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| Cartoon by Sacrava (on the web at http://sacrava.blogspot.com) |
Showing posts with label PERC corruption ranking. Show all posts
Showing posts with label PERC corruption ranking. Show all posts
Wednesday, March 30, 2011
Sacrava's Political Cartoon: The Top Rank of PERC
Wednesday, March 10, 2010
Asia's Most Corrupt Countries
03.10.10
Hana R. Alberts
Forbes Asia
Hana R. Alberts
Forbes Asia
A new report shows business executives look down on Indonesia in favor of Singapore and Australia.
HONG KONG--Investors seem to have a love-hate relationship with Indonesia. Many are confident, boosting the country's benchmark stock index 115% in 2009. At the same time, Asian business executives just voted it the most corrupt country in the region.
The world's largest archipelagic nation ranks worst on the list of 16 Asia-Pacific regions, according to a report released Wednesday by the Hong Kong-based Political & Economic Risk Consultancy (PERC).
PERC asked 2,174 middle and senior executives--both expatriates and those who hail from Asia--to rank the behavior of their political, civil and economic agencies, including leaders, police, courts, stock markets, taxation systems and militaries.
Indonesian President Susilo Bambang Yudhoyono, commonly known as SBY, was overwhelmingly re-elected for a second term last July by a populace that craved not only economic stability but growth. And he delivered: Global demand for the nation's natural resources fueled the uptick in many fortunes on Forbes' ranking of Indonesia's richest people. (See the complete list.)
But not six months later Yudhoyono and officials he appointed came under fire when the government's bailout of a small bank was criticized as a means of funneling money into other politicians' pockets. Further dinging public confidence was the ruling Wednesday by Indonesia's House of Representatives that Century Bank's 2008 rescue was unjustified.
Ranked barely less corrupt than Indonesia in PERC's ranking were Cambodia and Vietnam, followed by the Philippines, Thailand, India and China. The cleanest places were Singapore, Australia, Hong Kong and the U.S. (America was included as a benchmark.)
The economic downturn increased respondents' perceptions and criticisms of corruption in their midst, according to the study.
"It is so much easier to link cause and effect when people can relate rising unemployment and falling incomes to acts by greedy businessmen, civil servants and politicians that go unchallenged when economies are booming and everyone is making money," PERC's report says.
Indeed, in a separate survey by Transparency International that measures corruption in 180 countries, the latest corruption index shows that 75 of the nations surveyed scored below 3 on a scale of governmental honesty where 10 is the top mark--an increase from 72 countries in 2008. (See Transparency International's ranking of the world's most corrupt countries.)
Perceptions of corruption have increased over the last year, PERC's report says, in part due to political elections in which contenders lay bare opponents' misdeeds and in part due to the increasing publicity of civilian-generated complaints aired through the Internet or text messaging.
The problem is not limited to Asia. Corruption is a fixture in countries like Egypt, India, Indonesia, Morocco and Pakistan, where 60% of executives surveyed reported having been solicited for a bribe, according to Transparency International. That organization figures bribes consume an estimated $20 billion to $40 billion a year worldwide.
While PERC cautions that its study captures merely the beliefs of a slice of the Asian business community, it believes the results are useful to investors.
"They help to determine where individuals and companies select their investment sites and the magnitude of risk premiums they attach to investments in certain locations. They influence the choice of partners, suppliers and joint-venture partners," the report says. "Politicians that ignore the perceptions of their populations and foreign investors do so at their own risk."
Smarting from PERC's report, the Jakarta Globe published a story joking that Indonesia "has made it onto a list of superlatives. Unfortunately, not for something the nation should be proud of." It seems, though, that residents of the world's fourth-most population nation hold out hope for Yudhoyono and his cronies. In response to a solicitation for reader comment, Julius Phang wrote the paper: "Why would anyone be surprised? Come on Indonesia, it's time we show the world that we, too, can be clean."
