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J ÖNKÖPING I NTERNATIONAL B USINESS S CHOOL JÖNKÖPING UNIVERSITY Corruption in Small Pacific Island States - A Case Study of Vanuatu Master Thesis within Political science Author: Marie Vaadre Tutor: Mikael Sandberg Jönköping Spring 2009

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Page 1: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

JOuml N K Ouml P I N G I N T E R N A T I O N A L BU S I N E S S S C H O O L JOuml N KOuml PIN G UN IVERSITY

Corruption in Small Pacif ic Island States

- A Case Study of Vanuatu

Master Thesis within Political science

Author Marie Vaadre

Tutor Mikael Sandberg

Joumlnkoumlping Spring 2009

i

REPUBLIC OF VANUATU

Source Vanuatu Financial Service Commission

ii

Acknowledgements

This thesis has been written as a Minor Field Study (MFS) spon-

sored by the Swedish International Development Agency SIDA

The requirements set by SIDA for a MFS-study is that the thesis

should be written in a developing country Due to developed cir-

cumstances in Vanuatu and with respect for my own safety I spent

the last weeks of my study in New Zealand Tough I have fulfilled

a MFS study concerning corruption

When I started to write this thesis in the beginning it was supposed

to be about coconut oil and how successful the project about driv-

ing with coconut oil has been on the small island developing coun-

try Vanuatu But when I arrived in Vanuatu things became not

what it was supposed to be and it was my very first connection

with corruptionhellip

This became an extraordinary life experiencehellip

iii

Masterrsquos Thesis within Political science

Title Corruption in Small Pacific Island States - A Case Study of Vanuatu

Author Marie Vaadre

Tutor Associate Professor Mikael Sandberg

Date 2009-05-24

Subject terms Pacific Islands Vanuatu tribes public and political administration corruption

Abstract

Corruption is defined as the abuse of public office for private gain Often cor-

ruption has devastating consequences the two main consequences of which

are economic and social Unfortunately corruption exists most in developing

countries where people already live under hard economical and social condi-

tions The Pacific Islands are a region where corruption is a problem Some

countries are doing better than others some have improved and some have got

worse But almost all of the Pacific island countries have faced cups or riots

breakdown of law and order as a consequence of corruption The region is

unique and characterized by ecological and cultural diversity colonization

tribes a human history rich in epic ritual travel narrative and innovation This

thesis has examined one small Pacific Island country Vanuatu which is a typi-

cal example of an island country in the region 76 of the people lives on 83

different islands and have little contact with the central island and its public

and political administration The purpose was to examine why corruption ex-

ists in the region with the help of different corruption theories The result was

that many Islands in the Pacific have been colonised and have had very little

time to build up a stable public and political administration Results also

showed that the islands have a strong tribal tradition and people lives isolated

on islands far away from the ldquoreal political liferdquo there is also a culture which

accepts eg bribery and the general attitude is that parliamentarians should look

after their original tribe rather than the entire country

iv

Magisteruppsats inom Statsvetenskap

Titel Korruption i smaring stillahavslaumlnder- fallstudien av Vanuatu

Foumlrfattare Marie Vaadre

Handledare Docent Mikael Sandberg

Datum 2009-05-24

Aumlmnesord Stillahavsoumlar Vanuatu stamkultur politisk och offentlig ad-ministration korruption

Sammanfattning

Korruption definieras som missbruk av offentliga medel foumlr privata aumlndamaringl

Ofta har korruption foumlroumldande konsekvenser de tvaring alvarligaste aumlr ekonomis-

ka och sociala Tyvaumlrr foumlrekommer korruption mest i utvecklingslaumlnder daumlr

befolkning redan lever under svaringra ekonomiska och sociala foumlrharingllanden Stil-

lahavsoumlarna aumlr en region daumlr korruption aumlr ett problem I Vissa laumlnder aumlr pro-

blemet mindre och i vissa stoumlrre Men naumlstan alla av stillahavsoumlarna har raringkat ut

foumlr kupper och upplopp paring grund av korruption Regionen aumlr unik och karak-

taumlriserad av ekologiska och kulturella skillnader kolonisering stammar en hi-

storia rik av storslagna ritualer resande beraumlttarkultur och innovation Den haumlr

uppsatsen har utforskat ett liten stillahavsland Vanuatu som aumlr ett typexempel

paring en ouml i regionen 76 av befolkningen bor utspridda paring 83 olika oumlar och har

lite kontakt med huvudoumln och den offentliga och politiska administrationen

Syftet har varit att undersoumlka varfoumlr korruption existerar i regionen med hjaumllp

av olika korruptionsteorier Resultatet visade att maringnga oumlar i stilla havet har va-

rit koloniserade och haft vaumlldigt lite tid paring sig att bygga upp en stabil offentlig

och politisk administration Resultaten visade ocksaring att oumlarna har en stark tradi-

tion av stamkultur och de flesta bor laringngt bort fraringn den rdquopolitiska verklighe-

tenrdquo Det finns ocksaring en kulturell acceptans foumlr tex mutor och den generella

attityden visade att man tycker att parlamentariker borde foumlrst och fraumlmst se till

sin ursprungliga stams baumlsta och daumlrefter till det allmaumlnna baumlsta

v

Acronyms and abbreviations

ADB - Asian Development Bank

ANZUS - Australia New Zeeland and United States Defence Treaty

Approx - approximately

CPI - Corruption Perceptions Index

Kastom - Vanuatu and Pacific island traditions including tribe

tradition religion and magic

NAM - Non-Aligned Movement

Ni Vanuatu - Citizens of Vanuatu

QoG - The quality of government institute

UMP - Union of Moderate Parties

VP - Vanuaacuteku pati

WB - World Bank

WBI - World Bank Institute

TI - Transparency International

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 2: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

i

REPUBLIC OF VANUATU

Source Vanuatu Financial Service Commission

ii

Acknowledgements

This thesis has been written as a Minor Field Study (MFS) spon-

sored by the Swedish International Development Agency SIDA

The requirements set by SIDA for a MFS-study is that the thesis

should be written in a developing country Due to developed cir-

cumstances in Vanuatu and with respect for my own safety I spent

the last weeks of my study in New Zealand Tough I have fulfilled

a MFS study concerning corruption

When I started to write this thesis in the beginning it was supposed

to be about coconut oil and how successful the project about driv-

ing with coconut oil has been on the small island developing coun-

try Vanuatu But when I arrived in Vanuatu things became not

what it was supposed to be and it was my very first connection

with corruptionhellip

This became an extraordinary life experiencehellip

iii

Masterrsquos Thesis within Political science

Title Corruption in Small Pacific Island States - A Case Study of Vanuatu

Author Marie Vaadre

Tutor Associate Professor Mikael Sandberg

Date 2009-05-24

Subject terms Pacific Islands Vanuatu tribes public and political administration corruption

Abstract

Corruption is defined as the abuse of public office for private gain Often cor-

ruption has devastating consequences the two main consequences of which

are economic and social Unfortunately corruption exists most in developing

countries where people already live under hard economical and social condi-

tions The Pacific Islands are a region where corruption is a problem Some

countries are doing better than others some have improved and some have got

worse But almost all of the Pacific island countries have faced cups or riots

breakdown of law and order as a consequence of corruption The region is

unique and characterized by ecological and cultural diversity colonization

tribes a human history rich in epic ritual travel narrative and innovation This

thesis has examined one small Pacific Island country Vanuatu which is a typi-

cal example of an island country in the region 76 of the people lives on 83

different islands and have little contact with the central island and its public

and political administration The purpose was to examine why corruption ex-

ists in the region with the help of different corruption theories The result was

that many Islands in the Pacific have been colonised and have had very little

time to build up a stable public and political administration Results also

showed that the islands have a strong tribal tradition and people lives isolated

on islands far away from the ldquoreal political liferdquo there is also a culture which

accepts eg bribery and the general attitude is that parliamentarians should look

after their original tribe rather than the entire country

iv

Magisteruppsats inom Statsvetenskap

Titel Korruption i smaring stillahavslaumlnder- fallstudien av Vanuatu

Foumlrfattare Marie Vaadre

Handledare Docent Mikael Sandberg

Datum 2009-05-24

Aumlmnesord Stillahavsoumlar Vanuatu stamkultur politisk och offentlig ad-ministration korruption

Sammanfattning

Korruption definieras som missbruk av offentliga medel foumlr privata aumlndamaringl

Ofta har korruption foumlroumldande konsekvenser de tvaring alvarligaste aumlr ekonomis-

ka och sociala Tyvaumlrr foumlrekommer korruption mest i utvecklingslaumlnder daumlr

befolkning redan lever under svaringra ekonomiska och sociala foumlrharingllanden Stil-

lahavsoumlarna aumlr en region daumlr korruption aumlr ett problem I Vissa laumlnder aumlr pro-

blemet mindre och i vissa stoumlrre Men naumlstan alla av stillahavsoumlarna har raringkat ut

foumlr kupper och upplopp paring grund av korruption Regionen aumlr unik och karak-

taumlriserad av ekologiska och kulturella skillnader kolonisering stammar en hi-

storia rik av storslagna ritualer resande beraumlttarkultur och innovation Den haumlr

uppsatsen har utforskat ett liten stillahavsland Vanuatu som aumlr ett typexempel

paring en ouml i regionen 76 av befolkningen bor utspridda paring 83 olika oumlar och har

lite kontakt med huvudoumln och den offentliga och politiska administrationen

Syftet har varit att undersoumlka varfoumlr korruption existerar i regionen med hjaumllp

av olika korruptionsteorier Resultatet visade att maringnga oumlar i stilla havet har va-

rit koloniserade och haft vaumlldigt lite tid paring sig att bygga upp en stabil offentlig

och politisk administration Resultaten visade ocksaring att oumlarna har en stark tradi-

tion av stamkultur och de flesta bor laringngt bort fraringn den rdquopolitiska verklighe-

tenrdquo Det finns ocksaring en kulturell acceptans foumlr tex mutor och den generella

attityden visade att man tycker att parlamentariker borde foumlrst och fraumlmst se till

