Comparison of Official Corruption in the Japan and Bangladesh - Coursework Example

COMPARE OFFICIAL CORRUPTION IN THE JAPAN AND BANGLADESH Prepared for: Prepared by: Date: Memo of transmittal TO: FROM: DATE: SUBJECT: Compare official corruption in the Japan and Bangladesh I submit the accompanying report “Comparison of official corruption in the Japan and Bangladesh. The report basically compares and contrasts the official corruption in Bangladesh and Japan along with examining the government role and laws that are prevailing to curb corruption. Strategy has also been recommended to impede corruption. Executive Summary In a country such as Bangladesh, corruption and other forms of weak governance are an impediment to the reduction of poverty. Economic growth is essential to reduce poverty, and corruption slows economic growth. The poor suffer from corruption in many ways. On the other hand when we consider Japan corruption is as prevalent in Japan as in Bangladesh but the only difference between the two countries lies on the fact that Japan is a developed nation and the corruption prevalent in this developed nation is similar to the corruption in all the developed nations be it United States of America, Russia etc. Businessmen in Bangladesh have complained that "their high costs are due to the payoffs they have to make to government officials for sanctions, bank loans, and permits. On the other hand multinationals attempting to operate in such environments would only be operating within the social and cultural norms of the country. Indeed one must not forget the cultural logics of gift-giving prevalent in many countries. Gift giving is very common among business partners in Japan. One of the major similarities between the two countries is that the major form of corruption is bribery. It is usually known that almost all kinds of corruption perpetuate in politics and administration in Bangladesh. The most common form of corruption is pecuniary bribes. Corruption in Japan generally takes the form of bribery of high officials in the various ministries or prefectural governors, or those of lesser rank. This bribery can take the form of direct payments of cash for favorable consideration, of entertainment (“wining and dining”) of officials by those currying their favor, of gift memberships in expensive golf clubs, or it may take the form of unlisted stocks whose value will rise once they are offered to the public as a whole. Compare official corruption in the Japan and Bangladesh Introduction Official corruption, the misuse of public power for private profit or political gain - represents a hazard to free trade and investment, a threat to democracy and development, and, in collusion with international crime, a danger to national security and public health and safety. No foreign policy issue affects Americans more, yet few have received less attention from the foreign policy community. According to Leiken “The hardships of global competition have exhausted voters' patience with government excesses and misconduct. The popular outcry against corruption has activated officials and diplomats already concerned about the harmful effects of crime and bribery on international security and commerce. Consequently corruption is stealing into the precincts of foreign policy. Corruption, money laundering, and drug smuggling have become the subjects of international treaties and assistance programs and now preoccupy international economic organizations as well as intelligence and law enforcement agencies. The combination of popular protest, international pressure, and government reform may supply the antidote to the current epidemic of corruption.” (Leiken, 1996) Comparison of official corruption in Bangladesh and Japan Literature Review: In a country such as Bangladesh, corruption and other forms of weak governance are an impediment to the reduction of poverty. Economic growth is essential to reduce poverty, and corruption slows economic growth. The poor suffer from corruption in many ways. Their access to services, such as public health and education, is reduced when drugs and textbooks are stolen from public facilities and sold privately and when doctors and teachers have high rates of absenteeism from their public jobs and sell their services privately. Corruption invariably channels public resources to the rich–the poor lack the funds to bribe or pay for the private provision of services that are supposed to be provided for free as public services. Almost everybody suffers from corruption, but the poor suffer more. On the other hand when we consider Japan corruption is as prevalent in Japan as in Bangladesh but the only difference between the two countries lies on the fact that Japan is a developed nation and the corruption prevalent in this developed nation is similar to the corruption in all the developed nations be it United States of America, Russia etc. But when we consider Bangladesh its still in the form of developing country with high level poverty so the corruption lies at the extreme ends: the governors and ministers and at the poor person level whereas in Japan the official corruption is prevalent among the higher ranked officials. Problems faced by multinationals: Businessmen in Bangladesh have complained that "their high costs are due to the payoffs they have to make to government officials for sanctions, bank loans, and permits" (Kochanek, 1993) Indeed, according to one businessman, "I get sick in my stomach whenever I have to see a government official" (Kochanek, 1993) The politics of patronage and corruption have plagued all governments in Bangladesh since 1971, but the Ershad government has been described by one businessman as "the most centralized and corrupt in the country's history." (Kochanek, 1993) Under General Ershad, corruption was pervasive and included petty corruption, project corruption, and programmatic corruption. (Kochanek, 1993) These three