HONG KONG--Investors seem to have a love-hate relationship with Indonesia. Many are confident, boosting the country's benchmark stock index 115% in 2009. At the same time, Asian business executives just voted it the most corrupt country in the region.
The world's largest archipelagic nation ranks worst on the list of 16 Asia-Pacific regions, according to a report released Wednesday by the Hong Kong-based Political & Economic Risk Consultancy (PERC).
PERC asked 2,174 middle and senior executives--both expatriates and those who hail from Asia--to rank the behavior of their political, civil and economic agencies, including leaders, police, courts, stock markets, taxation systems and militaries.
Indonesian President Susilo Bambang Yudhoyono, commonly known as SBY, was overwhelmingly re-elected for a second term last July by a populace that craved not only economic stability but growth. And he delivered: Global demand for the nation's natural resources fueled the uptick in many fortunes on Forbes' ranking of Indonesia's richest people. (See the complete list.)
But not six months later Yudhoyono and officials he appointed came under fire when the government's bailout of a small bank was criticized as a means of funneling money into other politicians' pockets. Further dinging public confidence was the ruling Wednesday by Indonesia's House of Representatives that Century Bank's 2008 rescue was unjustified.
Ranked barely less corrupt than Indonesia in PERC's ranking were Cambodia and Vietnam, followed by the Philippines, Thailand, India and China. The cleanest places were Singapore, Australia, Hong Kong and the U.S. (America was included as a benchmark.)
The economic downturn increased respondents' perceptions and criticisms of corruption in their midst, according to the study.
"It is so much easier to link cause and effect when people can relate rising unemployment and falling incomes to acts by greedy businessmen, civil servants and politicians that go unchallenged when economies are booming and everyone is making money," PERC's report says.
Indeed, in a separate survey by Transparency International that measures corruption in 180 countries, the latest corruption index shows that 75 of the nations surveyed scored below 3 on a scale of governmental honesty where 10 is the top mark--an increase from 72 countries in 2008. (See Transparency International's ranking of the world's most corrupt countries.)
Perceptions of corruption have increased over the last year, PERC's report says, in part due to political elections in which contenders lay bare opponents' misdeeds and in part due to the increasing publicity of civilian-generated complaints aired through the Internet or text messaging.
The problem is not limited to Asia. Corruption is a fixture in countries like Egypt, India, Indonesia, Morocco and Pakistan, where 60% of executives surveyed reported having been solicited for a bribe, according to Transparency International. That organization figures bribes consume an estimated $20 billion to $40 billion a year worldwide.
While PERC cautions that its study captures merely the beliefs of a slice of the Asian business community, it believes the results are useful to investors.
"They help to determine where individuals and companies select their investment sites and the magnitude of risk premiums they attach to investments in certain locations. They influence the choice of partners, suppliers and joint-venture partners," the report says. "Politicians that ignore the perceptions of their populations and foreign investors do so at their own risk."
Smarting from PERC's report, the Jakarta Globe published a story joking that Indonesia "has made it onto a list of superlatives. Unfortunately, not for something the nation should be proud of." It seems, though, that residents of the world's fourth-most population nation hold out hope for Yudhoyono and his cronies. In response to a solicitation for reader comment, Julius Phang wrote the paper: "Why would anyone be surprised? Come on Indonesia, it's time we show the world that we, too, can be clean."
Sacrava's Political Cartoon: The Champions
Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)Tuesday, March 09, 2010
Cambodia ranks the second most corrupt nation in Southeast Asia: Bravo Mr. Hun Xen!?!?
Corruption worsens in Indonesia: survey
March 9, 2010
BERNICE HAN
AFP
March 9, 2010
BERNICE HAN
AFP
Indonesia remains the most corrupt country in Southeast Asia and graft is getting even worse, a poll of businessmen says, dealing a blow to the president's efforts to clean up the country.
