TI chief finds no link between anti-graft drive and economic slowdown
Saturday, 3 November 2007
FE Report
Transparency International (TI) has played down the fear that the "hurried" crackdown on corruption could drive down the country's economic growth and erode business confidence, saying geo-politics might have something to do with that.
" … Something else may be happening at the same time," visiting chair of the Berlin-based global anti-graft watchdog Huguette Labelle told a questioner while dismissing the possible link between the graft-fighting drive and dampening growth prospects.
"Our experiences show that the anti-corruption campaign doesn't slow down growth, nor dampens investors' confidence. Geo-political factors may be the reason (for the situation)," she said as she threw remarks on an observation made by an economist that the country's growth might go down by 1.0 to 2.0 per cent this year, thanks mainly to the anti-corruption campaign launched by the caretaker authority.
Labelle was delivering a public lecture on "Corruption: Global Roots, Global Solutions" in the city, with Chairman of the Bangladesh chapter of Transparency International Muzaffar Ahmed in the chair. TIB executive director Mohammad Iftekharuzzaman moderated the session.
To support her argument, she referred to the current American housing slump and the 1997 Asian financial crisis, noting that neither of the incidents was influenced by the anti-corruption drive.
She, however, said, "It's a question--I'll look at other sources to find the answer."
Muzaffar Ahmed, who heads the TI's local chapter, stood by the point made by Labelle, saying empirical evidence in other countries did not support the views that anti-graft drive had dampened growth prospects and investors' confidence.
Referring to the issues of money-laundering and recovery of stolen assets, chief of the global anti-sleaze body said Bangladesh needs technology, lawyers, accountants, economists and auditors to handle these "complicated, but important" matters.
"It's important that professionals are not legitimising illegal matters … Bankers should know clients, particularly when it comes to a large sum of cash," she told the civil society audience.
In this connection, the TI chair cited the Stolen Assets Recovery Initiative, jointly launched by the United Nations and the World Bank.
"Two multilateral institutions have joined together to make a greater way into the move," she said about the plan to help poorer nations retrieve money siphoned off by corrupt politicians and businessmen.
In reply to another question, visiting TI chief said if recovered, the money can be put into a trust and the people should know how the cash is being spent.
Asked how the financing of political parties could be brought within the ambit of law in view of the absence of legal mechanism, Labelle said the Election Commission (EC) must have an independent mandate to ask political leaders to divulge information about their wealth.
"You've an EC which needs to be reinvigorated and given the independent mandate. You also need strong legislation, forcing politicians to divulge wealth information through the EC or other institutions," she commented.
The TI chief suggested that Bangladesh strengthened its oversight institutions, including the Anti-Corruption Commission (ACC), to make the corruption-fighting agenda effective.
"ACC is a very important organisation and it needs to be properly resourced, giving it a chance to do its work," she observed.
Until 2005, the global corruption watchdog rated Bangladesh as the most corrupt nation in the world for five straight years where irregularities in large projects were rampant.
When her attention was drawn to a particular case-the project costs of Gulistan-Jatrabari flyover project doubled in 10 days from US$500 million to $1.0 billion, Labelle said the civil society has a greater role in holding the corrupt company responsible for the cost manipulation.
"Somebody needs to answer this. The role of civil society is important here to raise question as to why the project costs have gone up two folds within 10 days," Labelle said when asked how Bangladesh could handle the project cost manipulation.
She said international donors, who are involved in financing large development projects, must have "a moral responsibility" to make sure project costs do not swell manifolds arbitrarily.
The TI chief underlined the need for building "a culture of integrity" not only in the civil service, but among the people through empowerment.
"Empowering the people to participate into the local governance system is crucial", she added.
She also sought cooperation from all concerned to better quantify the impact of corruption on economies and societies across the world.
The TI chair warned that countries would not be able to attain the Millennium Development Goals, cut poverty and draw more foreign investments if they "don't deal with graft."