forms of corruption "led to a massive gap between policy and implementation," as under Ershad, "law and policy had little meaning" as "decisions were made on an arbitrary basis with little accountability or appeal." (Kochanek, 1993) On the other hand multinationals attempting to operate in such environments would only be operating within the social and cultural norms of the country. Indeed one must not forget the cultural logics of gift-giving prevalent in many countries. Gift giving is very common among business partners in Japan. (Andvig and Fjeldstad, 2000) Causes of corruption: In his analysis of bureaucratic culture in Bangladesh, Mohammad Mohabbat Khan identified corruption as a dominant component, as it has been institutionalized in the public service during the last 25 years. He attributed Bangladesh's high level of corruption to four factors: First, bureaucrats involved in corrupt practices in most cases do not lose their jobs. Very rarely they are dismissed from service on charges pertaining to corruption. Still rarely they are sent to prison for misusing public funds. They have never been compelled to return to the state their ill-gotten wealth. Second, the law-enforcing officials including police personnel are extremely corrupt. They are happy to share the booty with other corrupt bureaucrats. Third, the people have a tendency not only to tolerate corruption but to show respect to those bureaucrats who made fortunes through dubious means. Fourth, it is easier for a citizen to get quick service because he has already "paid" the bureaucrat rather than wait for his turn. (Khan, 1998) According to Berkofsky “In Japan, short administrations mean short terms in office for political appointees. With little job security, the temptation of bribes must be strong, especially when the bribe includes promises of future employment in the sector overseen by the minister. It is important to recognize that police corruption and the consequent impunity associated with bureaucratic corruption in Japan results in a corrupt institutional culture that does not sufficiently attempt to investigate and prosecute corrupt individuals.” (Berkofsky, 2004) The problem is further corroborated by scant regard of public opinion on these matters, as most of these cases are shrouded in secrecy. When cases of police corruption, or that of other bureaucracies, come to light through independent investigations by the media, or through other sources, the typical response of any government agency has been to isolate the case of corruption to a few individuals in the particular department. Forms of corruption: One of the major similarities between the two countries is that the major form of corruption is bribery. It is usually known that almost all kinds of corruption perpetuate in politics and administration in Bangladesh. The most common form of corruption is pecuniary bribes. (Taslim, 1994) Other forms of corruption are: abuse of authority, nepotism, favoritism, fraud, patronage, theft and deceit. In many cases forms of corruptions are intertwined with their consequences. As Kochanek noted “Petty corruption takes many forms. Payments are required simply to obtain an application form or a signature, to secure a copy of an approved sanction, to ensure proper services and billing from telephone, natural gas, electric power and water employees. Project corruption permeates both public and private sector contracting. A substantial commission must be paid to secure large public sector contracts in Bangladesh. Programmatic corruption involves Food For Work and relief programmes.” (Kochanek, 1993) Corruption in Japan generally takes the form of bribery of high officials in the various ministries or prefectural governors, or those of lesser rank. This bribery can take the form of direct payments of cash for favorable consideration, of entertainment (“wining and dining”) of officials by those currying their favor, of gift memberships in expensive golf clubs, or it may take the form of unlisted stocks whose value will rise once they are offered to the public as a whole. In recent years there have been cases of corruption involving the Ministries of Labor, Education, Finance, International Trade and Industry, and Health and Social Welfare, as well as politicians in a number of prefectures in Japan. The distinction between gifts and bribes is especially murky in Japan. Japanese seem to be giving gifts constantly to physicians, teachers, bosses, co-workers, relatives, and all other potential benefactors whose good graces they want to enjoin and enjoy. The ubiquity of gift-giving has earned the country its reputation as an exchange-of-presents and entertainment culture. Most importantly, gifts are given in Japan not just to express feelings of affection--what Westerners regard as the most salient characteristic of a real gift but also out of an expectation of reward. This motive for gift-giving--the aim to get something back-imposes on the recipient of the gift an obligation to reciprocate, a duty Reed described as being "forced" or "cornered with giri." (Reed, 1996) Consequences of corruption: Baneful consequences of corruption on the economy include: siphoning away a large chunk of public resources which could have been productively employed somewhere in the economy; undermining of productivity, efficiency and effectiveness of the government; diminishes efficient mobilization of resources and management of development activities; gains through corruption used either in conspicuous consumption or transferred to foreign bank accounts; generates allocative inefficiency by permitting the least efficient contractor or most costly supplier with the highest ability to bribe; bribes and payoffs instead of expediting decisions and facilitating movement of files encourages civil servants to hold back all papers until some payment is made to them; money gained from bribes becomes a part of the expected income; and