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DEVELOPMENT: Poor Victimised By Extortion, Large and Small

L.A. Nguyen - IPS/TerraViva*

UNITED NATIONS, Sep 15 2005 (IPS) - Antonio María Costa, head of the U.N. Office on Drugs and Crime, was a happy man. With Ecuador’s ratification of the Convention Against Corruption, his agency has finally come into its own.

“The thirtieth ratification of the Convention against Corruption is a victory for millions of ordinary citizens,” said Costa, who is Italian and therefore has an idea of what this issue means. Africa was particularly set to benefit from the new rules, he said.

“Imagine a situation wherein recovered funds in African states could be redeployed and used for development. It’s an ingenious solution to underdevelopment, and a win-win for everyone involved,” Costa said.

International non-governmental organisations (NGOs) are urging governments to fight corruption in order to achieve the U.N. Millennium Development Goals (MDGs).

The eight MDGs include a 50 percent reduction in poverty and hunger; universal primary education; reduction of child mortality by two-thirds; cutbacks in maternal mortality by three-quarters; the promotion of gender equality; environmental sustainability; reversal of the spread of HIV/AIDS, malaria and other diseases; and a global partnership for development between the rich and poor.

Leaders of more than 170 countries have gathered here this week to assess progress toward the MDGs, although many civil society groups complain that the Summit has been sidetracked by other issues, including security and U.N. reforms.

NGOs here noted that corruption is a global phenomenon and that limiting its reach is the responsibility of poor and wealthy nations alike.

“This is a huge problem – not just in developing countries,” said Sonia Correa, a research expert with Development Alternatives with Women for a New Area.

“Even developed countries like the U.S. or those in Europe are not exempted. We need to change the common sense that this is the business of the Third World countries, not the rich countries.”

Although fighting corruption and improving governance is highlighted in the Summit’s outcome document, activists warned that it would take strong commitment from state leaders to realise the MDGs.

“We are glad that the outcome document actually has a quite significant section on governance and corruption,” said Salil Shetty, director of the U.N. Millennium Campaign. “Developing countries should focus on improving governance to make sure that resources reach the people.”

Transparency International, a global watchdog against corruption, said that there will be no fair world and no abolition of extreme poverty as long as corruption undermines education, health, trade and the environment.

“Corruption is a massive drag on efforts to reach the Millennium Development Goals. It means wasted money, time, and ultimately, lives,” said Transparency’s Chief Executive David Nussbaum in a statement.

“Governments, especially those of the G8, need to move beyond paying lip service to the principles of accountability and transparency if they are determined to improve the lives of millions who live in poverty and instability.”

The G8, which recently pledged to provide significant debt relief to the world’s poorest countries, is made up of Russia plus the Group of Seven (G7) most industrialised nations: Britain, France, Germany, the United States, Japan, Italy and Canada.

Research conducted by Transparency International has demonstrated that corruption hampers economic growth, keeps countries from capitalising on internal resources and reduces aid effectiveness, contributing significantly to hunger and malnutrition. Petty bribery hits the poor hardest, ensuring that they stay poor.

The World Bank estimates that the total volume of bribes paid annually is one trillion dollars, nearly twice the gross domestic product of Africa. Often, the blame falls on those who take the bribes rather than those who pay the bribes.

Misallocation of education resources means that schools are never built and that education systems remain drastically under-resourced. Corrupt education officials at all levels have often been found to abuse their position as gate-keepers, making good education dependent on capacity to pay bribes.

According to CIET International, 86 percent of parents polled in Nicaragua reported paying mandatory “contributions” to teachers. Of the 47 percent of girls who managed to get into primary school in one Pakistani province, nearly all reported unofficial demands for money.

“By and large, public funds and social policy are vulnerable to corruption because the lack of a transparency mechanism,” Correa said.

Misallocation also means that hospitals are poorly staffed and resourced. Corruption in public healthcare systems even results in fake drugs, and bribes are often a prerequisite for access to healthcare, including maternal health.

Transparency International reports that the average maternity ward patient in Bangalore pays approximately 22 dollars in bribes to receive adequate medical care. In Nigeria, there have been countless deaths due to counterfeit medications that move unhindered from production plants, across national borders and into unsuspecting markets.

Corrupt public officials mean that the environmental regulations remain unenforceable, resulting in lost livelihoods, illness and social displacement for millions. Corruption also means greater business risks as it distorts markets, discourages foreign direct investment, and stifles cross-border trade.

“Corruption has become very ingrained in society,” said Correa. “The whole corruption climate in some countries is contaminating individuals at every level.”

NGOs, however, acknowledged that the discussion on fighting corruption has become much more relevant in the last few years as many governments have upped their commitment to stamping it out.

*This story was produced for the TerraViva Millennium Development Goals Journal.