CORRUPTION IN THE COUNTRY

Rationale

Corruption simply refers to as dishonest and illegal activity by those in authority or

power. It also involves the violation of established rules and regulation for personal gain and

profit.

Corruption according to (Aluko2003) is the process of involving oneself in act of

embezzlement, conflict of Interests such as the award of contracts by public office holders to

cronies and personally held companies, bribery, fraud, political corruption like nepotism or

favoritism, ethnicity, rigging of elections, misappropriation and conversion of public funds for

personal gains, bureaucratic corruption, extortion, manipulation of procurement processes by

over-inflation of contracts, leaking tender information to friends and relations to mention but a

few. It is the processes of making people behave in a way that is morally wrong.

Theories concerning causes of corruption:

Public Choice Theory

First, there is rational choice theory: public choice theory. For the independent variable to

explain corruption, it primarily looks at the level of the individual. The causal chain is that of an

individual making a (bounded) rational decision that leads to a predetermined outcome. Central

to the public choice literature is the individual corrupt official who tries to maximize his or her

utility. This group of causal theories is made popular by Rose-Ackerman (1978), who claims that

public official re corruption for a simple reason; they perceive that the potential benefits of

corruption exceed the potential costs. As Klitgaard (1988) states, if the benefits of corruption

minus the probability of being caught times its penalties are greater than the benefits of not being
caught, then an individual will rationally choose to be corrupt. Of course, the theory can be

expanded when conditions that influence the cost-benefit calculations are taken into account. For

example, trust can play an important role. When the state cannot be trusted to manage private

property transfers, corruption might become more appealing. In this kind of theory, actions of

corrupt officials are caused by a rational, conscious and deliberate weighing process of

individual. In this theory, the individual is weighing the advantages of the promised gifts against

the chances of being caught and the possible negative impact that would have for him. That

individual could make the conscious decision that the benefits were worth the risk. Therefore,

this theory starts from the moment an official calculates whether to become corrupt or not.

Bad Apple Theories

Second, bad apple theories, like public choice theories, primarily look at the level of the

individual corrupt agent for the causes of corruption.

These studies seek the cause of corruption in the existence of people with faulty (moral)

character, the so called ‘bad apples’. There is a causal chain from bad character to corrupt acts;

the root cause of corruption is found in defective human character and predisposition toward

criminal activity. Causes are rooted in human weaknesses such as greed. Wrong values are

therefore the cause of corruption. The wrong values of individual directly influenced his/her

behavior toward corruption.

Further, criminological theories (which are somewhat related to bad apple theories) states

that, the corrupt official is merely after material gain (public choice theories) is too much of a

simplification. The official could also be seeking a higher social standing, excitement, work

pleasure or a cure for frustration.

Organization Culture Theories

Third, it primarily looks at the culture and structure of the organization within which the

agent is working. The underlying assumption seems to be that a causal path from a certain

culture- a certain group culture- leads a certain mental state. And that mental state leads to

corrupt behavior. Failure in the proper machinery of government, not faulty character, leads

public officials to act corruptly. Therefore, it accounts for the context corrupt acts occur in. For

example, when talking about corruption in the police departments. IF we scan these activities

then it is plan that we are no longer dealing with individuals seeking solely personal gain but

with group behavior rooted in established arrangements and/or extreme practices that have to be

located within the structures and culture of police work and the police organization.

This brings us to a related group of theories of corruption that should be grouped here,

those that see corruption as ‘contagious’. These theories state that once an organization culture

(country) is corrupt, every person who comes in contact with it also runs a big risk of becoming

corrupt. Therefore corruption itself seems to be the ‘cause’ of corruption (even though the

specific causal relationship is hard to define.

Clashing Moral Values Theories

As distinguished from the previous theories, corruption is considered on a macro level,

more precisely, the level, more precisely, the level of society. Since the culture of an

organization is also influenced by society at large, there is an overlap between this group and

organization culture theories.

The causal chain in these theories starts with certain values and norms of society that

directly influence the values and norms of individuals. These values and norms influence the

behavior of individual officials, making them corrupt.

