Building Economics assaignment.

Building Economics assaignment.

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  Building Economics Final Submissionof……… 1. Corruption in Bangladesh. Submitted by……. Name: Akramul hoque Roll: 2013200600018. Batch: 10th . Semester: Summer, 2016. Department of Architecture, Southeast University. Dhaka-1215.
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  INTRODUCTION Patterns of corruptionvary from society to society and over time. This is particularly the case when we consider the "South", the "Third World" of the developing countries like Bangladesh. In order to understand the immense diversity of its origins, forms and effects across developing countries, we should examine the roles of both the internal 'stakeholders' in developing societies (such as politicians, business cliques and junior civil servants) as well as external actors (including western multinational companies and international Financial institutions). In addition, reform strategies should take account of widely differing economic, legal and political contexts. Effective anticorruption strategies need to be tailored to the social environment in which corruption occurs. As a result of this variety in patterns of corruption, there are problems in evaluating the current diversity of corruption and anti-corruption efforts; many advocate a single universal strategy to fight corruption. I want to discuss in this article in briefly some combating corruption strategies in Bangladesh. How Does Corruption look from Newspaper Reports Newspapers everyday publish reports about corruption somewhere in some sector in the country. Newspapers do not publish ‘all that fits to print’. There is section and reporting bias at the reporters level as well as at the editorial level. Further information may be incomplete and there is often little follow up on the story. Hence inclusion of all reported incidents is not possible. Even with those limitations, Transparency International, Bangladesh has produced two news scan analysis of reported cases pertaining to January- March 1997 and January-June 2000.The picture is as follows Table: 1: Table-2, Distribution of Reported cases of corruption Sector/Department 1997(January-March) 2000(January-June) Police, BDR, Ansar etc. 46% 30% Local Government 13% 17% Education 10% 16% Health 5.0% 11% Taxation (Income, Customs VAT etc) 6.0% 6.0% Financial Institution (Banks, on 7.0% 6.0%9 formal micro credit) Forestry 4.0% 6.0% Water (Including Water board) 4.0% 5.0% Transport (Including Water transport) 4.0% 2.0% Sub-Total 390(100%) 927(100%) Others (188) (418) Total (N) 578 1345 Source: Transparency International, Bangladesh. Thus the reported case of corruption has increased overtime. Further it is important to note the reported corruption by type. The corruption reported are mostly petty ones or systemic in nature. These are more of a competitive bribery type than kleptocratic or bilateral monopoly. However the issue is structural adjustment program by passed these areas of civil society concern.
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  CAUSES OF CORRUPTION Thecauses of corruption are always contextual, rooted in a country's policies,bureaucratic, traditions, political development and social history (P. D. Dr Johann Grat Lambsdorff) April - 2002. It is a phenomenon that takes place due to the presence of a number of factors. An understanding of such factors requires among other things, a kindof general framework for a clearer understanding of the causes of corruption, especially from a broader perspective.Looking at three levels-International, National and individual institutional can explain Genesis of Corruption levels (Goudie and strange, 1997). Competitive ofinternational market provides multinational Companies of various sizes with an incentive to after bribes to gain an advantage over Competitors. At the national level basic development Strategy of any government moulds opportunities and incentives forCorruption. At the same level three relationships, between the government. and the judicatory and between the government and the civil society-also affect the nature anddiscussion of corruption. Three areas of government activity-customs administration,business, regulation and management of foreign aid act as source of corruption at the level of individual institutions. An approach by the world development report (1997: 104and 168) focuses on the quality of the judiciary. While controlling for other explanatoryvariables an index of the predictability of the judiciary from WB/UB significantly influences the level of corruption in59 countries. A similar correlation between corruption and the independence of the judiciary system is proposed in Adds and Di Tella(1996). The impact of merit-based recruitment on corruption in 35 developingcountrieshas been investigated by Evans and Rauch (1996). Higher values in the merit basedrecruitment index are associated with a greater proportion of higher - level officials in the core economic agencies to be enter in possession of a university degree or to enter thecivil service through a formal examination system. While controlling for income this index is