‘In India, day-to-day petty corruption is hardest on the poor'

by Murali Gopalan

The 18-year-old Transparency International strives to prevent the cancer of corruption worldwide through constant engagements with governments and companies. Clearly, people are at the end of their tether and protests have become the order of the day with India seeing its fair share in recent times.

Ms Huguette Labelle, Chair of the Board of Directors, Transparency International, was in Mumbai for the World Economic Forum's India Economic Summit. She took time off to speak to Murali Gopalan.

Could we start off with what Transparency International is all about?

Well, I am Chair of the Board of this organisation whose mission is to try to prevent and tackle corruption around the world. We have chapters in nearly 100 countries which grounds us nationally while at the same time being involved internationally.

We try to keep corruption on the agenda because of its devastating effect on people. Transparency International continues to be involved in being a solutions provider working with industries and governments where we develop tools for them to use. More recently, we are becoming increasingly involved in trying to get people to understand that they should not tolerate corruption and, instead, become part of providing solutions. We also work with educational systems to try and build ethics for students in the school curriculum from an early age right up the Ph. D. level so that there is a better moral compass both personally and professionally.

Do you see change happening?

Today, we talk about corruption but before we were born we did not even mention it. It is no longer a hidden secret and people see for themselves how it can be devastating on society. Governments today are more transparent with what they do but there is a long way to go. We also have some industry leaders who have taken on the challenge. When I look at a company like Petrobras of Brazil, there is strong leadership at the top with a code of conduct for the staff as well as incentives and disincentives.

Transparency International has tried to get different sectors in business groups to work together as in the case of people involved in water, construction (the worst activity where there is a lot of money and kickbacks for contracts) etc. We get those leaders of industry to come together in a model we call ‘ Integrity Pacts'. When there is a contract, the bidders will agree to a pact of integrity and transparency. If anyone is caught bribing, the company is disqualified immediately. We have got this initiative going in about 15 countries. It is my belief that there are ways to prevent corruption where information technology is a powerful tool to use. Many companies are reporting publicly everything they get for contracts or government payments. One of the big problems of corruption is that people lose confidence in their governments and that becomes extremely dangerous. It is a time bomb that eventually explodes as was the case in the Middle-East where corruption was the common denominator. No country is immune to this though some which are better than the others.

Which are some of these nations?

From our Corruption Perceptions Index, Norway, Sweden and Denmark are closer to the top (in terms of being least corrupt) almost all the time. Germany is in the top 20, the US is 22 while India is in the 80s.

Last year, our India chapter carried out a survey where it was revealed that one out of two Indians had to pay bribes to access central services. Big scandals are bad but it is the day-to-day petty corruption that is the hardest on the poor. This is because they do not have the money to pay and if they don't, they do not get the services.

Is there some hope that this will be cured?

The good thing is that there are institutions in India that can catch this when it happens. You have protection for whistle-blowers and a way for people to report to a safe entity which, in turn, can do something. The justice system is following its course which is very encouraging.

Another positive about India is that there is space for people to make their point. The important part is for governments worldwide not to think this is something temporary which will pass. Instead, they must work with people and businesses to see where the pressure points and vulnerabilities are. Our chapter in India is working at the community level to do development pacts where people running for local elections should state clearly what roadmap they have in mind. Once elected, they need to work with the local community and implement this roadmap.

These pacts are functional in 21 localities and working well. Greater transparency is imperative from the local government to their communities so that they know what kind of money is going into schools or roads.

Does this work in a totalitarian regime?

I think that a number of totalitarian regimes have been gradually relaxing their controls. If countries do not involve their people or are not fully transparent in what they are doing about their money/resources, they do so at their own peril and with the danger of social destabilisation. Leadership is very important and should be strong and committed with the involvement of the people. Working closely with businesses is also vital. By the end of the day, industry can be part of the problem as well as (part of) the solution.

Keywords: Transparency International, corruption, Ms Huguette Labelle, World Economic Forum, India Economic Summit
source;The Hindubusinessline