Tài liệu Anti corruption in construction industry in vietnam

MAST L.R THESIS OF MPPM Anti-Corruption in Construction Industry in Vietnam Authors: HOANG MINH TOAN PHAM TIEU LONG Supervisor: Prof. Dr. LARS TORSTEN ERIKSSON Dr. NGUYEN CHl DZL NG Class: MPPM INTAKE I - Group 7 Hanoi, May-2011 l/f^ r' UPPSALA UNIVERSITY (SWEDEN) &. UNIVERSITY OF ECONOMICS AND BUSINESS, VNUH MASTER PROGRAMME OF PUBLIC MANAGEMENT Pham Tieu Long &. Hoang Minh Joan ! ANTI-CORRUPTION IN CONSTRUCTION INDUSTRY IN VIETNAM Supervisor: - Prof. Lars-Torsten Eriksson Local Supervisor: - Dr. Nguyen Chi Dzung Hanoi, May 2011 ABSTRACT Title of the thesis: Anti-corruption in the Construction Industry in Vietnam Level: Master Thesis for Master Program in Public Management Authors: Pham Tieu Long, Hoang Minh Toan Supervisors: * Swedish Supervisor: Prof. Lars-Torsten Eriksson, PhD Local Supervisor: Dr. Nguyen Chi Dung PhD Time of thesis presentation: t 4 18/5/2011 Objectives: In recent years, investments in construction have given rise to socio - economic development, helping in providing jobs for people, improving the material and spiritual life of the people. However, due to many reasons, corruption and squandering are occurring in many construction projects. The increasing cases on corruption in this sector has led to socio-economic losses. Therefore, prevention and anti-corruption in construction industry are on the top priorities in Vietnam. The objectives of this research are to provide an overview on corruption and anticorruption in construction industry, analyze and clarify the situation of corruption in the construction industry in recent years, analyze the detection and handling of corruption cases in the construction sector. Measures for corruption prevention and anti-corruption are also included. By studying theoretical issues of corruption in the construction industr\' and analyze real cases of prevention and anti-corruption in the construction industry 1 in Vietnam and other countries, this study proposes recommendations relevant o the current settings in Vietnam. Research methodology: - Analyzing the existing legal framework and system of legal documents for prevention and anti-corruption in Vietnam. - Compiling and analyzing data on corruption and anti-corruption in the construction sector. - Assessing and inferring in order to give relevant conclusions and recommendations. Results and conclusions Construction sector has its own characteristics and those make it more prone to coruption in many countries. Conclusions of the thesis include: - Coruption is high and difficult to prevent and combat in the construction industry and the reasons for this partly come from its own characteristics. This study shows a number of potential opportunities for coruption in this sector. - Coruption is widespread in the construction industry in Vietnam. Construction is among 10 most corrupted sectors in Vietnam. - Various measures for anti-coruption has been applied in the construction sector but still alot of shortcomings. These include limited asset transparency, information transparency, poor project management, complicated procedures for monitoring, detection and acusing coruption crimes; inffective measures for promoting whisle blower; few coruption cases are detected. - Prevention should be combined with combating coruption. Recommendations This thesis proposes recommendations for improving anti-coruption efforts such as (i) Impose declaring personal assets focussing on positions with high risks of corruption and randomly check as well as imposing disciplines against violations; (ii) improving the role of civil society in monitoring and supervising construction projects; (iii) simplifying the procedures for detecting coruption and providing clear definition of corupted acts in Anti-Corruption Law and relevant legal documents; (iv) improving the procedures for denouncing, with more support, encouraging and protection for whisle blowers; (v) providing more incentives to those who found coruption and; (vi) strictly dealing with coruption cases. Suggestions for further research: Based on this research, the research team can study further about the mechanism for detection and dealing with coruption in specialised construction areas such as in transport, electricity and telecommunication. It may need to measure the impact of anti-coruption efforts by surveys. Key words: corruption, construction industry, corruption prevention, anti- corruption, detection and dealing with corruption, Vietnam. TABLE OF CONTENTS INTRODUCTION 2 CHAPTER 1: OVERVIEW ON CORRUPTION AND ANTI-CORRUPTION IN CONSTRUCTION INDUSTRY 4 1.1. Definition of corruption 1.2. Characteristics of construction industry and corruption in construction industry 4 1.2.1 Characteristics of construction industry and risks of corruption 1.2.2 Types and mane rs of corruption in construction industry 6 9 g