 A good example, the core or central clusters of the Filipino value system that revolve in

seven values: (1) family/kinship orientation; (2) makatao/kapwa tao personalism; (3) “loob

compex” (religious/psychic orientation); and (7) economic security. The “loob, buot and nakem”

identified by Mercado has been connected to kagandahang loob, mabuting loob and other

relevant concept of “loob” that dealt so much about the ethical and behavioural actions of

individual. Yet, how come that the Filipino value system of “loob” provides the problematic

dimesions that connected the idea of corruption. (Bueno (2011) found out in the series of

researches in the Nakem Conferences International that loob, buot and nakem became the

standard ethical value of the Filipino tradition. During election the situation of vote buying as

part of electoral fraud has been the weakness of the ethical value of the Filipino society. When

they received the certain amount to the politicians the ethical value represents the honored action

to the Filipino voters. The partisan politics in the locality remained to be politically formidable to

the ideas of social acceptance and cultural reciprocity regardless of the political agenda and past

experiences in the conviction of graft and corruption. (Bueno, 2011)

Corruption has been viewed as a “cultural and psychological phenomena in a country

marked by incompatible legal and cultural norms. The conflict between the rationality and

universal principles of action and reliance and obligation toward kinship, friendship and primary

groups gives culture to justify bribery and extortion, or the Filipino regard for the other

(pakikipagkapwa-tao) to justify giving benefit to unqualified but personally known recipients. In

the Philippines, familial ties and the cultural value of utang na loob (debt of gratitude) have made

Filipinos more tolerant of corruption. Society’s cultural norms and practices (such as kinship

loyalty), which form an integral part of the informal organizations, shape the public’s perception
of government and its bureaucratic apparatus, and influence to a greater or lesser degree the

behavior of administrators.

The Ethos of Public Administration Theories

In these theories, political and economic structures are studied. Official’s performance

has a casual path from societal pressure though the level of organizations. This, combined with a

lack of attention to integrity issues, leads to focus of the official on ‘effectiveness,’ making him

or her corrupt. It is feared for example, that public sector reforms, under influence of New Public

Management, change the culture within the public management in such a way that standards of

ethical probity within public services are affected negatively, leading to more instances of

corruption.

Further, according to (Quah, 2006), there are five major causes of graft and corruption:

(1) the most widely cited factor is the low salaries of civil servants. Inadequate wages force

public employees to accept “speed money” –to expedite citizens request for services or licenses

or licenses or bribes to bend the rule of those who are not eligible for permits or benefits; (2) the

expensive role of governments in national development throughout Asia increase opportunities

for administrative discretion and corruption, especially among poorly paid civil servants; (3)

corruption in many Asian countries is he low risk of detection and punishment. Civil services

suffer from weak disciplinary control. In part because both the state employees and citizenry

regard graft as a low risk, high reward activity; (4) the primacy of the family and Asian traditions

of gift giving. In the Philippines, familial ties and the cultural value of utang na loob ( debt of

gratitude) have made Filipinos more tolerant of corruption; and (5) extensive reason afflicting

many asian countries is a lack of political will combined ineffective anti-corruption strategies.
 A possible alternative explanation of individual motivation to engage in corrupt behavior

is offered by the social learning theory (Akers 1998) developed within sociology to explain

deviant behavior. The basic mechanism of the social learning theory works as follows: behavior

is acquired and sustained (1) through adopting definitions favorable to illegal behavior via

differential association with one’s peers, (2) through imitating such behavior by peers, and (3)

through the positive reinforcement provided by rewards for such a behavior (Akers, 1998).

Ake (1991) asserted that man cannot live without bread and this natural need for bread

influences man’s behavior in virtually all spheres of his life. Severe materials shortages in a

polity prove much more authoritative and a determinant of man’s behavior in politics. If man’s

behavior is to be controlled and become predictable- the socio-economic foundations of the

polity must be one that ensures a fair standard of living. Corruption cannot be eradicated in

polity where the material foundations for it does not exist. Poverty is a principal, perhaps the

principal obstacle to the eradication of corruption.

In exploring the relationship between democratization and corruption in the Philippines,

the research finds that several factors were involved: an entrenched political culture of patronage

politics; weakness in the judicial system; decentralization of corruption networks; and

deficiencies in civil servant’s wages. (Fernandez, 2010). Corruption is a behavior which deviates

from the formal duties of a public role, because of private (gains)-regarding (personal, close

family, private clique, pecuniary or status gains.

A good example of corruption in public work of corruption in public works in the

concepts of social acceptance and cultural reciprocity through “relationship management”

explained by Batalla (200) “ Corruption in public road works is committed in two related major

stages during project implementation.” In the first stage, corruption is based on “relationship
management,” the object of which is that the contract goes to favored contractors. Characteristics

of the clientelistic and patrimonial society, the awarding of contracts is often treated as a

privilege, a favor, and payment of utang na loob (debt in gratitude). Relationship management

culminates in the bribe (cash in kind) in exchange for the actual award of contract or favorable

consideration in the valuation of bids. The extreme case for corruption in the first stage is a

collusion between government officials and the contractor to design and award ghost projects

(although this can also occur in the second stage involving field officials and personnel. Another

extreme case is the search for dummy contractor by government officials.

