Starting-points toward solutions
6.1 The level of governance
Virtually every theoretical discussion on the subject of corruption sees a close tie to poor governance. People with uncontrolled power misuse their decision-making authority to corrupt ends. They are able to do this because it is impossible to see into how decisions are arrived at and accountability is obfuscated. The same political groups are in a position to obstruct changes in the conditions that make it possible for them to line their pockets illicitly. Although corruption or other unethical conduct cannot be excused by pointing to the irresponsible conduct of governments and their bureaucracies, it would be naive to suppose that problems which can develop only in tandem with flawed governance could be solved by applying the maxims of corporate ethics.
Good governance is undoubtedly the most fundamental condition of a country's political development. It is manifested when the activity of the state serves to bring the people security, prosperity, order and continuity because an environment has been created in which everyone can unfold their productive, political and cultural abilities. Notably where the state regulates economic life excessively, where a surfeit of laws and enforcement agencies chokes every display of private initiative, and where officeholders deliberately drag their feet and operate destructively in order to foster a “market” for inducements – in such a tangle precious little can be achieved with mere moral appeals prescribed by business ethics.
So without better governance the problem of corruption is insolvable. (37) The most relevant shortcomings in the context of fighting corruption are these:
◦Lack of a clear distinction between what is to be considered “public” and what “private”, leaving the door open to appropriating public resources for private advantage;
◦Lack of transparency in the handling of public finances, lack of independent control agencies, and thus hindrance of presentation of concrete proof;
◦Absence of dependable legal machinery for preventing arbitrary application of regulations and laws;
◦Weak public institutions, no free press;
◦Over-regulation, as evidenced by an unwarranted number of regulations, permits requirements and laws;
◦Unclear decision-making procedures hinging on very close personal connections plus capricious interventions by those who hold political power and their abuse of it for their own enrichment.
By and large one can say that the more inefficient a government is and the more “powerful” its bureaucracy, the bigger the corruption problem. When the omnipresence of imprecise or contradictory laws and regulations, the obscurity of the criteria and channels governing decisions, the lack of accountability and democratically sanctioned political controls, all in conjunction with an underpaid and corrupt officialdom, leave a firm otherwise beyond reproach no alternative but to either join the circle of corruption or else withdraw completely from the country, then whichever it decides to do little has been gained in the direction of improving the country's political status quo.
A will to work for better governance and concrete political action to this end are imperative for both sustainable development and the wiping out (or at least minimization) of corruption. This means first of all:
◦Dismantling over-regulation, for the overload of discretionary administrative rules and regulations provides officialdom at every level with the opportunity to exercise its authority not on the basis of objective requirements but rather in the specific interests of those (low-paid) officeholders empowered to decide.
◦Reform of the public service with a view to abolishing ponderous and nebulous ways of doing and deciding things. In their place introduce more precise and intelligible statutory and administrative regulations together with more efficient information flows; then translate them into real-life jurisprudence and practice. Further, effective superintendence and accountability required of everyone holding an official position as well as irregular personnel rotations in especially susceptible positions, though not at the price of impairing competence. Finally, effective, speedy and justly enforced disciplinary and punitive measures against corrupt officials and employees.
◦Revised hiring and employment conditions in the civil service – for example, more competition for posts, better remuneration, and ombudsmen – plus reduction of arbitrarily exercised decision-making authority.
◦Public invitation of tenders for government and agency contracts and all planning and procurement or public purchasing contracts above a certain amount. Documentation to be made obligatory; public and open evaluation of all bids and justification of the decision taken. Because corruption can only thrive in the dark, greater transparency is absolutely essential to overcoming it. Blacklisting businesses that have been found guilty of corruption and refusing to consider them for government contracts for a certain period – until they have mended their ways – can also be a useful tactic.
◦Build-up or improvement of internal audits and controls by higher authority, applicable to both officialdom and the business sector.
◦Creation of independent commissions along the Hong Kong model and protection of freedom of the press. Even in industrial countries big cases of corruption have finally been brought to light only thanks to free and independent media.
All of the foregoing measures are aimed at reducing the motivation and the opportunity to indulge in corrupt behavior. One could furthermore conceive of disincentives to corruption-for example, an achievement-based scheme in which public servants would receive a share of the fees and levies they collect. (38)
Over the past 35 years Singapore has shown what can be accomplished in a political and institutional environment of good governance and incorruptible leadership. Comparable national initiatives elsewhere are deserving of every possible kind of international support. The opposite pattern of behavior should be penalized – for example, by cutting back on international development assistance.