that have contributed include:••••The widening gap, at senior levels, between public and privatesector salaries.Poor civil service management.Weak enforcement of the law (and therefore low risk ofdetection). The Central Vigilance Commission, and its statecounterparts, which are charged with conducting investigationsinto corrupt practices, have a mandate that coversonly nonelected officials. Compared with P.R. China’sefforts, their efforts have been weak and they have not beenhelped by lack of support from politicians and slow actionby the courts.The fact that many politicians, especially at the state level,have criminal records and yet have not been disbarred fromelected office.The “get rich quick” mentality that has infected many asIndia has opened up and the economy has taken off, andmade them more likely to pay and accept bribes.•20Vittal, N. 2002. Corruption and the State: India, Technology and Transparency.Harvard International Review 23 (3).ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Defining Conflict of Interest 31Petty corruption has shown no sign of subsiding. A survey conductedby Transparency International (TI) in 2005 reported that 80%of respondents who had interacted with the police during the previousyear had paid a bribe; for land registration and records, the figurewas 48%, and for the lower judiciary it was 47%. A large majorityof respondents felt that corruption in their day-to-day experiencewas getting worse. Clearly, therefore, a high proportion of lowerlevelpublic servants are conflicted and are pursuing aims outsidetheir public duties. 21According to the WGI data, India’s record is considerably betterthan that of P.R. China, Russia, or Indonesia, notwithstanding the factthat it is a considerably poorer country in per capita income terms;and there was a significant improvement between 2005 and 2006.Despite the fact that electoral competition has had some negativeeffects as noted above, India’s better performance is probably atribute to the fact that it has been democratic for 60 years, the ruleof law has more or less prevailed, and there has been an independentpress. A recent positive factor was the enactment in 2005 ofthe Right to Information Act, replacing the much weaker Freedomof Information Act (2002) and for the first time giving Indian citizensextensive rights to access information and documents held by centraland state governments.Indonesia 22There are some similarities between General Suharto’s NewOrder regime and 18th century England. Under the New Order, theexecutive was extremely powerful but its power was not absolute;there was a mix of people in government—some were professionaland honest, others were appointed on the basis of connectionsrather than merit and were highly corrupt; and while governmentleaders abused their position for personal gain on a large scale,they were also committed to the nation’s success. However, in thelast few years of the regime, it deteriorated to something more like21Transparency International India. 2005. India Corruption Survey. Available onTI India’s Web site.22The views expressed in this section are largely based on work undertaken by theauthor in connection with an evaluation of the UNDP’s support for governancereform in Indonesia, carried out in January 2007 and available from UNDP.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
- Page 21 and 22: Keynote AddressesADB/OECD Anti-Corr
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- Page 27 and 28: Welcome RemarksTaufiequrachman Ruki
- Page 29 and 30: Welcome RemarksArjun ThapanDirector
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- Page 33 and 34: Remarks at the Opening DinnerH. E.
- Page 35 and 36: Keynote Addresses xxxiiibe struck b
- Page 37 and 38: Keynote Addresses xxxvthe best huma
- Page 39 and 40: Closing RemarksHidayat Nur WahidCha
- Page 41: Keynote Addresses xxxixeasier than
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Defining <strong><strong>Co</strong>nflict</strong> <strong>of</strong> <strong>Interest</strong> 31Petty corruption has shown no sign <strong>of</strong> subsiding. A survey conductedby Transparency International (TI) in 2005 reported that 80%<strong>of</strong> respondents who had interacted with the police during the previousyear had paid a bribe; <strong>for</strong> land registration and records, the figurewas 48%, and <strong>for</strong> the lower judiciary it was 47%. A large majority<strong>of</strong> respondents felt that corruption in their day-to-day experiencewas getting worse. Clearly, there<strong>for</strong>e, a high proportion <strong>of</strong> lowerlevelpublic servants are conflicted and are pursuing aims outsidetheir public duties. 21According to the WGI data, India’s record is considerably betterthan that <strong>of</strong> P.R. China, Russia, or Indonesia, notwithstanding the factthat it is a considerably poorer country in per capita income terms;and there was a significant improvement between 2005 and 2006.Despite the fact that electoral competition has had some negativeeffects as noted above, India’s better per<strong>for</strong>mance is probably atribute to the fact that it has been democratic <strong>for</strong> 60 years, the rule<strong>of</strong> law has more or less prevailed, and there has been an independentpress. A recent positive factor was the enactment in 2005 <strong>of</strong>the Right to In<strong>for</strong>mation Act, replacing the much weaker Freedom<strong>of</strong> In<strong>for</strong>mation Act (2002) and <strong>for</strong> the first time giving Indian citizensextensive rights to access in<strong>for</strong>mation and documents held by centraland state governments.Indonesia 22There are some similarities between General Suharto’s NewOrder regime and 18th century England. Under the New Order, theexecutive was extremely powerful but its power was not absolute;there was a mix <strong>of</strong> people in government—some were pr<strong>of</strong>essionaland honest, others were appointed on the basis <strong>of</strong> connectionsrather than merit and were highly corrupt; and while governmentleaders abused their position <strong>for</strong> personal gain on a large scale,they were also committed to the nation’s success. However, in thelast few years <strong>of</strong> the regime, it deteriorated to something more like21Transparency International India. 2005. India <strong>Co</strong>rruption Survey. Available onTI India’s Web site.22The views expressed in this section are largely based on work undertaken by theauthor in connection with an evaluation <strong>of</strong> the UNDP’s support <strong>for</strong> governancere<strong>for</strong>m in Indonesia, carried out in January 2007 and available from UNDP.ADB/OECD Anti-<strong>Co</strong>rruption Initiative <strong>for</strong> Asia and the Pacific
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