UNB adds: Huguette Labelle said that the voter list for the next general election of Bangladesh and financing of the candidates would have to be fair and transparent.
"Parliament is the highest place in operating a country. So, if the parliament members are not honest then corruption can't be eliminated. I would like to urge the government for making the voter list fairly and ensure transparency of financing of the candidates," she said.
About the proposed Truth Commission in the country, Labelle said that according to her experience about the activities of truth commission in various countries of the world including South Africa, such commission plays positive role in curbing corruption.
"But success of the truth commission will heavily depend on reconciliation of mass people in fighting corruption," she said.
The TI chief also put emphasis on making the parliamentary standing committees active to ensure accountability of governments.
"Parliamentary committees are the bodies through which people can be informed about the activities of a government. People's right to access to information can be ensured by effective role of the parliamentary committees."
She said all public services of Bangladesh would have to be made fair and accountable to curb corruption. "Public Service Commission (PSC) will have to be made transparent and free of all corruption and irregularities."
Corruption is also a barrier to flourishing a country's economy, she added.
"If Bangladesh can eliminate corruption, foreign investors will definitely increase their investment in the country," Labelle said.
Besides, revenue collection and formulating budget will have to be done in a transparent process, she said.
About the role of media in fighting corruption, she said journalism is undoubtedly a difficult profession. But the journalists will have to work overcoming all professional difficulties and ethical challenges.
Labelle said journalists across the world have to work amid
different kinds of threats, as investigative journalism has been the effective machinery in fighting corruption.
Journalists-to-journalists association is also necessary for their safety and better working of journalists, she observed.
The seminar was followed by the distribution of TIB-sponsored Investigative Journalism Awards.
The Investigative Journalism Awards-2007 went to Sujan Kabir of TV channel Bangla Vision for his series reports on Pabna Mental Hospital, Sukdev Sana of Weekly Bichitra for series report on diagnostic centres and HM Alauddin of Daily Purbanchal for series report on health situation of Khulna city.
Transparency International (TI) has played down the fear that the "hurried" crackdown on corruption could drive down the country's economic growth and erode business confidence, saying geo-politics might have something to do with that.
" … Something else may be happening at the same time," visiting chair of the Berlin-based global anti-graft watchdog Huguette Labelle told a questioner while dismissing the possible link between the graft-fighting drive and dampening growth prospects.
"Our experiences show that the anti-corruption campaign doesn't slow down growth, nor dampens investors' confidence. Geo-political factors may be the reason (for the situation)," she said as she threw remarks on an observation made by an economist that the country's growth might go down by 1.0 to 2.0 per cent this year, thanks mainly to the anti-corruption campaign launched by the caretaker authority.
Labelle was delivering a public lecture on "Corruption: Global Roots, Global Solutions" in the city, with Chairman of the Bangladesh chapter of Transparency International Muzaffar Ahmed in the chair. TIB executive director Mohammad Iftekharuzzaman moderated the session.
To support her argument, she referred to the current American housing slump and the 1997 Asian financial crisis, noting that neither of the incidents was influenced by the anti-corruption drive.
She, however, said, "It's a question--I'll look at other sources to find the answer."
Muzaffar Ahmed, who heads the TI's local chapter, stood by the point made by Labelle, saying empirical evidence in other countries did not support the views that anti-graft drive had dampened growth prospects and investors' confidence.
Referring to the issues of money-laundering and recovery of stolen assets, chief of the global anti-sleaze body said Bangladesh needs technology, lawyers, accountants, economists and auditors to handle these "complicated, but important" matters.
"It's important that professionals are not legitimising illegal matters … Bankers should know clients, particularly when it comes to a large sum of cash," she told the civil society audience.
In this connection, the TI chair cited the Stolen Assets Recovery Initiative, jointly launched by the United Nations and the World Bank.
