Rampant Payoffs Should Be Formalized: Study
By Erik Wasson and Pin Sisovann
THE CAMBODIA DAILY
A new Economic Institute of Cambodia study of corruption and quality of service at the local level, in commune offices, health centers and primary schools, has found that while under the table payments are rampant, they are small-scale and help improve service delivery.
The EIC report recommends that the government formalizes the unofficial fees, increases commune salaries and gives elected commune councils more control over schools and health centers.
EIC Director Sok Hach said that as the National Assembly considers the 2007 budget today, one topic for debate could be ways to increase commune-level budgets with a view to increasing their responsibilities. Currently, some communes engage in dispute resolution but others are limited in their activities to issuing identification cards and property and marriage certification.
"People really want to control local development and have more autonomy," Sok Hach said, adding that local control has been shown to increase quality.
"For example, in the Philippines, which is still quite poor, the quality of education is very good," he said.
Fees for commune activities, excluding land transactions that are occasional and hard to measure, represent less than 1 percent of the national budget and 0.1 percent of GDP, the EIC survey of 50 communes over a six month period found.
The 2006 budget for communes, including direct donor funding, was only $19 million, an average of $11,700 for each of 1,621 communes, the report states. In the draft 2007 budget, the amount allocated to communes is slated to rise to $26 million.
"It is not enough," Sok Hach said. "Our recommendation is why not formalize unofficial fees directly, instead of having a small budget that makes the offices ineffectual."
Unofficial fees vary greatly between Phnom Penh and rural areas, but making under-the-table fees official could add $36 a month to the salaries of local officials, which are currently $18 per month. The raise might also motivate local government officials to provide better services, while making the fees public and official would make that process transparent, the report notes.
In the EIC survey, 78 percent of households accepted paying unofficial fees to speed local services.
"People do not complain. Most view it as necessary," Sok Hach said.
National Assembly Finance and Banking Chairman Cheam Yeap said that $26 million is all the government can afford to give to communes.
"I understand this is not enough.... This is the best that government can do, based on GDP and economic growth," he said, adding that the government is committed to decentralizing power to the communes.
The EIC report recommends that the government formalizes the unofficial fees, increases commune salaries and gives elected commune councils more control over schools and health centers.
EIC Director Sok Hach said that as the National Assembly considers the 2007 budget today, one topic for debate could be ways to increase commune-level budgets with a view to increasing their responsibilities. Currently, some communes engage in dispute resolution but others are limited in their activities to issuing identification cards and property and marriage certification.
"People really want to control local development and have more autonomy," Sok Hach said, adding that local control has been shown to increase quality.
"For example, in the Philippines, which is still quite poor, the quality of education is very good," he said.
Fees for commune activities, excluding land transactions that are occasional and hard to measure, represent less than 1 percent of the national budget and 0.1 percent of GDP, the EIC survey of 50 communes over a six month period found.
The 2006 budget for communes, including direct donor funding, was only $19 million, an average of $11,700 for each of 1,621 communes, the report states. In the draft 2007 budget, the amount allocated to communes is slated to rise to $26 million.
"It is not enough," Sok Hach said. "Our recommendation is why not formalize unofficial fees directly, instead of having a small budget that makes the offices ineffectual."
Unofficial fees vary greatly between Phnom Penh and rural areas, but making under-the-table fees official could add $36 a month to the salaries of local officials, which are currently $18 per month. The raise might also motivate local government officials to provide better services, while making the fees public and official would make that process transparent, the report notes.
In the EIC survey, 78 percent of households accepted paying unofficial fees to speed local services.
"People do not complain. Most view it as necessary," Sok Hach said.
National Assembly Finance and Banking Chairman Cheam Yeap said that $26 million is all the government can afford to give to communes.
"I understand this is not enough.... This is the best that government can do, based on GDP and economic growth," he said, adding that the government is committed to decentralizing power to the communes.
3 comments:
If the UTT (under the table) payment were to be formalised, there would be something else to keep the thieves excited.
SiS
AND who is in the local control? Give them more power? more attitude.... the government should start spending more money on local community instead of buying sex and SUV.
It is really sad to hear Cambodian officials concluded on their so called corruption servey. They are telling is that corruption is good because it helps imporve services? corruption services? This is like you are teaching young children to corrupt.
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