Endemic corruption still exists in Asia and is almost impossible to eradicate

Asia is well-known, publicised and often criticised, as one of the regions of the world where corruption is endemic – part of daily life everywhere. This is perceived, particularly by sanctimonious Western observers as a 'bad thing' which can never be justified or defended, and must be ended outright. But 19th Century British historian Lord Acton (1834-1902) was referring to Europe rather than Asia when he made the now famous quote "power tends to corrupt, and absolute power corrupts absolutely". Politics may have changed in Europe (and the West), but corruption still exists – often in cleverly disguised or 'legal' forms.

Surprising to many will be the results of a recent survey of government transparency and corruption in the public sector by Transparency International. They found less corruption in Asian nations like Singapore, Hong Kong and Japan than many from the West. The UK was placed only 11th and the US in 18th position, behind Hong Kong at 14th!

Here are the top scorers (base 10): Finland 9.7; Iceland 9.6; Denmark, New Zealand 9.5; Singapore 9.4; Sweden 9.3; Netherlands 8.9; Australia, Norway, Switzerland 8.8; Canada, Luxembourg, United Kingdom 8.7; Hong Kong 8.0; United States, Ireland 7.5; Japan 7.0. Of course there are some Asian nations near the bottom of the list too!

In a perfect world with good, honest governments and efficient civil services, there would be no place or need for public sector corruption – or many other 'bad things' for that matter. There is general consensus that certain forms of corruption should be ended because the overall effect is negative. A kickback, backhander, bribe, 'tea-money', baksheesh is an inducement or sweetener, often in the form of cash, paid to someone able to produce a short or long term benefit by unofficial, unethical, unlawful or illegal or devious means. At its highest level, national or international government contracts are secured, often resulting not only in considerable portions of a country’s funds being diverted into the pockets of a few powerful politicians, civil servants and the big businesses themselves, but also leading to uncompleted projects or those with inferior workmanship. When failure or disaster occurs, blame is rarely apportioned to the real cause. New contracts are drawn up, continuing the self-serving process for the benefit of the avaricious few who continue to wield this sort of influence.

In Asia, though there is a difference: the influence is not generally from random individuals or companies. There are dynasties of powerful Asian families who use intermarriage to maintain and increase their overall wealth and therefore political power. Money is the 'new God', worshipped by all. Family business often controls politics, so naturally nepotism and cronyism play an important role. Power leads to corruption as we already know, and this increasing power is passed down to future generations through control of political systems. This originally Chinese 'model' has filtered into the Southeast Asian region over the past several hundred years. It's not going away.

Names like Marcos (Philippines), Soekarno, Suharto (Indonesia) are already synonymous with corruption in Asia. Will the people of Thailand fare any better with a new government? Some of them will and most will not. Thailand's Thaksin Shinawatra is the most recent addition to the list. He was ousted by a military coup in September 2006 and is now facing corruption charges, together with his wife – it's always a "family thing" in Thailand. Whether he comes to trial, and more importantly whether he is actually convicted, remains to be seen. The military coup was the culmination of a long tale of corrupt political and business practices endemic in Thailand (and other Asian countries) for generations.

See also our Foreign Business in Thailand and Foreign Business in Asia pages.

There are many more, less well known or publicised cases in Asia and even more so in Africa. Sadly, most of the efforts of genuinely public-spirited individuals and organisations who draw attention to corruption and misuse of their countries' resources and try to promote political change and improvement to enhance the lives of the majority of their populations, especially the underprivileged and poor, are still overwhelmed by these powerful entities.

Corruption and Hypocrisy

Does corruption exist only in Asia? What about Western 'cartels', monopolies and giant conglomerates; also the new 'mafia' of Russia and Eastern Europe. Lobbying in the US – paying a high-ranking politician or elected official to further a cause or try to secure a contract for a particular company. Donation of large sums of money or other disguised forms of payment to a political candidate’s party campaign in return for expected favours if he or they are elected. This happens in the US and Europe including the UK. What else are these if not forms of corruption? Yet many of them are considered legal if they are performed under convenient legislation which makes them so. And who exactly is responsible for the legislation – even in countries proclaiming democracy and 'people power'? Hypocrisy of the highest order!

Underlying causes for corrupt practices at lower levels

Civil services including central and local government offices and police forces, not only in Asian countries, are criticised more than praised by the public for their efficiency. In Asia, civil servants start their careers at almost below subsistence levels. The rules and bureaucratic procedures are often archaic by modern standards – relics from bad or indifferent colonial systems. Even with new technology, modifications are not always improvements. In some cases they make things worse, and the bureaucratic 'paper trails' and lengths of 'red tape' get even longer.

