Wednesday, April 13, 2011


Nepal is one of the most corrupt countries in South Asia and is ranked #146 in the world. While corruption is pervasive in many Nepalese institutions, petty corruption is extremely common in key public sectors. C
orruption is aggravated by the fact that the government services are in scarce supply outside the capital. Most of the countryside lacks public services and local public offices. (World Bank and IFC Enterprise Surveys, 2009)

Business and Corruption

According to the World Bank & IFC Enterprise Surveys 2009:

  • 15% of companies expect to make informal payment to public officials in order to ‘get things done’
  • 7
    9% of companies expect to give gifts to secure a government contract (About 4% of the contract value)

Business people can reportedly buy their way into politics by giving large donations to political parties. 
Its all about who you know...

  • According to Transparency International 2009, powerful business people in Nepal enjoy close relationships with politicians and high-ranking government officials
  • Business execs reported in the World Economic Forum Global Competitiveness Report 2009-2010 that there is a significant extent of favoritism of well-connected companies and individuals in government officials’ decisions regarding policies and contracts.

Corruption and the Police and Judicial System
Reported problems:
  • Institutionalized corruption
  • "Expected" bribes to register complaints with the police
  • Unreliable enforcement of the law
  • Inconsistent enforcement of anti-corruption measures
  • Judges in the judicial system are perceived as the main facilitators of corruption

Corruption and Daft
Nepalese officials and many business executives use coercive and reward power to maintain power. Their evident low internal locus of control leads to corruption and selfish behaviors that are detrimental to less advantageous individuals and democracy as a whole.

Looking at leadership and the future:

According to Business Anti-Corruption 2010 it has been argued that the existing anti-corruption system and the 2002 Prevention of Corruption Act serves to target only low-level public officials, with a minimal impact on the top political and business figures.

Fighting corruption is difficult but not impossible and can happen through implementing proactive plans and programs. This requires a new order of incentive structures so that individuals change their behavior to think differently, show differently and act differently.
There is a need for restructuring the social order in Nepal and to establish a corruption free society in which public post holders recognize their accountability, fear the heavy costs they have to pay on conviction of corruption offenses and get their rewards for being honest.

    No comments:

    Post a Comment