Business | Opinion
Much more needs to be done to fight corruption
The Gulf Cooperation Council (GCC) states have a long way to go in fighting corrupt business practices.
- Dr Jasim Ali, Special to Gulf News
- Published: 23:40 September 27, 2008
The Gulf Cooperation Council (GCC) states have a long way to go in fighting corrupt business practices.
The good news is that three GCC member states namely Oman, Qatar and Bahrain managed to improve their rankings on 2008 version of Corruption Perceptions Index (CPI).
Berlin-based Transparency International (TI) issues an annual report ranking countries based on perceived corruption. The latest ranking depends on results of 13 surveys.
Reviewed economies earn points based on perceptions expressed by business and academic professionals concerning ways of doing business in various countries.
The respondents, which include local and expatriate residents, provide views about possible corrupt practices involving public officials when winning business preferences such as contracts.
Undoubtedly, the report is not entirely objective, as respondents express their perceptions subjectively. However, the study relies on numerous studies conducted by internationally renowned establishments.
These include the World Bank, Economist Intelligence Unit, Freedom House, World Economic Forum, Asian Development Bank and African Development Bank.
The CPI boasts a scale from zero to 10, with higher numbers indicating less corruption. Denmark, Sweden and New Zealand each scored 9.3 points out of the maximum 10 points index, hence regarded as most transparent economies.
A minimum of three studies are required for a nation to be included in the report. The report relied on five surveys in all GCC states through four polls for Qatar.
Yet Qatar topped in the GCC by clinching spot number of 28 in the world, up by four rankings. The UAE lost a single ranking to arrive at number 35 globally but the second best result in the GCC and among Arab countries.
For its part, Oman succeeded in improving its ranking by 12 notches to reach 41 in the world. As such, the sultanate managed to recoup lost positions of 2007 when it plunged 14 positions. The changes relate to Oman becoming more forthcoming in providing needed information.
Likewise, Bahrain improved its ranking by three notches to 43 globally. By contrast, Bahrain lost 10 positions in 2007. The credit goes to the Tendering Board for pushing transparency in governmental purchases.
Still, the board, which is a governmental agency, plans to institute e-tendering in the near future, a development that could further improve Bahrain's ranking on CPI.
E-tendering would provide firms the opportunity to submit bids and be advised of winners without suffering financial cost of sending representatives.
Conversely, Kuwait continued its downward trend by losing five more rankings to reach no 65 in the world. The country lost 14 notches in 2007. For its part, Saudi Arabia lost a single position and thus ranked number 80.
TI argues that economies scoring below 7 out of 10 must take immediate action to bring integrity in the dealings of public officials.
Anyway, as in 2007 report, merely 22 nations achieved a score of at least seven points. Similar to the earlier one, the latest report ranked 180 entities.
No single GCC country managed to score 7 points, with Qatar getting closer by collecting 6.5 points, up from 6 points in 2007. Yet, Saudi Arabia scored merely 3.5 points.
Clearly, GCC authorities must exert substantial efforts in order to improve their rankings on CPI. Singapore should serve as a model, a country noted for having no tolerance for corrupt practices.
Singapore scored 9.2 points in 2008 report and thus ranked No 4 worldwide.
The writer is a Member of Parliament in Bahrain.
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