Discussion

Corruption is a pervasive and long-standing problem in the Philippines and it affects us

all. It threatens sustainable economic development, ethical values and justice; it destabilizes our

society and endangers the rule of law. It undermines the institutions and values of our

democracy. But because public policies and public resources are largely beneficial to poor

people, it is they who suffer the harmful effects of corruption most grievously.

Corruption has a far reaching effect on the behavior of individuals in any nation which

eventually goes back to undermine the whole system of good governance itself. Systemic

corruption breeds a culture of corruption and skews the people’s perception of what is right and

wrong. For a number of countries where it has been effectively institutionalized, where wealth

and power have become the measure of success, corruption has become socially acceptable,

sometimes even aspired by people to be corrupt. Energies of a large number of people are

channeled towards occupying positions in the government to partake of the fruits of a corrupt

system. Usually, Corruption in the government involves three broad layers. First is corruption
within the broader political system. This includes the demands of electoral politics, the extensive

use of patronage in political appointments, and the excessive use of money in seeking for an

appointment. Secondly, is corruption within the public sector, which is usually focused on three

major problems: spot performance of mechanisms for identifying and sanctioning employees

engaged in corrupt and illicit behavior, considerations of pay and employment, and government

procurement, Thirdly is corruption within specific agencies like (Bureau of Custom), which

involves grand corruption .In the BOC, money rules that even the well-intentioned succumbs to

temptation. Following the above concepts therefore, the negative impacts of corruption on good

governance. These negative impacts include the following:

1. Corruption lowers tax revenues: Public resource mobilization can be impaired through

tax evasion and creative tax avoidance schemes. Additionally, corruption opportunities

provide an incentive to make (or at least keep) the tax code unduly complex, and subject

to many discretionary exemptions. Further, corruption renders the tax collection

institutions less effective and efficient. And, corruption can affect customs

administrations.

In terms of lost revenue, the Bureau of Customs tops the list.According to Global

Financial Integrity, money flowing illicitly into the country takes away 25% of the value

of all goods as $1 in every $4 goes unreported to Customs officials.Since 2000, illicit

financial flows have cheated the government of an average of $1.46 billion in tax revenue

each year or about P68.8 billion in current rates.To put that amount into perspective, the

Philippines lost $3.85 billion in tax revenues in 2011 (P166.74 billion in 2011 rates)

which is about 10% of the national budget that same year.

2. Corruption increases public expenditures: Corruption may be associated with bloated

bureaucracies, excessive and less productive public investments, and an inefficient

composition of expenditures.

3. Corruption perpetuates inequality and poverty. The poor suffer particularly from

corruption in the form of deficient social programs that are underfunded or poorly

managed. The social, political and economic impact of corruption and illicit financial

flows hurdle in achieving sustainable development goals. The inequality in income and

well-being may be linked to corruption nd the associated misallocation of public funds,

rent seeking behavior and capture of politicians. Inequality of income, in turn, can result

in inequality of access to political processes and policy discussion.

According to a 2014 report by Global Financial Integrity, the Philippines lost about

$410.5 billion between 1960 and 2011 on illicit financial flow. In current exchange rates,

the amount is about P19.34 trillion (without accounting for inflation).The vast majority of

money flowing illegally into and out of the Philippines over the 52-year time span was

done mostly through misinvoicing of trade. In effect, the P19.34 trillion lost to corruption

could have been used for education, health or infrastructure.

4. Negative impact on quality of infrastructure and public service. Corruption denies

development and quality of life to the most sectors and vulnerable members of society. It

is especially harmful in the provison of quality infrastructural, and public service

delivery. The root cause of corruption lie in the unequal distribution of resources in a

society. Corruption thrives on economic inequality while economic inequality provides a

fertile breeding ground for corruption, and in turn leads to further inequalities.
5. Low levels of economic growth. High levels of Corruption distorts the allocation of

resources and the performance of government in many ways. It has a pervasive and

troubling impact on the poor, since it distort public choices in favor of the wealthy and

powerful, and reduces the country’s capacity to provide social safety.

6. Corruption leads to a waste of public resources. Corruption lowers public sector

efficiency and effectiveness. Public investment are not allocated to the sectors and

programmes which represent the best value for money or where needs are highest, but to

those which offer the best prospects for personal enrichment of corrupt officials. The

quality of the civil service can also be weakened by corruption. Where public servants are

appointed on the basis of nepotism or favoritism instead of merit and ability, their

decisions may reflect the interest of those who hired them. In addition, corruption may

prevent government from attracting the best talent.