sin ursprungliga stams baumlsta och daumlrefter till det allmaumlnna baumlsta

v

Acronyms and abbreviations

ADB - Asian Development Bank

ANZUS - Australia New Zeeland and United States Defence Treaty

Approx - approximately

CPI - Corruption Perceptions Index

Kastom - Vanuatu and Pacific island traditions including tribe

tradition religion and magic

NAM - Non-Aligned Movement

Ni Vanuatu - Citizens of Vanuatu

QoG - The quality of government institute

UMP - Union of Moderate Parties

VP - Vanuaacuteku pati

WB - World Bank

WBI - World Bank Institute

TI - Transparency International

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 3: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

ii

Acknowledgements

This thesis has been written as a Minor Field Study (MFS) spon-

sored by the Swedish International Development Agency SIDA

The requirements set by SIDA for a MFS-study is that the thesis

should be written in a developing country Due to developed cir-

cumstances in Vanuatu and with respect for my own safety I spent

the last weeks of my study in New Zealand Tough I have fulfilled

a MFS study concerning corruption

When I started to write this thesis in the beginning it was supposed

to be about coconut oil and how successful the project about driv-

ing with coconut oil has been on the small island developing coun-

try Vanuatu But when I arrived in Vanuatu things became not

what it was supposed to be and it was my very first connection

with corruptionhellip

This became an extraordinary life experiencehellip

iii

Masterrsquos Thesis within Political science

Title Corruption in Small Pacific Island States - A Case Study of Vanuatu

Author Marie Vaadre

Tutor Associate Professor Mikael Sandberg

Date 2009-05-24

Subject terms Pacific Islands Vanuatu tribes public and political administration corruption

Abstract

Corruption is defined as the abuse of public office for private gain Often cor-

ruption has devastating consequences the two main consequences of which

are economic and social Unfortunately corruption exists most in developing

countries where people already live under hard economical and social condi-

tions The Pacific Islands are a region where corruption is a problem Some

countries are doing better than others some have improved and some have got

worse But almost all of the Pacific island countries have faced cups or riots

breakdown of law and order as a consequence of corruption The region is

unique and characterized by ecological and cultural diversity colonization

tribes a human history rich in epic ritual travel narrative and innovation This

thesis has examined one small Pacific Island country Vanuatu which is a typi-

cal example of an island country in the region 76 of the people lives on 83

different islands and have little contact with the central island and its public

and political administration The purpose was to examine why corruption ex-

ists in the region with the help of different corruption theories The result was

that many Islands in the Pacific have been colonised and have had very little

time to build up a stable public and political administration Results also

showed that the islands have a strong tribal tradition and people lives isolated

on islands far away from the ldquoreal political liferdquo there is also a culture which

accepts eg bribery and the general attitude is that parliamentarians should look

after their original tribe rather than the entire country

iv

Magisteruppsats inom Statsvetenskap

Titel Korruption i smaring stillahavslaumlnder- fallstudien av Vanuatu

Foumlrfattare Marie Vaadre

Handledare Docent Mikael Sandberg

Datum 2009-05-24

Aumlmnesord Stillahavsoumlar Vanuatu stamkultur politisk och offentlig ad-ministration korruption

Sammanfattning

Korruption definieras som missbruk av offentliga medel foumlr privata aumlndamaringl

Ofta har korruption foumlroumldande konsekvenser de tvaring alvarligaste aumlr ekonomis-

ka och sociala Tyvaumlrr foumlrekommer korruption mest i utvecklingslaumlnder daumlr

befolkning redan lever under svaringra ekonomiska och sociala foumlrharingllanden Stil-

lahavsoumlarna aumlr en region daumlr korruption aumlr ett problem I Vissa laumlnder aumlr pro-

blemet mindre och i vissa stoumlrre Men naumlstan alla av stillahavsoumlarna har raringkat ut

foumlr kupper och upplopp paring grund av korruption Regionen aumlr unik och karak-

taumlriserad av ekologiska och kulturella skillnader kolonisering stammar en hi-

storia rik av storslagna ritualer resande beraumlttarkultur och innovation Den haumlr

uppsatsen har utforskat ett liten stillahavsland Vanuatu som aumlr ett typexempel

paring en ouml i regionen 76 av befolkningen bor utspridda paring 83 olika oumlar och har

lite kontakt med huvudoumln och den offentliga och politiska administrationen

Syftet har varit att undersoumlka varfoumlr korruption existerar i regionen med hjaumllp

av olika korruptionsteorier Resultatet visade att maringnga oumlar i stilla havet har va-

rit koloniserade och haft vaumlldigt lite tid paring sig att bygga upp en stabil offentlig

och politisk administration Resultaten visade ocksaring att oumlarna har en stark tradi-

tion av stamkultur och de flesta bor laringngt bort fraringn den rdquopolitiska verklighe-

tenrdquo Det finns ocksaring en kulturell acceptans foumlr tex mutor och den generella

attityden visade att man tycker att parlamentariker borde foumlrst och fraumlmst se till

sin ursprungliga stams baumlsta och daumlrefter till det allmaumlnna baumlsta

v

Acronyms and abbreviations

ADB - Asian Development Bank

ANZUS - Australia New Zeeland and United States Defence Treaty

Approx - approximately

CPI - Corruption Perceptions Index

Kastom - Vanuatu and Pacific island traditions including tribe

tradition religion and magic

NAM - Non-Aligned Movement

Ni Vanuatu - Citizens of Vanuatu

QoG - The quality of government institute

UMP - Union of Moderate Parties

VP - Vanuaacuteku pati

WB - World Bank

WBI - World Bank Institute

TI - Transparency International

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 4: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

iii

Masterrsquos Thesis within Political science

Title Corruption in Small Pacific Island States - A Case Study of Vanuatu

Author Marie Vaadre

Tutor Associate Professor Mikael Sandberg

Date 2009-05-24

Subject terms Pacific Islands Vanuatu tribes public and political administration corruption

Abstract

Corruption is defined as the abuse of public office for private gain Often cor-

ruption has devastating consequences the two main consequences of which

are economic and social Unfortunately corruption exists most in developing

countries where people already live under hard economical and social condi-

tions The Pacific Islands are a region where corruption is a problem Some

countries are doing better than others some have improved and some have got

worse But almost all of the Pacific island countries have faced cups or riots

breakdown of law and order as a consequence of corruption The region is

unique and characterized by ecological and cultural diversity colonization

tribes a human history rich in epic ritual travel narrative and innovation This

thesis has examined one small Pacific Island country Vanuatu which is a typi-

cal example of an island country in the region 76 of the people lives on 83

different islands and have little contact with the central island and its public

and political administration The purpose was to examine why corruption ex-

ists in the region with the help of different corruption theories The result was

that many Islands in the Pacific have been colonised and have had very little

time to build up a stable public and political administration Results also

showed that the islands have a strong tribal tradition and people lives isolated

on islands far away from the ldquoreal political liferdquo there is also a culture which

accepts eg bribery and the general attitude is that parliamentarians should look

after their original tribe rather than the entire country

iv

Magisteruppsats inom Statsvetenskap

Titel Korruption i smaring stillahavslaumlnder- fallstudien av Vanuatu

Foumlrfattare Marie Vaadre

Handledare Docent Mikael Sandberg

Datum 2009-05-24

Aumlmnesord Stillahavsoumlar Vanuatu stamkultur politisk och offentlig ad-ministration korruption

Sammanfattning

Korruption definieras som missbruk av offentliga medel foumlr privata aumlndamaringl

Ofta har korruption foumlroumldande konsekvenser de tvaring alvarligaste aumlr ekonomis-

ka och sociala Tyvaumlrr foumlrekommer korruption mest i utvecklingslaumlnder daumlr

befolkning redan lever under svaringra ekonomiska och sociala foumlrharingllanden Stil-

lahavsoumlarna aumlr en region daumlr korruption aumlr ett problem I Vissa laumlnder aumlr pro-

blemet mindre och i vissa stoumlrre Men naumlstan alla av stillahavsoumlarna har raringkat ut

foumlr kupper och upplopp paring grund av korruption Regionen aumlr unik och karak-

taumlriserad av ekologiska och kulturella skillnader kolonisering stammar en hi-

storia rik av storslagna ritualer resande beraumlttarkultur och innovation Den haumlr

uppsatsen har utforskat ett liten stillahavsland Vanuatu som aumlr ett typexempel

paring en ouml i regionen 76 av befolkningen bor utspridda paring 83 olika oumlar och har

lite kontakt med huvudoumln och den offentliga och politiska administrationen

Syftet har varit att undersoumlka varfoumlr korruption existerar i regionen med hjaumllp

av olika korruptionsteorier Resultatet visade att maringnga oumlar i stilla havet har va-

rit koloniserade och haft vaumlldigt lite tid paring sig att bygga upp en stabil offentlig

och politisk administration Resultaten visade ocksaring att oumlarna har en stark tradi-

tion av stamkultur och de flesta bor laringngt bort fraringn den rdquopolitiska verklighe-

tenrdquo Det finns ocksaring en kulturell acceptans foumlr tex mutor och den generella

attityden visade att man tycker att parlamentariker borde foumlrst och fraumlmst se till

sin ursprungliga stams baumlsta och daumlrefter till det allmaumlnna baumlsta

v

Acronyms and abbreviations

ADB - Asian Development Bank

ANZUS - Australia New Zeeland and United States Defence Treaty

Approx - approximately

CPI - Corruption Perceptions Index

Kastom - Vanuatu and Pacific island traditions including tribe

tradition religion and magic

NAM - Non-Aligned Movement

Ni Vanuatu - Citizens of Vanuatu

QoG - The quality of government institute

UMP - Union of Moderate Parties

VP - Vanuaacuteku pati

WB - World Bank

WBI - World Bank Institute

TI - Transparency International

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 5: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

iv

Magisteruppsats inom Statsvetenskap

Titel Korruption i smaring stillahavslaumlnder- fallstudien av Vanuatu

Foumlrfattare Marie Vaadre

Handledare Docent Mikael Sandberg

Datum 2009-05-24

Aumlmnesord Stillahavsoumlar Vanuatu stamkultur politisk och offentlig ad-ministration korruption

