DATE=10/7/98 TYPE=BACKGROUND REPORT NUMBER=5-41546 TITLE=CORRUPTION INDEX BYLINE=PAMELA TAYLOR DATELINE=WASHINGTON CONTENT= VOICED AT: INTRO: ACCORDING TO A RECENTLY PUBLISHED ANNUAL 'CORRUPTION PERCEPTION INDEX', SCANDINAVIAN GOVERNMENTS ARE THE LEAST CORRUPT OF 85 COUNTRIES SURVEYED AROUND THE WORLD. THE INDEPENDENT BERLIN-BASED GROUP CALLED 'TRANSPARENCY INTERNATIONAL' SAYS THIS YEAR ITS INDEX RANKS DENMARK, SWEDEN AND FINLAND RANKED AT THE TOP OF THE SCALE AS THE LEAST-CORRUPT WITH AFRICAN AND LATIN AMERICAN GOVERNMENTS AT THE BOTTOM. VOA'S PAMELA TAYLOR HAS MORE IN THIS BACKGROUND REPORT. TEXT: PETER EIGEN, THE FOUNDER AND CHAIRMAN OF 'TRANSPARENCY INTERNATIONAL' EXPLAINS THAT THE INDEX IS DESIGNED TO MEASURE HOW CORRUPT COUNTRIES ARE 'PERCEIVED' TO BE, NOT HOW CORRUPT THEY ACTUALLY MIGHT BE: // ACT ONE TAYLOR/EIGEN // (EIGEN) IT DOES NOT PRETEND TO BE A JUDGEMENT ABOUT CORRUPTION IN VARIOUS COUNTRIES. IT IS A COMPILATION OF THE PERCEPTIONS OF OTHER PEOPLE. THOUSANDS OF OTHER PEOPLE: BUSINESSMEN, MEDIA, OBSERVERS, ANALYSTS. AND THESE PEOPLE HAVE BEEN ASKED TO GIVE THEIR OPINIONS TO TWELVE DIFFERENT OPINION POLLS. SO OUR COMPILATION IS BASICALLY A POLL OF POLLS. (TAYLOR) SO WHAT DID YOU FIND IN THIS SURVEY? WHO RANKS AS THE TOP CORRUPT COUNTRY AND WHO IS DOING PRETTY WELL? (EIGEN) WELL MANY OF THE AFRICAN COUNTRIES, THE POOREST COUNTRIES ARE DOING RELATIVELY BADLY THIS YEAR. AND THE ONE WHICH IS DOING THE WORST THIS YEAR IS CAMEROON. WE HAVE A SCORING FROM ONE TO TEN, WITH TEN BEING THE BEST SCORE, WHICH HAS ONLY BEEN ACHIEVED BY DENMARK. AND ONE BEING THE WORST AND CAMEROON IS AT ONE POINT FOUR AND SO ON OUR LIST OF 85 COUNTRIES IS THE LAST. (TAYLOR) AND WHERE DO COUNTRIES LIKE THE UNITED STATES AND MORE DEVELOPED WESTERN EUROPEAN COUNTRIES FALL? (EIGEN) WELL, THE UNITED STATES IS AT POINT 17, WHICH IS SLIGHTLY SURPRISING. SOME OF THE SCANDINAVIAN COUNTRIES ARE DOING BETTER, IT'S QUITE STRIKING THAT DENMARK, FINLAND AND SWEDEN ARE THE FIRST THREE AND THEN NEW ZEALAND, ICELAND, CANADA, SINGAPORE AND THEN COME MOST OF THE WEST EUROPEAN COUNTRIES, WITH GERMANY AT NUMBER 15. (TAYLOR) BUT YOU'RE SAYING IT IS 'PERCEPTION' ONLY WHICH PLACES COUNTRIES THIS WAY? (EIGEN) THE 'CORRUPTION PERCEPTION INDEX' ASKED THE QUESTION 'WHERE YOU DO YOU HAVE TO PAY MORE BRIBES?' IN DENMARK OR IN BANGLADESH OR IN PAKISTAN? OR IN THE UNITED STATES. WE DIDN'T ASK THE QUESTION 'WHERE DO YOU EXPECT MORE BRIBES?' FROM AN EXPORTER FROM BANGLADESH OR THE UNITED STATES OR FROM CANADA, OR FROM GERMANY? THE LATTER QUESTION WILL BE ASKED ON A FUTURE 'BRIBERY PROPENSITY INDEX.' THEREFORE, THE ONLY THING YOU CAN SAY FROM THIS REPORT IS THAT IT IS THE PERCEPTION OF THOSE POLLED THAT YOU HAVE TO PAY MORE BRIBES TO DO BUSINESS IN THE UNITED STATES THAN THEY HAVE TO PAY WHEN THEY GO TO DENMARK. (TAYLOR) THE COUNTRIES WHICH (ARE) AT THE END OF THE SCALE ON THIS INDEX TEND TO BE IN AFRICA AND LATIN AMERICA. WHY NOT ASIA? (EIGEN) WELL, THERE ARE COUNTRIES FROM ASIA, INDONESIA IS VERY MUCH AT THE END. SO IS VIETNAM, SO IS CHINA AND THE PHILIPPINES. BUT IN TERMS OF NUMBERS THERE ARE INDEED A LARGE NUMBER OF VERY POOR COUNRIES WITH RELATIVELY UNSTABLE GOVERNMENTS AND WEAK ADMINISTRATIONS WHICH ARE PARTICULARLY VULNERABLE TO CORRUPTION. AND THEREFORE THERE IS CLEARLY A CORELATION BETWEEN THE POVERTY IN A COUNTRY AND THE DEGREE OF CORRUPTION OF THEIR LEADERS. (TAYLOR) APART FROM POVERTY ARE THERE OTHER CAUSES THAT CAN BE ADDRESSED OR DO YOU SEE THE GLOBAL RECESSION AS DRIVING MORE COUNTRIES TO TURNING TO BRIBERY AND CORRUPTION? (EIGEN) I WOULD SAY THAT BRIBERY AND CORRUPTION HAS BEEN A CONTRIBUTING FACTOR TO THE GLOBAL RECESSION. I WOULD SAY IT HAS BEEN FACTOR IN MANY COUNTRIES LIKE INDONESIA, THAILAND, KOREA AND OF COURSE RUSSIA AND UKRAINE AND OTHER COUNTRIES IN TRANSITION. // END ACT // PETER EIGEN'S 'TRANSPARENCY INTERNATIONAL' IS NOT ALONE IN ITS CONCERN ABOUT CORRUPTION IN GOVERNMENT. THE UNITED NATIONS DEVELOPMENT PROGRAM SAID IN A RECENT REPORT THAT CORRUPTION IS BELIEVED TO SIPHON BILLIONS OF DOLLARS OUT OF DEVELOPMENT PROGRAMS EVERY YEAR. THE PARIS-BASED ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT - THE O-E-C-D -- HAS BEEN WORKING TO MAKE TAX DEDUCTIONS ILLEGAL FOR BUSINESSES WHICH PAY BRIBES IN OTHER COUNTRIES. THE FOREIGN CORRUPT PRACTICES ACT MAKES SUCH DEDUCTIONS ILLEGAL IN THE UNITED STATES. (SIGNED) NEB/PAM/DB/KL 07-Oct-98 6:22 PM EDT (2222 UTC) NNNN Source: Voice of America .