In Pursuit of Socio-economic Justice: A Critique of Anti Corruption Strategies in Eritrea - Article Example

In Pursuit of socio-economic justice: A Critique of Anti Corruption Strategies in Eritrea I would like to start my critique of the Anti Corruption Strategies in Eritrea written by Yemane Desta by quoting the quotation spoken by Sudisman, one of the prominent communist leaders of Indonesia that says: Man is a fool. When it is hot, he wants it cool. When it is cool, he wants it hot. He always wants what he has not. By definition, corruption is dishonest practices. Desta (2006: 421) rather defines corruption as “the abuse of public office for private gain.” In reality, corruption has been in existent in private enterprises as well but because it is private and is not involved public money, it is not well documented until the collapse of Enron. Enron case has opened the reality of the corruption case, mostly in the form of bribery fraud, among private companies’ executives. And more and more private companies’ executives are being taken to court on charge of fraud. Corruption has plagued both developing and advanced countries and has become a problem for all countries including the newly established country of Eritrea. It has been embedded into the system. In the domestic level, the corruption is canalized bottom-up, in international level, it is top-down, and among the donor agencies including the World Bank organization, it is also a bottom-up approach. In his opening remark of the World Bank Report on World Bank Continues Leadership in Fight Against Corruption, The World Bank President Paul Wolfowitz said, “There are more than 1 billion people worldwide surviving on $1 a day, and corruption threatens their hopes for a better quality of life and a more promising future… “When we find that scarce development dollars have been wrongly diverted from their intended purpose of benefiting the poor, we have a responsibility to take action. INT’s work helps us to fulfill this obligation to the poor, who are our ultimate clients, by detecting and deterring fraud and corruption, and by working with others across the Bank to mitigate risks in future operations” (2007). Yes, a country resource is limited but why corruption is difficult to be alleviated? There is no fire without a spark and there is no corruption without a cause. According to Shafritz & Russell (2000), corruption is the cause of privatization. Though as a communist country, Russia was very successful with its planned economy (Colfer & Capistrano 2004) and President Putin agreed that privatization is the cause of the country’s current corruption practices and the Orange Revolution. Sometimes, when things are politicized words change fast because the tongue has no bone. Although the World Bank claims it is taking the leadership to fight against corruption, the same institution is privatizing the countries because it is the strategies of the rich, said Zambia finance minister. The recent sale transaction of the West Papua between Indonesia and Australia indicates how privatization is leading to a new era of neo colonialism. During the treaty deal signed by the two countries foreign ministers in the Lombok Island, Australia Foreign Minister said, “It is easy to take over the country when it is small.” Multinational corporations first introduced corruption in developing countries, allege Vernon (In King 1990). As the medium for foreign policy deliverer, multinational corporations are mushrooming in the developing countries (Vernon in King 1990). They “are the institutions which transfer the necessary technologies and exploit the cheap labor and raw materials available in the periphery. They also forge the necessary bonds between the ruling elites in the center countries and the ruling elites within the periphery… also play a key role in the process of political fragmentation … coopt local elites who rely on them for taxes and incomes (an often kickbacks and other forms of corruption) … may also coopt middle management and labor unions by paying them relatively high wages (King in King 1990: 235). The incrementalism of privatization and faster response, intended to reduce government capacity in applying resources to conduct thorough research (Anderson 1983), are introduced through partnership opens up the door for more multinational companies to enter the international market and competing globally to deliver foreign aid. As they coopt with local elites and sponsoring political parties, they gain entry to the domestic market and compete with domestic profit and nonprofit companies to deliver goods and services. Political agents endorse competition though competition breeds radical evil, according to Kantian Theory of Corruption (Grenberg 2005). As the competition becomes severe, only the radical evils win. I cannot stop pondering that a world organization that takes leadership to fight against global corruption also the one, which creates global corruption as it equalizes domestic policies of the countries around the world through privatization even though it causes corruption (Shafritz & Russell, 2000). Under this leadership, political agents are traveling around the world to conduct public consultation or Focus Group Discussion to find out what Mr. Brown says, “I am not an explorer… but even if I were, I need your help. We’ve got to figure out how to do this better” (Pascale, Millemann & Gioja 2000: 96). A policy of a country is determined by the norms, standards, values, traditions, cultures, and the political culture of the country (Anderson 1983). What seems suitable for a country is not suitable to another country or vice versa. Hitler once tried to equalize the world through his military power and collapse. Can the World Bank equalize the globe through its economic power while its one-size fit all policy has done more damage to many countries? Suzanne Rich Folsom, Director of the Institutional Integrity Department of the World Bank said, “Corruption has a devastating impact on the capacity of governments to function properly; on the private sector to grow and create employment; on the talents and energies of people to add value in productive ways; and ultimately on societies to lift themselves out of poverty… The World Bank, and the Integrity Department, must continue to do everything possible to ensure that the funds entrusted to our institution by its shareholders are used for their intended purposes.” Desta starts his argument saying that developing countries are more prone to corruptions than developed countries because they have suffered “from poverty, poor health, high levels of illiteracy, low economic growth, and political instability.” The irony is even the world institution who is taking the lead to fight corruption is also mired with corruption. In its Integrity Report of the World Bank Group, Fiscal Years 2005 – 2006, the World Bank Group’s Institutional Integrity Department (INT) investigated Bank financed projects; it has to close 441 external investigations because even the external investigation agencies were engaging in bribery, fraud, and corruption. In the same report, it says the Bank debarred 58 firms and 54 individuals due to fraud and corruption over the period covered in the report, rendering them ineligible to participate in Bank-financed projects. Since 1999, the World Bank has sanctioned 338 firms and individuals, with all sanctions are announced publicly. Even within the Bank’s Institutional Integrity Department itself, 227 internal cases investigated are involving the Bank staffs who are engaging in corruption, fraud, and bribery. From these 227 cases, 70 percent represents bank’s finance projects and 94 percent involves the Bank’s staff. This indicates that corruption is the result of bad management. The management is bad because too much power and authority of decision-making at the bottom-level (Tompkins 2005). In addition, this heavy power and authority of decision making at the bottom level represent a hindrance to management effectiveness (Tompkins 2005; Denhardt, Denhart & Aristigueta 2002) because generally, the bottom lines are poorly trained, lack of knowledge and skills, lack professionalism and tact, and without wisdom and experience in making wise decision (Denhardt, Denhart & Aristigueta 2002). Management is bad because people with no experience, knowledge, professionalism, and wisdom are given the power and authority to make decision (Schorr 1997) because time is sensitive. In addition, they are young generation who tend to be perceived by private enterprises as energetic, enthusiastic, and are willing to take the risk. In a well-managed bureaucracy, even though none of the bureaucrats or officials is not especially trained in public administration, the management would be very efficient (Shafritz & Russell 2000). Public administrators should not take risk to promote growth (Ibid; Denhardt, Denhart & Aristigueta 2002; Kramer 1998). The impact of privatization is not only corruption (Shafritz & Russell 2000) but also shrinking and weak government but also bigger and stronger private coffers, which have used their own power through political contribution to manipulate the state to plunder the economy for their own benefits (Desta 2006). Desta (2006) writes that nongovernmental organization and international financial institutions have played a growing role in the creation of anti-corruption campaigns in many countries (Tanzi 1998) but too often, men walk the walk rather than walk the talk. In Indonesia for example, partnership between foreign and domestic partners in delivering foreign policy projects are generally delivered through bribery, fraud, and kickbacks which is admitted by the World Bank, even its own staffs are involved in these schemes. Desta quoted the words of President Thomas Jefferson that said, “The time to guard against corruption and tyranny is before they shall have gotten hold on the US. It is better to keep the wolf out of the fold, than to trust the drawing of his teeth and talons after he shall have entered” (Jefferson, 1787 in Desta 2006: 425). Using this quotation, he comes up with the four strategies to combat corruption. The four strategies