over-invoicing and under-invoicing of imports and exports and smuggling increases lead to distortion in investment decisions and to capital flight. (Ahmed, 1992) According to a report by World Bank “Some other equally damaging consequences of corruption are: undermines public confidence in government; engenders wrong economic choices and constrains government’s ability to implement policies; makes the poor pay the price; and threatens government’s strategy of private-sector oriented growth.” (World Bank, 2000) Role of governments in Bangladesh and Japan to impede corruption The lack of commitment by Bangladesh's political leaders is first manifested in the fact that "many elected officials, including members of parliament and ministers, are known to be involved in large-scale corruption." (Khan, 1998) A more important manifestation of the lack of political will in fighting corruption is the transfer of the director-general of the Bureau of Anti-Corruption to the Ministry of Education because of his "crusade against corruption" and his unwillingness to stop the probe against four ministers, many members of Parliament, and several senior civil servants in May 1995. Khan concludes pessimistically, but correctly, that the "bureaucratic and political elite will [not] start a campaign against corruption in public life as it adversely affect their individual, group and coterie interests." (Khan, 1998) According to Japanese criminal law, it is a crime for a Japanese government employee to receive or demand a bribe in relation to their work. In theory there are seven types of crimes for receiving bribes. There is the simple bribe; an aggravated bribe, a bribe in advance (pre-event); a bribe later (post-event); a bribe given to a third party; an intermediated bribe; and an entrusted bribe. Penalties are provided for each of these types of bribes. In certain cases, retirees and those leaving government employ can also be found to have been bribed. Failure to act can be just as culpable as committing an inappropriate act. If one fails to carry out acts regarded as part of their duties in exchange for some quid-pro-quo, then there is a bribery problem. In all such cases, the one giving the bribe is also criminally culpable. The courts have also taken an expanded interpretation when it comes to the requirement that the government employee do something in relation to their work. With the enactment of the Government Employees' Logic  Law in April, 2000, and the pertinent regulations then following, even such innocent sounding activities as taking a government employee out to a dinner or on a golf trip are now probably in violation of the law. The new regulations provide a detailed listed of violating activities. Government officials are prohibited from gifts, meals, services entertainment, travel, etc. The law also provides that for any government employer in the position of assistant section chief or higher and who receives any gift over 5000 yen must report it to the head of his agency. If it exceeds 20,000 yen, it must be publicly disclosed. Strategy to curb corruption in both countries One of the most important strategies that I would recommend for both the countries is to encourage the civil society participation. As stakeholders in good governance and institution mediating between the state and the public, the organizations that comprise civil society citizen groups, nongovernmental organizations, trade unions, business associations, think tanks, academia religious organizations and last media- can have an important role to play in constraining corruption. This is true at the country level as well as internationally. Civil Society Organizations (CSO), with Transparency International spearheading the fight against corruption is the most prominent example of what an international civil society organization can achieve in awareness- raising, pressuring government as well as international organizations for change and pressuring governments as well as international organizations for change and working with various sectors to implement innovative anti-corruption reforms. Conclusion It is generally believed that the eradication of corruption will have a civilizing effect on society, the implication being that corruption is closely related to backward or traditional forms of organisation. Both the developing and the developed nations are facing this menace of corruption and I believe that governments, organizations and civil society play an important role to curb this corruption. References Ahmed, B. et. al. (1992) “Government Malpractice’s” in “Report of the Task Forces on Bangladesh Development Strategies for 1990s.” Vol. 2, Dhaka: University Press Limited, pp.389-407. Andvig, C, J and Fjeldstad, O, H (Dec. 2000) “Research on Corruption: A Policy Orientated Survey” Final Report (NORAD), p.72. Berkofsky, Axel (Apr 22, 2004) “Corruption and Bribery in Japan’s Ministry of Foreign Affairs: The Case of Muneo Suzuki,” Japan Policy Research Institute, Working Paper No. 86, http://www.jpri.org/publications/workingpapers/wp86.html Khan, Mohammad Mohabbat (1998) “Administrative Rearms in Bangladesh.” New Delhi: South Asian Publishers, pp. 35-37 Kochanek, Stanley A. (1993) “Patron-Client Politics and Business in Bangladesh” New Delhi: Sage Publications. P. 199, 259, pp. 263-267. Leiken, Robert S (Winter 1996) “Controlling the Global Corruption Epidemic” Foreign Policy, Issue: 105, Carnegie Endowment for International Peace. Reed, Steven R., with Ieiri Tomonori, Okumura Matsuko, Rokkaku Koji, Tabata Shuichi, Tabira Kenji, and Takeuchi Masao (Sept. 1996) “Political Corruption in Japan” International Science Journal, Vol. 149, pp. 395-405. Taslim, M.A. (1994) “Corruption, External Interference and Policy Making in a Dependent Regime” in H.M. Zafarullah “Policy Issues in Bangladesh.” Dhaka: UPL, pp.291-306. World Bank (2000) “Corruption in Bangladesh: Cost and curses” p.66. Read More

