Vietnam, Indonesia, Thailand bureaucracies rated low

Vietnam, Indonesia, Thailand bureaucracies rated low

SINGAPORE (AFP): Hong Kong, Singapore and Australia have the
best bureaucracies in Asia, while Vietnam, the Philippines,
Thailand, Indonesia and India have the most cumbersome, a report
said on Sunday.

Pay rates, the political environment and level of economic
development are among the factors that determine how well the
bureaucratic machinery functions, the report by the Political and
Economic Risk Consultancy (PERC) said.

In a survey, the consultancy asked businessmen in 13 Asian
economies to rate the bureaucracies there on a scale of one to
10, with zero being the best grade possible.

Vietnam was at the extreme end of the range, with a grade of
9.50, getting worse from 8.90 last year and 8.50 in 1999.

Indonesia, Thailand and the Philippines, which experienced
changes in governments this year, scored 8.0.

India was graded just one notch below the worst at 9.0, from
9.60 last year. China improved its grade to 7.63 this year from
8.89 last year.

Hong Kong emerged with a top score of 3.29, improving from
4.00 last year and 4.61 in 1999.

Singapore had a score of 3.60, from 2.71 in 2000 and 4.27 in
1999.

Australia got a score of 4.00, from 6.19 last year.

Their ratings compare favorably with the United States which
got a score of 3.58.

In the middle were Japan, 6.00, Malaysia, 6.50, South Korea,
6.33 and Taiwan, 6.57.

Indonesia's rating seemed to agree with the conclusion of the
World Bank's latest report on Indonesia which said that weak
governance had, if not caused, at least aggravated the economic
crisis out of which the country is just emerging.

The report released in Jakarta on Friday said the 1997
economic crisis brought to the surface the lack of
accountability, transparency and rule of law in Indonesia,
compounded by weak institutions unresponsive to the population at
large, and the poor in particular.

"Bad governance has affected the poor across the board, from
lack of basic law and order, lack of mechanisms to influence
budgetary choices, poor quality of services, and lack of
transparency and accountability in the use of funds, the report
added.

Hong Kong's good grade was credited to the government's policy
to limit intervention in the economy.

"Consequently, there has long been a conscious effort to limit
bureaucracy and red tape," the Hong Kong-based PERC said.

For Singapore, PERC said "a combination of good renumeration
and harsh penalties for corruption and other abuses of position
have created a reputation for integrity in the civil service."

Vietnam got scathing criticism from businessmen, according to
the survey.

"Civil servants in Vietnam can be some of the most difficult
to work with in Asia," PERC said, noting a deep-seated suspicion
of foreign investors.

While senior government officials mouth the official line on
their commitment to attract foreign investments "local civil
servants can still be very obstructionist," PERC said.

China's impending entry to the World Trade Organization (WTO)
is set to lead to a streamlining of bureaucracy as the country
adheres to a common set of global standards.

But PERC cautioned: "Never underestimate the ability of the
Chinese bureaucrat to adapt to the changing circumstances in ways
that protect his own power and position."

For India, "red tape is a way of life," PERC said and that
"the only thing bureaucrats prefer than having something in
duplicate is to require it done in tiplicate."