"Two multilateral institutions have joined together to make a greater way into the move," she said about the plan to help poorer nations retrieve money siphoned off by corrupt politicians and businessmen.
In reply to another question, visiting TI chief said if recovered, the money can be put into a trust and the people should know how the cash is being spent.
Asked how the financing of political parties could be brought within the ambit of law in view of the absence of legal mechanism, Labelle said the Election Commission (EC) must have an independent mandate to ask political leaders to divulge information about their wealth.
"You've an EC which needs to be reinvigorated and given the independent mandate. You also need strong legislation, forcing politicians to divulge wealth information through the EC or other institutions," she commented.
The TI chief suggested that Bangladesh strengthened its oversight institutions, including the Anti-Corruption Commission (ACC), to make the corruption-fighting agenda effective.
"ACC is a very important organisation and it needs to be properly resourced, giving it a chance to do its work," she observed.
Until 2005, the global corruption watchdog rated Bangladesh as the most corrupt nation in the world for five straight years where irregularities in large projects were rampant.
When her attention was drawn to a particular case-the project costs of Gulistan-Jatrabari flyover project doubled in 10 days from US$500 million to $1.0 billion, Labelle said the civil society has a greater role in holding the corrupt company responsible for the cost manipulation.
"Somebody needs to answer this. The role of civil society is important here to raise question as to why the project costs have gone up two folds within 10 days," Labelle said when asked how Bangladesh could handle the project cost manipulation.
She said international donors, who are involved in financing large development projects, must have "a moral responsibility" to make sure project costs do not swell manifolds arbitrarily.
The TI chief underlined the need for building "a culture of integrity" not only in the civil service, but among the people through empowerment.
"Empowering the people to participate into the local governance system is crucial", she added.
She also sought cooperation from all concerned to better quantify the impact of corruption on economies and societies across the world.
The TI chair warned that countries would not be able to attain the Millennium Development Goals, cut poverty and draw more foreign investments if they "don't deal with graft."
UNB adds: Huguette Labelle said that the voter list for the next general election of Bangladesh and financing of the candidates would have to be fair and transparent.
"Parliament is the highest place in operating a country. So, if the parliament members are not honest then corruption can't be eliminated. I would like to urge the government for making the voter list fairly and ensure transparency of financing of the candidates," she said.
About the proposed Truth Commission in the country, Labelle said that according to her experience about the activities of truth commission in various countries of the world including South Africa, such commission plays positive role in curbing corruption.
"But success of the truth commission will heavily depend on reconciliation of mass people in fighting corruption," she said.
The TI chief also put emphasis on making the parliamentary standing committees active to ensure accountability of governments.
"Parliamentary committees are the bodies through which people can be informed about the activities of a government. People's right to access to information can be ensured by effective role of the parliamentary committees."
She said all public services of Bangladesh would have to be made fair and accountable to curb corruption. "Public Service Commission (PSC) will have to be made transparent and free of all corruption and irregularities."
Corruption is also a barrier to flourishing a country's economy, she added.
"If Bangladesh can eliminate corruption, foreign investors will definitely increase their investment in the country," Labelle said.
Besides, revenue collection and formulating budget will have to be done in a transparent process, she said.
About the role of media in fighting corruption, she said journalism is undoubtedly a difficult profession. But the journalists will have to work overcoming all professional difficulties and ethical challenges.
Labelle said journalists across the world have to work amid
different kinds of threats, as investigative journalism has been the effective machinery in fighting corruption.
Journalists-to-journalists association is also necessary for their safety and better working of journalists, she observed.
The seminar was followed by the distribution of TIB-sponsored Investigative Journalism Awards.
The Investigative Journalism Awards-2007 went to Sujan Kabir of TV channel Bangla Vision for his series reports on Pabna Mental Hospital, Sukdev Sana of Weekly Bichitra for series report on diagnostic centres and HM Alauddin of Daily Purbanchal for series report on health situation of Khulna city.