Friday, January 25, 2019

RESTORING FAITH AND TRUST IN THE GOVERNMENT BY ENDING CORRUPTION


By: cassandra b. paraggua

Abstract
Restore the faith and trust in the government, end the very root that kills it, corruption. Corruption is the abuse of public trust for private gain; it is a form of stealing. Systemic corruption has long been a problem in the different countries that is like a malignant tumor that it keeps on sucking the life out of the country, robbing the economy of its competitiveness as well as eroding trust in government and thereby threatening its effectiveness.  Corruption basically robs government of the ability to positively affect the lives of every individual.  Corruption deprives the economy of its full potential and erodes trust in markets and institutions. This article discusses corruption, types of corruption and what can policy makers do to end corruption to restore faith and trust in the government. When people consider the government corrupt and believe that the country is headed in the wrong direction this negatively effects social solidarity as expressed in trust in others, and reduces trust in the bodies and decisions of the authorities. Laws must be clear and durable, leaving the least possible room for discretionary action, while decisions must be made on the basis of clear criteria, and be transparent and accessible to the public.

Keywords: Corruption, government, faith and trust in the government.

Introduction
The most common definition of corruption, that is used by the World Bank (1997) and other organizations, is “the abuse of public power for private gain”.  The typical definition of corruption involves the notion of the “public” in a fundamental sense. For this reason, it is customary to regard the main focus of corruption is government as is invariably involved public officials. Corruption is the perversion or destruction of integrity or fidelity in discharging public duties and responsibilities. It entails the use of public power for private advantage in ways which transgresses some formal rule of law. (Tendero, 2008).

Trust among citizens depends, to a large extent, on the governments’ actions to fight corruption. There is plenty of historical evidence to back this assertion. Yet there are still those in power who either leave the prevention of corruption for technical experts to take care of, without adequate political support, or who hinder anti-corruption efforts to protect themselves and their allies.
If politicians were to take a look at the evidence of research alone, they would immediately draw two very simple conclusions: first, that countries with more corruption have lower levels of citizens’ trust, especially in government; and, second, countries with less corruption enjoy far higher levels of citizen trust. (Kos, 2014).

A higher level of citizens’ trust is a key factor in achieving development. So why do so many governments come up short in the fight against corruption and not do so much more to win back public trust? The answer to this question is not complicated: while citizens and society as a whole benefit from the consequences of the efficient fight against corruption, some powerful individuals and their narrow circles of allies do not have the slightest interest in benefiting anyone but themselves. We have seen the sad truth of this in recent history, when corrupt leaders managed to empty state funds belonging to citizens into their own pockets. Trust finally collapsed, leading in some cases to public demonstrations to demand change. However, too many governments still do not appreciate how important trust is for everything else they have to do, and how much benefit they can derive from building trust up (Kos, 2014).

Acts of corruption by people in power have long shaken public faith. (Williams, 2002). Corruption significantly contributes to political instability and widespread disbelief in governmental institutions and state bodies. Most equate corruption with bribery, where an illegal payment is made to a government official in return for some type of official, state-sanctioned, authoritative act that has a selective and tangible impact and that in the absence of the secret payment would not otherwise have been made (Johnston, 2005). But beyond bribery, corruption also includes kickbacks which operate much like a bribe, but where the illegal payment is made after the service is rendered, usually from a portion of the governmental award itself, and extortion where the public official threatens to use (or abuse) state power to induce the payment of a bribe. While such acts involve transactions between citizen and government official, corruption also includes graft and embezzlement, where public officials act alone to appropriate public funds or divert their use. Closely related to graft, fraud refers to the various, often complex and imaginative schemes orchestrated by officials to appropriate public funds, often with civilian accomplices. These may include establishing fake companies, listing ghost workers to pad payrolls, overbilling the government on contracts, or otherwise fixing the books to hide the disappearance of public funds. Beyond these acts commonly associated with corruption, corruption also encompasses such diverse activities as nepotism, favoritism and conflict of interest, where public-sector jobs or benefits are illegally channeled to family, friends or to the benefit of the decision-makers own interests. Even within the partisan and electoral realms, corruption encompasses a range of activities such as illegal campaign contributions, illegal expenditures, electoral fraud and vote buying (Morris, 2011).

