R.P Trails neighbors in Transparency International’s Corruption index

WHEN it comes to corruption, the Philippines is only better than three of its neighbors in Southeast Asia—Timor–Leste, Cambodia and Burma—after having scored 2.4 and ranking 139th place to the bottom in the 2009 Corruption Perception Index (CPI) recently released by Transparency International.

Timor Leste scored 2.2, Cambodia 2.0 and Burma 1.4. The Philippines shares its score of 2.4 with Pakistan and Bangladesh.

The 2009 CPI includes 180 countries, the same number as the 2008 CPI.

While the country’s ranking improved from 141st with a score of 2.3 in the 2008 CPI, the country continued to lag behind most of its fellow members in the Association of Southeast Asian Nations (Asean).

The Philippines lagged behind Singapore, which ranked third in the CPI with a score of 9.2; Brunei, 39th with 5.5; Malaysia, 56th with 4.5; Thailand, 84th with 3.4; Indonesia, 111th with 2.8; and Vietnam, 120th with 2.7.

“Overall results in the 2009 index are of great concern because corruption continues to lurk where opacity rules, where institutions still need strengthening, and where governments have not implemented anticorruption legal frameworks,” said Transparency International in a statement.

Transparency International said a country receiving a score of zero is perceived to be highly corrupt, while a country scoring 10 in the index is 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.

“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,” said TI chairman Huguette Labelle.

The TI said that when essential institutions are weak or nonexistent, corruption spirals out of control and the plundering of public resources feeds insecurity and impunity. Corruption, the organization said, 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.

TI said investors and donors should also be vigilant in their operations and accountable for their own actions because they are demanding transparency and accountability from beneficiary countries.

However, the organization said that even industrialized countries cannot be complacent: the supply of bribery and the facilitation of corruption often involve businesses based in these rich countries.

“Corrupt money must not find safe haven. It is time to put an end to excuses,” said Labelle. “The OECD’s work in this area is welcome, but there must be more bilateral treaties on information exchange to fully end the secrecy regime. At the same time, companies must cease operating in renegade financial centers.”

The report stated that bribery, cartels and other corrupt practices undermine competition and contribute to massive loss of resources for development in all countries, especially the poorest ones. Between 1990 and 2005, more than 283 private international cartels were exposed that cost consumers around the world an estimated $300 billion in overcharges, as documented in a recent TI report.

Highest scorers in the 2009 CPI are New Zealand at 9.4; Denmark at 9.3; Singapore and Sweden tied at 9.2; and Switzerland at 9.0. These scores reflect political stability, long-established conflict of interest regulations, and solid, functioning public institutions. “With the vast majority of countries in the 2009 index scoring below 5, the corruption challenge is undeniable.”

The Group of 20 has made strong commitments to ensure that integrity and transparency form the cornerstone of a newfound regulatory structure, which the TI said is critical to address corruption as a substantial threat to a sustainable economic future.