are: market/economic reforms, administrative/bureaucratic reforms, accountability/transparency enhancing reforms, and democratic accountability enhancing reforms. Desta elaborates that market/economic reforms involve economic liberalization designed to promote a vibrant private sector and reduce public sector waste. Administrative/bureaucratic reforms encompass civil service reforms designed to enhance the performance of the government bureaucracy such as code of ethics and public sector pay increase. Accountability/transparency enhancing reforms involve measures designed to open up the work of the government to public scrutiny as a way of holding public officials answerable for their actions such as the auditor-general office and anti-corruption commission. Finally, democratic accountability reforms to promote effective citizen participation and genuine political competition such as political competition and party financing laws. Are these strategies suitable for a newly established country such as Eritrea? I would say no, because these strategies are the same one-size-fit-all strategy implemented by the World Bank and the IMF in Indonesia, the Philippines, Argentina, Bolivia, Russia, African countries, and many other countries. These strategies are developed under the Baker and the Brady Plan, which would make all these countries to become poorer than they have already been. Never once the World Bank or the IMF prescriptions of economic policies reform was successful but vice versa. Countries affected by economic crisis are required to undergo structural arrangement and conditional arrangements by the World Bank and the Fund, but their prescriptions have proven failure not only in Africa but also in other developing countries. According to Dembell, their structural adjustment program has led to economic stagnation, fewer investments, more external dependence, and has weakened the state’s role in developing social and economic welfare. It even aggravates debt crisis among the dependence countries, which Lal (1999) claims that economic liberalization is an ill-advised policy because it would cause the indebted countries to be poorer than they are today or they would eventually become the colonies of whoever purchase them at the international market. Some policy analysts consider this policy undermines the sovereignty and democracy within the countries, intensify repression, militarization, and war. Market liberalization or further privatization indeed put the debtor countries to be in deeper economic, social, and political volatility because with the combination of the Brady and Baker Plans, their existence of a nation would likely diminish. Under the Baker Plan, the debts of the indebted countries would be transformed into stocks and be traded in the world market by the commercial banks at deeply discounted rate. Or in line with the secondary market price of the debt (Sachs in King 1990). The debts of the indebted countries would be actively traded on a secondary market at a large and growing discount (Ibid). A country is becoming a commodity, which is freely traded in the stock market. Consequently, in August 2006, Indonesia had to release one of its provinces, West Papua to Australia, which purchased Indonesia’s debt at a discounted price in the international market. Worse still, this purchase does not benefit Indonesia which still owes her debtors in billions of dollar even though it has managed to pay off its debts in 2004. The sale of West Papua was at a price of its national security – i.e. the Australian private conglomerates, under the backing of its government, has now owned West Papua’s police force, army, justice department, the navy, and the air force. In a sense, Indonesia sold its province to Australia private conglomerate at the price of its national security. Then we are wondering why terrorists attacked the World Trade Center or inflicted bombs in crowded areas? If your national security is no longer your own, who is going to protect your country from the terrorists? In addition, this economic liberalization applied by the World Bank and the IMF in Indonesia has caused the country to be flooded by “hot money.” The sad thing is, much of this “hot money” is being transferred to Indonesia is due to the collaboration between international NGOs and local NGOs by manipulating local governments. According to Lal (1999), “hot money” is basically claimed as infrastructure development fund but once it is in the country, it becomes a source of economic and political crimes. Groarke argues that the strengths of capitalism are: advocating the elimination of planned economy; allowing a pattern of production and distribution to be determined by autonomous decision of parties in the market; endorsing greater reliance on free market and reducing “the need for administration and bureaucracy that would otherwise direct the running of the economy” (Ibid). The capitalists view that inequality is necessary and market players with their great wealth have tremendous influence over the state and “promotes the pursuit of self-interest” (Ibid). Sometimes, it