Where are we now, where are we heading and what is the remedy?

Curse of corruption and reward of honesty

By Sarath A. Nonis, Professor of Marketing, Arkansas State University, US

If my memory is correct, according to World Bank data, the two countries – the Democratic Republic of Congo (DRC), formerly Zaire, and Singapore – were at the same level in terms of economic activities in the 1950’s. Half a century later, Singapore as a country, 3,500 times smaller than the Congo and 100 times smaller than Sri Lanka, is a modern day economic marvel with Gross National Income per capita (GNI/p) of $24,200. However, GNI/p in Congo. is only $120. Over 1.9 million children suffer from acute malnutrition and life expectancy is among the lowest in the world with 49 years. If Congo could simply mine the diamonds under their very feet (has one of the purest and most expensive diamonds in the world), it can be among the richest countries on this planet (the country is endowed with abundant valuable resources such as cobalt, copper, petroleum, as well as gold and silver).

How unfair is life for those innocent people born in a country with so much natural wealth but having to die of starvation, disease, and lack of opportunity? The fact is they pay the ultimate price for corruption, terrorism, ethnic conflict - and a selected few who wield the power and the influence to make things right, but choose not to. As in all cases, the innocent and the most vulnerable suffer. How can this happen to a country in the 21st century while the entire world stands and watches? What lessons can a small country like Sri Lanka learn from this situation?

Where are we?
Gross National Income per capita (GNI/p) is the most widely used indicator to measure the wealth of people in a country. Based on selected economic data available from the World Bank and other sources as well as the Transparency International (provides the Corruption Perception Index or CPI, an indicator of how corrupt a country is), I have investigated the relationship these variables have with GNI/p for all countries where data is available.

The results for the last three years consistently showed CPI to have the strongest relationship with GNI/p, or how rich people are in a country. For your review, relationships GNI/p have with other selected economic variables are provided below:

‘+’ sign shows a direct relationship and ‘-’ shows an inverse relationship. A number or a coefficient close to one (1) demonstrates a very strong relationship while a number or a coefficient close to zero (0) demonstrates no relationship. Based on this explanation, GNI/p has the strongest relationship with CPI that is close to being perfect. When GNI/p is high, so is CPI (high CPI demonstrate a clean country). Also, GNI/p has a strong positive relationship with economic freedom (GNI/p will be high when economic freedom is high). GNI/p has a strong negative relationship with indebtedness meaning GNI/p is high in countries that have minimum or no debt. GNI/p had no relationship with population size.

Do these results suggest the percentage of rich people in a country to determine how corrupt the country is, or how corrupt a country is to determine the percentage of rich people in that country? While I do not have a simple ‘yes’ or ‘no’ answer to this question, I believe it is both. I believe economic prosperity lowers corruption and corruption lowers chances of economic prosperity. From a practical point of view, it does not matter if we know what causes the other to happen. The fact is that GNI/p has the strongest relationship with CPI.

Where are we going?

From what I know of corruption, it doesn’t happen overnight. It is a cancer that spreads and if not arrested early, will finally kill the patient. How does this relate to our society? If you talk to any Sri Lankan over 65, you will receive an unanimous response that our society is corrupt now than ever before and they cite the abuse of public office for private gain. If you talk to someone below 55, you will receive a similar answer.

Obviously, Sri Lankans’ perceive their society to be more corrupt than ever before. How about factual evidence? In 2002, the CPI score for Sri Lanka was 3.7 but in 2005 it dropped to 3.2. Both public perception and factual data indicate that the country is in a steady decline. If the trend continues the situation can deteriorate further making it worse for us and future generations. Secondly, with corruption, once a wrong is accepted as right, it is a recipe for disaster. That is, when people in a society justify that corruption is a way of life and nothing is done about it, they cheat themselves by lying to themselves.

It is the dishonesty, living the double or at times multiple lives that kills the character of a person and ultimately his or her soul. In Sri Lanka, we live in a society where getting the job done is valued and rewarded more than how the job is done. Once a corrupt system is in place and a majority of people operate within that system, individuals have no incentive to try to change it or to refrain from taking part in it, even if everybody would be better off if corruption were to be eliminated.

How many times have you cheated yourself (i.e., taken or given a bribe for doing or asking for a favour, or took no action when you witnessed corruption taking place, or advised someone else to behave dishonestly to get a job done) thinking that you have done the right thing while lying to yourself after doing the wrong? Maybe you have done it too many times now that your conscience doesn’t bother you any more (Justifying what is wrong as being right is called the “neutralising attitude.” Studies have shown this attitude to have the strongest relationship with cheating behaviour).

