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World Bank assesses corruption
15:00 Thu 15 Apr 2004 - Staff Reporter
 
CORRUPTION rates as an obstacle to Bulgarian developing enterprises have not changed substantially, according to the latest World Bank report presented in Washington.

The report, "Anticorruption in Transition 2: Corruption in Enterprise-State Interactions in Europe and Central Asia 1999" covers 26 countries with transition economies. In most of them, rates of corruption have decreased. However, Bulgarian companies rank corruption seventh in terms of delaying the progress of business. The report analyses trends in corruption in business-government interactions in these countries.

The report revealed encouraging signs that the magnitude and negative impact that corruption exerts on business may be declining in many countries of the region.

"This new report provides an in-depth measure of trends in business-government relations over time and explains what is driving patterns of corruption in the region. By looking at such indicators as the frequency of various types of bribes, the yearly share of revenues paid in bribes, and managers' views regarding the extent to which corruption impairs business performance, we can begin to discern what is holding back investment that could spur higher growth," said Shigeo Katsu, World Bank Vice President for the Europe and Central Asia Region.

"Corruption rates in Bulgarian customs houses were higher in 2002 compared to 1999," the report said.

Authors of the report consider from the first to the second survey, most of the countries in the region marked three years of solid economic growth, political stability, and improved macroeconomic performance.

Foreign and domestic investment began to recover in many parts of the region. The accession or association process to the European Union made strong progress not only for the countries of Central Europe and the Baltics, but also for some of the countries of South Eastern Europe.

"Managers' responses in almost half of the transition countries suggest a decline between 1999 and 2002 in the overall frequency of bribery and the impact of corruption on their business, a finding that is particularly important for this region," said Cheryl Gray, World Bank Sector Director for Poverty Reduction and Economic Management and one of the report's co-authors.

The report features that corruption - whether measured by the frequency of bribes, the cost of bribes, or the extent to which corruption is an obstacle to business is beginning to ease in many countries. However, the report also underscores that there is no cause for complacency. Levels of corruption are still high in many countries and in many sectors of the economy. While bribes appear less prevalent for public services, for example, they appear more common than in 1999 for taxes and procurement.



More information about the report may be found at www.worldbank.org/eca/governance

- Staff Reporter

 
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