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Freeman Cebu Business

The fight against corruption

INTEGRITY BEAT - Henry J. Schumacher - The Freeman

Around the world, citizens are crying out against corruption. As demonstrated recently in Northern Africa, the Middle East and India, corruption foments distrust, anger and instability.

Bribery is not culturally relative. Anywhere one goes, bribery is considered shameful, a sell-out to the rich and a betrayal of the poor. Even rich countries exhibit worrying signs, as demonstrated by daily news I am getting on corruption activities around the world.

Is fighting corruption a lost case? It is amazing how often we express outrage over corruption and then quickly move to cynicism.

Remarkable too, how reluctant we are to consider corruption with the same cool, analytical powers we apply to other cases of policy and management. I am also amazed with the results of the SWS surveys on ‘Corruption Perception’ in the Philippines: Business is complaining about corruption in government and ALSO about corruption within their industries. But are those business leaders willing to engage in fighting corruption and make talent and money available? More than 80% of those asked said: NO.

Where cynicism reigns, complacency follows. It is easier to accept that nothing can be done about an issue if we can persuade ourselves it does not matter. “Corruption? So what? It is the grease in the wheels of commerce and glue in fractured polities. Corruption has its functions, even its benefits, especially where neither states nor markets work well.”

But let’s be clear: corruption turns out to slow economic growth, cripples social services and defrauds justice. Former World Bank President Paul Wolfowitz called corruption “the single most important obstacle to development”; today, the Bank’s website says: The Bank has identified corruption as among the greatest obstacles to economic and social development’.”

Fortunately, we can learn from a number of examples of impressive progress against corruption in cities, ministries and countries, from Mozambique to Columbia, from Indonesia to Qatar, as well as epic successes such as Singapore. Though contexts differ, lessons emerge.

Leaders who wish to fight systemic corruption need to change a corruption institutional culture. The need to mobilize and coordinate a variety of resources inside and outside government. They have to think in terms of corrupt systems instead of corrupt individuals. Remember my favourite formula in my last column: Corruption=Monopoly+Descretion-Accountability.

What are the emerging lesson?

o An important first step is - to fry a big fish;

o a second lesson: pick low hanging fruit; effective reforms do not tackle the most difficult domain of corruption first;

o third – successful leaders – in government and in the private sector – bring in new blood; they invite in young people to be ‘eyes and ears’.

We, in the Integrity Initiative, understand that the fight against corruption involves more than one agency in government; we have to mobilize the business community and civil society. I am glad to report that this is happening. The best example is the creation of Integrity Circles, composed of the representatives of the LGUs, business and civil society in 60 LGUs so far, as part of the ‘Integrity for Jobs’ project.

 I will write about our success stories in future columns. In the meantime, join the Integrity Initiative, sign the Integrity Pledge and live up to the commitments in the Pledge. Visit www.integrityinitiative.com

INTEGRITY BEAT

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