Forms of Corruption

1.   1  The institutional location and function of the public official involved (“political corruption” versus “bureaucratic corruption”)
Whereas by definition political corruption involves “public officials” the sheer vastness of the public sector means that corruption can occur at virtually any place within the government. An easy means of differentiating forms of corruption centers on the institutional location of the public official involved (i.e., corruption within the executive branch, the legislature or the judiciary, the local government, the police, customs agents, building inspectors, etc.). (Morris, 2011)
The term “political corruption” thus tends to refer to corruption occurring at the policymaking stage or, in Eastonian terms, the input side of the political system, whereas “bureaucratic” or “administrative” corruption relates to the implementation of policy carried out by lower level officials or the output side of the equation (Bardhan 2006; Scott 1972). Because of their different functions within the system, these two forms of corruption also violate different norms. “Bureaucratic corruption” involves the violation of first-order norms (the written rules and laws that are the product of politicians’ decision making), whereas “political corruption” committed by policymakers entails the violation of more nebulous second-order norms (the often-unwritten guidelines determining how politicians should make decisions, such as impartiality and fairness. (Warren 2004)
2. 2.     The direction of influence (“bribery” versus “extortion”)
It draws a distinction between “bribery” and “extortion”. In bribery, societal interests use extra-legal payments or bribes to influence the content of state policy or its implementation. At a broader, more systemic level, this form of corrupt influence can take on the characteristics of “state capture”, whereby an entire agency or institution operates on behalf of societal interests. Extortion, by contrast, involves the use and abuse of state power by public officials to demand extra-legal payments or rents in return for providing a legitimate or illegitimate service. In extortion, the direction of influence moves from state to society, while bribery reverses the direction (Morris, 2011).
3.      The size and frequency of the transaction (“grand corruption” versus “petty corruption)
Grand corruption” involves large sums of money and usually less frequent transactions, while at the other end “petty corruption” refers to smaller and more routine payments. This distinction tends to parallel those rooted in the institutional position of the state official involved, with “grand corruption” more likely to occur among high level government officials who have limited interaction with the public, while “petty corruption” tends to take place among low-level, bureaucratic workers who regularly interact with the public. (Morris, 2011)
4.     3. Systemic framework
Though somewhat related to differences based on size and frequency, distinctions are also often based on the broader pattern of corruption within the system. This focuses not just on the individual corrupt act, but rather on the context in which the act occurs. Mark Robinson (1988), identifies three forms of corruption: “incidental” corruption, which is confined to malfeasance on the part of the individual and is thus rare; “institutional” corruption referring to certain institutions that may be riddled with corruption due largely to the absence of controls; and “systemic” corruption which reflects situations where corruption is deeply entrenched and pervasive throughout society. A similar sort of distinction contrasts “centralized” and “decentralized” corruption depending on the level of control exercised by the political elite over local officials (Bardhan, 2006).
5.      4.. Motive or purpose
It distinguishes types of corruption based on the motives, purpose or outcome of the corrupt act. One easy distinction based on motive separates corruption that promotes purely personal interests from corruption that benefits a clique, a political party or an institution which may be more systematic. Margaret Beare (1997) offers a non-exhaustive taxonomy of corruption based largely on motive or outcome. She identifies four types: “bribes/kickbacks”, which are paid or demanded in return for being allowed to do legitimate business; “election/campaign corruption”, designed to ensure continuing influence; “protection corruption”, payments in exchange for being allowed to engage in illegitimate business; and “systemic top-down corruption”, where the nation’s wealth is systematically siphoned off by the ruling elites.