Sammanfattning

Korruption definieras som missbruk av offentliga medel foumlr privata aumlndamaringl

Ofta har korruption foumlroumldande konsekvenser de tvaring alvarligaste aumlr ekonomis-

ka och sociala Tyvaumlrr foumlrekommer korruption mest i utvecklingslaumlnder daumlr

befolkning redan lever under svaringra ekonomiska och sociala foumlrharingllanden Stil-

lahavsoumlarna aumlr en region daumlr korruption aumlr ett problem I Vissa laumlnder aumlr pro-

blemet mindre och i vissa stoumlrre Men naumlstan alla av stillahavsoumlarna har raringkat ut

foumlr kupper och upplopp paring grund av korruption Regionen aumlr unik och karak-

taumlriserad av ekologiska och kulturella skillnader kolonisering stammar en hi-

storia rik av storslagna ritualer resande beraumlttarkultur och innovation Den haumlr

uppsatsen har utforskat ett liten stillahavsland Vanuatu som aumlr ett typexempel

paring en ouml i regionen 76 av befolkningen bor utspridda paring 83 olika oumlar och har

lite kontakt med huvudoumln och den offentliga och politiska administrationen

Syftet har varit att undersoumlka varfoumlr korruption existerar i regionen med hjaumllp

av olika korruptionsteorier Resultatet visade att maringnga oumlar i stilla havet har va-

rit koloniserade och haft vaumlldigt lite tid paring sig att bygga upp en stabil offentlig

och politisk administration Resultaten visade ocksaring att oumlarna har en stark tradi-

tion av stamkultur och de flesta bor laringngt bort fraringn den rdquopolitiska verklighe-

tenrdquo Det finns ocksaring en kulturell acceptans foumlr tex mutor och den generella

attityden visade att man tycker att parlamentariker borde foumlrst och fraumlmst se till

sin ursprungliga stams baumlsta och daumlrefter till det allmaumlnna baumlsta

v

Acronyms and abbreviations

ADB - Asian Development Bank

ANZUS - Australia New Zeeland and United States Defence Treaty

Approx - approximately

CPI - Corruption Perceptions Index

Kastom - Vanuatu and Pacific island traditions including tribe

tradition religion and magic

NAM - Non-Aligned Movement

Ni Vanuatu - Citizens of Vanuatu

QoG - The quality of government institute

UMP - Union of Moderate Parties

VP - Vanuaacuteku pati

WB - World Bank

WBI - World Bank Institute

TI - Transparency International

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 6: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

v

Acronyms and abbreviations

ADB - Asian Development Bank

ANZUS - Australia New Zeeland and United States Defence Treaty

Approx - approximately

CPI - Corruption Perceptions Index

Kastom - Vanuatu and Pacific island traditions including tribe

tradition religion and magic

NAM - Non-Aligned Movement

Ni Vanuatu - Citizens of Vanuatu

QoG - The quality of government institute

UMP - Union of Moderate Parties

VP - Vanuaacuteku pati

WB - World Bank

WBI - World Bank Institute

TI - Transparency International

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 7: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

vi

Table of Contents

1 Research problem and approach 1

11 The problem 1

12 Purpose 2

13 Questions 2

14 Design of case 3

15 Method and approach 5

16 Sources and material 6

161 Research overview on corruption 7

162 The interviews 8

17 Outline 9

2 Theoretical framework 10

21 Corruption 10

22 Reasons for corruption 11

221 Public institutions and administration 11

222 ldquoThe soft staterdquo 14

23 Consequences of corruption 16

231 Poverty 16

232 Inequality 16

233 Credibility of the state 16

3 Strategies for combating corruption 17

31 The problems with change the particularistic administration in developing countries 17

32 Increase political responsibility 18

33 Increase public participation 19

34 Make a competitive private sector 20

4 Case study Vanuatu 21

41 The Postcolonial heritage from Britain and France 21

42 Weak party system 24

43 Isolated islands 25

44 The Cultural tradition of gifts and tribes 27

5 Analysis 29

51 Why corruption exist in the pacific island countries like Vanuatu 29

52 Differences between corruption on Vanuatu and the general explanations theories 32

53 Methods to combat corruption in Pacific Island Countries 34

6 Concluding discussion 36

References 38

Appendix 40

Interview questions 40

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 8: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

1

1 Research problem and approach

The Pacific Islands are a region where corruption is a problem Some countries are doing

better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption The region is unique and characterized by ecological and cultural di-

versity colonization tribes a human history rich in epic ritual travel narrative and inno-

vation

11 The problem

Corruption is defined as the abuse of public office for private gain1 Often corruption has

devastating consequences two main are economic and social Corruption can hinder both

domestic and foreign investment it can reduce growth restrict trade distort the size and

composition of government expenditure weaken the financial system and strengthen the

underground economy Socially can corruption increase levels of poverty and income ine-

quality2

Unfortunately corruption exists most in developing countries where people already live un-

der hard economical and social conditions Many times is it contacts or money which de-

cides if public employees carry out the public politics 3 Not only political scientists but

also economists and sociologists have identified quality in an administration as the crucial

factor to achieve development within democracy and welfare in the third world 4

Transparency International (TI) has made a Corruption Perceptions Index where countries

are ranked in terms of the degree to which corruption is perceived among public officials

and politicians Generally (with som e exceptions) north countries are ranked high south

counties low and small pacific island countries in the middle The small pacific island coun-

tries are very similar they are former colonial countries geographically isolated they have

1 Transparency International httpwwwtransparencyorg 2009-04-13 time 2020 2 The World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000

httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011 3 Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 p 12

httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

4 Ibid p 10

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 9: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

2

small number of inhabitants and most of these countries population lives on the outer is-

lands and have limited contact with the main island

Vanuatu is and represents a typical small pacific island country where 76 of the popula-

tion lives on 83 different islands and have little contact with the central island and its politi-

cal administration On the islands is the access to newspapers radio television phone or

internet very limited 5 There is also an unfair disproportionate amount of money distrib-

uted to the capital city compared to the provinces6 Citizens on the outer islands miss their

civil rights since there is a lack of public administration on the islands7 On the main is-

lands self serving attitudes and decision making based on self-interest rather than national

interest are commonplace among politicians and officials In Vanuatu and the Pacific in

general people are linked by strong tribal allegiances They take actions or decisions to pay

back past favours or to store up future favours or rewards such as jobs or contracts The

attitudes have contributed to a political instability and inequality 8

12 Purpose

The purpose of this thesis is with the example of Vanuatu to analyse why corruption exists

in small pacific island countries Vanuatu is chosen because it is not different from other

pacific island countries The purpose is also to survey through which methods it is possible

to combat corruption

13 Questions

1 Why does corruption exist on the pacific island countries like Vanuatu

2 Is it some differences between corruption on Vanuatu and the general explanations and theories

3 How can corruption be combated in pacific island countries

5 Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

6 Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 p181 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

7 Gunnarson Carina 8 CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008

httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 10: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

3

14 Design of case

The pacific islands are characterized by ecological and cultural diversity tribes a human

history rich in epic ritual travel narrative and innovation 9 The median population on

some islands is less than 100 000 The region is divided into three major cultural areas

Melanesia Polynesia and Micronesia 10 Oceania was colonized by Europeans relatively late

in global terms and the Pacific islands were also among the last to be decolonized Since

1960s the process of decolonization has created nine independent countries and five enti-

ties that are self governing Decolonization entailed for the islands liberation from direct

control by outside power 11

Pacific people have today adopted a number of creative survival strategies in the face of

rapid cultural social political and economical changes People live in multiple worlds that

might include both Christian and indigenous spiritual practices western and indigenous

lifestyles and western and traditional political and economic structures In the opinions of

some scholars scientists investors and journalists the Pacific typifies an extreme double

condition paradise with postcolonial political and economic chaos The region is complex

9 Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711 10 Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Govern-

ment The Australian National University 2006 p 4 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

11 Center for Pacific Island Studies

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 11: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

4

and caricaturized by tourism reliance failed states geographical isolation economic aid and

dependency abound 12

The most difficult problem that the region deals with is corruption Some countries are do-

ing better than others some have improved and some have got worse But almost all of the

Pacific island countries have faced cups or riots breakdown of law and order as a conse-

quence of corruption13

To better understand why corruption exists in the Pacific Islands I have chosen to make a

case study of one country Vanuatu since it represents a typical pacific island country I

have personally been in the country interviewed people and taken part in the countries cul-

ture and politics I have also chosen Vanuatu since it was the country Swedish Foreign De-

partment suggested as the safest country in the region Due to limited access of money and

time I had no possibility to visit other countries in the region

On the Vanuatu islands is the access to newspapers radio television phone or internet

very limited 14 There is also an unfair disproportionate amount of money distributed to the

capital city compared to the provinces15 Citizens on the outer islands miss their civil rights

since there is a lack of public administration on the islands16 On the main islands self serv-

ing attitudes and decision making based on self-interest rather than national interest are

commonplace among politicians and officials In Vanuatu and the Pacific in general peo-

ple are linked by strong tribal allegiances They take actions or decisions to pay back past

favours or to store up future favours or rewards such as jobs or contracts17 The attitudes

have contributed to a political instability and inequality 18

12 Center for Pacific Island Studies 13 Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Gov-

ernment The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

14 Asian Development Bank amp Vanuatu 15 Lee O with others 16 Gunnarson Carina 17 CPA Malaysia 18 Ibid

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 12: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

5

15 Method and approach

The method that is used in this thesis has been a qualitative study of corruption with the

purpose to analyse why corruption exists in small pacific island countries with help of the

case study of Vanuatu The purpose is also to survey through which methods corruption is

possible to combat in the region

To clarify even more the method two classical method questions are answered

(1) What is the returning general phenomenon one examine (case of what)

(2) Why have one chosen to study the specific case selected19

(1) The general phenomenon I have chosen to study is corruption in the small pacific is-

land countries

(2) I have chosen Vanuatu as a case since it is a typical small pacific island country