is difficult to distinguish between bribery and political contribution. Encouraging greater competition, market liberalization and enforcing unregulated market and liberal society are the other strengths of capitalism. It claims that the people or poor people will have greater say in the market but majority citizens don’t have much say; neither is the bureaucracy nor the politicians. Greater competition creates radical evil – one can only successful in competitive market by creating evil, said Grenberg (2005). Still the strengths of capitalism are that market always plays a “romanticizing the working of unregulated market ... and demonizing regulation” (Groarke 2000: 673). On one side it argues that regulation would increase efficiency, competitiveness, and encourage corporate responsibility. On the contrary, it blames government regulation causes corruption and government is incompetent or inefficient and often “mitigate the negative aspects of unregulated needs, therefore, to assert unapologetically the importance of government regulation” (Ibid). Finally, capitalism market also ensures policy and actions are contradicting each other to encourage focus minded debate, which tends to end up in “money speaks louder than the actions.” While Groarke claims that the above are the strengths of capitalism, I would argue that these are the evil characteristics of the capitalism. They are so subtly and we have overlooked because we are too focused on the technical activities. Rothschild says, “The need to balance regulation, supervision and cooperation has never been greater... to reversing the damage and keeping greater regulation out of the markets. Without that leadership, it may be difficult to restore confidence and growth.” Economic and political impartiality can be achieved if politicians have the virtues, the central of humility as a guide to their individuality (Grenberg, 2005) – a virtue in which they would not take any political donation but they are to work for the equality of all citizens. Eritrea is a newly established country. Can one be sure that corruption exists in a newly established country? It can be if it is fundamentally established corruptly. Afghanistan was also newly established as a private enterprise country. Months after its establishment, corruption emerged. Van Klaveren (1957 in Heidenheimer et al. 1989) says, “A corrupt civil servant regards his office as a business, the income of which he will … seek to maximize. The office then becomes a ‘maximizing unit.’ The size of his income depends upon the market situation and his talents for finding the point of maximal gain on the public’s demand curve.” This statement antagonizes what the Hon. McTigue’s testimony before the House of Representatives. He the economic reform is to reinvent the engines of the machinery of the government, to transform the departments and agencies into small business units and turning the bureaucrats into plutocrats (McTigue 2004). Once the agencies and departments have been created as business units, then we should not wonder if corruption does exist or that “the pattern of corruption can be said to exist whenever a power holder who is charged with doing certain things, i.e., who is a responsible functionary or office holder, is by monetary or other rewards not legally provided for, induced to take actions which favor whoever provides the rewards and thereby does damage to the public and its interests. (Friederick in Heidenheimer et al. 1989). Today, governments around the world have accepted private ideas to create the citizens as its customers (Schorr 1997) without the rights although these customers pay more taxes and its private coffers as its clients and look after the veteran (Ibid). The economists are suggestion to “let the market runs.” In Indonesia, public hospitals are beginning to operate like business and they would not allow people be treated without “money first.” In private dealings, when you are asked money first and service later, chances are: you are lucky to receive the service; or you will never receive the service because the provider has run away; and you receive the service but at a lesser value. So is the case of public provision and service delivery. The irony of having private vibrant to expand and deliver public goods and services is that they increase inequality (Shafritz & Russell 2000) because their service and provision are based on the customers’ ability and willingness to pay. In fact, they tend to marginalize the poor (Ibid). Under market economic, politics has become a lucrative business in developing and developed countries but it is also the most corruptive institution in any country. Party politics have become nonprofit organizations whose political survival is depending on individual or corporate donations. As they are depending on political donations, they “cannot bite the hand that feed them.” Their focus oriented on raising fund as political donation tend to cause them to accept money from any individual or groups regardless who or whatever they are. The Liberal Party of Canada, for