Remedy

If corruption has the strongest relationship to how rich people are in a society, working towards a clean society should be the goal of all patriots. Mere rhetoric will not help. It requires changing attitudes and behaviour of people and any successful plan should include all 20 million Sri Lankans and nothing less. It is a huge task but is a noble one that will reward you in your next life even if it doesn’t in this. Are you up to the challenge? Here are some suggestions that I believe may succeed.

* Accept responsibility. Admit that we all have a problem

We are all contributors to this problem in one way or another. If we are to curb this problem, every citizen has to play his or her part. Spend sometime thinking about how you can and will play your part and then apply yourself to it. If you are religious or spiritual minded, abiding by those basic principles as they relate to truth, honesty, justice, and fairness will guide your conscience.

Highlight where corruption is prevalent and focus on these institutes first

Some industries and institutes may be more corrupt than others. We need to first do some research (how about sending a “mystery shopper” to check this out quickly, firsthand). Focus on the industries and the institutes that are most corrupt and start taking action immediately. Corruption always happens in the dark and once exposed, bystanders usually change their behavior positively. It is ironic that Transparency International has categorised our judiciary, followed by law enforcement to be the two most corrupt public institutes. This is something for people in authority and power to seriously think about.

Corrupt individuals should be held accountable and their unacceptable behaviour meet with fitting penalties.

Studies have shown perceived probability of getting caught and perceived costs are key deterrents of deviant behavior. In an environment where individuals perceive little chance of being caught and even if caught where penalties (i.e. shame, loss of job, time in jail, paying damages etc.) are minimal (i.e. getting away through political influence and power), corruption will be rampant.

On the other hand, if the perception of a corrupt individual getting caught is high and the penalty for such behavior is extreme, corruption will recede. Notice, it is perception that matters and this may not be reality.

Therefore, given the impression that corruption is being watched and the creation of a system where mis-behaviour is reported with evidence (by using cell or video cameras, tape recorders, or by simply keeping a diary) is encouraged and rewarded.

Furthermore, the penalty should match the crime and no one should be allowed to escape punishment, primarily high profile individuals. Creation of a system where corruption is not tolerated takes a long time and need commitment from all individuals.

Start a countrywide promotional campaign

Learn from successful advertising campaigns such anti-smoking, HIV, mothers against drunk driving. Consider dedicating a week each year in building awareness and the importance of a clean society. This is a worthy cause. This will draw sufficient attention to the issue. We have the marketing experts at the PIM, CIM and SLIM in Sri Lanka who are capable of handling this task effectively. All they need is an invitation from a person in authority such as the Head of State, the President.

Recognise exceptional behaviour

Recognise and reward clean organisations and individuals. We recognise companies for most exports, meeting certain quality standards, return on investments and acknowledge and recognise individuals based on performance and service. Why not recognise exemplary organisations that are clean and closely follow ethical and moral principles? We could even start ranking key organisations annually based on how corrupt they are.

Every company would wish to avoid being on this list as it will bear a negative influence in their commercial interests.

Also, the media is often quick to snoop on the negatives about companies and people, but how about affording equal time to all those unsung heroes and companies who do exemplary work day in and day out without any appreciation? Let’s recognise these individuals. For example, how about publishing articles on very ordinary people rather than high profile individuals who hog the limelight regularly?

Sell the idea to individuals who are top of the organisational hierarchy
Every head of an institute or an organisation (places of worship, schools and institutes of higher education, hospitals, law enforcement, justice department, internal revenue, political parties, for profit business organisations etc.), should be in a position to create and develop an environment within the organisation where corruption is not tolerated and good behavior is rewarded. It is the heads of organisations who set the standards on how organisations are run for others to follow. All these individuals should be totally committed to this important cause and mandatory training will be critical.

The academic society in Sri Lanka who are knowledgeable about these issues can first develop training programs for top officials in organisations who want to focus on developing awareness, setting boundaries and guidelines, rewarding good behaviour while holding perpetrators accountable and reviewing the progress and making changes as and when necessary. This can be followed by other mandatory training programs available for all employees.

As a start, if your organisation doesn’t have a “code of conduct,” develop one and get every member, if possible, to sign it on a voluntary basis. Then give prominence to the document while holding these employees accountable and allocate a budget to promote this worthy cause.

Don’t wait for the silverbullet or for the best plan.

It is no secret that Sri Lankans are great at talking but weak in execution. An average plan that is well executed is better than a great plan that is not executed. Go with a reasonable plan of action. Since the goal is very clear, changes can be made as you go.

In summary, the aim is not to sweep the problem under the carpet but to attack it head on. Have a plan that can develop an environment in Sri Lanka such as one that exists in Singapore where the laws are enforced without exception, justice always prevails, hard-work is rewarded, and its citizens are treated fairly. Developing such an environment will take time but we have to start some day and why not today?

Our citizens deserve nothing but the best that we can offer. They should not have to leave the country or this world to have a better life!

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