In the Philippines, RA No. 3019 also known as Anti-Graft and Corrupt Practices Act provides corrupt practices of public officers. Two variants of corruption have been identified as negative bureaucratic behavior in the Philippines:
1.      that which involves only civil servants like giving lucrative positions and promotions to the highest bidder and giving and accepting bribes to get a preferred position or receive lenient treatment than what is deserved, especially in cases where the employee is under administrative investigation
2.      that which involves a person or persons outside the bureaucracy either of whom initiate the act. (Tendero, 2008)

Dios and Ferrer ( 2000) proposes list of types or objects of corrupt transactions:  (a) bids, purchases, and auctions; (b) sale of policies and rules; (c) rules-evasion; (d) bureaucratic or political facilitation; (e) bureaucratic or political harassment; (f) political favors and support.
The first and most easily analyzable transactions that are the subject of corruption are those involving bids and purchases. These include over- and underpricing and collusion among potential bidders of services, franchises, concessions, and asset sales. The second important type of transaction is the sale of policies or rules. Examples of these are industrial priorities; fiscal policies; regulatory rules, judicial decisions, electoral rules, etc. The bottom- line efficiency effects of such corruption are difficult to predict beforehand. Rose-Ackerman (1998) notes that it will depend on the efficiency of the rules themselves. If rules are over-extended to begin with, then to the extent that exemptions are made, then they would be welfare-enhancing. Unlike policy-for-sale, the purpose of rules-evasion is not to alter the rules themselves but to modify their application for individuals who are in principle unqualified for the benefits or are liable under the rules. Corruption to excuse tax evasion, or bribes made to officers of the court would fall under this category. Bureaucratic or political facilitation are a third type of corrupt transaction and are related to what Rose-Ackerman (1998) calls “corruption to lower costs” and what Alatas (1997) calls “transactive” corruption. Examples range from petty corruption in lower-level agencies (e.g., car registration) to buying political influence to smooth out deliberations on franchises given out by congress. Hence, an illicit exemption from a tax would be liability evasion rather than a case of facilitation. While the parties involved in facilitation and harassment are the same, i.e., private agents and public officials, the significance can be completely different. The case of harassment corresponds to what they call “extortive” corruption, such as when tax collectors summon taxpayers and minutely go over tax returns as part of a shakedown or when politicians initiate an investigation of their potential opponents as part of vendetta.  Finally, political favors and investment are transactions distinguished by the fact that the result is not an immediate pecuniary benefit but a political one

Conclusion
Corruption is a phenomenon with many faces (Morris & Klesner, 2010). It is characterized by range of economic, political, administrative, social and cultural factors. It results from interactions, opportunities, strengths and weaknesses in socio political systems. Corruption kills people’s trust and faith in the ability of the government to mobilize projects for the benefit of the people and even undermines government efforts to mobilize society to help fight corruption and leads the public to routinely dismiss government promises to fight corruption. Nonetheless, fighting corruption is a sure way of boosting public trust, the government just need to do enough to address it for increasing trust would bring widespread benefits. It is difficult to measure exactly how government gain citizen’s trust- but here are some ways that policy maker can do to restore the trust and faith of the public.