CHAPTER 2: CURRENT SITUATION OF CORRUPTION AND ANTICORRUPTION IN THE CONSTRUCTION INDUSTRY IN VIETNAM 13 2.1 An overview of corruption in Vietnam 13 2.2. The Construction Sector and Corruption 16 2.2.1 The Construction in Vietnam 16 2.3. Corruption prevention and combating in the Construction Sector in Vietnam 24 2.3.1 An Overview of the Legal System for Anti-Corruption 24 2.3.2. The reality of measures against corruption in Vietnam in the construction industry 25 CHAPTER 3: EXPERIENCE OF OTHER COUNTRIES AND RECOMMENDATION POLICY FOR VIET NAM 40 APPENDIX 50 REFERENCES Vietnamese documents (alphabe as in Vietnamese): 53 INTRODUCTION Corruption has become a serious social evil in many countries in the world. It appears and exists along with the establishment and development of a state as state is always associated with the use of public power. The abuse of public power to serve personal interests or misuse of public power of civil servants or state employees are always serious risks to reduce the power and effectiveness of modem states. Conoiption occurs in various forms and in all different aspects of society. That is why it requires comprehensive preventive strategies, measures with different objectives to combat against it (Klitgaard, et al 2000). In Vietnam, the Communist Party and the State have identified as one of the foremost missions at the top concern of the whole political system. The Anti-Corruption Law was passed by the National Assembly at the 8'^ Session on 29/11/2005 and has come into force since 01/6/2006. The Law was supplemented and amended on 04/8//2007. Vietnam has approved the 'National Strategy on Corruption Prevention and Anticorruption upto 2020' as well as ratified the 'UN Convention against Corruption' on 30/06/2009. In the past few years, activities fighting against corruption-related crimes in Vietnam have been carried out drastically. The prolong stmggle requires the participation and effective cooperation of relevant government agencies. Up-to-present, this struggle has gained certain achievements, which proves the proper viewpoint and clear-sighted outlook of the Party and State of Vietnam on the problem. In recent years, investments in construction in Vietnam have significantly contributed to socio - economic development by providing jobs to a many people, reducing the unemployment in society and improving the material and spiritual life of the people. In the whole country, there are more than 900 state-owned companies in construction and this figure in private sector is about 7000. Half of all construction companies have at least 50 regular workers and a huge number of seasonal workers (Kenny, 2007). However, many negative facts have arisen in management of construction investment, resulting in considerable losses and poor quality of the civil wwks. The situation that corruption in the construction industry^ happened with larger and larger scale in many big projects has damaged not only the economy itself but also spoiled the belief of people to the Government and State. It is no doubt that corruption in the construction industry is a national disaster which happens not only in Vietnam but in many other countries as well. It is like a kind of "ultra virus" gradually gnawing the "body" of a country. Based on diagnostic data in an overall picture of corruption in Vietnam, it shows that the construction industry is one of the areas most prone to corruption (Davidsen, et al 2009). Therefore, we have chosen the topic 'Anti-corruption in Construction Industry in Vietnam' for the research of our master thesis. The major objectives of the research are to provide an overview on corruption prevention and anti-cormption in construction industry, focusing on analyzing issues relating to detecting and dealing with corruption in construction industry and based on the analysis and assessment of some specific cases of corruption, some recommendations on anti-corruption will be introduced to managers in construction industry and policy makers. Besides the Introduction and Conclusion, our research including three main parts: Chapter 1: Overview on anti-corruption in construction industry Chapter 2: Current situation of corruption and anti-corruption in construction industry in Vietnam Chapter 3: Experiences of other countries in anti-corruption policy and recommendations of policy for Vietnam CHAPTER 1: OVERVIEW ON CORRUPTION AND ANTI-CORRUPTION IN CONSTRUCTION INDUSTRY 1.1. Definition of corruption Corruption is a social phenomenon associated with the foundation of social classes and the establishment and development of states. Cormption happens in all countries in the world without any distinction of the political system that the country follows and it happens in all sectors relating to public management. In the guidelines on anti-corruption of the US, definition of corruption is 'Corruption is the