example, has been receiving donation from one of the terrorist groups enlisted by the US government. However, due to its high amount of donation, the Tamil Group leader warns Prime Minister Paul Martin to delist its name as a terrorist group associated with Alqaeda group or risk the consequence. Fear of losing such a big source of contribution, Prime Minister Paul Martin decided to delist the Tamil group as a terrorist group. Among the elected officials, few have very little knowledge about government policies (Congleton, 2004). Rather politics have become the venue toward wealth creation and makes the distribution of public treasury upward (Denhardt, Denhardt & Aristigueta 2002; Boyte 2004). Though politicians are encouraging anti-corruption, Hope and Chiculo (2000) argue that sociocultural norms as a factor driving corruption. In fact, the participation of political actors in the bureaucratic setting does establishes a culture of corruption and “beggar thy neighbor.” In a well-managed bureaucracy, government should work by programs (Gordon 1993) not by projects because projects are not the real work (Clawson 2002; Simmons 2005) and projects cause non-sustainability. Because projects involves competition and competition causes radical evil (Grenberg 2005), only the radical evil wins. Since projects are tendered among the competing agencies, it is likely that corruption and its related case exists. The following table shows a comparative data of the global corruption cases that also include the World Bank’s staff and contractors between two comparative fiscal years. As a new established country, Eritrea has no corruption case yet, why introducing anti corruption while what it should be introduced is a well-managed bureaucracy? Like the case of AIDS prevention, the projects/programs are not for prevention but for enhancing the spread of the disease and its related diseases so is the case of fighting corruption. 2005 2006 Bribery 17% 23% Kickbacks 23% 13% Bid manipulation/collusion 36% 36% Other 14% 16% Government and public 10% 16% Contractors 37% 22% Bank Staff and consultants 21% 30% In a well-managed bureaucracy, a program is not only guarantee sustainability but also reduces poverty and eliminates corruption. During Russia’s era of planned economy, corruption was scarce and people had jobs because it worked by program. Pascale, Millemann & Gioja (2000) stated, “If it ain’t broke, don’t fix it!” Government management ain’t broke but it is fixed because “man is fool… he wants what he has not” (Sudisman 1967). The third strategy is transparency. It is not a theory or a term but has been heralded as the venue toward democracy. Yet, democracy, such as in France, says Alexis Tocqueville in his America Democracy, “has overthrown whatever crosses its path and has shaken all that has not destroyed.” T tramples religion and destroys equality. Democracy increases social and ethnic discrimination. It promotes human being as commodities and slavery as one nation finds it is more superior to the other nation. Among the leadership, say Alexis, there are “virtuous and peaceful individuals whose pure morality, quiet habits, opulence, and talents fit them to be the leaders of their fellow men. Their love of country is sincere, and they are ready to make the greatest sacrifices for its welfare. But civilization often finds them among its opponents; they confound its abuses with its benefits, and the idea of evil is inseparable in their minds from that of novelty.” He adds, the form of democratic government prefers same rules for all countries while each country has its own norms, standards, values, cultures, and traditions even their political culture and all determine the policy of the country (Anderson 1983) and they determine the success of the society (Boyte 2004). Ghazanafar and May (2000) argue that economic conditions in many countries are often ripe for corruption (Desta 2006) because many officials have been elected and appointed as executives of public institutions without the knowledge of public institutions and the roles and functions of government (Congleton 2004). They lack of exemplary ethical leadership Hope and Chiculo (2000) and aren’t committed to the public but to the interest of certain groups to whom they are obligated to or depended on as political survival. “When the top political leaders do not provide the right example, either because they engage in acts of corruption or, as is more often the case, because they condone such acts on the part of relatives, friends, political associates, it can not be expected that the employees in the public administration will behave differently” (Desta 2006: 428; Tanzi 1998). Leaders should lead by example (Shafritz & Russell 2000) and for that reason; making decision should be the duty of the leader not the bottom liners. In pursuit for economic justice, the vision should be good management not fighting corruption. Every country is different. So are its norms, values, cultures, traditions, politics and structures. So is its management. 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