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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: JPR who wrote (1695)	7/3/1998 1:44:00 PM
From: Mohan Marette	Respond to of 12475

Cost of corruption. JPR & everyone: Here is an article which shows the cost of corruption and ABD's anti-corruption policy. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Asian Development Bank launches campaign against corruption July 3, 1998 MANILA, PHILIPPINES - AP World News via NewsEdge Corporation : The Asian Development Bank launched an anti-corruption campaign in the Asia-Pacific region Thursday with a new policy aimed at reducing the huge losses caused by bribery, nepotism and bid-rigging. The bank said it will fight corruption by pressing for increased economic competition and by helping public institutions become more effective and accountable. Under the new policy, the bank ''has the option of canceling all or portions'' of ADB-funded projects if there is evidence of high-level corruption, said Robert Beschel, a bank strategy and policy officer. The Manila-based bank said corruption adds 20 to 100 percent to the cost of goods and services purchased by governments in some Asian countries and consumes as much as 50 percent of their tax revenues. In one country, losses due to corruption over the last 20 years exceed its total foreign debt, it said. ''This policy represents an extremely important extension of our ongoing work on governance, and the culmination of extensive dialogue with our member countries,'' ADB President Mitsuo Sato said in a statement. The bank said it expects increasing support in the region for campaigns against corruption as a result of Asia's currency crisis. ''When economies are slowing down, falling into recession, people are unprepared to bear the cost of corruption,'' said Barry Metzger, the ADB's general counsel. The bank said widespread corruption can also contribute to political and social collapse. The Hong Kong-based Political and Economic Risk Consultancy reported in April that corruption is among the causes of Asia's current economic problems. The think tank said the countries with the sickest economies generally scored highest on the corruption scale in a survey it conducted of more than 400 expatriate businessmen working in Asia. The survey, based on the executives' perceptions of corruption, rated Indonesia the worst, with Thailand, Vietnam, the Philippines and South Korea close behind. The ADB said its new anti-corruption policy is reflected in its recent dlrs 1.5 billion loan to Indonesia, which includes stringent auditing requirements and other measures to improve accountability. Beschel said he believes culture is an ''important but not decisive'' factor promoting corruption. ''I don't think Asia is uniquely troubled. Corruption is a global phenomenon,'' he said. He said the campaign will have to start at the higher levels of bureaucracy. ''In order to send the right sort of signal, senior officials really need to be committed,'' he said.