The research problem and questions are formulated on the theoretical level corruption is

the concept but it must be defined what is it what it involves and what consequences it

brings in order to further understand why it exists and how to combat it

The examination is made by observations collection of data and information on the ldquoop-

erationalrdquo level To measure why corruption exists in pacific island countries a typical small

pacific island country Vanuatu was chosen The country is typical because it is a former co-

lonial country it consists of many isolated islands where a majority of the population lives

and two main island where the public and political administration is and where corruption

is common Due to lack of administration in the islands people many times miss their civil

rights like employment service healthcare access to schools pension benefits etc On the

other hand people on the main islands who have the political or public administrative

power misuses the public finances for their own personal benefit

This research strives after ldquothe generalrdquo rather than ldquothe unique or specificrdquo The aim is to

find a general answer on patterns regularity and returning connections of why corruption

is common in the pacific island countries

19 Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007 p 176

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 13: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

6

To make sure that the correspondence is good between the theory and the operational in-

dicator we must define variables The independent variable (explanatory factor) influ-

enceaffect the dependent variable (the phenomenon which are supposed to be explained)

The independent variables (explanatory variables) are (1) peoples isolation on the islands

and isolation from the political-public administration (2) postcolonial heritage like western

and traditional political and economic structures (3) tradition of giving gifts and put the

tribe (family members) first no matter what (4) and weak party system affects the depend-

ent variable (the phenomenon which are supposed to be explained) (1) corruption in

Vanuatu and in pacific island countries in general

Finally when the conclusions are made answers are suppose to be find in the theory

This thesis is a most similar system design which means that the purpose of the method is

to do a conclusioncomparison between cases (countries) which are as similar as possible

and relevant on the independent variables (explanatory variables) The keyword is to select

a case strategically on the basis of the ldquovaluerdquo of the independent variable in order to ex-

plain the dependent variable 20

16 Sources and material

In this thesis secondary and primary materials have been used For the theoretical frame-

work books articles internet reports are used Fore the case study section in depth inter-

views have been used together with literature

The sources about Vanuatu have a high validity since they are written by independent re-

searchers the material is written from a neutral point of view I have used independent re-

searchers like eg Michael G Morgan Hank Nelson Arch Puddington William FS Miles

and many others

The theoretical framework consist of two main sources World Bank (WB) and Transpar-

ency international (TI) I have used those sources since they have the best information

about corruption and its consequences Though can validity be questioned since the two

sources have been criticised for different reasons The World Bank has been criticised for

the veto right that USA have on all questions and that actions are made for US benefit

20 Esaiasson Peter p 113

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 14: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

7

Transparency International has been criticised for its anticorruption methods which some

critics mean is not suitable for all developing countries

But I have used their material only on a basic level where corruption is described why it

exists and what the easiest methods is to combat it I have also used other independent

sources to confirm the material from WB and TI Therefore I think the validity is quite

high

161 Research overview on corruption

The material that is available about corruption consists mostly of brief essays and articles

from institutions or books

I have used ldquoThe quality of government instituterdquo (QoG) University of Gothenburg The institute

conducts and promotes research about good governance and Quality of Government that

is trustworthy reliable impartial uncorrupted and competent government institutions The

research of the institute addresses the questions of how to create and maintain high quality

government institutions and how the quality of such institutions influences public policy 21

One of the leading researchers in QoG is Bo Rothstein He states that ldquomost research

show that problems with democracy and economy in developing countries lie in the ad-

ministration and that quality in an administration is the crucial factor to achieve develop-

ment within democracy and welfare in the third world Rothsteinrsquos research focuses on the

public administration as the main problem to corruption

Rothstein refers to Putnam and his work Making Democracy Work (1993) His conclusion is

ldquothat the scientific study of politics (political science) must contain a large part of organisa-

tion and administration analysis to understand eg corruptionrdquo

Gunnar Myrdal is another well known researcher and (Minster of Trade 19xx-) within cor-

ruption and developing countries His research confirms both Rothsteinrsquos and Putnamrsquos

conclusion that the most important is a god functioning public administration What Myr-

dal contributes with that most developing countries is ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

21 The Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 15: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

8

which decides if public employees carry out the public politics Which on the other hand

leads to corruption

World Bank Institute (WBI) was one of the main sources WBI is a vital source of financial

and technical assistance to developing countries around the world The institution works

for developing individual organizational and institutional capacity through exchange of

knowledge One of the central themes for the institute is corruption nowadays hundreds of

governance and anti-corruption activities are taking place throughout the World Bank

Group The focus is on internal organizational integrity minimizing corruption and assist-

ing countries in improving governance 22

One of the leading researchers about corruption in WBI is Maria Gonzales de Asis Her re-

search and works basically focuses on anticorruption programs and to learn out god gov-

ernance methods to politicians officials and the general public Gonzales de Asis research

is also about legislation and how to prevent corruption on national and local level23

I have also used Transparency International (TI) as a source since the organisation fight

against corruption trough different projects and research TI fights corruption in the na-

tional arena in a number of ways They bring together relevant players from government

civil society business and the media to promote transparency in elections in public admini-

stration in procurement and in business The also use advocacy campaigns to lobby gov-

ernments to implement anti-corruption reforms TI has anticorruption department on

Vanuatu as well 24

162 The interviews

The interviews that were made was delimited to ni-Vanuatursquos who were located on New

Zealand I had to leave Vanuatu since I hade no possibility to fulfil my research there We

were not allowed to interview Vanuatu inhabitants about the conditions of Vanuatu If au-

thorities would have found out that we interviewed people we would have been deported

therefore was the case study made in New Zealand All interviewed were working in the

22 World Bank Institute httpworldbankorg 2009-04-11 time1534 23 Gonzales de Asis Maria p2 24 Transparency International

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 16: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

9

kiwi industry through the RSE25 (Recognised Seasonal Employee) scheme The interviewed

were all Vanuatu citizens 18 years old or older You can find the interview questions as an

appendix in the end of this thesis

17 Outline

Chapter 2 the next chapter is a theoretical framework about corruption and its conse-

quences

Chapter 3 provides the difficulties with combating corruption and methods from World

Bank and Transparency International of how to combat corruption

Chapter 4 is the case study of Vanuatu which includes colonialism weak party system iso-

lated islands cultural traditions and interviews

Chapter 5 is an analysis where the theoretical framework is tied together with the empirics

about Vanuatu

Chapter 6 is a concluding discussion where the research question are summarized and the

method theoretical framework and sources are discussed

25 It is a policy that will facilitate temporary overseas workers to plant maintain harvest and pack crops in the horticulture and viticulture industries Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 17: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

10

2 Theoretical framework

Since I have used sources like Transparency International and World Bank does

this theoretical framework define and explain corruption from a ldquoWesternrdquo point of view

21 Corruption

ldquoCorruption is behaviour of public officials which deviates from accepted norms in order to serve private

endsrdquo Corruption exists in all societies but it is obvious that it is more common in some so-

cieties than others Corruption is one measure of the absence of effective political institu-

tionalization Public officials lack autonomy and coherence Corruption may be more

prevalent in some cultures than in others but in most cultures it seems to be most prevalent

during the most intense phase of modernization 26

Transparency International (TI) further differentiates between according to rule corrup-

tion and against the rule corruption ldquoFacilitation payments where a bribe is paid to receive prefer-

ential treatment for something that the bribe receiver is required to do by law constitute the former The lat-

ter on the other hand is a bribe paid to obtain services the bribe receiver is prohibited from providingrdquo27

Corruption is most common where institutional checks on power are missing where deci-

sion making remains obscure where civil society is thin on the ground and where great

inequalities in the distribution of wealth condemn people to live in poverty Corruption is

also alive where political economic legal and social institutions are well entrenched28

Corruption at first glance according to TI seems to confirm the stereotypical notion that

corruption is most predominant problem of the south While Scandinavian countries in in-

dexes come out top most sub-Saharan Africa ranks at the bottom Somalia and Myanmar

are the most corrupted countries in the world but TI also states that there is no intent to

pit the North against the South The issues of corruption are rather a tool to raise public

awareness and promote better governance Corruption is as much a problem of the North

as of the South Recent scandals in Germany France Japan the US or the UK attest to

that People are as corrupt as the system allows them to be 29

26 Huntington P Samuel Political order in changing societies Yale University 2006 p 59 27 Transparency International 28 Ibid 29 Ibid

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 18: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

11

Critics argue that the fight against corruption is just another case of the West trying to im-

pose its views and values on the South Some go on to say that gift giving and taking in the

public realm is a normal tradition in many non-Western cultures Gift-giving is part of ne-

gotiating and relationship building in some parts of the world But there is a matter of de-

gree there are limits in all cultures beyond which an action becomes corrupt and unaccept-

able But cultural relativism ends where the Swiss bank account enters the scene It is a

matter of degree there are limits in all cultures beyond which an action becomes corrupt

and unacceptable30 When Olusegun Obasanjo now President of Nigeria criticised the cor-

rupt practices of the dictatorial regime of Sani Abach he was imprisoned He once com-

mented that in African tradition a gift is made in the open for all to see never in secret Where a

gift is excessive it becomes an embarrassment and is returned31

22 Reasons for corruption

There are many different forms of government and social structures that exist in the world

and it would be too difficult to find out every single factor of why corruption emerge

Therefore this chapter is more of a generalisation of why corruption occurs in some areas

of state public sections

221 Public institutions and administration

Political processes and political systems can not be explained and understood without in-

cluding analysis of the public administration If parliamentary government or other politi-

cal decisions are meant to be implemented must an organization be established to achieve

the decisions Social security pension healthcare childcare and education requires large-

scale organisation Even more traditional state assignments like defence police judicial sys-

tem voting and collection of taxes requires a comprehensive administration The choice of

organisation form often affects how the final result of a decision will be The administra-

tion staff does often have an impact on the decisions which are made by politicians 32

The significance of an administration does not only concern welfare states but also other

political systems eg international political systems and developing countries Most re-

search show that problems with democracy and economy in developing countries lie in the

30 Transparency International 31 Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial TimesOctober 1994

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 19: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

