corruption and poverty at umm final

8/8/2019 Corruption and Poverty at UMM Final

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1 June 2008

Presented by:

Md. Sydur Rahman Molla

Programme AnalystDemocracy and Governance

United Nations Development Programme

The Relation between Corruption and Povertyin Bangladesh

Policy Talk


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Structure of the presentation

1. Background

2. Relationship between corruption and poverty Cross-Country analysis

Implications for Bangladesh

Case study: Chittagong Port: Impacts of Anti-Corruption drive

3. Policy Recommendations

What UNDP can do

4. Conclusion


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Background

Shocking position in various corruption indexes developed by TI, World Bank and

World Economic Forum

TIB (2005) estimated that People pay Tk 6,796 crore (US$ 1000 million) as bribe

in a year

World Economic Forum (2006-2007) identified corruption as the mostproblematicfactorfor doing business in Bangladesh


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32.00%

22%

26.00%

97.00%

40.00%

92.00%

26.00%

3.00%

70.00%

Stipend -Primary

Stipend - Secondary Female

Public hospital

Land registration

Getting Khas land

Police station (FIR)

Local arbitration

Relief

Electricity connection

Percentage of paying bribe for getting services

(TIB 2005)

Background cont.


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The relationship between poverty and corruption:

Cross-country analysis

Methodology Sample size: 159 countries

Sources of Data: TI CPI (2006), UNDP HDR (2006), and literature review

Analysis: Correlation and Regression (SPSS)


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The relationship between poverty and corruptionCont.

Indicators Pearson correlation R Square

Per capita GDP (US$) .873 (.000) .762

National poverty line -.471 (.000) .222

Extreme poverty ($1 a day) -.456 (.000) .208

People living $2 a day -.611 (.000) .373

Life expectancy .591 (.000) .350

Infant Mortality Rate -.591 (.000) .349

Under-Five Mortality Rate -.544 (.000) .296

Maternal Mortality Rate -.469 (.000) .220


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The relationship between poverty and corruption Cont.

Indicators Pearson correlation R Square

Access to improved sanitation .609 (.000) .371

Access to improved water .584 (.000) .341

Access to electricity .455 (.000) .207

Primary enrolment .427 (.000) .183

Secondary enrolment .602 (.000) .362

Adult illiteracy -.421 (.000) .177

Children under height -.535 (.000) .286

Children Underweight (%) -.418 (.000) .175

Undernourished population -.443 (.000) .196

Infants with low birth weight -.426 (.000) .182


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Extent of affects of corruption on PRSP targets in Bangladesh

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Income-poverty

Extreme

poverty

Adult

literacy

Primary

enrolment

Secondary

enrolment

InfantMortalityRate

Under-Five

MortalityRate

MaternalM

ortalityRate

Lifeexpectancy

Population

Grow

th

hildrenU

nderw

eight(%)


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The results suggest that if Bangladesh could curb corruption at the level of almost

corruption free country, it could increase 1.9% of GDP growth rate

The result suggests that if Bangladesh could reduce corruption from the current

level to the level of India, it's population who are living under national poverty line

would decrease at 36.21 percent from 49.8 percent.

If Bangladesh can reduce corruption from its current level to the level of

Malaysia, its life expectancy might increase from 63.3 years to 69.21 .

Implications forBangladesh


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Case study

Impact of Anti-corruption drive in Chittagong Sea Port

Importers previously had to pay Tk 30,000 on an average for per less than

container load (LCL) and Tk 20,000 for per full container load (FCL) TEUs at the

port. Now the importers need to pay only Tk 2,900 for both the LCL and FCL.

The exporters had to pay Tk 13,000 as freight charges besides bribing port andcustoms officials and paying charges to the inland container depot. Now traders

pay only Tk 600 as stamp duty instead of Tk 13,000

Earlier it took32 days to 35 days to reach a consignment to Europe from

Bangladesh. Now the lead-time hovers between 25 days to 28 days

Waiting time at outer anchorage to berth a vessel also reduced significantly at 5

days from previous 11 days

Exports continued to maintain a double digit growth (21.25 per cent in March)

(The Daily Star 14 May 2008)

Efficient management cuts business costs at Ctg port


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Policy recommendations forTackling corruption

According to Brinkerhoff (2000),

corruption is a complex issue with intricate linkages to other political and

economic factors, both within a country and internationally.

tackling corruption is not a one-shot endeavour, but a challenging long-term

undertaking.

successful anti-corruption efforts depend upon political will

Klitgaard (1997) emphasized on minimising monopoly, clarifying discretion and

ensuring accountability for reducing corruption.

Three steps for designing anti-corruption programme; Assessment, Development

of strategy and Implementation of the strategy.


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How to tackle corruption in Bangladesh

1. Developing long-term anti-corruption strategy

2. Creatingpolitical will

3. Prioritization of sectors

4. Effective decentralisation of anti-corruption agency5. Anti-corruption cell in each public institution

6. Develop sector wise anti-corruption expert

7. Capacity development of all concerned individuals

8. More transparency and more simplification of procedures

9. Incentives for good performance

10. Awareness and Motivational programme


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What UNDP can do

work with ADB forimplementing the NIS, which is being developed

assist to enhance capacity development of concerned personnel

assist to develop anti-corruption cell in major public institutions

conduct awareness campaign


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Conclusion

It is imperative to tackle corruption for eradicating poverty in Bangladesh

A long-term strategy is needed to tackle corruption

The views in this article are those of the author alone and do not necessarily represent those of

the United Nations or UNDP.

THANKYOU

corruption and poverty at umm final

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