abuse of public power to serve personal interest' V This definition is similar with the conception of Klitgaard et all (2000) about corruption. The World Bank, in the 'Guidelines for Anti-corruption' (2006), has point out a series of actions which are considered as fraudulent and corruption such as: offer, propose, give, receive, directly or indirectly ask for any valuable things which may cause improper actions of other partner, actions of collussion and complicity with other...In Vietnam 'Corruption is abuse of public power to exert influence on people for undue benefits' and more specific definition has been stipulated in the Law on Anti-Corruption passed by National Assembly at the 8^ Session on 29/11/2005 'Corruption is actions of person who have public position and power abuses their position and power when perform their duties for undue benefits'. When carr>^ing out their tasks or duties, a person who has public position and power can perform a lot of activities and actions with different behaviours and actions, but only actions done by abusing their position and power for personal benefits are considered corruption. Those actions are stipulated in details in the Article 3 of Anti-Corruption Law which defines corrupting acts (12 acts) as following: (1) properr>' misappropriation; (2) taking bribes; (3) abuse of positions and powers to misappropriate propert>-; (4) abuse of positions and powders while on duty and officials duties for interests; (5) misuse of ' See Handbook on fighting corruption'' - Center for Democracy and Go^emance. USAID, 1999 ^ Vietnamese Dictionar>' - Nguven Nhu Y - Culture and Information Publishing House, 1988 powers while on duty and performing official duties for interests; (6) abuse of positions and powers to exert influence over others to seek benefits; (7) fraud while on duty for interests; (8) giving bribes, bribe brokerage made by persons with positions and powers to handle the work of agencies, organizations, units or localities for interests; (9) abuse of positions and powers to illegally use state property for interests; (10) initiate harassment acts for interests; (II) failure to perform tasks and duties for interests; (12) taking advantage of positions powers, for interests, to protect those who commit acts of violation of law; unlawful interference in the examination, inspection, audit, investigation, prosecution, trial and sentence execution for interests. Before the Anti-Corruption Law, Penal Code Law 1999 stipulates seven articles concerning corruption-related crimes: embezzlement of property (Article 278); taking bribe (Article 279); abuse of positions and powers to misappropriate property (Article 280); abuse of positions and powers while performing official duties (Article 281); misuse of powers while performing official duties (Article 282); abuse of positions and powers to exert influence over others for the sake of interests (Article 283); fraud while on duty (Article 284). To be considered as corruption, these crimes have to satisfy three characteristics of the crimes of corruption, namely: - Corruption must be the behaviors/actions conducted by people holding positions and powers. - When performing acts of corruption, the person wdth positions and powers take advantage of their positions and powders to commit crimes. - Criminal acts of corruption must be interest-motivated. In nature, corruption is a social phenomenon reflects such factors of a people, a country as politics, economy, culture, tradition and life habits. The consequences of corruption are not simply the economic damage with a huge amount of money but the more important is it degenerates a part of state employees or civil servants, reduce the efficiency of state management, spoil the belief of people, threaten the existence and prosperity of a country. A clear and specific definition of corruption is very important in issuing public policy, regulations on anti-corruption. 1.2. Characteristics of construction industry and corruption in construction industry L2.1 Characteristics of construction industry and risks of corruption Many researches showed that corruption in construction industry is much higher than other sectors . The scale and scope of corruption are different depending on the specific fields and scope of building projects. Construction industry is the important sector in economy development of many countries. It is estimated that market for construction industry in the world is account for $US 4700 billions (in 2007)\ Contribution of construction industry to GDP is about 10% in developed countries, 5-7 % in developing countries and about 3-5 % in underdeveloping countries^ Why construction industry is the branch with high risk of corruption? To find out the answer to the question, we need to consider the characteristics of construction industry and point out the risks of corruption. Analyze