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Governments Lose Trust as Corruption Soars

Posted by Larry Doyle on July 9, 2013 9:59 AM |

There is not much that shocks me these days. There is even less that causes me to raise my eyebrows.

Well, this morning I raised my eyebrows in reading a commentary that hits directly upon a theme known all too well by readers of my blog: a lack of transparency in government generating a whole lot of corruption and subsequently a pervasive lack of trust. Let’s navigate as CNNMoney provides “eyebrow rising” info.

Have you recently paid a bribe to a local politician, judge or police officer?

If so, you’re not alone. More than one in four people around the world have paid a bribe in the past year, according to a global survey conducted by Transparency International

Released Tuesday, the survey finds that corruption is a growing problem, with a majority of respondents saying that the situation has deteriorated in their country over the past two years.

The survey also shows that in many countries, people are losing trust in government institutions.

Political parties are seen as the most corrupt class of organization in some 51 countries. Thirty-six countries name the police as the most corrupt, while another 20 countries say the judiciary is their biggest source of trouble.

More than 50% of people think that their government is controlled by small groups and special interests.

In Cyprus, Greece, Lebanon, Russia, Tanzania and Ukraine, that number jumps above 80%.

“The majority of people around the world believe that their government is ineffective at fighting corruption and corruption in their country is getting worse,” Transparency International said in the report, which was based on a survey of 114,000 people in 107 countries.

Certain countries are in more trouble than others. Liberia and Sierra Leone rank at the bottom, with more than three in four of those surveyed saying they had paid a bribe in the past year.

Bribery rates were over 50% in Cambodia, Senegal, Cameroon, Ghana, India, Tanzania, Kenya, Libya, Mozambique, Uganda, Yemen and Zimbabwe.

At the other end of the spectrum, Australia, Belgium, Portugal, Malaysia, Finland, Denmark and Croatia were among the countries reporting a bribery rate of less than 5%.

Somewhere between 5% and 9.9% of respondents in the United States and United Kingdom said they had paid a bribe.

Does this number surprise you? Clearly, corruption is becoming endemic within our society.

The surveys suggest that corruption cuts across societies and demographics.

Some large, sophisticated economies have governments that are perceived to be under the control of a select few. According to the survey results, Italy, Spain, Belgium and Israel fall into this category.

So what’s to be done? Transparency International says authorities must make sure corrupt officials do not escape punishment.

“Impunity is anathema to the fight against corruption and, especially in the judiciary and law enforcement sectors, is a direct challenge to the rule of law,” the group said.

The United States scores a rank mediocre 73 on the scale of 0-100 placing it 19th in the world. Think we don’t have issues? Little wonder why whistleblowers are increasing in number. There is a LOT to blow the whistle on.

Navigate accordingly.

Larry Doyle 

For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit my blog and comment on this piece of ‘sense on cents.

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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

 

  • Russ

    Larry,

    As an example, I’d love to point out all the corrupt things that have happened with Madoff alone.

    In what legal system in the world does the attorney paid for by the insurance company and representing the insurance company ALSO represent the victims that the insurance company has to pay?

    It’s insanity.

  • Sunup

    Larry,

    Corruption at its finest. We were in Ireland last week and this is huge .

    The Irish Independent ran a series on Anglo Irish bank bail out in 2008.

    Are there words to describe the actions and statements of all these people in positions of power. All in bed together. Will anyone go to jail,? probably not.

    Sorry this is such a hash, I am not very good at this stuff. I do so admire your work and your honesty.

    Regards

  • Greg

    Good morning,

    The article in the link below describes Thompson Reuters’ program to sell a key financial report to subscribers before it is made public.

    On one hand – free enterprise, on the other hand how can those of us forced into 401k plans for retirement planning compete with investors using super computers and pre-release data to make the optimum trades?

    http://business.time.com/2013/07/09/the-most-profitable-two-seconds-on-wall-street/

    • LD

      Greg,

      This business enterprise facilitates front running activity primarily in the equity markets via high frequency trading. Should be outlawed in my opinion.

  • Russ

    Larry, did you hear that the 3rd circuit fort of appeals denied our appeal (Madoff Victims).

    Essentially saying that they don’t want to open the door to suits against the SEC, no matter what their behavior or how culpable they are.

    The courts are 100% politically motivated.






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