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Transparency as vital as growth

December 30, 2009 - January 5, 2010
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Gulf Weekly Stan Szecowka
By Stan Szecowka

Bahrain has fallen three places in the 2009 Corruption Perceptions Index (CPI). The kingdom, which was ranked 40 globally in 2008, fell to rank 43 this year.

Although Gulf Co-operation Council (GCC) fared reasonably well in the rankings this year, only Qatar succeeded in securing a place deemed sufficient not to carry out urgent remedial administrative correction steps.

Qatar clinched spot number 22 in the world by advancing six rankings and scoring seven out of the maximum 10 points. Countries like France, Chile and Cyprus lag behind Qatar.

Berlin-based Transparency International (TI), which issues the annual CPI report, argues that economies scoring below seven out of 10 must take immediate actions to bring integrity in the dealings of public officials.

The latest report ranks 180 economies and relies on results of 13 surveys. Reviewed economies earn points based on perceptions expressed by business and academic professionals concerning ways of doing business in various countries.

The respondents, which include local and expatriate residents, provide views about possible corruptive practices involving public officials about winning business preferences such as contracts. The study relies on numerous studies conducted by internationally renowned establishments. These include the World Bank, The Economist Intelligence Unit, Freedom House, World Economic Forum, Asian Development Bank and African Development Bank.

Within the GCC, Saudi Arabia made the best stride this year by advancing 17 notches in a single year.

The UAE advanced by five notches to rank 30 worldwide and the second best result among Arab countries.

The progress partly reflects the actions taken by the Dubai government against individuals accused of profiteering from their jobs in investments partly or wholly owned by the local authority.

The result is better than that achieved in 2006 when the UAE emerged as the highest scorer amongst Arab nations after being ranked 31 worldwide.

Oman continued improving its global ranking, this time advancing by two notches to reach 39 in the world. Kuwait continued its downward trend by losing a single ranking to be ranked 66 in the world among 180 economies.

GCC states cannot overlook the index's significance, as they seek to attract foreign direct investments to help address economic challenges. International investors partly rely on TI's rankings in selecting countries of choice for their investments.

Worlwide, New Zealand scored 9.4 points out of the maximum 10 points on the index and is hence regarded as the most transparent country in the world.

The Asian nation of Singapore should serve as a model, a country noted for having zero tolerance for corruptive practices. Singapore scored 9.2 points in the 2009 report to be placed third worldwide on CPI.

As the world economy begins to register a tentative recovery and some nations continue to wrestle with ongoing conflict and insecurity, it is clear that no region of the world is immune to the perils of corruption, according to TI's 2009 CPI.

"At a time when massive stimulus packages, fast-track disbursements of public funds and attempts to secure peace are being implemented around the world, it is essential to identify where corruption blocks good governance and accountability, in order to break its corrosive cycle," says Huguette Labelle, chairperson of TI.

The vast majority of the 180 countries included in the 2009 index score below five on a scale from 0 (perceived to be highly corrupt) to 10 (perceived to have low levels of corruption).

The CPI measures the perceived levels of public sector corruption in a given country and is a composite index, drawing on 13 different expert and business surveys. The 2009 edition scores 180 countries, the same number as the 2008 CPI.

Fragile, unstable states that are scarred by war and ongoing conflict linger at the bottom of the index. These are: Somalia, with a score of 1.1, Afghanistan at 1.3, Myanmar (Burma) at 1.4 and Sudan tied with Iraq at 1.5. These results demonstrate that countries which are perceived as the most corrupt are also those plagued by long-standing conflicts, which have torn apart their governance infrastructure.

When essential institutions are weak or non-existent, corruption spirals out of control and the plundering of public resources feeds insecurity and impunity. Corruption also makes normal a seeping loss of trust in the very institutions and nascent governments charged with ensuring survival and stability.

Countries at the bottom of the index cannot be shut out from development efforts. Instead, what the index points to is the need to strengthen their institutions. Investors and donors should be equally vigilant of their operations and as accountable for their own actions as they are in demanding transparency and accountability from beneficiary countries.

"Stemming corruption requires strong oversight by parliaments, a well performing judiciary, independent and properly resourced audit and anti-corruption agencies, vigorous law enforcement, transparency in public budgets, revenue and aid flows, as well as space for independent media and a vibrant civil society," says Labelle. "The international community must find efficient ways to help war-torn countries to develop and sustain their own institutions."







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