A flawed approach?

Never before has the Corruption Perception Index (CPI) global rating by Transparency International (TI) invoked so much of controversy and confusion in Pakistan. In its recently published report, TI stated that Pakistan had scored 32 on the Corruption Perceptions Index (CPI) in 2019. According to the data, Pakistan not only fell one point below the 2018 score of 33 but also dropped three stages in the world ranking from the previous 117th to the latest 120th among 180 countries.

The government rejected the TI report, expressing its doubts on its accuracy and fairness. Special Assistant to the Prime Minister on Information and Technology Firdous Ashiq Awan said the report was "not free and fair", alleging that there had been more corruption in Pakistan during the tenure of last PML-N government. The Transparency International Pakistan, gauging the sensitivity of the backlash, subsequently issued a clarification, stating that its recently-released report did not state that corruption had either increased or decreased in Pakistan. The NGO blamed certain sections of the media and politicians for misquoting facts "to damage the reputation of Pakistan".

The press release quoted TI Pakistan Chairman as stating that "lowering of Pakistan score by one does not reflect any increase or decrease in corruption as it is within the standard margin of error which is 2.46%. Reality is that CPI 2019 has not given any such rating for Pakistan, nor for any other country. TI does not have its own data input in CPI, and TI Pakistan has no role in the tabulation of CPI."

The TI chairman clarified that the data in the NGO's report is obtained from at least 13 different sources and not from their end.

The TI also issued a clarification through which it stated: "Small changes in score are of one or two points are unlikely to be statistically significant. That is the case with Pakistan's one-point reduction in score since last year. It may be more instructive to situate Pakistan's score in the 2019 CPI in a broader context than in relation to the previous year alone. For instance, with its score of 32, Pakistan scores well below the average CPI score of 43. This score places Pakistan well in the bottom quarter of all countries assessed."

The following two questions need plausible answers:

1) Is TI scorecard reporting process creditable and transparent?

2) Is TI scorecard fair?

The year 2019 was perceived by the people of Pakistan as an unprecedented year of accountability in which politicians, bureaucrats and businessmen were convicted as never before. Also, ground realities demonstrated fear of accountability in all segments of society, so much so that the business transactions significantly dipped while bureaucracy caused an administration 'go-slow' amid a climate of accountability fear.

Consequently, the public perception of anti-corruption drive was generally positive. The TI rating for 2019 was therefore difficult to be accepted or appreciated by the incumbent government and public at large. The government, therefore, expressed its doubts on the credibility of the report and the mechanism adopted by TI to figure out the rating.

The subsequent clarification made by the Chairman of TI Pakistan and his opinion boldly and categorically expressed in line with the public perception about accountability process rolled out in 2019 did help settle the dust to an extent.

While developing markets and poor countries are positioned in the category of most corrupt, affluent countries with strong economies are positioned in the category of 'honesty'. This approach to rating, however, totally ignores the fact that many of these countries are abettors to corruption in emerging markets and poor countries.

In addition to loopholes in their system which readily absorbs overseas transactions, primarily in real estate market, most of these countries have legally established safe havens on some islands or in areas which provide tax exemptions and 'unfettered' freedom of banking. It is here where ill-gotten money can be safely parked to the advantage of these affluent countries. The Wikileaks exposed the magnitude of this practice, which is in vogue since many decades.

(The writer is former President of Overseas Investors Chambers of Commerce and Industry)