The news comes as President Susilo Bambang Yudhoyono is under mounting pressure with his vice-president and finance minister facing a criminal probe into their role in the controversial bailout of a troubled bank.
The annual poll by the Political and Economic Risk Consultancy (PERC), made available to AFP on Tuesday, put Southeast Asia's biggest economy last in a table of regional economies with a score of 9.27 out of the worst possible 10.
Indonesia also came last in 2009 but with a marginally better score of 8.32.
Cambodia was ranked the second most corrupt regional nation with a grade of 9.10, followed by Vietnam and the Philippines.
Singapore remained top of the list with a score of 1.42, while Australia was second with 2.28 and Hong Kong third on 2.67.
Zero means the country or territory is seen to suffer the least corruption among politicians and civil servants, PERC said in the report.
The Hong Kong-based consultancy said Indonesian lawmakers' call for a criminal probe into the Yudhoyono government's bailout of Bank Century in 2008 reflected attempts by a corrupt establishment to maintain the status quo.
"Corruption has become a charge being used by corrupt people to protect themselves and to stifle reform," PERC said.
"The whole fight against corruption is in danger of being corrupted," it said.
Vice President Boediono and Finance Minister Sri Mulyani Indrawati, who both authorised the $US724 million ($A796.3 million) bailout, have consistently ranked as among the most respected figures in Yudhoyono's cabinet among foreign investors.
The probe into their decision to rescue Bank Century may cost them their jobs, but "is entirely manipulated and entirely political", PERC said.
Yudhoyono, a liberal ex-general who first came to power in 2004, was re-elected in 2009 on promises to root out corruption, which riddles every aspect of Indonesian public life, from the courts to the customs office.
Hong Kong slipped a place from a year ago, with PERC saying questionable tactics by powerful property developers in the Chinese territory likely dragged it down.
"There are still criticisms of some practices, particularly in the real-estate sector, concerning tactics used by developers that, to be generous, play on a lack of transparency that would not be allowed in many other markets," PERC said.
"This could account for why a number of perceptions this year for Hong Kong are slightly worse than last year. However, overall Hong Kong has maintained its favourable ranking in our survey," it said.
The United States - included for comparison purposes - was fourth with a score of 3.42, followed by Japan (3.49), Macau (4.96), South Korea (5.98), Taiwan (6.28), Malaysia (6.47) and China (6.52).
"Measuring the level of corruption (in China) is nothing more than guesswork," PERC said.
"What is fairly clear is that the problem of corruption is more severe at the local level of government and business, particularly state-owned enterprises, than at the national level, although there are plenty examples of graft at the national level too," it said.
PERC's poll was conducted from December to February, and involved 2,147 mid-level and senior Asian and expatriate business executives working in the 16 economies.
The news comes as President Susilo Bambang Yudhoyono is under mounting pressure with his vice-president and finance minister facing a criminal probe into their role in the controversial bailout of a troubled bank.
The annual poll by the Political and Economic Risk Consultancy (PERC), made available to AFP on Tuesday, put Southeast Asia's biggest economy last in a table of regional economies with a score of 9.27 out of the worst possible 10.
Indonesia also came last in 2009 but with a marginally better score of 8.32.
Cambodia was ranked the second most corrupt regional nation with a grade of 9.10, followed by Vietnam and the Philippines.
Singapore remained top of the list with a score of 1.42, while Australia was second with 2.28 and Hong Kong third on 2.67.
Zero means the country or territory is seen to suffer the least corruption among politicians and civil servants, PERC said in the report.
The Hong Kong-based consultancy said Indonesian lawmakers' call for a criminal probe into the Yudhoyono government's bailout of Bank Century in 2008 reflected attempts by a corrupt establishment to maintain the status quo.
"Corruption has become a charge being used by corrupt people to protect themselves and to stifle reform," PERC said.
"The whole fight against corruption is in danger of being corrupted," it said.
