DATE=2/22/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-245809
TITLE=CORRUPTION (L-ONLY)
BYLINE=BARRY WOOD
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 

INTRO:  INTERNATIONAL ECONOMISTS AND BUSINESS EXPERTS ARE TRYING 
TO FIND WAYS TO COMBAT CORRUPTION IN DEVELOPING COUNTRIES.  
CORREPONDENT BARRY WOOD REPORTS A WASHINGTON CONFERENCE THIS 
WEEK, SPONSORED BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND 
DEVELOPMENT, IS STRESSING THE ROLE OF THE PRIVATE SECTOR IN 
FIGHTING BRIBERY.

TEXT:  SPEAKERS AT THE WASHINGTON CONFERENCE STRESS CORRUPTION IS
A GLOBAL PROBLEM THAT AFFLICTS BOTH RICH AND POOR COUNTRIES. 

EVEN THOUGH THE UNITED STATES HAS COMPREHENSIVE ANTI-BRIBERY 
LAWS, CONFERENCE PARTICIPANTS SAID IT HAS BEEN COMMON PRACTICE 
FOR COMPANIES IN WESTERN EUROPE TO PAY BRIBES TO DO BUSINESS 
ABROAD.  IN AN EFFORT TO STEM CORRUPTION, THE 29-MEMBER COUNTRIES
OF THE PARIS-BASED O-E-C-D RECENTLY REACHED AGREEMENT TO END TAX 
DEDUCTIBILITY FOR COMPANIES FOUND PAYING BRIBES. 

BUT IT IS ALSO COMMON PRACTICE FOR COMPANIES IN DEVELOPING 
COUNTRIES, OUTSIDE THE O-E-C-D, TO PAY BRIBES TO DO BUSINESS AT 
HOME.

WORLD-BANK OFFICIAL DANIEL KAUFMANN DISCUSSED A RECENT STUDY THAT
SUGGESTS BRIBERY IS UNPROFITABLE.  HE SAYS BRIBERY UNDERMINES THE
RULE OF LAW, ADDS TO THE COST OF DOING BUSINESS, AND UNDERMINES 
THE CREDIBILITY OF GOVERNMENTS.

                    // FIRST KAUFMANN ACT //

         IN UKRAINE, A SMALL-SIZE FIRM, OF SAY 30 STAFF, PAYS 
         ABOUT 30-THOUSAND DOLLARS IN TOTAL BRIBES PER YEAR.  AND
         ONE CAN EVEN CONCOCT, ON AVERAGE, WHAT IS, IN EFFECT, A 
         BRIBE FEE LIST FOR EVERY SINGLE LICENSE (TO DO BUSINESS)
         AND SO ON.

                          // END ACT //

O-E-C-D ANALYSTS STRESS THE NEED FOR THE PRIVATE SECTOR TO 
COOPERATE WITH GOVERNMENT TO END CORRUPTION.  

MR. KAUFMAN SAYS SURVEYS SHOW BUSINESSES IN EASTERN EUROPE WOULD 
GLADLY PAY MORE TAXES IF THE PERVASIVE PRACTICE OF BRIBERY IS 
ELIMINATED.

                    // SECOND KAUFMANN ACT //

         THAT BOTH SUGGESTS THE HIGH COST OF CORRUPTION, AND IS A
         BIG MESSAGE TO MINISTERS OF FINANCE OF HOW MUCH MONEY 
         THEY ARE LOSING (FROM THE TREASURY) BECAUSE OF 
         CORRUPTION AND REGULATIONS. 

                          // END ACT //

MEANWHILE, INTERNATIONAL ORGANIZATIONS LIKE THE WORLD BANK ARE 
INCREASING SPENDING FOR PROGRAMS TO TRAIN CIVIL SERVANTS TO FIGHT
CORRUPTION AND ENHANCE THE STATURE OF LEGAL INSTITUTIONS IN 
DEVELOPING COUNTRIES. 

THE BANK CALLS CORRUPTION A SIGNIFICANT, BUT IRRATIONAL, BARRIER 
TO EXPANDED WORLD TRADE.   (SIGNED)

NEB/BDW/RAE

22-Feb-99 2:46 PM EST (1946 UTC)
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Source: Voice of America
.