The only way to a decent income for people processing information at desks in these offices is by reaching a level of seniority where it's possible to exert some influence or derive some benefit. Influence can be with the public (business and individuals) and also over 'underlings'. Benefits pass upward, right to the top of the organisation.

Promotion within these bureaucratic systems is a slow process if one relies on merit or length of service, but it certainly plays a part. The way to speed it up is by paying sometimes large amounts of money, just to get the job. Further payments will be necessary to climb each rung of the ladder more quickly too. There is obviously no justification for this and it cannot produce an efficient system of government, of benefit to the general public. However, stamping it out completely is virtually impossible because the legislators are the very ones these practices benefit most.

Corruption starts at the top and filters down to the lowest rung of the ladder. Benefits move in an upward direction. The 'public' are aware of it and complain about it; politicians make promises to reduce corruption, but it's only to win votes at elections. A few knuckles are sometimes rapped as a token gesture, somewhere down the line, but at the end of the day, little changes.

In the above respect, apart from being impractical in some cases and virtually impossible in others to eradicate completely, certain forms of 'corruption' can be of benefit to many, both 'giver' and 'receiver', with little or no effect on others or a country as a whole.

Entering Asia as a tourist or visitor

Visiting a Southeast Asian country for the first time, we get our first experience of local officialdom at the airport or border crossing. Most developing SE Asian countries are aware of the financial benefits of large numbers of happy tourists, so this is usually a straightforward affair. If you are sensible, you will have found out beforehand whether you need a visa at all, if you should obtain it in advance from an embassy, or can get it issued on arrival, sometimes by paying a higher fee. You get stamped in at Immigration, collect your bags, and pass through Customs, usually unhindered unless you look or act suspiciously to unseen eyes. Much the same as anywhere else you care to travel these days.

Business or residence in an Asian country

As is the case most countries, for those who want to take up residence of one form or another, there will be further criteria. Requirements differ from country to country, and usually involve set procedures as well as considerable paperwork, often needing completion in the local language and requiring the services of a local 'professional'.

This can be an impossible task for a foreigner to accomplish alone. Although the methods differ, these issues may be resolved more easily by paying a (usually not excessive) fee to someone in addition to the official charges. In some countries, this will be an agent who has a contact in the relevant government office. It might also be paid directly to an official who can push the paperwork through, possibly himself paying a portion to someone higher up in the system. This may be, in some countries, the only practical way to obtain a visa or work permit.

It is a form of corruption, but no one really suffers, and you don't have much choice in the matter, as you will make little or no progress trying to get what you want by attempting to do it alone.

Thailand recently made mainly cosmetic efforts to make bureaucratic processes more transparent, and proudly claim 'no corruption!'. But many business and other applications are now made more difficult, more time-consuming and considerably more expensive! See also our Foreign Business in Thailand and Foreign Business in Asia pages.

Corrupt practices are not just applicable for foreigners. Local citizens need to use these services too. Sometimes for the most basic permit or other item, people have to wait in lines or stand in a queue for hours – sometimes all day for some piece of paper that allows them to proceed to the next stage of bureaucracy. Paying a little extra to someone with an agent or 'contact', the job will get the job done more quickly, efficiently and legally! The government gets its revenue (hopefully), and low-paid officials receive necessary supplements to their meagre salaries. At the end of the day, everyone wins. Well, anyone able to pay a little extra. Nobody ever said life was fair!

How will you achieve what you want in Asia? Try to do everything 'by the book', taking the moral high ground, or accept that things are not the same as they were 'back home', do it the same way as everyone else, and learn to live with it?

As a foreign retiree or resident of a South East Asian country with no local business or political interests, not a drug user or paedophile and generally keep your nose clean by living within the accepted social boundaries, then you are unlikely to run into problems – unless you are just plain unlucky or stupid! Follow the advice of foreigners already living there regarding visas and other permits. Pay the required fees, which are usually quite reasonable, and don't worry about whose pockets they end up in. Turn a blind eye to everything else that doesn't directly concern you.

If you are thinking of starting a business in an Asian country, you should be aware of the issues that are likely to affect you and your success or even survival. Find more information on our Foreign Businesses in Thailand, Asia Business and Living in the Philippines pages. There is also a report on corruption and crime from the Thailand resort island of Koh Samui.

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