Corrupt practices with all the dimensions like manipulation of funds allocated for development expenditure, hoarding of essential items of consumption, speculative trading in stock exchange securities and properties, tax evasion, money laundering, smuggling, under and over invoicing continue to grow and have added the to undocumented economy of the country.
This has resulted in fuelling inflation in recent months (apart from the impact of the recent international war environment) despite sound monetary policy in place, sizeable loss of revenue to the government and above all, depletion of Human Development Indicators (HDIs) linked to the status of social sector development, and thus immense damage has been done to the formal economy.
Due to a phenomenal rise in the undocumented/ underground economy, Pakistan has been in the limelight for being one of the most corrupt nations in the world.
In the recent past, the World Bank’s initiative to conduct a survey study to identify major causes of corruption had included Pakistan among a small group of African countries. The cause of concern was that rampant corruption in these countries was paving the way for a continuous increase in income inequalities and poverty. Besides the lack of good governance and transparency in these countries, not only did it impeded the inflow of foreign investment, but it also aid loan giving agencies attached innumerable conditionalities for providing funding to these countries, which in the majority of cases impacted their economies adversely . The key factors identified through the study for persistent corruption in these countries are:
Ineffectiveness of the State as the guardian of public interest. It is the universally accepted notion regarding government that its role is to rise above private interest to protect broader public interest. Unfortunately, it is a general trend in Pakistan that people holding public offices favour a particular group or individual linked to their ethnic, political and geographical interests. This promotes corruption in all spheres, thus blurring the line between public and private interest.
Illegal gratification is considered an easy way, or rather the norm of life, to get things done by people holding public offices. Hence, services and benefits meant for the general public are concentrated in the hands of the few privileged.
Discriminatory application of the rule of law. Where the rule of law and accountability are for the general public, whereas the privileged class, from where illegal gratification is expected, is taken as above the law and not accountable for their misdeeds, thus public offices, which are meant for protecting public interest, allow the floundering of the rule of law and accountability. In Pakistan, the law enforcement department is directly responsible for the encouraging violation of the law by citizens. The role of the judiciary, which is a supreme institution to ensure the enforcement of the rule of law in the country, cannot be taken as totally transparent and independent of the establishment.
Hence the rule of law is widely compromised.
Another factor which has contributed to strong corruption in the sample study countries is the ineffective accountability process. To combat corruption and the floundering of the law, effective accountability agencies are needed. No doubt Pakistan’s Accountability Bureau is striving to arrest the rising trend of corruption and other illegal practices among public officials at all levels, yet their efforts, either due to the show process or due to the influence exercised by those who abuse power, are sometimes ineffective in nabbing the source of corruption and culprits are exonerated from charges levied against them. There are a number of bank loans defaulters and those who, by abusing power, furthered their personal interests, still go unpunished.
Lack of commitment with legislature/ parliamentarians and bureaucracy to fight corruption has also been identified as one of the reasons giving fillip to corrupt practices in these countries. The survey report emphasizes the point that corruption emanates from the upper echelons of society, then penetrates down the line in all spheres of the economic, social and political setup of the countries. In the case of Pakistan, the integrity of our parliamentarians, is required to obtain eligibility to contest
National Provincial assemblies elections submitted fake degrees to the Election Commission.
What can one expect from such leaders who were involved in corrupt practices? Just for gaining entry into assemblies. For winning the election, millions of rupees are given as bribes to illiterate masses, and these poor voters, being illiterate consider these unethical practices as aw a way of life.
The legislature, both from opposition and ruling parties are continuously busy in leg pulling and power grabbing endeavours, and the ruling party is always found in a defensive role instead of looking into important socio-economic issues needing their immediate attention.
Various past regimes took action against corrupt officials, but the majority, being part of the underworld mafia, regained their influence after every change of government. In a way, corruption has become a culture of the country,and the common man has learned to live with these odds.
Even under various military- led governments, heads of state, despite their earnest endeavours to eradicate corruption, failed to curb corrupt and anti-state activities. Thus, the underground economy continued to flourish to the extent that it has now outgrown the size of the formal economy.
Lack of transparency and good governance has been found to be the main supporting for giving a strong hold to corrupt practices in the country. The present government, in order to combat corruption and unethical practices, has set up anti-corruption agencies and the Accountability Bureau. However, little improvement is visible as the proportion of corrupt practices has inflated to the extent that even these hesitate to take action against dishonest persons and sometimes officials of these agencies are victimized for pinpointing corrupt practices.
One of the main objectives behind the power devolution/decentralization plan by successive governments covering the last three decades was to ensure good governance and transparency in all matters by delegating powers to the level of local government functionaries, viz., Nazims, Naib Nazims , councillors, etc.Since they belong to the area they are looking after and are in direct contact with inmates of that area, neither they themselves can indulge in corrupt practices nor residents of that area dare to get involved in unethical businesses freely. In other words, an environment conducive to corrupt practices is difficult to develop under this system, provided people are elected to these positions.
It is unfortunate that despite the macroeconomic turnaround, growth rate of the social sector remains stagnant.
According to the latest report released by UNDP, Pakistan’s HDI relating to the rate of Literacy, life expectancy , and availability of clean drinking water is the lowest even among SAARC countries. No doubt allocation for education and health sectors substantially increased every year in the (PSDP) Public Sector Development Programme , but the population remains illiterate. Since society as a whole is least gender sensitized, the rate of Literacy among women, particularly in suburban and rural areas, is even less than 25%. Under such circumstances, to achieve sustainable goals set for social sector development by 2030 seems doubtful.
The funds allocated for education are being widely misused. The number of ghost schools continues to increase in all the four provinces. To check this malpractice, vigorous monitoring and supervision by agencies other than the functionaries of education departments is needed. As stated earlier, functionaries of local governments who also come within the ambit of accountability, in collaboration with well reputed senior citizens. Can form supervisory committees at each union council level to frequently check activities/ performance of management and teaching staff of all educational institutions in their locality. These supervisory committees can also have surveillance on the health sector.
Working of hospitals and dispensaries should be monitored by watchdogs,and recipient committees . This will ensure proper utilization of funds and positive growth of the social sector. However the effectiveness of such monitoring/watchdog committees depends on initiatives on the part of the general public to bring to notice (without any hesitation) these agencies all unethical and corrupt practices common in organizations operating in their locality to enable them to take immediate action and nab the evil at the very source.
Unfortunately, corruption has penetrated so deeply into all walks of life that the poor public being helpless, has lost all hopes of having a transparent and just system of governance at all levels. In this regard, donor/aid giving agencies have been found playing an indirect role in bringing transparency to the government affairs of problematic countries.
IMF’s code of good practices on fiscal transparency applicable to all countries receiving fundings has an emphasis on the digitization of government initiatives. This has prompted all business concerns, government agencies and individuals to use the latest IT Technology or electronic services for payment of utility bills, taxes, and to keep a track on custom duty settlement,etc. However, by making it mandatory, the government can widen the tax net and prevent the substantial loss of revenue encountered every year.
In low and middle income developing countries, monitoring by funding agencies like the World Bank etc have also been found effective in arresting corruption in social sector development programs. The poverty reduction strategy approach now in progress in Pakistan need to be transparent, and misuse of funds meant for poverty alleviation need to be prevented.
However, it is desirable that efforts should be intensified for putting in place good governance and transparency in all reporting to the public, as well as funding agencies, to come out of the list of corrupt nations.