A cancer that erodes morality and wellbeing: most of Thailand’s business leaders acknowledge that corruption has been rampant since 2010

A cancer that erodes morality and wellbeing

According to the IOD poll, most of Thailand’s business leaders acknowledge that corruption has been rampant since 2010. -The Nation/ANN 
Thu, Jun 06, 2013
The Nation/Asia News Network

Corruption infects Thailand at every level, causing harm to the individual citizen, the national economy and our business environment; our very future could lie in the balance. The cost of doing business in Thailand is increasing due to corruption. Between 10 and 30 per cent in extra costs are added to business operations because firms have to pay kickbacks, according to their executives. Sixty-three per cent of corporate executives surveyed recently by the Thai Institute of Directors (IOD) said corruption has an impact on their business operations at “high and very high levels”. Ninety-three per cent agreed that the problem of corruption continues at a seriously critical level.

The survey results are further indication that corruption is an endemic problem in Thailand. It is like a cancer. If we do nothing to stop the growth of malignant tumours, the entire country will ultimately succumb to the disease.

According to the IOD poll, most of Thailand’s business leaders acknowledge that corruption has been rampant since 2010 at high to very high levels, jeopardising the country’s long-term business credibility. The findings reflect previous studies by international organisations showing that Thailand remains plagued by corruption – a factor that surely undermines the overall investment climate.

Thailand ranked 88th in the Corruption Perceptions Index 2012, which shows perceived levels of public-sector corruption in 176 countries and territories. The Kingdom has fared worse and worse in recent years. It was ranked 80th in 2011 and 78th in 2010 in the index compiled by Transparency International, a non-governmental organisation that describes itself as “the global coalition against corruption”.

Corruption happens at every level of government and bureaucracy. Many would agree that the best and most likely opportunities for graft are in tenders with the government sector for big procurement and construction projects.

In addition to greed and lack of ethics on the part of corrupt politicians and bureaucrats, there are other factors that feed this graft. These include laws and regulations that allow state officials to use their own judgement over standard rules, a political system that lacks transparency and is difficult to investigate, and weak law enforcement.

While the bureaucrats and politicians involved in graft make personal gains, the country and its taxpayers as a whole lose and suffer in many ways. Corruption leads to reduced competitiveness and a negative image for the country, a decline in society’s morality and slow economic growth. Corruption leads to unnecessary extra costs for consumers and the wasteful spending of taxpayers’ money. Eventually it is consumers and taxpayers who have to shoulder the cost of graft. The price of government projects balloons because contractors have to pay bribes in order to secure deals.

A number of businesses are campaigning against bribery and bribe-taking. They have joined the Anti-Corruption Organisation of Thailand (ACT). But there are still many businesses that prefer to bribe their way to state deals.

There are some signs of hope. In the IOD survey, 75 per cent of the respondents said they believe the private sector can play a major role in the fight against corruption. And 93 per cent, up from 69 per cent in a 2010 survey, expressed readiness to join in collective action against graft. Fifty-one per cent of the executives polled said they “definitely wanted” to take part in such action, compared to just 14 per cent in 2010.

In fact, the business sector could help substantially in the fight against corruption. Businesses can stop paying bribes or kickbacks to corrupt bureaucrats and politicians. This might prove difficult for executives since the bribes can give them an edge over competitors in a country rife with graft. Do not expect the corrupt politicians and bureaucrats to join the campaign against corruption. We the people have to do it ourselves. Stop paying bribes, for a better future for our children and grandchildren.