A few years ago, while in Tanzania, I was interested to hear (from journalists that come from various countries in East Africa) that one of the main reasons for widespread corruption in Africa is the international community – both multilateral development agencies and multinational corporations. At the same time some lauded the efforts of Chinese companies that were quite active in a variety of infrastructure projects.
Perceptions matter. But they can also be misleading.
According to the latest Bribe Payers Index, developed by Transparency International, out of major global economies, companies from BRIC countries and Mexico are most likely to bribe when engaging in business operations in other countries.
In revealing that companies from Russia, China, and India are the bottom feeders of the Bribe Payers Index, TI report also highlights the evident lack of knowledge of the OECD Anti-Bribery convention in many of the OECD companies (at the senior executive level). Still, despite the implementation gaps, the OECD countries and companies have made notable progress in becoming more transparent over the past few years, while companies from Russia, China, and India have much work to do to catch up. Their countries’ signing of the OEC anti-bribery convention can certainly help in bringing more transparency to business operations.
Back to Tanzania and its neighbors. Earlier this year, Chinese President went on small tour of East Africa, touting new aid packages and investments. While such capital infusions are tempting, especially as the booming trade between China and African countries is helping the continent weather the economic storm, African governments, business community, and citizens more broadly must not forget of the strings attached – bribery that comes with it. And, considering all the long term developmental costs of corruption that African countries know first hand, such bribery is something to worry about.
Published Date: August 18, 2009