12

administration Not only political scientists but also economists and sociologists have iden-

tified quality in an administration as the crucial factor to achieve development within de-

mocracy and welfare in the third world 33

Most well known example of the importance of a god working administration is illustrated

by the American political scientist Robert D Putnam and his work Making Democracy Work

(1993) The conclusion Putnam and his team made from 25 years research about democ-

racy reform in Italy was that ldquothe working democracyrdquo used twelve different criterions of

which not less then half of them was about how well the administration in different regions

functioned A god working democracy does not only deal with correct implemented elec-

tions ability to create representative and powerful governments and an extensive political

participation but it is also about to have an administration characterized by competence

high ethics and professionalism The generalizing conclusion of this is that the scientific

study of politics (political science) must contain a large part of organisation and administra-

tion analysis The classical political science question about who gets what when and why

can not be answered without an administration analysis 34

Gonzalez de Asis who works as a researcher on WBI believes that the common ground for

the misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported 35

1) Asis means that the risk for corruption increases when local officials are given new re-

sponsibilities and functions in a combination with a lower budget Common examples of

unsatisfactory among officials can be lack of efficiency low salaries pressure from pay-

ments low quality of public administration lack of key sources of revenue ties to family

and friends and non merit based appointmentspromotions 36

32 Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001 p 7 33 Ibid p 10 34 Ibid p 11 35 Gonzales de Asis Maria Reducing Corruption at the Local Level Word Bank Institute 2000 p2

httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809 36 Ibid p 3

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 20: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

13

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 37

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo38

Concerning elections are votersrsquo political opinion affected by their image of the public ad-

ministration The willingness to support a public administration can be affected by the vot-

ers own experience basic ideological opinion or the picture media supply Does the public

employee consist of professional persons with high ethics working for the common good

and who loyally implement democratic decisions Or does the public employees consist of

own interested corrupted persons without competence who make their welfare through

taxpayers and who sabotages the decisions which are made by publicly chosen politicians

The answers to these questions have a large importance for the political public opinion39

37 Gonzales de Asis Maria p 4 38 Ibid 39 Ibid p 16

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 21: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

14

222 ldquoThe soft staterdquo

The issue concerning the public administration in most developing countries is what Gun-

nar Myrdal refers as ldquothe soft staterdquo- which means

1) Rules and laws that exist in a country are neglected

2) Many times is it contacts or money which decides if public employees carry out the

public politics

3) There is no accordance between how rich a country is and how much corruption the

country has Some developing countries have little corruption and some developed

countries have much corruption

4) Formally does a state with democratic institutions exist but the institutions do not

work properly Administrations are influenced by arbitrary and personal domination

5) Administrations are strongly politically influenced it is not unusual that ministers in-

terfere in different cases eg appointments and promotions

6) The Parliament lack influence over what administrations do People are exposed to de-

cision makers arbitrary

7) The State has little influence over peoples lives the government make new laws which

seldom go through The state is not legitimate

8) Instead of voting ideologically voters vote for the person who has biggest chances to

function like a ldquoprotectorrdquo

Source40

40 Gunnarson Carina p 13

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 22: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

15

To make changes in politics in most north European countries is it natural to focus on the

institutions where the politics are shaped But in many developing countries is it the oppo-

site the most significant political arena is the public administrations ldquomeetingrdquo with the

citizens ldquoHaving a friend in city hall are immensely important aspects of political participa-

tion in developing countries ldquo 41

A weakness with description and explanations of developing countries administration is

that they are a reflection of a postcolonial society an international dependence or the

countries economic situation Most research shows that this point of view is quite prob-

lematic researchers within ldquonew institutional theoryrdquo means that the capacity of a state lies

in the administrations norms rules and organisation But the public administration can

also be affected and explained through factors outside the state how voters interest

groups classes affect the administration42

One reason why most developing counties administrations are ldquosoftrdquo or particularistic is

their colonial origin The administration weakness lies in that they where dominated by a

European power until recently The dependence theory that was popular in the 1970s

shows that the former colonial countries are still dependent of the countries who once

ruled them This dependence explains the specific with the state and administration in the

third world The reason why administration behaves in a different way in developing coun-

tries and developed countries is that the class dominance is unclear 43

Many researchers mean that the particularistic behaviour in several developing countries is

a dominating norm One example of this is what Goumlran Hydeacuten calls ldquotogetherness econ-

omyrdquo an ethic where neighbours relatives and friends help each other It is also common

in public administration If the administration would not share water electricity or seed in a

village it would be considered as an objectionable behaviour if public employees would not

help relatives and friends first 44

41 Rothstein Bo p 217 42 Ibid p 242 43 Ibid p 243 44 Ibid p 245

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 23: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

16

23 Consequences of corruption

Consequences of corruption can vary in many ways but the two main consequences are

economic and social Corruption can hinder investment both domestic and foreign it can

reduce growth restrict trade distort the size and composition of government expenditure

weaken the financial system and strengthen the underground economy Socially can corrup-

tion increase levels of poverty and income inequality45

231 Poverty

The most immediate and visible consequence of corruption for many individuals and fami-

lies has been a decline in living standards Poverty is usually connected to the administra-

tion in a country The big issue is that poverty gives birth to corruption because poor

countries have usually smaller resources to keep the administration public The problem

can concern lack of public employees low educational standard or lack of good working

computer systems Corruption can lead to administrational misuse of unemployment or

disability benefits delay pensions weaken the provision of basic public services and as a

consequence it is usually the poor who suffer most Such corruption undermines the social

safety net and may deter the poor from seeking basic entitlements or public services 46

232 Inequality

Corruption is also a consequence of inequality due to there is only a narrow elite who have

the ldquopossibilityrdquo to take part in corruption activities and the benefits of social and eco-

nomic advantages 47

233 Credibility of the state

Combating corruption requires a strong and credible leadership The leadership is the first

factor to get affected hardest and fastest when corruption is revealed within public admini-

stration Since corruption damages faith for public administrations and institutions is it

even harder for the state to combat corruption 48

45 World Bank Anticorruption in Transition a Contribution to the Policy Debate 46 Ibid p 19 47 Ibid p 21 48 Ibid p 22

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 24: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

17

3 Strategies for combating corruption

This chapter explains first of all the difficulties to combat corruption in a particularistic sys-

tem Thereafter are some examples and methods given of how to combat corruption The

methods are suggested by the World Bank

31 The problems with change the particularistic administra-

tion in developing countries

The question is why developing countries do not change their ldquosoftrdquo and particularistic

administration if it entails many negative effects such as corruption bribes unreliability etc

The India-American economist Pranab Bardhan has in his article given four reasons why

an institution is difficult to change

First he means that ldquothe collective actions logicsrdquo is prevailing even if all individuals wants

to change a condition or institution is it uncertain if it can be made It is about ldquocostsrdquo and

ldquoprofitsrdquo in a new system and how they are going to be divided There is lot of situations

when people are willing to contribute with labour or money if also other people do it Eg

keep it clean on the public market protect the rainforest from being devastated and not

participate in corruption But in these collective actions is there always a risk that someone

takes advantage and contributes with nothing or less than rest of the participants49

Second many participants are investing in the prevailing system (ldquosunk costsrdquo) trough a

profession or political behaviour The prevailing system is well known knowledge and con-

tacts are relevant In other words individuals have resources which run the risk of being

useless in a new system 50

Third in every society prevails systems of social sanctions tied to norms which means that

social and political traditions can survival despite that many dislikes it 51

The fourth and last argument to why political institutions are difficult to change is ldquopath

dependencyrdquo It can be compared with computers keyboard the ldquoq w e r t yrdquo system was

49 Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment World De-velopment Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

50 Ibid 51 Bardhan Pranab

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 25: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

18

once introduced but is not logical at all since it has always been that way is it very difficult

to change It is hard to change a well established pattern where many actors are involved

despite that many dislike it and are losing on it This kind of paradoxes in the society is a

product from research concerning collective action logics A very good illustration is opinion

poll surveys in India Which always shows that corruption is one of the three most impor-

tant political problems but despite that do most people in India participate in this activity

In other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped52

32 Increase political responsibility

To make the public and political administration more reliable political responsibility must

increase

a) Leave paper trail During elections should all donations and other sources of party revenue

be made in public donors and amounts of their donations should be identified in the pub-

lic record Candidate links with lobbyists types amount of support and their purposes

both before and after elections should be available for audit53

b) The use of state resources for political purposes should be banned Parties in government should

not use state funds postal services cars computers or other assets for political purposes

or in election campaigns54

c) Limit expenditures Party politics should be as inexpensive as possible usually the demand

exceeds the supply of funds 55

d) Consider public funding Public funding reduces the scope for private interests to ldquobuy in-

fluencerdquo 56

e) Build public service neutrality Public service should be politically neutral and public servants

should neither allowed nor require making contributions to political parties as a way of ob-

taining public sector employment

52 Bardhan Pranab 53 The World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410 54 Ibid 55 Ibid 56 Ibid

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 26: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

19

33 Increase public participation

According to Gonzales de Asis citizensrsquo participation and institutions openness is crucial to

combat corruption57

Civil society must be empowered and realize its full potential which includes basic human

rights such as freedom of expression and freedom to establish nongovernmental entities

Access to information and knowledge as well as the ability to attract talent is important

Lack of well-educated and highly motivated people can not compromise the positive role

Civil society can play in combating corruption 58

Civil society as an independent actor representing the interests of the general public is

uniquely positioned to investigate and bring to light cases of corruption According to

ldquoworld bankrdquo is there three different main ways to increase public participation to fight

corruption 59

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public60

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization61

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors62

57 Gonzales de Asis Maria p 5 58 The World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330 59 Ibid 60 Ibid 61 Ibid 62 Ibid

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 27: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

20

34 Make a competitive private sector

A fair competitive honest and transparent private sector is important for development

Deregulation of prices and other aspects of production are important towards reducing

opportunities for corruption Enhancing competition and clarifying ownership structures

are also important elements toward creating a vibrant and corruption free private sector63

63 The World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 28: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