the characteristics of construction industry can also help us to find out the resolutions for anti-corruption. + Construction industry is the sector having many big projects with enormous capital Even thought they have different sizes, but construction projects often have large-scale plan required big capital, especially the projects with great investment capital from government to develop infrastructure such as building high ways, harbours or seaports, airports, electricity plants etc. The capital for such construction projects is often very large with the figures of from millions to billions US dollars. It is clear that it is easier for the persons who are responsible for the construction of the civil works to hire illogical costs or to fabricate the costs when implementing big projects than in projects with small scale. This characteristics leading to the high risk of corruption. + The construction projects are often single and specific ^ See Transparency International (2003). "Global Corruption Report" ' Davis Langdon & Seah International (2008) **World construction 2007-2008" 'UNCTAD (2000) "Regulation and Liberalization in the Construction SerNices Sector and its Contnbution to the Development of Developing Countries", Note by the UNCTAD Secretariat, TD^BCOM. 1/EM. 12/2, 12 September 2000. In construction, each product has its own design with specific estimated costs for the product as each product requires specific technology, convenience, art, beauty and safety. That is why we can not produce a series of products with the same appearance and features. Products must be manufactured or designed based on specific technical specifications from the investors. It is difficult to compare the construction work due to their single characteristics. Therefore, it is also not difficult for the person responsible for carrying out the constructions to raising the costs for building or hiring under-table cost to server the personal benefits. There are not so many big projects so the bidders are ready to give a bribe to receive the contract to reach their company's annually plan of benefits or sale income. -+- The important roles of State and Government to the infrastructure projects Most of projects to building or upgrading the public infrastructure are belong to the State. Even the projects implemented by private companies need the approval from public agencies. Construction industry is the sector has to follow quite a few legal regulations of the Construction Law applied at all levels from the central to the local ones with so many licenses. This is also high risks of corruption. + Construction activities relating to many bidders/suppliers: A construction project can have hundreds of bidders/suppliers. There are many such opportunities for corruption in a construction project as the way the investors/ project management unit (PMU) dividing the bidding packages, selecting bidders, recognizing the work that suppliers has been done and completed, speed up the liquidation... Each activity can be exploited for corruption. + Construction project often includes many phases requiring complex technology those are difficult to effectively supervised Normally, a construction project is divided into many phases with different requirement of technology and the way to manage the activities in each phase is difi*erent. Event thought the PMU signs a packaged-contract with a main bidder/suppliers for the whole construction work, they often sign sub-contract with sub-suppliers to provide serx^ices and/or goods for small bidding package. This also leading to difficulty in supervising both the construction activities and discovering the corruption. The technology applied in a construction project is often complex, including both underground and on the ground parts. Insufficient information make the work of supervision to be more difficult and even the experts sometimes have different ideas about the cost or issues raising. Bidders/suppliers can blame the fault on the third party and still required payment on time even when they have not correctly followed the term and conditions in the contract. This is the stage the corruption can happen when the two parties negotiate about the causes and effects of raising issues or about the work has been done and completed for payment or compensation. Most of parts of a construction work are covered by other part. For example, steel structure of a pillar is covered by concrete or brick, metal frame is covered by tiles or roof etc. Therefore, it is difficult to ensure that the construction is done exactly as it is designed and it is also very difficult to assess and evaluate the real quality of the parts hidden behind the covers despite of the fact that the supervision work is done by an independent supervisor. + Secret culture and local characteristics in construction industry To succeed in