Vice President Boediono and Finance Minister Sri Mulyani Indrawati, who both authorised the $US724 million ($A796.3 million) bailout, have consistently ranked as among the most respected figures in Yudhoyono's cabinet among foreign investors.
The probe into their decision to rescue Bank Century may cost them their jobs, but "is entirely manipulated and entirely political", PERC said.
Yudhoyono, a liberal ex-general who first came to power in 2004, was re-elected in 2009 on promises to root out corruption, which riddles every aspect of Indonesian public life, from the courts to the customs office.
Hong Kong slipped a place from a year ago, with PERC saying questionable tactics by powerful property developers in the Chinese territory likely dragged it down.
"There are still criticisms of some practices, particularly in the real-estate sector, concerning tactics used by developers that, to be generous, play on a lack of transparency that would not be allowed in many other markets," PERC said.
"This could account for why a number of perceptions this year for Hong Kong are slightly worse than last year. However, overall Hong Kong has maintained its favourable ranking in our survey," it said.
The United States - included for comparison purposes - was fourth with a score of 3.42, followed by Japan (3.49), Macau (4.96), South Korea (5.98), Taiwan (6.28), Malaysia (6.47) and China (6.52).
"Measuring the level of corruption (in China) is nothing more than guesswork," PERC said.
"What is fairly clear is that the problem of corruption is more severe at the local level of government and business, particularly state-owned enterprises, than at the national level, although there are plenty examples of graft at the national level too," it said.
PERC's poll was conducted from December to February, and involved 2,147 mid-level and senior Asian and expatriate business executives working in the 16 economies.
Thursday, April 09, 2009
Nation third most corrupt
Thursday, 09 April 2009
Written by George McLeod
The Phnom Penh Post
CAMBODIA was ranked less corrupt than Thailand on Wednesday by a Hong Kong-based organisation, counter to the findings of other recent graft surveys, but still came in third from bottom.
The report by the Political and Economic Risk Consultancy (PERC) scores 16 Asian countries based on interviews with 1,700 expatriate business leaders.
It ranked Singapore and Hong Kong as the Asian region's least corrupt countries, with Indonesia and Thailand at the bottom, below Cambodia.
The organisation was not available for comment Wednesday.
Local business leaders welcomed the report's findings, saying it corresponded to the oft-overlooked reality on the ground.
"I have always maintained that Cambodia isn't as bad as it is made out to be," said John Brinsden, vice chairman for ACLEDA Bank and a spokesman for the International Business Club of Cambodia.
"I've been to a number of countries where I've seen corruption at a worse scale than in Cambodia. It's nice to see Cambodia isn't at the bottom of this report," he told the Post Wednesday.
He cautioned that corruption remains an issue for businesses in Cambodia, but said other problems were more serious.
"Probably the biggest problem in Cambodia, from a business perspective, is [the lack of] availability of cheap electricity and poor enforcement of laws, as well as infrastructure. Corruption is not the top of the list," he said.
"[Corruption] is an issue that many investors seem to find a way to work around," said Douglas Clayton, managing partner of Leopard Capital.
"And when we compare the expenditure on the airport in Thailand and the airport in Cambodia versus the final product delivered, you can draw your own conclusions," he said.
Conflicting reports
Despite such consensus within the private sector, other surveys suggest that corruption is the No 1 concern of businesses in Cambodia.
The World Bank annual report released in January said that more than 50 percent of businesses cited corruption as a top complaint, followed by macroeconomic stability and anticompetitive informal practices.
"Corruption remains widespread, in its many forms.... The perception of corruption is high, even compared to countries at the same level of development," said the report.
The report also said that poor governance in Cambodia is a major problem.
"There are multiple facets of corruption: (i) at the service delivery (ii) in public procurement (both small and large contracts); and (iii) in gaining favour for policy decisions," the report states.
Corruption watchdog Transparency International also issued a harsh assessment of Cambodia's level of corruption, putting the country at 166 out of 181 countries.