21

4 Case study Vanuatu

This chapter is ldquoa case studyrdquo of why corruption exists in Vanuatu it takes up four differ-

ent possible reasons for corruption in the country Vanuatu is a former colonial state it has

a weak party system many isolates islands and a tradition of gift giving

41 The Postcolonial heritage from Britain and France

Two major conflicts which affect Vanuatu today is political conflict and conflicts related to

property and land rights with roots in the past colonial era

The political conflict started during the pre-independence era in connection with the strug-

gle for power between Britain and France The competition between the two powers led

to an establishment of condominium in 1906 The consequences became that protestant

(associated with the British) and Catholic (connected with the French) missionaries divided

the population The Melanesian found them allied with either the French or British de-

pending on their religious affiliation 64

The Ni- Vanuatursquos were excluded from participation in all key political administrations until

independence 1980 Though the first organised political movement emerged on the north-

ern island of Santo already in 1970 the critical national issue became independence and re-

ligion became part of politics 65

From the beginning of 1970s until the late 1980s Vanuatursquos political landscape was charac-

terised by strong colonial rivalries between United Kingdom and France Vanuacuteaku pati

VP the first organised political movement by members of the Anglican and Presbyterian

clergy junior British Administration bureaucrats and teachers The party pressed for a rapid

decolonisation of Vanuatu but was strongly opposed by foreign federalist agent move-

ments from the south and north islands66

64 Pcific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

65 Ibid (3-4) 66 Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004 Pacific Economic

Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 29: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

22

The Vanuaacutekus pati goals were to return alienated land respect kastom (Vanuatu and Pa-

cific Island traditions including tribe tradition religion and magic) as the basis of national

cohesion The goals were conceived under ldquoMelanesian socialismrdquo VPs foreign policy

was based on its membership of the NAM Non-Aligned Movement and focused on de-

colonisation of the remaining colonies in the Pacific Ocean and Melanesia VPs policy

played off one foreign power against another and rejected cold war alliances In the decade

after independence Vanuatu offered fishing rights to the Soviet Union and hade trade and

training relations with Cuba and Libya Vanuatu played risky and unexpected game Vanu-

atuacutes foreign policy was a real threat against the powerful ANZUS (Australia New Zee-

land United States Defence Treaty and Council a military pact)67

After independence VP became more centralised and faced hard opposition from federal-

ists Union of Moderate Parties UMP who favoured greater regional autonomy In the be-

ginning of 1988 Vanuatursquos political stabilisation started to erode There were tensions

within the ruling party VP and the party lost office in 1991 Fragile collations were made

and tensions over the power prevailed Opposition members were denied access to gov-

ernment resources or good positions Intense political instability was a fact several short

lived governments made political dramas parliament members sold state assets to them-

selves Corruption became a means a help for government members of parliament to seek

their own wealth 68

The corruption behaviours all ended with that Vanuatu was virtually corrupt in 1997 and

Serge Vohor then UMP prime minister began a comprehensive reform program sup-

ported by Asian Development Bank and foreign aid donors Though the pessimism from

NI-Vanuatursquosrsquo was strong since citizens believed that the Westminster democracy on

Vanuatu would hurt the origin people The negative impact on structural adjustment pro-

grams came from a neighbour country Papua New Guinea People thought that people of

Vanuatu would ldquoserve the interest of Australia and New Zealandrdquo Vanuatu had a deficit

estimated four billion vatu (34 million US dollar) Vanuatu was forced to accept a US 22

million loan from the Asian development bank earmarked for the reduction of bureauc-

racy and the implementation of guidelines for public servants 69

67 Morgan Michael G p 41 68 Ibid p 42 69 Ibid p 43

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 30: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

23

In February 2000 the most incredible happens a Indian businessman Amerendra Nath

Ghosh arrives in February in the capital Port Vila with what is described as ldquopossibly the

worldrsquos largest rubyrdquo and donates it to the people of Vanuatu () Gosh promised to initiate

a road project around the main island build a walled complex for the Council of ministers

and to build a new international airport etc In return for the ruby Gosh was to receive 300

million US dollars (from Prime Minister Barak) in bearer bonds from the Reserve Bank

equal to 140 percent of Vanuatursquos gross domestic production This quadrupled Vanuatursquos

debts After the revealing Gosh was reported internationally wanted and Barak was impris-

oned sentenced three years in prison for forging government guarantees Though Barak

continues his popularity and have won every election he has contested 70

The post independence era had thereafter been dominated by conflicts rivalry violence

corruption and breakdown of law and order Eg in October 1996 a group of officers in

the Vanuatu Mobile Force dissatisfied with pay arrested the president and forced the prime

minister to negotiate In January 1998 a huge riot broke out after the ombudsman reported

extensive misuse of Funds in Vanuatu National Provident Found 71 In 2002 was Prime

Minister Barak Sope sentenced three years in prison for forging government guarantees

but he was pardoned by the president at that time Father John Bani In 2004 Alfred

Maseng Nalo was elected president while serving a two-year suspended sentence for cor-

ruption He only stepped down when his criminal record was revealed72

The issue about women should also be noted since it is much underrepresented group in

Vanuatu politics in the latest election 2008 only 3 85 of the parliament members were

women73

70 Morgan Michael G p 44 71 Ibid (5-6) 72 Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties

Rowman amp Littlefield 2007 p 876 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

73 Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 31: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

24

42 Weak party system

In western nations parties stretch across a spectrum from left to right from Marxists to

neo-fascists and the ruling coalitions is formed from the groups near the centre moving

slightly to either side In the small pacific island countries parties are only marginally re-

lated to ideology or even policy 74 Parties are generally not tied to a particular place or

community Most members in a party owe their election to their personal standing and to

their membership of a dominant clan or culture group

Where there are many parties and independents there is also a problem of forming a gov-

ernment and maintaining a majority The absence of strong popular support for parties

weak non-parliamentary structure and loose commitment to a philosophy and policy

means that any form of parties and independence may come together to form a govern-

ment Eg can a potential prime minister offer positions such as ministers and vice minis-

ters parliamentary secretaries position on committees government funded projects mate-

rial and cash that the member himself can disperse The consequences are that public

money is putted in the hands of members of parliament rather than public servants 75

Governments that are weak have limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food76

Vanuatu does not have a strong political party system Voter behaviour is more linked to

the support of persons rather than parties Members of Parliament frequently switch par-

ties which make it very difficult for voters to rely on a vote that has been cast for a party

rather than a person As mentioned before lack of clear policy differentiation weakens party

coalitions as party coalitions are based on the similar policies There are an increasing

number of parties and independents in Vanuatu since independence and establishing new

parties continue There are now laws of how parties receive funds or what those funds are

spent on Some candidates have even used money to bribe voters just prior voting time77

74 Nelson Hank Why the poorest countries are failing and what can be done about it Oxford University press 2007 p 5 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

75 Nelson Hank p 6 76 Ibid p 14 77 Ibid p 18

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 32: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

25

The weak and confusing party system is confirmed by a voter from North Efate Saama vil-

lage ldquoI think it is too many parties now in Vanuatu a long time ago we had only two parties I think

we now have almost 20 different parties it is too many and people get confused and find it hard to choose

who you should vote for In my opinion the best would be if we all in my community decided to vote for the

same candidate We could get together and through a meeting decide who we all should vote fore together I

think that would be the best for all of us Another thing is that I donrsquot think we should have political par-

ties at all because they donrsquot work anyway We should officially have persons because when we vote we vote

anyway for persons who should sit in the government not partiesrdquo 78

43 Isolated islands

In the pacific islands is it very hard to find an exact translation of the word corruption in lo-

cal languages Most people oppose corruption though they often differ on what they re-

gard it is There are several words with proximate meanings in the small languages but with

a different meaning ldquounkindnessrdquo or ldquouprightnessrdquo From a study made by Australian Na-

tional University of 14 different pacific island countries inhabitants on the islands defined

corruption very broadly to include eg ldquoleaders who do not go to church and who party

and travel overseas frequentlyrdquo or ldquopersonal as well as official indiscretionsrdquo The common

attitude among Pacific island countries inhabitants is that power is connected with corrup-

tion and a way to get a better life 79

A woman from Mangalilu Island on Vanuatu confirms the statement ldquoOften politicians start

to live ldquothe good liferdquo when they become parliament members they have expensive cars nice clothes and large

houses Recently four parliamentarians were caught because they had stolen I think about 42 million VU

I can not understand that that would cover the undergraduate school fees for the whole Vanuatu population

for many yearsrdquo 80

Another woman from Tanna Island on Vanuatu says ldquoMost of ni-Vanuatus are really tired of

the elections Because most of us know that the politicians only promise and promise that they will do certain

things and when they then get the power they only think about themselves We feel like if we vote fore some-

one we only vote fore the person to get a better life for himself Most of the politicians are more interested in

being out late in the night dance drink and have lots of nice women They donrsquot care about us just them-

78 Interview 9 question 8 and question 15 79 Larmour Peter p 9 80 Interview nr 14 question 15

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 33: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

26

selves they buy nice houses cars etc and live a good life They spent money on everything else than the peo-

ple of Vanuatu it seems like they donrsquot careldquo 81

It is a real challenge for Vanuatu to beat corruption and ensure the accountability of rulers

This is confirmed from the interviews I have made Almost half of the interviewed 11 per-

sons82 out of 27 confirmed that they are dissatisfied with the rulers and think that politi-

cians use their positions for their own personal advantages and that corruption is common

One of the interviewed states that he thinks politicians forget why people have voted for

them ldquoPoliticians do campaigning and promise a lot of things but after the elections they donrsquot care about

what they have promisedrdquo 83 ldquoMany think that politicians have it too easy If they do something wrong or

inappropriate they donrsquot lose their position There is no justice they can do what they want and they still sit

in the parliamentrdquo 84

The most relevant level of decision making for Vanuatu citizens and pacific people in gen-

eral is in the village Except for the village citizens have limited involvement in the political

process which creates a sense of both disaffection and disempowerment 85

Citizenship democracy and community well-being is based on traditional values which in-

cludes sharing of local resources decision making shared stories etc At the same time is

there a desire to confront these harmonious agreements and to participate in something

else therefore does the prevailing condition create dual communities people living in rural

areas or in urban areas those with work and those without work children who can stay on

at schools and those who canrsquot and the unfair disproportionate amount of money distrib-

uted to the capital city compared to the outer provinces People in Vanuatu most com-

monly refer to their origins as the Birth Island village Citizenship and democracy framed

by the idea of political community the nation state is a relatively new concept 86

