Corruption index analysed

Published October 8, 2007

Many of us seem to be quite smug about the fact that Pakistan’s Corruption Perception Index (CPI) as compiled by Transparency International has moved a notch up to 2.4 in 2007 from 2.2 in 2006 and 2.1 in 2005. CPI score moves between 0 (highly corrupt) and 10 (highly clean) and is based on the perceptions of business people and analysts. Before getting carried away by a CPI improvement to 2.4, a government advertisement displays a CPI of 2.6 in 2002 and 2.2 in 1999.

Was Pakistan “cleaner” in 2002 at CPI=2.6 than it is in 2007 at CPI=2.4? If it was, then better governance claims for 2007 are not tenable. The fact of the matter is that CPI score is just fluctuating around the “unclean” end of a scale. That is, if CPI has just ranged between 2.1 and 2.6 since 1999, then such a low rating cannot even be viewed as a passing score on a scale with 10 as its maximum.

To consider oneself better off just because 39 countries are now more corrupt than us is to blatantly ignore the fact that there are 137 countries less corrupt with Pakistan listed at 138 out of the 180 or so surveyed. Should one not look up to the ones less and least corrupt instead of taking heart in the number of those that are more corrupt. Even if there are a lot many more corrupt countries, the Islamic Republic should aim at being clean even if it ends up being the only clean country in the world as this is the way of life prescribed by God even if no one else takes to it.

Being an Islamic Republic, we must strive to be rated one by trying to get somewhere near the top end. To be towards the bottom end should be a cause for great concern. Instead, those at the helm at various levels in the country are sanguine that is indeed unfortunate.

Corruption is still viewed to be a smart way of life by most who matter in the country. In purchases and procurement in all sectors and levels of the economy, commissions are considered to be normal. Kickbacks are very difficult to trace as tracks are usually not left behind. In a procurement chain of command, everybody has to join in or else you are the odd person out who will not be treated kindly.

People may opt out of such departments if they find corruption reprehensible. A lot many don’t as accepting kickbacks is not considered to be a vice due to the disvalue system that has come to prevail in which the concept of ‘rizq-e-hilal’ is totally lost. In fact, what is practised widely is considered halal even if it is in utter disregard of the injunctions of God.

In the past, currency notes carried a note that meant ‘rizq-e-hilal ain ibadat hai.’ Such inscriptions are no longer found on currency except on Rs50 notes that now says, “husool-e-rizq-e-halal ibadat hai.” This message could be confusing if read fast without noticing the zer after rizq. It would then mean that husool-e-rizq is halal ibadat which would further mean that rizq acquisition is ibadat regardless of the means used for the purpose.

One of the highest regulatory bodies should be giving out messages that are clearly value-driven and not those that appear value-neutral unless gazed at very carefully. Otherwise, misleading signals might be emitted in a society whose moral base is already eroded.

Unless ill-gotten income is condemned, people will continue to hijack the discounts that should be passed on to the organisations. This is why a lot of employees end up being richer than the organisations they work for. The mess that most public sector organisations are in is, inter alia, because of the fact that the financial resources meant for the organisations find their way into personal coffers. Organisational performance is impaired and their growth stunted as individual households thrive through hijacked money.

Commissions’ is a case of resource diversion. Then there is the issue of withholding the resources that are due to the state. This shows up in the prevailing tax behaviour. Tax evasion is smart and tax payment is silly according to the belief system, specially of those who have benefited the most in Pakistan. “What do we get in this country” is a common grouse of those who do not want to pay taxes when they are the ones who have got the most and the best deal out of the various systems.

Sure, there could be better roads, water supply, and other utilities. But, one must pay for what one gets. If the infrastructure improves, then we will be required to pay more. In particular, poor roads and utilities are no reason for evading federal tax payments. The concept of payment for the consumption of public goods simply does not exist. For, the disvalue system is to cheat where one can and government is the easiest to cheat on due to corrupt elements on both sides of the payment desk.

This, however, does not mean that the private sector is free from this malaise. The recent sugar and wheat crises amply demonstrate how prices may be jacked up artificially to maximise gains. This has snowballed into a price spiral across the board for all consumption goods and services simply because of dishonest business practices rooted in a fake belief system, ‘business main to yey hota he hai.’ Business gets equated with devious practices which is absolutely incorrect.

Global businesses have not grown by taking consumers or other stakeholders for a ride. They give value for money and have their image established as that of a responsible corporate citizen which is why their highly aware societies allow them to exist and grow. Otherwise, they make dirty examples out of them like they did of Enron, WorldCom, and Arthur Andersen.

In our Islamic Republic, businesses should learn from the practices of (Prophet) Muhammad (PBUH) as business manager. Even though he practised business with the highest level of honesty imaginable, he made profits many times more than were expected by the business owner. That good ethics is good business is a lesson taught routinely by Western texts. It was, however, practised first by (Prophet) Muhammad (PBUH) well before any Western text was written. Should the business practitioners in the Islamic Republic not be inspired to follow their leader in this regard?

So for public goods, people want to pay nothing or not much due to corrupt disposition. For private goods, on the other hand, people end up getting fleeced and paying a lot more than the utility they derive from the consumption of private goods and services. Linked to this economic corruption should be the concept of political corruption. For, private deviant behaviour is difficult to rein in due to the influence they wield in the corridors of power. End of the day, one finds that there is no one to complain to as the ones at the helm may be propped up by the ones one wants to complain against.

Then, corruption needs to be put an end to not only because it is a counterproductive means to whatever ends sought. It also generates huge negative spill-over effects. And, it is a major hurdle in the way of bringing in a just socio-economic system. This further necessitates absence of political corruption and a decision-making apparatus that decides on the basis of principles of equity and justice and not on the basis of own political, economic, and social considerations.

To eradicate economic corruption, it is the political and social corruption also that needs to be dealt with failing which all three will keep reinforcing each other in a circle getting too vicious to bear by the general public.

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