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https://dailyasianage.com/news/192454/can-you-escape-corruption

Published: 12:37 AM, 25 August 2019

Can you escape corruption?

M S Siddiqui

Bangladesh is highly regulated but enforcement is either poor or arbitrary. The laws and rules are either
back dated or new laws are not formulated considering need of the time. Laws are full of procedure of
punishments and authority & discretionary power of bureaucrats. The laws have well defined immunity
for the bureaucrats without any liability both civil and criminal in disguise of professional protection.

The interaction of state authority with the citizen occurs in two ways. The first takes place when the
state provides the citizen with some legitimate service, in the form of applying regulations that require
permission or the issuing of a document. The citizens have no choice but the go for service or permission
from different government offices. None can live in this country without "service" of the government
departments.

The regulating departments conducted by the Government are the most corrupted sectors of the
country. These are ridden with corruption of various dimensions and shades. Apart from bribery, rent-
seeking and misappropriation of funds, the performance of public organizations is adversely affected by
a host of other factors like excessive lobbying, delays in service provision, pilferage and larceny,
irresponsible conduct of officials, bureaucratic intemperance, patronage and clientelism.

The common citizen other than business, have to visit government offices for birth certificate, marriage
certificate, medical treatment, death certificate, Passport, Police clearance, Educational certificates,
employment, character certificates, land registration, income tax, VAT, payment of land revenue,
utilities services- water, gas, electricity, transportation, financial service, postal service and a number of
permission and clearance from different departments. Most of these are free or for nominal fees but
citizens are paying huge amount of bribe for those services.

A wide range of activities requires an official permit. According to Business Anticorruption Portal post :
According to all major ranking institutions, Bangladesh routinely finds itself among the most corrupt
countries in the world.

Corruption is pervasive at all levels of society and companies have reported being subjected to costly
and unnecessary license and permit requirements. Citizens are unaware of their rights to obtain the
permits and the officials' duties in rendering the service, and information is concealed for profit of the
state officials.

The United Kingdom (UK) government has advices to the British business who are interested for
Business with Bangladesh that corruption affects many aspects of daily life in Bangladesh and is often
cited as a barrier to private sector development. 'One of the biggest challenges facing UK companies in
Bangladesh is how to avoid paying speed money,' it says in a guideline report published on Thursday
highlighting the challenges in doing business in Bangladesh.
The list of necessary permissions and documents for an Entrepreneur to start a business:
1) Trade License (City Corporation, Municipal)
2) Certificate of Incorporation (RJSC)
3) TIN Certificate (NBR)
4) VAT/ Registration Certificate (NBR)
5) IRC (CCI & E)
6) ERC (CCI & E)
7) Certificate from Department of Environment (Department of Environment)
8) Fire License (Fire Service & Civil Defense)
9) BOI Registration Certificate (BOI)
10) Factory Set up Registration Certificate (BOI)
11) Listing and Renewal of RMG Unit (EPB)
12) BSCIC Registration (BSCIC)
13) GSP Certificate (EPB)
14) Quality Certification Marks (BSTI)
15) Bonded Warehouse License (NBR)
16) Certificate of Origin (DCCI, MCCI, BGMEA, BKMEA)
17) Patent Registration (Dept. of Patents, Design and Trademarks)
18) Design Registration (Dept. of Patents, Design and Trademarks)
19) Trade Marks (Dept. of Patents, Design and Trademarks)
20) Others

After start of business, a great deal of time -more than half a person-year-is needed to deal with
Government agencies such as customs, port authority, tax department, EPB, and various ministries.

Firms had to spend, on average, 7 percent of their sales revenue to overcome the import and export
delays by government agencies. Most exporters (82 percent), employ a person specifically to deal with
government agencies.

There was no basis for the argument that unethical business/bribery could increase efficiency by cutting
down red-tapism. Enterprises paying bribes also spent a greater share of management times with
bureaucrats for negotiations on the deals.
'Speed money' is unofficial, under the counter payments to minor officials to expedite business.
Politicians, bureaucrats and law enforcement officials often wield significant discretionary power and
there have been some abuses,' according to the guideline titled 'Doing business in Bangladesh:
Bangladesh trade and export guide'.

