Transparency deficiency in GCC
The GCC countries need to take action on their low global ranking according to Transparency International, writes Dr Jasim Husain Ali

The Gulf Cooperation Council (GCC) states are not transparent enough by world standards. Except for Qatar, most GCC countries lost to other countries in the 2007 Corruption Perceptions Index (CPI) published by Transparency International (TI). Certainly, the authorities must come up with certain remedies in order to reverse the poor global ranking.

The CPI is measured on a scale of 0 to 10, with higher numbers indicating less corruption. According to the 2007 report, Denmark, Finland and New Zealand were collectively regarded as the most transparent economies in the world by virtue of scoring 9.4 out of the maximum 10 points index. Conversely, Myanmar and Somalia were viewed the least transparent, having scored only 1.4 points each.

Established in 1993, Germany-based TI issues an annual report ranking countries on the basis of perceived corruption. The 2007 report ranked 180 countries and territories, some 14 more compared to the year earlier report. China, Hong Kong and Taiwan are included independently in the report. Some 159 and 146 economies were ranked in 2005 and 2004, respectively. The trend suggests that smaller economies or less open countries are increasingly finding value in getting CPI ranking. Undoubtedly, transparency or lack of it is one of the variables that investors use while evaluating investment choices in different countries.

Elaborate research
The index is compiled on the basis of several surveys and polls. Reviewed economies earn points based on perceptions expressed by business and academic professionals concerning ways of doing business in various countries. The respondents, which include local and expatriate residents, provide views about possible corruptive practices involving public officials with regards to winning business preferences such as contracts. In fact, the report cares about detailed matters such as payment of commissions or paid vacations and other offerings made to officials in order to win business deals or special favours.

Undoubtedly, CPI is not entirely objective, as respondents express their perceptions subjectively. However, the report relies on numerous studies conducted by internationally renowned establishments. These include the World Bank, Economist Intelligence Unit, Freedom House, World Economic Forum, Asian Development Bank and African Development Bank, to name a few. The 2007 report was based on findings of 14 surveys and expert assessments.

A minimum of three studies is required for any nation to be included in the report. No country had all the 14 surveys. Indonesia allowed for 11 surveys, the highest in the latest report only to be followed by India with 10 surveys. On their part, GCC states boasted either four or five surveys. The UAE, Bahrain and Kuwait allowed for five surveys.

Qatar leads
Qatar topped the GCC list having scored 6 on the 10-point scale and was placed 32 in the overall list. In fact, Qatar had achieved the same points and ranking in 2006 report. However, it was UAE’s retreat that allowed Qatar to outperform fellow GCC member states. The UAE scored 5.7 points in 2007 report, down from 6.2 points in 2006, slipping three places and moving down to rank 34 globally. It was, however, the second best amongst GCC and Arab states at large.

Still, Bahrain plunged 10 positions to No. 46 after scoring 5 points in the latest report versus 5.7 points in 2006. Also, Oman continued its downward trend after losing similar points. The Sultanate was ranked No. 53 in 2007 report, down from No. 29 in 2005 report, when it was the best amongst among GCC states. Likewise, Kuwait lost 14 positions and moved down to 60th ranking. For its part, Saudi Arabia lost nine positions and thus ranked number 79 globally.

The report grouped Bahrain and Oman amongst nations suffering from significant worsening of perceived corruption levels in 2007. Others include in the same category are Austria, Bhutan, Jordan, Laos, Macao, Malta, Mauritius, Papa New Guinea and Thailand. Conversely, Costa Rica, Croatia, Cuba, Czech Republic, Dominica, Italy, FYR Macedonia, Romania and Surinam made the most significant gains.

Remedies
TI argues that economies scoring below 7 out of 10 must take immediate actions to bring integrity in the dealings of public officials. “Low scores in the CPI indicate that public institutions are heavily compromised,” argues the report. Anyway, as in 2006 report, merely 22 nations achieved a score of at least seven points. The report concluded that the “top scores of wealthy countries and territories, largely in Europe, East Asia and North America, reflect their relatively clean public sectors, enabled by political stability, well-established conflict of interest and freedom of information regulations and a civil society free to exercise oversight.” As to the Middle East in general, the 2007 report said the results “make clear that corruption and lack of transparency still constitute a very important challenge for development of the region. “The GCC states are required to take concrete actions to fight corruptive practices at all levels. Amongst other measures, the authorities should encourage civil societies exercising oversight of malpractices of public entities and business dealings.”

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