bidding, most of information relating to the real cost for the construction work is keep secret. Construction is not the land where the information is public and clear. Moreover, not all the construction work are comprehensively audited and inspected to find out the fault or corruption. It is very difficult for external enterprises to be successful in bidding of a local project or national project. Foreign enterprises must often accept to give big commission if they want to be the suppliers of a local construction project. -I- Construction relating to many professional societies, therefore, lack of a unique organization responsible for construction field. The complexity of construction work requires the participation of labour of many different fields such as civil engineers, architectures, accountants, laNNyers, electrical technicians, workers. Each field often has specific regulations on conditions for 8 practicing the professionals etc. That why it is difficult to fmd a unique organization responsible for construction field. 1.2.2 Types and manners of corruption in construction industry. Corruption in construction industry can be seen at all phases of implementation of an investment project: From the phase of making master plan, preparation for investment, implementation of the project (e.g. bidding, selecting the bidder, construction ...); pilot running, hand over and bring into practice, warranty, maintaining and repair (if any) Construction enterprises often try to find out the way to give bribes to responsible person of the project to be the supplier for the construction even when the project just starting with the phase of making plan for implementation or making an unnecessary project just to have opportunity to improve the turnover and/or benefits. The more complex the approval procedures is, the more opportunities for corruption occurs. Using bribes to have a contract of construction is a popular corruption form. Bidders try to give bribes via a neutral party, joining with local company which has relation with the stakeholder, or more sophisticatedly, via the sub-contractor (the main contractor sign the sub-contract to provide services or goods with the sub-contractor which is the local enterprise having relationship with the stakeholder. In fact, the money has been paid but no services or goods have been provided or in other cases, goods or services have been provided but with much higher price in comparison with the price in the market and the balance is one of the corruption types). Risks and types of corruption in construction industry- in Vietnam are listed in the Table 1 below: Table 1: Ricks and corruption t>pes in construction industr\' in Vietnam Phase in a construction projects Developing masterplan (design, appraisement and Risks and t)pes/forms of corruption . Select the project for purposes of personal interest instead of for public interest - Limitation of stakeholders/relevant parties participating in the approval) procedures of making decision ' - The end-users or affected parties are not consulted or involving into the progress of project planning - Approval process is not clear or erroneous because of comiption Recognition/ project design - Design the project for personal interest instead of public interest - Limitation of stakeholders/relevant parties participating in the procedures of making decision - Project is impacted by the enterprise Identified the - Improper unit-price stipulated by the state specifications and budget - Inaccurate budget, unstable market price, improper consultation - Designing consultant giving unnecessary consults for commission - Collusion between the designer and appraisement officer - Bias towards specific bidder estimation/budget planning Appraisement - Unindependent appraisement officers - Overpower of authority, making improper decision Administrative procedures relating to construction - Complicated procedures of approval and giving license create risks of unofficial costs Land clearance and resettlement Occupy the state-owned land in local area Improper or unreasonable compensation price Make up affected list of compensation to get money Bidding - Collusion between the investors and appraisement party - Collusion among bidders to push up the price higher than market price - The bid winner who receive the contract is not the good bidder - Lack of competition because of limitation of suppliers - Long bidding procedures causing the delay in implementation of important projects Implement - Project Management Unit (PMU) abilit\' in managing project does not meet standard requirements - Limited ability of bidders/suppliers. PMU does not have proper methods or measures to deal with ineffective and inefficient operation of bidders. - Collusion between design consultant, implementation consultant and supervisors - Intended violation the initial design, adjusting