Economic growth is essential to reduce poverty, and corruption slows economic growth. The poor suffer from corruption in many ways. Their access to services, such as public health and education, is reduced when drugs and textbooks are stolen from public facilities and sold privately and when doctors and teachers have high rates of absenteeism from their public jobs and sell their services privately. Corruption invariably channels public resources to the rich–the poor lack the funds to bribe or pay for the private provision of services that are supposed to be provided for free as public services.

Almost everybody suffers from corruption, but the poor suffer more. On the other hand when we consider Japan corruption is as prevalent in Japan as in Bangladesh but the only difference between the two countries lies on the fact that Japan is a developed nation and the corruption prevalent in this developed nation is similar to the corruption in all the developed nations be it United States of America, Russia etc. But when we consider Bangladesh its still in the form of developing country with high level poverty so the corruption lies at the extreme ends: the governors and ministers and at the poor person level whereas in Japan the official corruption is prevalent among the higher ranked officials.

Problems faced by multinationals: Businessmen in Bangladesh have complained that "their high costs are due to the payoffs they have to make to government officials for sanctions, bank loans, and permits" (Kochanek, 1993) Indeed, according to one businessman, "I get sick in my stomach whenever I have to see a government official" (Kochanek, 1993) The politics of patronage and corruption have plagued all governments in Bangladesh since 1971, but the Ershad government has been described by one businessman as "the most centralized and corrupt in the country's history.

" (Kochanek, 1993) Under General Ershad, corruption was pervasive and included petty corruption, project corruption, and programmatic corruption. (Kochanek, 1993) These three forms of corruption "led to a massive gap between policy and implementation," as under Ershad, "law and policy had little meaning" as "decisions were made on an arbitrary basis with little accountability or appeal." (Kochanek, 1993) On the other hand multinationals attempting to operate in such environments would only be operating within the social and cultural norms of the country.

Indeed one must not forget the cultural logics of gift-giving prevalent in many countries. Gift giving is very common among business partners in Japan. (Andvig and Fjeldstad, 2000) Causes of corruption: In his analysis of bureaucratic culture in Bangladesh, Mohammad Mohabbat Khan identified corruption as a dominant component, as it has been institutionalized in the public service during the last 25 years. He attributed Bangladesh's high level of corruption to four factors: First, bureaucrats involved in corrupt practices in most cases do not lose their jobs.

Very rarely they are dismissed from service on charges pertaining to corruption. Still rarely they are sent to prison for misusing public funds. They have never been compelled to return to the state their ill-gotten wealth. Second, the law-enforcing officials including police personnel are extremely corrupt. They are happy to share the booty with other corrupt bureaucrats. Third, the people have a tendency not only to tolerate corruption but to show respect to those bureaucrats who made fortunes through dubious means.

Fourth, it is easier for a citizen to get quick service because he has already "paid" the bureaucrat rather than wait for his turn. (Khan, 1998) According to Berkofsky “In Japan, short administrations mean short terms in office for political appointees. With little job security, the temptation of bribes must be strong, especially when the bribe includes promises of future employment in the sector overseen by the minister.

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