7. Corruption undermines peace and democracy. When rules and regulations are

circumvented by bribes, public budget control is undermined by illicit money flows and

political critics and the media are silenced through bribes, democratic systems of checks

and balance are impaired. Corruption in political process such as elections or the

financing of parties undermine the rule of the people and thus the very foundation of

democracy. If basic public services are not delivered to citizens due to corruption, the

state eventually loses credibility and legitimacy.Corruption also increases country’s

exposure to global threats arising from smuggling and illicit trade by organized crime and

terrorist group (like ISIS).

 In furtherance to the above discourse therefore, it is pertinent to note that corruption

undermines good governance. Corruption can lead to a vicious circle where corrupt people

manipulate the political system to get into power only to further corrupt the political system and

indeed, the entire society. However, no matter the negative impact of corruption on good

governance adequate measures can be taken by all and sundry to prevent such anomalies. The

government should emphasize on transparency, integrity and accountability in all their private

and public transaction. In this case, children, young and adults must be given the power to

distinguish between right and wrong. All schools should return to the teaching of moral

education to endow children with the spirit of stewardship, while adults live exemplary lives

reflecting truth, kindness, dignity of labor and integrity.

Reaction

The war on corruption by our administration was not so effective although the anti-

corruption campaign of Philippine President Benigno Aquino III has led to the arrest of a string

of top officials, including three senators, a former national police chief and even his predecessor.

But a few prominent people who have been indicted have evaded jail time and are in no

danger of imminent conviction. Some experts doubt Aquino’s campaign has had wider impact

and question his effectiveness in tackling the scourge that has plagued the Southeast Asian nation

for generations.

Although corruption remains entrenched, Aquino has made progress by several measures,

improving the country’s image among international investors.

 The Philippines’ ranking in the World Economic Forum’s Global Competitiveness

Report, which analyzes various factors, including corruption, rose to 47th out of 140 economies

from 87th among 133 before Aquino took office in 2010. Corruption, previously the top

problem, dropped to third behind an inefficient government bureaucracy and inadequate supply

of infrastructure, it said

In Transparency International’s Corruption Perception Index, a widely used yardstick, the

Philippines rose to 85th out of 175 countries last year from 134th place out of 178 in 2010.

And corruption cases against “high ranking officials and their cohorts” jumped from 189

in 2009 to 961 in 2013, the most in 18 years, according to Ombudsman Conchita Carpio-

Morales, who prosecutes state employees and officials involved in graft.

The former Senate President Juan Ponce Enrile was arrested on plunder charges for

allegedly receiving huge kickbacks in a scam to divert hundreds of millions of pesos (millions of

dollars) from state anti-poverty and development funds. That was really an accomplishment but

eventually the arrests stopped. Surveys show that while the web of corruption has shrunk some,

it remains fairly common.

In a recent survey of business executives at nearly 1,000 companies, 32 percent of

managers said they had personal knowledge of corrupt transactions with the government, down

from 44 percent in 2007. The survey was done by independent pollster Social Weather Stations

in face-to-face interviews.

Aquino showed he was serious by appointing capable people to key posts in government

watchdog institutions such as the ombudsman, the Commission on Audit and the judiciary,

particularly the Supreme Court, said Vincent Lazatin, executive director of Transparency and

Accountability Network.
 Arroyo was arrested for rigging the 2007 senatorial elections and was later charged with

plunder for the misuse of $8.8 million in state lottery funds. She was also accused of graft for

pushing a now-botched $329 million deal with a Chinese telecommunications company. She has

been granted bail for the graft and election cases, but remains detained on the plunder charge in a

government hospital where she is under treatment for a neck bone ailment. Even if she is

convicted, Arroyo could still escape punishment via presidential pardon. For example, former

President Joseph Estrada, who was ousted in a military-backed popular revolt in 2001 and

succeeded by Arroyo, his vice president, was convicted and sentenced to prison after a six-year

trial on plunder charges, only to be pardoned by Arroyo.

Dozens of other officials and private individuals have also been charged or are under

investigation in connection with the scam to skim off up to 10 billion pesos (about $215 million)

in government funds for pro-poor projects from 2007 to 2009.

However, the most “glaring hole” in Aquino’s anti-corruption drive was a lack of a

strong push for a Freedom of Information legislation, which would have served as a good

governance measure and a major institutional deterrent to graft by allowing the media and the

public to “know how the government uses its finances

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