Twenty years of foreign aid projects and comprehensive reform of the entire public ad-

ministration have not created an appetite for change in the general public The population

81 Interview nr 18 question 15 82 Interview nr7 Q1 nr9 Q15 nr11 Q4 nr14 Q15nr 15 Q4 nr 16 Q4 nr 18 Q15 nr 16 Q4 nr18 Q15

nr19 Q4 nr21 Q4 nr20 Q4 nr22 Q4 83 Interview nr 7 question 1 84 Interview nr 9 question 15 85 Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard

Commonwealth Secretariat 2004 p21 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

86 Lee O with others p181

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 34: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

27

itself is involved in a conflict of interest chiefs and community leaders put their peoplesrsquo

votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo of block

of votes in exchange of money or jobs Most people do not understand that their behav-

iour will lead to a lower standard of living tomorrow Others are cynical and believe that it

does not really matter if the system collapses people expect development partner countries

to come to rescue like they have done many times in the Pacific Island countries 87

ldquoMi stap nomordquo ndash I just live is a common philosophy among many Vanuatu citizens lack

of regular employment is a difficult issue Most citizens are fishing do garden work but

donrsquot actually bother to holding a job ldquoWork ldquois something one is paid to do living of the sea or

land is just ldquobeingrdquo If one works it is usually for a limited length of time or until ones has

achieved a specific financial goal Lifetime of carer is relatively rare 88 Although there are

signs that a ruling or a higher class is emerging who for example sends their children

abroad to be educated This in the long run can be problematic89

44 The Cultural tradition of gifts and tribes

Proponents of cultural relativism often point to the way gifts maybe are mistaken for

bribes and the critics mean that the mistake is only a ldquocultural excuserdquo A mentioned ear-

lier in this thesis Olusegun Obasanjo now President of Nigeria commented that with a

gift is made in the open for all to see never in secret Where a gift is excessive it becomes an embarrassment

and is returned 90

Generally in Pacific Islands a gift or a ldquobriberdquo is expected and natural It is mostly common

during elections and election campaigns Eg in Kiribati gifts of tobacco are expected by

visitors In Samoa politicians are expected to provide gifts of ldquofood money and school

feesrdquo to voters In Niue candidates makes ldquodonationsrdquo in Marshall Islands ldquochiefs and el-

ites are expected to offer services and gifts when available In Tuvalu ministers give gifts

87 Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

88 Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Development in Vanuatu University of Hawaii Press 1998 p178 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

89 Ibid p 179 90 Olusegun Obasanjo

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 35: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

28

between elections for example when a minister visit an outer island local people might of-

fer a feast and expect something in return etc91

In Nauru is gifts a legitimate part of the electoral system Gift giving is also spread beyond

the government it is common with public ceremonies of ldquofree gifting to churchesrdquo and

competition between villages occur over the size of gifts to retiring church ministers92

And bribe is common in Vanuatu according to these two voters (in Vanuatu parliament

elections 2008) ldquoIn Vanuatu it is better to be friends with the politicians because then you can affect

them much more The politicians feel then that they have a responsibility to help their friends But sometimes

you can be addicted to one politician eg if you have lost your ldquoblue cardrdquo (the card that gives you the right

to vote) You can then go to a politician and ask if heshe can buy you a new one but heshe will only do

that if you in return promise to vote for that certain candidaterdquo 93

ldquoIf you vote for a good candidate he can do a lot for you There is a VRP (Vanuatu republican party)

candidate who I like very much He has been in the parliament almost 50 years I think but he does a lot

for the people in Vanuatu Eg we have a little womenrsquos club and he has given us sewing machines so we

will vote for him in this yearrsquos election as wellrdquo94

In Pacific countries have a strong tribal tradition In Vanuatu people often use family

members or kin as go betweens in their dealings with bureaucracy (nepotism) in Tonga

relatives were often called upon to facilitate transactions with government Political and

popular pressures on politicians may make them use their control of policy and implemen-

tation for political or personal purposes Officials do not face re-elections but they come

under pressure from relatives or people from their home islands 95

91 Larmour Peter p 11 92 Ibid p 11 93 Interview 16 question 4 94 Interview 20 question 4 95 Larmour Peter p 12

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 36: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

29

5 Analysis

In this chapter theoretical framework are tied together with the results from chapter 4 in

order to answer the research questions Each research question are answered and discussed

separate The structure chosen shows clear that the results in this chapter answer the pur-

pose of this thesis

51 Why corruption exist in the pacific island countries like

Vanuatu

To answer this question we must first understand the history of the pacific islands Oceania

has been relatively anonymous during very long time of history people have lived isolated

on islands with their own culture traditions tribes and rules Pacific islands were among

the last to be colonized in global terms and the last to be decolonized 1960 started the

process of decolonization majority of the countries became free during late 70s early 80s

On Vanuatu and other Pacific Island countries was the original population excluded from

participation in all key political administrations until independence This means that the

public administration and politicians are relatively new in their positions they had no

chance to learn from the past or use knowledge Colonists left religion and missionaries

Though the missionaries was unfortunately not to any help to build a public and political

administration rather an obstacle since they divided the population with their different be-

liefs

With no experience from public administration or politics Vanuatu and other pacific island

countries had a very difficult task to build functioning countries Obviously one keystone

in a country is rulers and politicians which is a natural element for eg western people It is

natural for west since we have had almost hundred years of a tradition with conservatism

socialism and liberalism But what if we had to start from cero This was exactly what hap-

pened in Vanuatu after independence 1980 there were limited parties and new ones had to

be made

VP was the biggest ldquoundergroundrdquo party before independence and advocated a political

culture with respect for kastom (Vanuatu and Pacific Island traditions including tribe tradi-

tion religion and magic) as the basis of national cohesion VP was visionaries and the

ldquoMelanesian socialistsrdquo they fought for decolonisation of Vanuatu and fought against for-

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 37: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

30

eign federalist agent movements though many of the members were by themselves ldquofor-

eignrdquo eg junior British Administration bureaucrats and teachers VP was very dominant

allied with the Soviet Union Cuba and Libya Their vision was to decolonise all Pacific Is-

lands But after Soviets crash new parties stared to develop in the Pacific and fragile gov-

ernment collations were made and tensions over the power started to prevail At the same

time corruption became a means a help for government members of parliament to seek

their own wealth

Nowadays in Pacific Island countries parties are only marginally related to ideology or even

policy There are an increasing number of parties and independents in Vanuatu since inde-

pendence and establishing new parties continue

Most members in a party owe their election to their personal standing and to their mem-

bership of a dominant clan or culture group Therefore is the pressure very hard on the

candidates and corruption almost impossible to avoid If one have money and power it

must go to the tribe first

The absence of strong popular support for parties weak parliamentary structure and loose

commitment to a philosophy and policy means that any form of parties and independence

may come together to form a government Eg can a potential prime minister offer posi-

tions such as ministers and vice ministers parliamentary secretaries position on commit-

tees government funded projects material and cash that the member himself can disperse

The consequences are that public money is put in the hands of members of parliament

rather than public servants ldquoCorruption is behaviour of public officials which deviates from accepted

norms in order to serve private endsrdquo People are as corrupt as the system allows them to be

But those who donrsquot have a parliament candidate in their tribe or in their island do also

miss their civil rights Because such governments where you have to have a personal con-

nection with a parliamentarian has limited or no authority in various parts of the country

and do not meet the most basic expectations of the people like health care education and

sufficient food96

The problems with corruption in Pacific Island countries lies in the lack of an administra-

tional tradition there must be interacting economic social and political forces who works

for the common good for all citizens not only for one tribe At this point are almost all

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 38: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

31

Pacific Island countries what Gunnar Myrdal refers as ldquothe soft staterdquo- which means that

the rules and laws that exist in a country are neglected Many times is it contacts or money

which decides if public employees carry out the public politics Most significant political

arena is the public administrations ldquomeetingrdquo with the citizens Having a friend in city hall

are immensely important aspects of political participation which is referred to the tribal

way of thinking

There must also be a change in defining of what corruption is so that people on the outer

islands also understand that corruption are going to affect them as citizens Due to tribal

tradition citizens are not citizens in a ldquowestern point of viewrdquo inhabitants of Vanuatu are

rather citizens of their tribe and have limited involvement in the national political process

That makes it also more possible for the ldquoeliterdquo living in urban areas with a work who can

send their children to school and who have left their island tribes to take part of ldquothe good

liferdquo in the city

Since some people who get powerful political or administrational posts know that citizens

on the outer islands have limited knowledge possibility and insight in national funds and

money can it also be more tempting to use public finances for private use But the misuse

of public finances has also been revealed and damaged the trust for politicians The two

women from Mangaliliu and Tanna Island on Vanuatu explained in the interviews that

elections are rather a voting about who gets ldquoa better liferdquo

Bribes are another element which is hard to define in the Pacific Island countries since it is

natural part of the culture Is it OK or not It can be a confusing question since most Pa-

cific Islanders are expecting gifts from eg a campaigning politician And if one politician

are giving gifts year after year to people and they vote for that certain candidate year after

year is the bribe giving a kind of corruption It can be compared with buying votes Like

the little womenrsquos club who said in an interview that hey would vote for a certain candidate

because he gives them sewing machines

Or one example of that bribesgifts are quite accepted in Vanuautrsquos society is when the In-

dian businessman Amerendra Nath Ghosh is trying to tempt Prime Minister Barak with

his donation of ldquopossibly the worldrsquos largest rubyrdquo And Ghosh actually succeeds to receive

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 39: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

32

300 million US dollars in bearer bonds from the Reserve Bank equal to 140 percent of

