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Monday, April 7, 2008

RP CORRUPTION TOLL: P30 B A YEAR!

RP Corruption Toll: P30 B a year
Saturday, April 5, 2008


The World Bank (WB) estimates that the Philippine government loses about P30 billion a year to corruption.

By one estimate, an average of 20 percent to 30 percent of the value of every contract is lost to corruption or inefficiency about P30 billion a year, a draft report of the World Bank presented at the recent Philippine Development Forum (PDF) 2008 revealed.

The report also said the Philippine government's stability has dropped substantially in the last decade, from 11.0 in 1998 to 9.5 in 2004 then later to 5.0 in 2007.

Governance indicators were measured by the International Country Risk Guide (ICRG).

The report said that despite the presence of a strong civil society, an open media and highly capable individuals in government, Philippine governance continues to be eroded and is lower than the average for middle income East Asian economies.

Among the Philippines' neighbors, Vietnam had the highest rating in terms of government stability with 10.5 in 2007, followed by Malaysia (9.0), Indonesia (7.5) and Thailand and South Korea (both at 6.5).

The World Bank draft report defined governance as the manner in which the state exercises its authority over institutions which provide public goods and services, an important determinant of growth and poverty reduction.

The Corruption Perception Index (CPI) of Transparency International also indicated that corruption in the Philippines has worsened significantly more than (in) other countries.

The CPI fell from 3.3 in 1998 to 2.6 in 2004 then later to 2.5 in 2007.

The report said that the Philippines is perhaps the only country, with the exception of Indonesia, whose CPI has not improved over the last ten years.

In terms of CPI, Malaysia and South Korea had a rating of 5.1 in 2007, Thailand had 3.3, Vietnam, 2.6 and Indonesia, 2.3.

Bureaucratic Quality for the Philippines, meantime, remained at 3.0 from 1998 to 2007, the same as Indonesia and Malaysia, while South Korea and Thailand had 2.0.

The report said that corruption is perhaps the most visibly recognizable characteristic of weak governance.

But the report also stressed that the control of corruption requires a multi-faceted approach, including stronger checks and balances, audit trails and more corruption-resistant administrative procedures, systems and institutions.

Another important factor in fighting corruption is for the government to make its key decisions transparent, especially with regard the budget.

The report also gave credence to efforts undertaken by the administration to curb corruption, among them the improved budget formulation process as well as the coordination of oversight agencies.

The report also said that other factors that could likewise help strengthen anti-corruption measures are the existence of an independent Ombudsman, a Presidential Anti-Graft Commission and a series of rules and regulations that aim to increase the transparency and accountability of civil servants.


"...corruption is perhaps the most visibly recognizable characteristic of weak governance." - Transparency International

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