Corruption in Asia threatens recovery

Corruption in Asia threatens recovery

SINGAPORE (AFP): Corruption is as widespread as ever in Asia,
particularly in China, India, Indonesia and the Philippines,
threatening their economic recovery, an independent think-tank
said.

In its latest report on corruption, the Political and Economic
Risk Consultancy (PERC) said the gap between those most effective
in combating corruption -- such as Singapore, Hong Kong and Japan
-- and those that have allowed corruption to flourish has widened
significantly.

"One would have thought that the difficult economic
environment of the past two and a half years would have made
governments less tolerant of corruption. This has not been the
case across the board, however," PERC said in its report received
here Wednesday.

Its annual survey was conducted among 527 expatriates in the
region who were asked to rate on a scale of zero to 10, with 10
being the worst score, the degree to which corruption was
affecting their companies' operations.

The trend of corruption in China, which received a score of
9.11 this year from 9.00 a year ago, was deteriorating, the
survey said, noting the only positive thing was Beijing's
admission that corruption still exists.

Indonesia received the worst score among all the countries
surveyed this year with a rating of 9.88, although this was a
slight improvement from 9.91 a year ago.

Despite a new democratic government, "economic conditions are
so harsh that lower level officials are under considerable
pressure to try to supplement their incomes, and the country's
legal system and policing capabilities are inadequate to cope
with the problem," the report said.

It also noted the sharp deterioration in expatriates'
perception of corruption in the Philippines, whose rating slid to
8.67 from 6.71.

"Businessmen are worried that there has been backsliding
during the Estrada administration, with the most favorable deals
going to a few favored insiders," referring to the government of
Philippine President Joseph Estrada.

Corruption remained endemic in India due to its huge and
inefficient bureaucracy, which meant pay-offs seemed to be the
only way to get things done, the survey said. India rated 9.50
this year compared to 9.17 last year.

The scores of these countries were a far cry from those of
Singapore, Hong Kong, and Japan, which were perceived to be the
least corrupt.

Singapore took top spot with 0.71, Hong Kong was next with
2.49, followed by Japan with 3.90.

The survey pointed out a "sharp improvement" in Malaysia's
rating, which rose by two points to 5.50, noting that sentiment
on corruption there had been highlighted by the controversy
surrounding the arrest and trial of former deputy premier Anwar
Ibrahim.

Other countries scores were Taiwan at 6.89, Thailand at 8.20,
South Korea at 8.33, and Vietnam at 9.20.

Corruption remained a major problem in Thailand and South
Korea, two of the countries hardest hit by the regional financial
crisis which struck in mid-1997.