negatively associated with corruption. To what extent the level of public sector salaries is linked to the amount of corruption was examined by Rijckghem and weder (1997). They argue that Low salaries force public servant to supplement their incomes illicitly while high salaries mean higher losses if public servants gets caught. In a small sample of 28 developing countries, they find a significant negative influence on the level of corruption of civil service wages relative to manufacturing wages i.e. e. From 1 to 2, will improve the corruption index bye the order of 2 point on the Transparency International (T.I) index. By acknowledging the existence of more indirect effects, the impact might be even larger, yet the authors are very careful in addressing the problem of causality corrupt countries tend to have a poor budgetary performance or may subscribe to the view that civil Servants earn sufficient in come from corruption and may reduce civil service pay as a consequence (Lambsdorff: 1999) Corruption also results from the presence of a number of factors. There include rapid economic and social change, Strong kinship and ethnic ties, new institutions, overlapping and Some times conflicting views about what is public behavior, governmental monopoly over economic activities, political softness, widespread poverty and socio-economic inequalities, ignorance, Lack of Knowledge about individual entitlements, communal bonds, ambivalence towards legitimacy of governmental organizations, asymmetric relationship favoring those in control of state power, economic shortages in which public officials assume extraordinary control over scarce good and service, greed, patronage and systematic mal-administration (United Nation 1990) most of the above mentioned factors contributing to corruption can be categorized into "Six fold typology." This typology contains ideological, external, economic, political, Socio-cultural and technological variables (caiden, 1991) Some of the major reasons as to why people "collude in different ways, rationalize corrupt practices and tolerate corruption in large scale" are because of the presence of number of factors. There are government act as monopolies in mono respects, discretion that government and its monopolistic public agencies enjoy in their decision making and allocative roles, Lack of effective accountability in government except in the nominal sense of
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  presenting annual auditedaccounts and reports to parliament of answering questions in the parliament, citizens have limited information about the rules of the game and the standard of service they can expect from public agencies; and exposure of the average citizen to corruption in the public sector tends to be episodic (paul,1997a). We believe that an effective anti-corruption strategy builds on five key elements: 1. Increasing Political Accountability 2. Strengthening Civil Society Participation 3. Creating a Competitive Private Sector 4. Institutional Restraints on Power 5. Improving Public Sector Management CORRUPTION AND ITS EFFECTS "The corruption of government institutions threatens the common aspirations of all honest members of the international as community. It threatens our common interests in promoting political and economic stability, upholding core democratic values, ending the reign of dictators, and creating a level playing field for lawful business activities" (President George W. Bush, Statement to the Second Global Forum, The Hague, May 2001) Corruption has a wide effect on economics, politics, administration, culture, and social life and over development of a country. When corruption and economic growth coexist in a country, pay off of corruption introduces additional costs and distortions that hit poor hard and worsen bureaucratic inefficiency (Modal: 2002). There have been claims that not everything is bad about corruption. Its effects can be positive too. Corruption, among other things, assists in capital formation; fosters entrepreneurial abilities, allows business interest to penetrate bureaucracy and permits the logic of market to insinuate itself into transactions from which public controls exclude it (Theobald, 1990). But overwhelming evidence in recent decades suggests that the impact of corruption has been and continues to be negative on all fronts. Corruption has a negative, deleterious and divesting influence on investment and economic growth, administrative performance and efficiency and political development. Continuance of corruption in a country leads to economic malaise and squandering of public resources, lowers governmental performance, adversely affects general morale in the public service, jeopardizes administrative reform efforts and accountability measures, and perpetuates social and economic inequalities (UN, 1990). Corruption reinforces political instability and underdevelopment (Ouma, 1991). In short, corruption impedes economic growth, stifles entrepreneurialism, misuses scarce national resources, weakens administrative capacity, contributes to serious political decay and undermines stability, democracy and national integration (Theobald, 1990). For better understanding of corruption and its effect I sketch some published report about corruption. The following tables show some corruption published report in Bangladesh from January to June 2000. Table-2 Affected class by corruption: (January-June, 2000) Serially Affected class Published Report % Numbers 1. Government 36.95 497 2. Citizen 31.08 418 3. Student 7.21 97 4. Traders 4.58 61 5. Govt./civil Service 2.75 37 6. Farmer 2.16 29 7. Teacher 0.82 118. Journalist 0.02 23
