News: India world-beater on paying kickbacks

(PTI 04/10/2006) New Delhi - In a global recognition of a different kind, India has been ranked as the worst performer by Transparency International on its global Bribe Payers Index, which is based on the propensity of companies from the world's 30 leading exporting countries in bribing abroad.

The international corruption watchdog on Tuesday said overseas bribery is still common among the world's export giants despite the existence of international anti-bribery laws, while companies from emerging export powers -- India, China and Russia are the worst performers.

India has been ranked at the 30th position in the Transparency International 2006 Bribe Payers Index (BPI), with a score of 4.62. A score of 10 indicates a perception of no corruption, while zero means corruption is seen as rampant.

Switzerland has been ranked at the top slot with a score of 7.81, followed by Sweden, Australia, Austria and Canada at the top five positions on the index. The US and UK have been ranked at 10th and sixth positions respectively.

Transparency International said Switzerland has managed a leading score of only 7.8, which is far from perfect. This indicates there might be variations here but there are no real winners, it added.

According to the report, businesses from India, China and Russia, who are at the bottom of the index, have the most outstanding propensity to pay bribes.

This year's BPI data shows that leading exporters are undermining the development with their dirty business practices overseas, while the foreign bribery by emerging export powers is "disconcertingly high".

Companies from the wealthiest countries have been ranked in the top half, but they still routinely pay bribes, particularly in developing economies, it added.

"In the case of China and other emerging export powers, efforts to strengthen domestic anti-corruption activities have failed to extend abroad," the report said.

"Bribing companies are actively undermining the best efforts of governments in developing nations to improve governance, and thereby driving the vicious cycle of poverty," said Transparency International Chairwoman Huguette Labelle.

"It is hypocritical that Organisation of Economic Cooperation and Development (OECD)-based companies continue to bribe across the globe, while their governments pay lip-service to enforcing the law," Transparency International CEO David Nussbaum said.

"The enforcement record on international anti-bribery laws makes for short and disheartening reading," he added.

"Domestic legislation has been introduced in many countries following the adoption of the UN and OECD anti-corruption conventions, but there are still major problems of implementation and enforcement," he added.