asean csr network: making the change in myanmar
TRANSCRIPT
201Making the Change in MyanmarA practical workshop on how businesses can
combat corruptionWednesday 16 March 6, 9.00am – 4.30pm Summit Parkview Hotel, Yangon, Myanmar
Corruption in Myanmar - What do the surveys say? Vicky Bowman, Director, Myanmar Centre for Responsible Business
ASEAN-CSR Network/MCRBTraining Workshop on Anti-Corruption16 March 2016, Yangon
Rank Country/Territory 2015 Score 2014 Score
2013 Score
2012 Score
146 Congo Republic 23 23 22 26147 Chad 22 22 19 19147 Democratic
Republic of Congo 22 22 22 21
147 Myanmar 22 21 21 15150 Burundi 21 20 21 19150 Cambodia 21 21 20 22150 Zimbabwe 21 21 21 20
2015 Transparency International Corruption Perceptions IndexMyanmar ranks 147 out of 168 countries in terms of how corrupt the public sector is seen to be. Scores are on a scale of 0 (highly corrupt) to 100 (very clean).
Source: http://www.transparency.org/research/cpi
Indicator Myanmar E.Asia/ Pacific
All Countries
Bribery incidence (percent of firms experiencing at least one bribe payment request)
42.9 38.9 17.2Bribery depth (% of public transactions where a gift or informal payment was requested)
35.4 31.2 13.4Percent of firms expected to give gifts in meetings with tax officials 37.1 29.8 12.6Percent of firms expected to give gifts to secure government contract
32.5 32.5 26.1Value of gift expected to secure a government contract (% of contract value)
1.0 1.2 1.5Percent of firms expected to give gifts to get an operating license 38.9 39.1 14.8Percent of firms expected to give gifts to get an import license 53.5 41.6 13.9Percent of firms expected to give gifts to get a construction permit 46.5 48.9 22.3Percent of firms expected to give gifts to get an electrical connection
55.8 35.6 16.5Percent of firms expected to give gifts to get a water connection 30.1 32.4 16.3Percent of firms expected to give gifts to public officials "to get things done"
26.8 32.0 18.0Percent of firms identifying corruption as a major constraint 9.3 18.3 33Percent of firms identifying the courts system as a major constraint 9.2 7.7 14.9
2014 World Bank Enterprise Survey (Corruption Indicators)
Source: www.enterprisesurveys.org/data/exploreeconomies/2014/myanmar
More companies identified corruption as a “very severe obstacle” than any other constraint (2014 UNESCAP Business Survey).
The percentage of companies who see the constraint as a very severe obstacle
OECD-UNESCAP-UMFCCI Business Survey 2014
Pricing Corruption (UNESCAP Survey)
The 2014 UNESCAP Business Survey asked Myanmar companies about their encounters with bribery:
Source: OECD-UNESCAP-UMFCCI Business Survey 2014
Pricing Corruption (UNESCAP Survey)
The UNESCAP data was used to perform an econometric analysis of corruption in Myanmar, with the following findings:
• Firms with higher ‘ability to pay’ (based on sales revenue and employee growth) are more likely to pay bribes.
• Firms with lower ‘refusal power’ (i.e needing bureaucratic permissions to export and import) are more likely to find corruption to be an obstacle.
• However, there is no evidence that bribes act as ‘efficiency grease’ by allowing firms to circumvent red tape. In fact, firms that pay bribes report greater bureaucratic hassle compared to firms that do not.
• Small firms are 5% more likely to pay bribes compared to Micro firms, while Medium firms are 14% more likely to pay bribes.
• Firms in the Extractive industries are almost 20% more likely to pay bribes compared to firms in Agriculture, while firms in wholesale and retail trade are 9% less likely to pay bribes.
MCRB’s annual Pwint Thit Sa report compares the websites of 100 Myanmar companies to score them on what they reveal about their corporate governance and business practices.
Anti-Corruption Programs in Myanmar companies
Top 12 scores (out of 3.5 points) on Anti-Corruption Programming (ACP)
Source: MCRB Pwint Thit Sa / TiME 2015
TiME/Pwint Thit Sa Next steps Mini Pwint Thit Sa
Inviting medium-sized enterprises to volunteer to have their website benchmarked against the 35 questions.
3rd Pwint Thit Sa report (to be published in July 2016)
MCRB will repeat workshops with companies on good practice: Anti-corruption programmes (16
March) Human rights policies Reporting Grievance mechanisms
MCRB publications and translations
www.mcrb.org.mmmyanmar.responsible.business