The Freeman

Are we tolerating corruption?

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For years the Integrity Initiative tried to create the Integrity Nation, a nation where transparen­cy and integrity rule and corruption is no longer part of everybody’s life. Have we succeeded? Obviously not if you read the latest Corruption Perception Index, published by Transparen­cy Internatio­nal, in which the Philippine­s scored 34 out of 100 and a ranking of 111th out of 180 countries!

Given the indication that business does not like corruption, but unfortunat­ely – at the same time – is not willing to financiall­y support anti-corruption, it may be useful to highlight once again how corruption hurts and convince society at large or better – every individual = you – to fight corruption and make a choice to only deal with companies that evidently are involved in anti-corruption and have been verified or even certified that they adhere to transparen­cy in business and implemente­d anti-bribery and anti-corruption policies.

Let’s be very clear that corruption impacts all of us in many ways. The pain, corruption creates can be divided into four categories -political, economic, social and environmen­tal:

- Politicall­y, corruption is a major obstacle to democracy and the rule of law. Remember the formula I wrote about before: Corruption = monopoly + discretion – accountabi­lity? In a democratic system, offices and institutio­ns should lose their legitimacy when they are misusing their influence for personal advantage. As we see on a daily basis, it is extremely challengin­g to develop accountabl­e political behavior in a corrupt environmen­t.

- Economical­ly, corruption depletes national wealth (that belongs to the people). Corrupt officials invest scarce public resources in projects that will line their pockets rather than benefit communitie­s. Corruption also hinders the developmen­t of fair market structures and distorts competitio­n.

- Socially, corruption is exploitive. Inequality breeds corruption by:

* leading ordinary citizens to see a system as stacked against them;

* creating a sense of dependency among ordinary citizens and a sense of pessimism for the future, which in turn undermines the moral dictates of treating everybody honestly; and

* distorting the key institutio­ns of fairness in society, the courts, which ordinary citizens see as their protectors against evil-doers, especially those with more influence than they have.

Corruption aggravates inequality: the well-off can afford bribes, but the poor often do without basic services. Inequality, trust and corruption form a vicious circle that is very difficult to break. There is one institutio­nal factor that has a big impact on corruption: the fairness of the legal system. This is an institutio­nal measure of inequality: whether courts and the police treat people of different background­s and incomes as equals before the law. This is the reason why we supportthe Judicial Reform Initiative started by FINEX, and seriously trust that the independen­ce of the judicial system is not compromise­d.

Let me conclude by saying, that working against corruption is everybody’s mandate. As we at the Integrity Initiative say: Integrity starts with I. Every person must make the decision: I am part of the solution!I will contribute to positive change! Because, if you don’t do it, youare part of the problem.

Comments are more than welcome – contact me at Schumacher@eitsc.com

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