contract (e.g. price, specifications) construction project (Quality management, management of progress, management of construction work, management of safety and environment) Hand over the project The difference between completed products and design to investors and Financial cheating Unclear in technical assessment and design before approval persons who making 10 the decision in the investment Liquidation and audit - Lack of assessment and evaluation after the project/final product being brought into practice - Collusion between auditors and contractors/suppliers in audit reports - Liquidation for expenditures of nothing or expenditures with price exceeded the cost norm - Complicated liquidation making opportunities for corruption 1.2.3. Influences of corruption in construction industry on the country economy Construction industry play an important role in country economy, but it is also the sector/fields having high Ricks of corruption. The impacts of corruption in construction industry including: + Corruption makes the investment capital increase and waste the state budget It is difficult to compare investment budget among the projects; therefore, the cost for infrastructure can increase because of corruption. Due to the characteristics of construction work, it is difficult to compare investment capital among the projects and this may leading to the increase of capital because of corruption. The increase investment capital for this project because of corruption resulting in reducing the investment for other projects. For example, if the possibility of corruption in building new high way is higher than the maintenance of the old ones, there will be situation in which the investment capital for new high way will be given priority, leaving the old ones in the backward conditions. This is popular situation in African countries (Collier and Hoeffler, 2005)^ The authors pointed out that, after the implementation of anti-corruption in construction campaign, the investment cost for projects of infrastructure construction reduced from 40-50 % compared with the cost before. Research of Henisz (2002) in investment on infrastructures of telecommunication and electricity in 100 countries in the world shows that corruption has sigmficant impact on investment cost. The extra-cost because of corruption in construction of infrastructures ' Sec Transparency International (2005). " Global Corruption Report 11 in Afi-ican countries strongly reduces the ability to construct new telecommunication system in those countries^. + Corruption increase the running cost of infrastructures system and reduce the quality of infrastructure works In many countries (including Vietnam), the operation of infrastructure systems such as electricity, water, harbour etc is belong to sole organizations/institutions. Corruption make the quality of services become lower and lower and raising the running cost. The exclusive agencies can exploit their advantages to pay higher salary or require extrapayment when providing the services. Consequently, customers have to pay higher price for the services they receive. A research on infi-astructure services of the World Bank in 412 cities in 134 countries about the opportunity and quality of clean water, telephone and electricit>' shows that corruption has strong impacts on the opportunity to access and quality of those services . The corruption also reduces the opportunity to access other public services of the people, especially The Poor. + Corruption in construction industry also reduces the growth speed and makes the budget deficit of the state become more serious. Cost for construction of infrastructures increases, but the quality is bad leading to, of course, the low economic growth. + Corruption of construction industry threaten the environment With the need of building more hydro plants in many countries to increase the electricity production and regulate the natural water, the existence of corruption will lead to many issues relating to envirormient. In the Global Corruption Report of Transparency International Organization (2005), the authors pointed out that, because of corruption, many projects for building hydro plants had not been considered and assessed comprehensively about the impacts of the plants on the surrounding environment as well as not satisfied the requirements of environment protection during ' See Henisz W.J (2002) '*The institutional environment for Infrastructure Investment" in Industrial and Corporate Change , No 11. * Kaufmann D. , Leautier F. and Matruzzi M. (2004). " Governance and the City : an empirical mvesugauon into the global determinant of urban performance" . Mimeo ( World Bank). 12 the construction. Some examples of those are hydroplane project in Bujagali (Uganda), Jatigede Dam (in Indonesia), Yacyreta Dam (in Paraguay).