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Seoul Forum on Combating Corruption in Asia-Pacific

MANILA, PHILIPPINES (6 December 2000) - Over 300 anti-corruption specialists from around the region will attend the Second Asia-Pacific Forum for Combating Corruption to be held in Seoul, Korea, from 11 to 13 December, 2000. The forum will seek better ways of implementing anti-corruption measures as well as for its sponsoring partners to act in concert with each other.

The forum is sponsored by Asian Development Bank (ADB), the Organization for Economic Cooperation and Development (OECD), the Government of Korea and seven agencies.

"A wave of anti-corruption sentiment is sweeping through the Asia-Pacific region, with senior officials either forced to resign or facing corruption charges in countries such as People's Republic of China, Indonesia, Pakistan, Philippines, Thailand and Viet Nam," notes conference coordinator Clay Wescott, a senior public administration specialist with ADB. "Fighting corruption is an increasing priority across the region, but there is plenty of scope to do more. Corruption wastes resources, damages the economy, destroys the social fabric and invites criminality."

ADB is helping its developing members set up independent anti-corruption agencies as well as tighten up oversight of ADB projects. It has also established an anti-corruption unit to ensure that ADB staff and projects adhere to the highest standards of ethical conduct.

ADB, which approves around US$6 billion a year worth of loans for development projects and programs, can cancel loans if it finds that representatives of a borrower or beneficiaries have engaged in corrupt or fraudulent practices. ADB will also reject a proposal for a contract award if it finds that corruption is involved. In addition, ADB is drawing up a policy to link the allocation of concessional loans to performance. This means that good governance - which includes a government's anti-corruption efforts -- will help determine the amount of lending allocated to a country.

In addition, ADB funds support for institutional reforms, including liberalizing licensing regimes and foreign exchange markets, eliminating administered prices, removing credit subsidies, and backing public service reforms which promote integrity.

Other governments and agencies are tackling corruption in a variety of ways. In the Philippines, a computerized customs systems is eliminating the handling of cash and documents by customs officials, reducing the opportunity for corruption. Samoa is implementing a new, tougher law against money-laundering. Hong Kong has anti-corruption curricula for schools, along with interactive drama, cartoons, and a web site to publicize anti-corruption messages. Anti-corruption agencies also work with youth organizations in leadership training camps, seminars, conferences and competitions. In Korea, police reforms include increased ethics training, monitoring and surveillance from the general public, regular assignment rotations, and the replacement of officers with questionable integrity. In addition, the police have a "conscience room" where police officers can return inappropriately accepted gifts to the giver with a thank-you note.

Mr. Wescott notes that an estimated one-third of public investment in many Asia-Pacific countries is squandered on corruption. The poor suffer most as a result of lower growth, regressive taxes, lower-quality services, higher investment risks, and a lack of protection of legal and civil rights. In addition, the poor are required to pay more bribes than other citizens do.

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