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  9. N.G.O 0.0223 10. Doctor 0.01 52 11. Lawyer 0.01 52 12. Unknown 13.75 185 Total 100.00 134513 We can see that table- 3, indicate citizen are the most affected class of Bangladesh and the numbers of published report about its are 418 from jan-june 2000, though government. Is the number one in ranking position here its also highlighted that student is the 3rd number of affected class in Bangladesh that is very painful because most of the students are from rural areas whose main income depend on agriculture. It also notifiable matter that farmers also affected seriously by corruption. In this way traderers, civil servants, teachers, journalists, N.G.Os, Doctors, and lawyers also affected. Table-3 Types of loss by published Report (January- June2000) Types of loss Published Reports % Numbers Economic 48.70655 Govt: 211, citizen 172, unknown-212 Citizen right 16.73 255 Environment al 5.35 72 Low and order Situation 5.28 71 Human rights 2.01 27 Physical torture 1.12 15 Others 6.91 93 Unknown 13.90 187 Total 100.00 1345 We realized that table–4, indicates that various types of losses are occurs by corruption. Here economic loss is the most crucial factor. Citizen right is here second position. On the other hand law and order situation, human rights, physical torture, and others loss occurs by corruption and for this reason 1345 reports are published. So we should be aware about this and try to reduce corruption by various strategies that are discussed at the strategies paragraph the next. Table-4: Sector-wise Loss (January-June, 2000) Serial Sector/Department Quantity (Taka cror) 1 Education 2305.48 2 Local govt. 2111.23 3 Health 2051.42 4 Water resources 1978.83 5 Finance 993.25 6 Commerce & Industries 783.47 7 Water Transports 638.42 8 Forest and Environment 228.67 9 Direct & indirect Tax 119.32 10 Communication 106.08 11 Electricity 87.85 12 Food 12.09 13 Social Welfare 1.53 14 Passport & immigration 1.05 15 Law execution Agency 0.87 16 Others govt. Sectors 115.69 Total 11538.98
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  RECOMMENDATION AND CONCLUSIONS Addressingcorruption in Bangladesh will require a comprehensive strategy because of the issues raised in this paper – the core reason being the collusive nature of political and administrative elites and their relationships, which in turn has maintained its debilitating hold on state institutions and process. Given the extent of the problem and its impact on economic and political life in Bangladesh, it is unrealistic to expect a reform agenda which will reduce the level of corruption in a few years. What the paper proposes is a two-step reform agenda: (i) reform of the state institutions with focus on the accountability of the executive (to prevent political corruption) and (ii) reform of the civil service recruitment process and a review of its norms and regulations to ensure greater accountability, transparency, efficiency and effectiveness. Recommendations In order to tackle political and bureaucratic corruption in Bangladesh, the following measures can be undertaken: Bureaucratic and Political Corruption • Making the Anti-Corruption Commission independent, effective, efficient and accountable (See IGS Policy Note) Bureaucratic Corruption • Increase horizontal accountability • Transparent procurement systems • Create public service ethics and standards • Improve financial management systems • Making Public Service Commission effective • Creating transparency and simplifying administrative procedures Political Corruption • Making the executive accountable through strengthening the Parliament, assuring independence of the judiciary, and appointing the Ombudsman • Making the Election Commission effective, efficient, accountable and independent for holding free and fair elections. REFERENCES ❐Clinar d, Marshall B. (1986) "White- collar crime" ❐David L, sill (ed) International Encyclopedia of the social Science, vol, 3, USA: The Macmillan Company & The Free press p, 505 ❐World Bank (2000), Corruption in Bangladesh: Cost and curses. ❐Abedin M.jaynul (2000) " Durnity 0 Unnion: Civil society's Koronia" Institute of Bangladesh studies Alumni Association. Rajshahi University. p, 48 ❐Transparency International (Bangladesh)(1996) Household Survey Report ❐Mandal M.S (2000) " Development and Corruption: Responsibilities of Civil Society" Institute of Bangladesh studies Alumni Association. Rajshahi University ❐Hossain Abul (2000) Corruption and Development Role of cavil Society. Institute of Bangladesh Studies Alumni Association. Rajshahi University. P. 65 ❐Anti-corruption policy (1998) Strategy and policy office. Asian Development Bank (ADB) Manila, Philippines.