Thailand was ranked 80 and Indonesia 126 by the same organisation in its report last year.
"It depends on how they measure [corruption]," said Kevin Britten, managing director of The Secretary.
"I have always been disappointed in my business dealings with Thailand.
"But I think I am quite typical in saying that I have had good experiences in Cambodia."
The PERC system rated countries from zero to 10, with zero as the least corrupt and 10 as the most corrupt. Indonesia earned a score of 8.32, Thailand 7.63 and Cambodia 7.25.
ADDITIONAL REPORTING BY AFP
The report by the Political and Economic Risk Consultancy (PERC) scores 16 Asian countries based on interviews with 1,700 expatriate business leaders.
It ranked Singapore and Hong Kong as the Asian region's least corrupt countries, with Indonesia and Thailand at the bottom, below Cambodia.
The organisation was not available for comment Wednesday.
Local business leaders welcomed the report's findings, saying it corresponded to the oft-overlooked reality on the ground.
"I have always maintained that Cambodia isn't as bad as it is made out to be," said John Brinsden, vice chairman for ACLEDA Bank and a spokesman for the International Business Club of Cambodia.
"I've been to a number of countries where I've seen corruption at a worse scale than in Cambodia. It's nice to see Cambodia isn't at the bottom of this report," he told the Post Wednesday.
He cautioned that corruption remains an issue for businesses in Cambodia, but said other problems were more serious.
"Probably the biggest problem in Cambodia, from a business perspective, is [the lack of] availability of cheap electricity and poor enforcement of laws, as well as infrastructure. Corruption is not the top of the list," he said.
"[corruption] is an issue that many investors seem to find a way to work around."According to the head of Cambodia's largest investment fund, corruption has not prevented Cambodia from being a favourable environment to do business.
"[Corruption] is an issue that many investors seem to find a way to work around," said Douglas Clayton, managing partner of Leopard Capital.
"And when we compare the expenditure on the airport in Thailand and the airport in Cambodia versus the final product delivered, you can draw your own conclusions," he said.
Conflicting reports
Despite such consensus within the private sector, other surveys suggest that corruption is the No 1 concern of businesses in Cambodia.
The World Bank annual report released in January said that more than 50 percent of businesses cited corruption as a top complaint, followed by macroeconomic stability and anticompetitive informal practices.
"Corruption remains widespread, in its many forms.... The perception of corruption is high, even compared to countries at the same level of development," said the report.
The report also said that poor governance in Cambodia is a major problem.
"There are multiple facets of corruption: (i) at the service delivery (ii) in public procurement (both small and large contracts); and (iii) in gaining favour for policy decisions," the report states.
Corruption watchdog Transparency International also issued a harsh assessment of Cambodia's level of corruption, putting the country at 166 out of 181 countries.
Thailand was ranked 80 and Indonesia 126 by the same organisation in its report last year.
"It depends on how they measure [corruption]," said Kevin Britten, managing director of The Secretary.
"I have always been disappointed in my business dealings with Thailand.
"But I think I am quite typical in saying that I have had good experiences in Cambodia."
The PERC system rated countries from zero to 10, with zero as the least corrupt and 10 as the most corrupt. Indonesia earned a score of 8.32, Thailand 7.63 and Cambodia 7.25.
ADDITIONAL REPORTING BY AFP
Cambodia: No. 3 most corrupt country in Asia
Indonesia,Thailand: Asia's most corrupt
Thursday April 9, 2009
Bangkok Post
SINGAPORE / Indonesia and Thailand are perceived as Asia's most corrupt economies, with last year's cellar-dweller the Philippines making a marked improvement, an annual survey of foreign business executives shows.
Singapore and Hong Kong retained their rankings as the region's least corrupt economies, although there are concerns about private-sector fraud, according to the survey by the Political and Economic Risk Consultancy (Perc).
Despite the negative perception of Indonesia, Perc noted ``there has been a real headway in fighting the problem'' under President Susilo Bambang Yudhoyono, who is seeking re-election in July's presidential polls.