^ Those projects had also not brought in the economic benefits as expected because the corruption made the cost for construction increased and, at the same time, causing a lot of environment problems. + Corruption causing the instability of the society Governments in many countries collapsed because of people's strong reactions to terrible situation of corruption of Government officers. That is the case of Suharto in Indonesia; Marcos in Philippines and recently, the government of Mubarak in Eg>*pt. It can be said that the long lasting of corruption in construction industry in particular and corruption in general causing the reduction of people's belief in the government, the authority and that is the root of social instability. In summary, corruption in construction industry is one of the challenges that many countries have to face with it. Corruption in construction industry causes a lot of negative impacts on the fields of economy, society and environment of many countries. The characteristics of construction industry make the prevention and anti-corruption dealing with a lot of difficulties even in developed countries. As a developing country, Vietnam has been also facing with corruption in construction. In the next chapter, we will analyze the situation of corruption in Construction industry in Vietnam. CHAPTER 2: CURRENT SITUATION OF CORRUPTION AND ANTICORRUPTION IN THE CONSTRUCTION INDUSTRY IN VIETNAM 2.1 An overview of corruption in Vietnam Corruption is undoubtedly one of the most serious challenges faced by Viemam. The long-term pattern of development will very^ much depend on the government' s abilit>to tackle it, and to overcome it. Vietnam is often portrayed as a widely corrupt countr\' ' See Bosshard P. in Transparency International (2005). *' Global Corruption Report' 13 in cross-country surveys, e.g. Transparency International' s (TI) Corruption Percepti ion Index ranks Vietnam 116 among 178 countries and territories. PERC2010 9,2 9,5 9,2 United Kingdom 7,6 6,8 7,4 7,7 8,2 30 Israel 6,1 5,1 5.8 6 6 39 Korea (South) 5,4 6 5,1 4,7 5,8 50 Hungary 4,7 5,6 6,8 5,8 2,3 78 Thailand 3,5 3,9 3,3 3,4 4,4 91 Sri Lanka 3,2 3,1 3.3 3,4 105 Argentina 2,9 3,5 3,3 2,6 3,6 no Indonesia 2,8 3,5 1.9 2,6 4 116 Mozambique 2,7 2,3 3,3 2,6 172 2Ti 2,3 4,8 5,6 WEF2010 8,9 20 WB 2009 IMD2010 9,3 FH2010 Denmark 1 BF 2009 GI2010 EIU2010 ADB 2009 Table 2: Ranking of transparency and quality of governance 2010 4.6 3,7 3,3 3,3 2.7 4,1 2,4 1,9 3 2,7 3,3 2.7 2.6 2,6 2,7 2,7 m m^ 2,7 1 23 123 Armenia 2,6 2,3 2.3 134 Bangladesh 2,4 4 3,1 1,9 2,1 2.7 1,8 143 Pakistan 2,3 2,3 1,8 3,3 2,1 2,1 2,4 154 Russia 2,1 2,3 1,9 164 Venezuela 2,0 1,5 1,9 172 Turkmenistan 1.6 1,8 176 Myanmar 1,4 0.9 2,9 2 1,6 1.9 1.4 2,1 2,6 2,1 2 2,3 1,4 1.4 (Source: Transparency International. 2010) ADB: Country Performance Assessment Ratings by the Asian Development Bank AFDB: Country Policy and Institutional Assessment by the African Development Bank BF: Bertelsmann Transformation Index by the Bertelsmann Foundation EIU: CounU7 Risk Service and Countr> Forecast by the Economist Intelligence Unit FH: Nations in Transit by Freedom House GI: Global Risk Service by IHS Global Insight IMD: World Competitiveness Report by the Institute for Management Development PERC: Asian Intelligence by Political and Economic Risk Consultancy NV'B: Country' Policy and Institutional Assessment by the World Bank WEF: Global Competitiveness Report by the World Economic Forum 14 2.7 goer fdi) .*tn«m iH r>nt rtv thi r„ - t. r«ici* issue. i cine such ' • i"( . < portray Vietnam as iMMHiat in this respect because k has higher niridng than lighor level of Atvelopmefit sncli as Russia. Vietnam's indices on transpareacy and cv inpetitiveness ase slightly highvlban that of South Asian countries SHkasn PMislBn aad Bangladesh. But the reality on the ground is more complex. The World Bank* s inrraalment Climate Assessments, on the other hand, put Vietnam on a par with Malaysia, one of the least corrupt coimtries in the region''. When taking into account GDP per capital as the comparing basis, the extent of corruption is actually comparable to that of other countries at a similar development level (see Figure 2). The level of corruption is closely linked to socio-economic development and most developing countries are facing this problem. Figure 1: Integrity and GDP per capita 3 2.5 i 1 1,5 7 ? 1 I 0.5 12 I -0.5^ \ -1 • ConibSdij o »-1.5 •2 GNI per capita (ln| for 2007 (WB, Atlas Method) Sources: World Governance Indicators 2007 and World Development Indicators 2008 index: therefore, the reference and paraphrase '^ There are difference ideas about administi^tive quality measure ii ^ . - r.nrr. must be very carefully. See Amdt. C. and Oman, C. (2006): ^'Uses and abuses of governance md.cators Centre for Research and development, OECD. Pans „, .„ri.P..ir%e%s " See Survey on Investment Environment of the World Bank at b i m www entcrpnsesuQm 15 al