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Focus: Afghanistan

As much as $1 billion of the $8 billion donated in the past eight years has been lost to corruption.

Estimates from local watchdog Integrity Watch Afghanistan show bribe payments — for everything from enrolling in elementary school to getting a permit — doubled between 2007 and 2009, topping $1 billion a year.

Corruption and black-market trading, which is closely linked to drugs and arms trafficking, have reached over $12 billion annually, according to calculations by NATO.   

Sources: New York Times, Integrity Watch Afghanistan, & NATO



Corruption: Cost for Developing Countries

Corruption is estimated to increase the cost of achieving the UN Millennium Development Goal on water and sanitation by US $48 billion.

Source: Transparency International ‘The Anti-Corruption Catalyst: Realising the MDGs by 2015‘ (2010) pg. 4

CORRUPTION HITS THE POOR HARDEST

An estimated US $800 million of public funds are lost each year due to tax evasion in Palestine.

Source: Transparency International website True Stories, ‘Protecting Public Money

TI helped address the situation in Palestine where more than 6000 civil servants were using Government cars, costing over US $18 million in fuel, maintenance and licensing alone. Many were being used for personal journeys.

Source: Transparency International website True Stories, ‘Balancing the budget’

Councillors in Zimbabwe work with housing officials to buy up property and sell it on at exorbitant prices – sometimes at up to 10 times its market value – to families desperate for a home.

Source: Transparency International website True stories, ‘Working together’

In Bangladesh 84% of the households who had interacted with one or more of different public and private service sectors or institutions have been victims of corruption in 2010. 33% of these people experienced corruption in corruption-resources-corruption-resources-healthcare services.

Source: Transparency International Bangladesh ‘Corruption in the Services Sectors: National Household Survey 2010’ (2010) pg. 3, 7

Findings from a seven-country study in Africa — Ghana Madagascar, Morocco, Niger, Senegal, Sierra Leone and Uganda — showed that 44 per cent of the parents surveyed had paid illegal fees for schools that were legally free for their children.

Source: Transparency International: ‘Africa Education Watch: Good Governance Lessons for Primary Education‘ (2009) pg. v

In cities such as Jakarta Lima and Manila, the urban poor pay private water retailers between five and ten times more for their water than the rich pay for piped water.

Source: Sohail M and Cavill, S., TI Global Corruption report, Chapter 3, ‘Water and Sanitation’ (Cambridge, UK,2008) p.43

In order to access services the very poor in India formally register as being ‘below the poverty line’ (BPL) and recieve a card. There are 60 million households who qualify for this however nearly half of these, or 27 million go to richer households which do not qualify, but obtain cards through bribery. Even when registered, more than one third of BPL households still had to bribe to get access to the services designed for them.

Source: Transparency International India Corruption Survey (2010)

In Pakistan 43 per cent of those polled had faced a demand for bribes when dealing with local government 69 per cent when dealing with the judiciary and 84 per cent when dealing with the police;48 per cent of respondents reported that they faced corruption in order to procure medical services after being admitted to the hospital.

Source: Transparency International Pakistan National Perceptions Survey (2010) pgs. 124 130, 142, 177

In Morroco a scheme was introduced to move families from a slum to new plots of land with access to basic services. Civil servants in charge of the move reportedly asked for unofficial private payments amounting to around US $250 to receive plots of land and US $630 for a certificate of residency – a third of an average yearly income. Those who did not pay were evicted and left homeless.

Source: Transparency International website True stories, ‘Slum evictions

AID AND BUDGET MISUSE

Due to corruption in Indonesia it is estimated that nearly one-fifth of the rice distributed for an anti-poverty programme disappeared.

Source: Journal of Public Economics ‘Corruption and the costs of redistribution: Micro evidence from Indonesia’, 90 (4-5) p. 853 – 870.

In South Africa 27 per cent of principals never receive their budgets on time. In Cameroon half of state primary schools have problems with their buildings: only 19 per cent of schools have working toilets, and barely 30 per cent have enough tables and benches for student

Source: Transparency International: Transparency and Integrity in Service Delivery in Africa (TISDA) ‘Mapping Transparency Accounting and Integrating in Primary Education in South Africa’ (2011) pg. 30 and ‘Mapping Transparency and Integrity Deficits in Primary Education in Cameroon‘ (2011) pg. 8

FOREIGN INVESTMENT DISCOURAGED

Countries that score badly on the World Bank’s Doing Business Indicators also score badly on the Corruption Perceptions Index including Chad, Burundi and the Democratic Republic of Congo, all ranking in the bottom 15 countries on both tables. This suggests that highly corrupt countries also have difficulty attracting resources-resources-business.

Source: Inferred from comparing World Bank Group Doing Business Index (2010) against Transparency International, Corruption Perceptions Index (2010)

Based on a survey of 214 executives 28 per cent opted not to do resources-resources-business in a country due to bribery and corruption issues.

Source: KPMG ‘Global Anti-Bribery and Corruption Survey 2011’ pg. 1

In a survey of more than 350 resources-resources-businesses worldwide, 35% of companies had been deterred from an otherwise attractive investment because of the host country’s reputation for corruption.

Source: Control Risks Facing up to Corruption: A practical resources-resources-business guide, (2007), pg. 3


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