New Delhi: In a global recognition of a different kind, India has been ranked as the worst performer by Transparency International on its Global Bribe-Payers Index, which is based on the propensity of companies from the world's 30 leading exporting countries in bribing abroad.
The international corruption watchdog said on Wednesday that overseas bribery is still common among the world's export giants despite the existence of international anti-bribery laws, while companies from emerging export powers -- India, China and Russia are the worst performers.
India has been ranked at the 30th position in the Transparency International 2006 Bribe Payers Index (BPI), with a score of 4.62. A score of 10 indicates a perception of no corruption, while zero means corruption is seen as rampant.
Switzerland has been ranked at the top slot with a score of 7.81, followed by Sweden, Australia, Austria and Canada at the top five positions on the index. The US and UK have been ranked at 10th and sixth positions respectively.
Transparency International said Switzerland has managed a leading score of only 7.8, which is far from perfect. This indicates there might be variations here but there are no real winners, it added.
According to the report, businesses from India, China and Russia, who are at the bottom of the index, have the most propensity to pay bribes.
This year's BPI data shows that leading exporters are undermining the development with their dirty business practices overseas, while the foreign bribery by emerging export powers is 'disconcertingly high'. Companies from the wealthiest countries have been ranked in the top half, but they still routinely pay bribes, particularly in developing economies, it added.
"In the case of China and other emerging export powers, efforts to strengthen domestic anti-corruption activities have failed to extend abroad," the report said.
"Bribing companies are actively undermining the best efforts of governments in developing nations to improve governance, and thereby driving the vicious cycle of poverty," said Transparency International Chairwoman Huguette Labelle.
"It is hypocritical that Organisation of Economic Cooperation and Development (OECD)-based companies continue to bribe across the globe, while their governments pay lip-service to enforcing the law," Transparency International CEO David Nussbaum said.
PAGE_BREAK
"The enforcement record on international anti-bribery laws makes for short and disheartening reading," he added. "Domestic legislation has been introduced in many countries following the adoption of the UN and OECD anti-corruption conventions, but there are still major problems of implementation and enforcement," he added.
The index has been prepared on the basis of responses of more than 11,000 business people in 125 countries polled in the World Economic Forum's Executive Opinion Survey 2006. The watchdog said India consistently scores worst across most regions and sub-groupings, while China is the world's fourth largest exporter and ranks second to last in the Index.
Transparency International Chairwoman said, "With growing influence comes a greater responsibility that should constitute an opportunity for good. This is the right time for Russia, China and India to commit to the provisions of the OECD Convention against
Bribery and contribute to the vitality of tomorrow's markets. In doing so, they will become part of the effort to make corruption history."
In Asia, strong domestic anti-corruption measures at home are not consistently translating into responsible business practices abroad, especially for Singapore, Hong Kong and Taiwan. They are assessed significantly worse by respondents from non-OECD countries - the same divide is evident for the United Arab Emirates - indicating a sharp double standard in business practices.
PAGE_BREAK
The survey found out it is the subsidiary companies of multinationals that are being ranked by many of the respondents of this survey. "However, the companies must be ready to take responsibility for actions along their supply chains," Transparency International Board Member Jermyn Brooks said.
"MNCs cannot be absolved of the corrupt activities of their foreign branches, subsidiaries or agents, and they must conduct due diligence before engaging with joint venture or alliance partners. The purchasing, export, and marketing and sales departments remain the business functions most vulnerable to bribery and corruption," Brooks added.
Progress has been made with the adoption of the OECD Anti- Bribery Convention, but this progress would be undermined as long as major players such as China, India and Russia remain outside the framework, the report said. China, India and Russia should voluntarily adopt the provisions of the OECD Anti-Bribery Convention, it said.
Comments
0 comment