Bangladesh is ranked among the countries where informal payments and bribes in connection with
public utilities occur the most (GCR 2015-2016). Almost sixty percent of firms expect to give gifts or pay
informal payments when obtaining operating licenses or public utilities such as a water connection (ES
2013).

Facilitation payments given to public officials to get things done are very common (ES 2013). Regulations
are often unclear or even conflicting and are insufficiently publicized (ICS 2015). Businesses should note
that registration or regulatory processes are allegedly used as rent-seeking opportunities (ICS 2015).
Starting a business costs the same as elsewhere in South Asia, but takes four days longer than the
regional average (DB 2016).

The second circumstances of contact occur when the state, in exercising its normal regulatory function,
sets fines for violations of regulations. Then the payment due to the state is turned into a private
payment to the state official. The citizen does not know how to pay the state, which is presented as a
complicated bureaucratic procedure, as opposed to a simple private payment that ends the matter.

Morality and the psychological climate in society affect the level of corruption. The majority of officials
are sooner or later faced with circumstances in which they have to choose whether or not to benefit
from decision. A decline in morality may be a response to a number of considerations - a feeling of social
instability, a low salary not commensurate with the skills and the scope of responsibility of a public
servant, injustice in promotion to higher posts, and boorishness or incompetence of superiors.
Corruption is often viewed as compensation for losses suffered by an official in relation to his
government service.

Corruption captures new offices and spheres of influence, promotes the formation of networks and
groups, and allows policy making to be captured for private interest. As economic and political
inequality within society increase, social tension increases as well. The very existence of constitutional
order is put under threat. Corruption evolves into a problem threatening the country's national security.

At the same time, corruption, especially grassroots corruption, is considered''by default'' as a routine
element of everyday life. Accusations of corruption become so routine that the division between the
norm and an aberration gradually disappears.

A normal democracy allows some conversion of economic wealth into influence over the state, through
electoral mechanisms and the political influence of special interest groups. However, in its developed
form, democracy is inconsistent with the conversion of political authority into economic wealth.

A feature of the transition is the combination of traditions and cultural stereotypes that allow the
personal freedom of virtually unhindered conversion of one form of capital into another. Public officials
consider their posts to be a continuation of the market. Democracy is seen as the freedom of conversion
from the normal market into the market for corruption-based services.

Corruption appears to take place when it satisfies a certain formula. According to Robert Klitgaard
(1998), monopoly of power, when combined with discretion and absence of accountability, integrity and
transparency will result to corruption. Thus, the formula: C=M+D-A, where C is corruption, M is
monopoly, D is discretion, A is accountability, I is integrity and T is transparency. This suggests that the
absence of AIT (primarily as a consequence of weak governance) in addition to monopoly and discretion,
results in corruption. This formula strengthens the theory that corruption is primarily a failure in
governance.

Typical features of system prone to corruption are: (UNDP, 2004)

* Concentration of powers in the executive and weak or non-existent checks and balances
* Poor transparency surrounding executive decision combined with restricted access to information
* Elaborate regulatory systems allowing for discretionary decision making
* Weak systems of oversight and enforcement
8 Soft social control systems/high tolerance for corrupt activities

Corruption is a problem which all governments, at any level of development, have to deal with. The
survey conducted by the Transparency International finds that corruption in the public sector takes the
same form, whether one is dealing with a developed or developing country. The areas of government
activities most vulnerable to corruption are: (TIB, 2000).

* Public procurement
* Rezoning of land
* Revenue collection
* Government appointments; and
* Local government and many others departments

Absence of opposition to the conditions creating corruption allows expansion in both horizontal and
vertical directions.

If someone commit a mistake or a crime and not willing to come into arrangement with the official will
face lengthy process of investigation and punishment and untold suffering as per sweet will of the
regulators and law enforcers. He will be victim of bribery, nepotism, embezzlement, fraud and extortion.

Nevertheless, anti-corruption legislations are not appropriate for corruption situation in Bangladesh and
is inadequately enforced or give protection to corrupts. Facilitation payments and gifts are illegal, but
common in practice.

The attractiveness of grassroots corruption is explained by the mutual gain and minimal risk for the
person accepting a bribe and the person who offers the bribe. A bribe helps to solve routine problems.
Bribes can serve as a modest payment for minor violations of laws and regulations.
The writer is a Legal Economist. Email: mssiddiqui2035@gmail.com