1.      The government must demonstrate through consistent example that it has the political will to greatly reduce corruption.
2.      Public officials, in all branches and all levels of government, and private persons found guilty of major corrupt activities should, after a fair trial, be punished with heavy sentences, including imprisonment and seizure of assets. The cases against them should be widely publicized. Laws should be amended periodically to assure that penalties are sufficiently heavy to serve as a deterrent to corruption when enforced.
3.      The Ombudsman must be impartial and willing to investigate thoroughly all major allegations of official corruption, without favoritism or political considerations.
4.      Make data readily available. One of the most promising means of regaining trust is making data – all data, on everything from pothole repairs to emergency response times – open and accessible to the public. Be transparent also about policy making. Governments today should do more than provide raw data on public services – they must present information in simple, easily digestible ways to show citizens what their taxes are funding.
5.      Involve citizens in policy. Citizens must be consulted on a big policy decision. Researches shows that people who participate in policymaking are more likely to understand the complexities face by government.
6.      Bring all government services online. The ability to pay taxes, order a passport or register a business online does more than cut out bureaucracy and save time – digitizing services can have a significant cultural impact on citizens and there should be a website where citizens can anonymously email information about suspect or known corrupt activity for investigation.
7.      The private sector should do more to police its ranks to discourage corrupt relations with government agencies, in revenue collection and procurement. Compliance and integrity programs for businesses to pledge not to bribe public officials, to report corruption, and to embed such behavior as standard corporate practice should be undertaken.
8.      Further reform public sector procurement. Expand the public sector e-procurement system. Reform the project selection process and bidding procedures to reduce potential corruption. Otherwise intensify efforts to reduce waste in public expenditures.
9.      Increase public sector transparency. Issue an executive order instructing all government agencies to release appropriate information on government policies and procurement, when requested by the public. Expand e-governance.
10.  Undertake civil service reforms, reducing the number of political appointments and strengthening career civil service professionals in more senior positions. Pay competitive salaries to employees of critical agencies and improve all public sector salaries when budgets allow, while rationalizing positions.
11.  Strengthen the anti-corruption legal framework like the (a) Anti-Graft and Corrupt Practices Act (b) Ombudsman Act amendments, and (c) Whistleblowers Protection Act

A successful fight against corruption influences a range of fronts, such as transparency; accountability; nondiscrimination; meaningful social, economic and civic participation; legal and income equality; and more. All of this matter to citizens in every country. Any improvement in these fronts shows that government genuinely cares about people and their welfare, and will be reflected in a higher trust level.

With the many forms of corruption and differences across nations and localities, there is no single best way to fight it. Compassion. Real Change, is what we really need right now. Let us all help the government in fighting corruption.  Start with our self, for change starts with us and in us. Together let us solve the ills and weaknesses such as, corruption to their very root and “restore faith and trust in government.

References

Alatas, S. H. (1990), Corruption: Its Nature, Causes and Consequences, Aldershot, Avebury.
Bardhan, P. (2006), “The Economist’s Approach to the Problem of Corruption”, World Development 34(2), 341–48.
Beare, M. E. (1997), “Corruption and Organized Crime: Lessons from History”, Crime, Law and Social Change 28,  155–72.

de Dios, E. S., & Ferrer, R. D. (2000). Corruption in the Philippines: Framework and context.

Johnston, M. (2005), Syndromes of Corruption: Wealth, Power and Democracy, Cambridge University Press.

Kos, D. (2014). Tackle corruption to restore trust. OECD Forum. (OECD, Ed.) Retrieved from   
         www.oecd.org/forum/oecdyearbook/tackle-corrupt

Morris, S. D. (2011). Forms of Corruption. CESifo DICE Report.

Morris, S. D., & Klesner, J. L. (2010). Corruption and Trust: Theoretical Consideration and Evidence from Mexico: SAGE.

Robinson, M. (1998), “Corruption and Development: An Introduction”, in M. Robinson, ed., Corruption and Development, Frank Cass, London, 1–14.

Rose-Ackerman, S. [1998]  “Corruption and the global econopmy”, in G. Shabbir Cheema, ed. Corruption and integrity improvement initiatives in developing countries, 1998, Management Development and Governance Division,  United Nations Development Programme.

Shleifer and Vishny [1993] “Corruption”, Quarterly Jourunal of Economics

Tendero, A. (2008). Theory and Practice of Public Administration in the Philippines.

Warren, M. E. (2004), “What Does Corruption Mean in a Democracy?” American Journal of Political Science 48(2),  328–43.

Williams, H. (2000). Core Factor of Police Corruption Across the World. Forum in Crime Society Vol 2, 1. Retrieved from https://www.unodc.org/documents/treaties/publications/core_factors.pdf

World Bank [1997a] World development report: the state in a changing world. NewYork: Oxford University Press.


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