``The absolute scores show corruption in the public and private sectors is still very high,'' Perc said.
``But our latest survey shows that residents in Indonesia are more favourably impressed with the determined way the KPK (anti-corruption commission) has been fighting corruption than any of the other countries graded poorly for corruption.''
It said the major question its respondents are asking in Indonesia is whether the anti-corruption efforts can be sustained.
The March results are based on more than 1,700 responses from 14 Asian economies plus Australia and the United States, which were included for comparison purposes. In a grading system with zero as the best possible score and 10 the worst, Indonesia got 8.32.
Thailand was seen as the second most corrupt country with a grade of 7.63, but Perc said foreign investors were more concerned about political stability.
``Very few expatriate executives find that corruption makes the country a less attractive place to live and do business,'' it said.
Cambodia was third-worst at 7.25, followed by India with 7.21 and Vietnam with 7.11.
A grade above 7.0 indicates that a ``serious'' corruption problem exists, Perc said. A score between 4.0 and 7.0 indicates a ``moderate'' level of corruption.
Perceived as Asia's most corrupt country in the 2008 survey, the Philippines had a score of 7.0 to rank sixth from the bottom this year.
The Philippine customs and tax agencies, police and politicians have the meanest reputation for corruption in the country, the consultancy said.
But while ``there is very little confidence in the government's seriousness about fighting the problem,'' Perc also said that ``the actual level of corruption is not as bad as it is often portrayed''.
Singapore again topped the survey as Asia's least corrupt country with a score of 1.07, followed by Hong Kong with 1.89.
Australia scored 2.40 to rank in third place followed by the United States with a score of 2.89.
The recession's impact on regional financial centres Singapore and Hong Kong would increase public-sector corruption there, Perc said.
Singapore and Hong Kong retained their rankings as the region's least corrupt economies, although there are concerns about private-sector fraud, according to the survey by the Political and Economic Risk Consultancy (Perc).
Despite the negative perception of Indonesia, Perc noted ``there has been a real headway in fighting the problem'' under President Susilo Bambang Yudhoyono, who is seeking re-election in July's presidential polls.
``The absolute scores show corruption in the public and private sectors is still very high,'' Perc said.
``But our latest survey shows that residents in Indonesia are more favourably impressed with the determined way the KPK (anti-corruption commission) has been fighting corruption than any of the other countries graded poorly for corruption.''
It said the major question its respondents are asking in Indonesia is whether the anti-corruption efforts can be sustained.
The March results are based on more than 1,700 responses from 14 Asian economies plus Australia and the United States, which were included for comparison purposes. In a grading system with zero as the best possible score and 10 the worst, Indonesia got 8.32.
Thailand was seen as the second most corrupt country with a grade of 7.63, but Perc said foreign investors were more concerned about political stability.
``Very few expatriate executives find that corruption makes the country a less attractive place to live and do business,'' it said.
Cambodia was third-worst at 7.25, followed by India with 7.21 and Vietnam with 7.11.
A grade above 7.0 indicates that a ``serious'' corruption problem exists, Perc said. A score between 4.0 and 7.0 indicates a ``moderate'' level of corruption.
Perceived as Asia's most corrupt country in the 2008 survey, the Philippines had a score of 7.0 to rank sixth from the bottom this year.
The Philippine customs and tax agencies, police and politicians have the meanest reputation for corruption in the country, the consultancy said.
But while ``there is very little confidence in the government's seriousness about fighting the problem,'' Perc also said that ``the actual level of corruption is not as bad as it is often portrayed''.
Singapore again topped the survey as Asia's least corrupt country with a score of 1.07, followed by Hong Kong with 1.89.
Australia scored 2.40 to rank in third place followed by the United States with a score of 2.89.
The recession's impact on regional financial centres Singapore and Hong Kong would increase public-sector corruption there, Perc said.
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