Vanuatursquos gross domestic production

52 Differences between corruption on Vanuatu and the gen-

eral explanations theories

One of the theories which I have used in this thesis is by Gonzalez de Asis who works as a

researcher at WBI (Word Bank Institute) she believes that the common ground for the

misuse of public power for private benefits is related to three elements

1 Basic unsatisfactory with a certain system

2 Lack of public information administration and transparency

3 Few cases of corrupted public employees are reported

1) Though regarding ldquoordinary citizensrdquo is basic unsatisfactory with a certain system not

relevant Twenty years of foreign aid projects and comprehensive reform of the entire pub-

lic administration have not created an appetite for change in the general public The popu-

lation itself is involved in a conflict of interest chiefs and community leaders put their

peoplesrsquo votes up for sale at every national election Candidates are offered the ldquoguaranteerdquo

of block of votes in exchange of money or jobs Most people do not understand that their

behaviour will lead to a lower standard of living tomorrow97 Instead for ldquobasic unsatisfac-

tory with a certain systemrdquo is the problem that people are accepting the ldquounsatisfied certain

systemrdquo Others are cynical and believe that it does not really matter if the system collapses

people expect development partner countries to come to rescue like they have done many

times in the Pacific Island countries

But the risk for corruption can indeed increase like Asis stated when local officials are

given new responsibilities A unsatisfactory can grow due to lack of efficiency low salaries

pressure from payments low quality of public administration ties to family and friends etc

2) Further does Asis write that lack of public information administration and transparency

leads to that employee can use the secrecy which prevails in eg institutions as a method to

receive bribes If the risk for an official employee is minimal to get reported or punished if

97 Ferrieux-Patterson Marie-Noeumllle

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 40: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

33

heshe receives bribes does also the risk and opportunity for corruption increase If the

gain or profit with corruption is greater than the penalty is corruption more profitable 98

In Vanuatu and in Pacific Islands does the lack of public information or administration not

matter for giving and receiving bribes people do it anyway and openly A gift or a ldquobriberdquo

is expected and natural It is mostly common during elections and election campaigns Eg

in Kiribati gifts of tobacco are expected by candidate visitors In Samoa politicians are ex-

pected to provide gifts of ldquofood money and school feesrdquo to voters In Niue candidates

makes ldquodonationsrdquo in Marshall Islands ldquochiefs and elites are expected to offer services and

gifts when available In Tuvalu ministers give gifts between elections for example when a

minister visit an outer island local people might offer a feast and expect something in re-

turn etc99

And indeed the risk for an official employee is minimal to get reported or punished be-

cause it is not seen as a crime

3) Power without accountability could be an incentive for corruption There is a saying that a

gun itself is neither good nor bad it is the hand on the trigger that makes it so It is the same with the

lack of accountability if a good man strives to acquire or provide a bribe he is likely to do

so if he knows that nothing will happen to him Corruption in this sense is a rational choice

based on a calculation a ldquocrime of calculationrdquo100

As mentioned earlier are tribal traditions very strong in the Pacific Islands and often par-

liament members are pressured to support the tribe in different ways In a society where

that is common and everybody knows it is it also difficult to report anyone Since there

also is a lack of access to newspapers radio television phone or internet on the islands is

it very hard find out what happens with public funds

98 Ibid p 4 99 Larmour Peter p 11 100 Ibid

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 41: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

34

53 Methods to combat corruption in Pacific Island Countries

First of all we have to clarify and conclude that Pacific Island states are ldquosoft-statesrdquo and

an institution is difficult to change For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new

system and how they are going to be divided is the main problem It is always a risk that

someone takes advantage and contributes with nothing or less than rest of the participants

Secondly the prevailing system is well known knowledge and contacts are relevant In

other words individuals have resources which run the risk of being useless in a new sys-

tem

The main problem is that in the Pacific Islands society does a system of social norms pre-

vail there is a tradition of how certain thing should be done As long as the tribe system in-

fluence politics can political traditions of eg bribes survive It is a kind of ldquopath depend-

encyrdquo It is hard to change a well established pattern where many actors are involved de-

spite that many dislike it and are losing on it A very good illustration is opinion poll sur-

veys in India Which always shows that corruption is one of the three most important po-

litical problems but despite that do most people in India participate in this activity In

other words does everybody participate in the corruption poor or rich even if they know

that it would be better for everybody if the system stopped

Methods that can be used to combat corruption in Pacific Island Countries are increasing

the political responsibility increase public participation and make a competitive private sec-

tor

The political responsibility is most important since politicians must start to work for the

common good and not only for the ldquotribes goodrdquo Even if it is hard bribery must get an

end and during elections should all donations and other sources of party revenue be made

in public donors and amounts of their donations should be identified in the public record

Parties in government should not use state funds postal services cars computers or other

assets for political purposes or in election campaigns There must be a division of what is

ldquothe countriesrdquo and what is ldquoprivaterdquo

Party politics should be as inexpensive as possible public funding should be OK rather

than private funding Public funding reduces the scope for private interests to ldquobuy influ-

encerdquo

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 42: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

35

Thereafter should public participation increase Civil society must be empowered and real-

ize its full potential Citizens should be aware of their situation and what is happening on

the main islands

According to ldquoworld bankrdquo is there three different main ways to increase public participa-

tion to fight corruption 101

a) Creating public awareness about corruption trough country surveys on corruption sur-

veys and assessments are ways in which organizations can raise awareness of policy-makers

and the general public102

b) Formulating and promoting action plans to fight corruption trough seminars confer-

ences and workshops It is effective ways of publicizing information about the patterns

and severity of corruption building coalitions amongst anticorruption It is also important

to influence new legislation that will aid corruption control and lobby for new institutional

devices Another civil society intervention can be advocacy for legal and juridical reform

freedom of information deregulation and privatization103

c) Monitoring governmentsrsquo actions and decisions is important to reduce corruption Edu-

cate local monitors104

It is also important that the islands have some form of fair competitive honest and trans-

parent private sector Deregulation of prices and other aspects of production are important

towards reducing opportunities for corruption Enhancing competition and clarifying own-

ership structures are also important elements toward creating a vibrant and corruption free

private sector105

101 The World Bank 102 Ibid 103 Ibid 104 Ibid 105 The World Bank Competitive Parivate Sector

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 43: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

36

6 Concluding discussion

In this chapter I will summarize the different research questions and the method theoreti-

cal framework and sources used

1 (Why corruption exists on the Pacific Island Countries)

The Pacific Island countries share many characteristics for the risk of political and adminis-

trative corruption The countries are small they are former colonial countries with limited

knowledge or people with knowledge and experience from public administration Gov-

ernments dominates economic life politics is more often about to take care of relatives and

family rather than look after the nation and its citizens Tribal traditions are very strong

and eg bribes are accepted and part of everyday life The smallness and ldquoeveryone know-

ing each otherrdquo makes the act of ignoring illegal practices even easier The weak party sys-

tem and a loose parliamentary system creates a structure where public money is putted in

the hands of members of parliament rather than public servants Those who donrsquot have a

parliament candidate in their tribe or in their island do also miss their civil rights

Pacific Island countries are what Gunnar Myrdal refers as ldquothe soft staterdquo- which means

that the rules and laws that exist in a country are neglected Many times is it contacts or

money which decides if public employees carry out the public politics

2 (Differences between corruption on Vanuatu and the general explanations theories)

Asis theory about the common ground for the misuse of public power for private benefits

and that the risk for corruption increase when people have basic unsatisfactory with a cer-

tain system does not fit in on the Vanuatu conditions Since the tribal tradition chiefs and

community leaders put their peoplesrsquo votes up for sale at every national election Are can-

didates offered the ldquoguaranteerdquo of block of votes in exchange of money or jobs Most peo-

ple do not understand that their behaviour will lead to a lower standard of living tomorrow

Secondly in Vanuatu and in Pacific Island countries does the lack of public information or

administration not matter for giving and receiving bribes people do it anyway and openly

Last but not least is corruption a rational choice based on a calculation a ldquocrime of calcula-

tionrdquo often parliament members are pressured to support the tribe in different ways In a

society where that is common and everybody knows it is it also difficult to report anyone

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 44: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

37

3 (Methods to combat corruption in Pacific Island Countries)

For developing states ldquocostsrdquo and ldquoprofitsrdquo in a new system and how they are going to be

divided is the main problem It is always a risk that someone takes advantage and contrib-

utes with nothing or less than rest of the participants The problem is that in the Pacific Is-

lands society does a system of social norms prevail there is a tradition of how certain thing

should be done As long as the tribe system influence politics can political traditions of eg

bribes survive Methods that can be used to combat corruption in Pacific Island Countries

are increasing the political responsibility increase public participation and make a competi-

tive private sector

(Method theoretical framework and sources)

I think the method used has been good in the view of circumstances Corruption has been

described as a concept with help of Word Bank and TI Despite the critique against those

two sources I think they have been good anyway since I have also confirmed and com-

pared the information from the two sources with other more ldquoindependent sourcesrdquo

I think that the suggestions Word Bank are given to combat corruption fits quite good with

Vanuatu and Pacific Islands in general WB suggests eg that to combat corruption political

responsibility and public participation must increase People must start to ldquoseparate private

life and public liferdquo Politicians can not always only look after their own tribe and relatives

they must look to the common good for every citizen It is also something that citizens

must understand and accept people must understand what consequences favouritism has

Private sector is also something that WB suggests and which is important to pacific island

countries Since almost everything is imported is it very expensive therefore is it also im-

portant with trade competition to keep prices low

For the case study part of Vanuatu literature has been used from different Pacific Island re-

searches and I have tried to confirm their results with stories direct from ni-Vanuatursquos The

interviews was to a great help to keep a high validity I the study

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 45: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

38

7 References

Asian Development Bank amp Vanuatu fact sheet 2008 httpwwwadborgDocumentsFact_SheetsVANpdf 2008-07-07 Time 1245

Bardhan Pranab The New Institutional Economics and Development Theory A Brief Critical Assessment

World Development Vol 17 No 9 University of California 1989 p 1389-1395 httpwwwgsidnagoya-uacjpsotsuboPapersThe20New20Institution20Economics20and20Development20Theory20A20brief20Critical20Assessmentpdf 2009-03-22 time 1529

Center for Pacific Island Studies httpwwwhawaiieducpisoceania_1html 2009-05-17 time 1711

CPA Malaysia Dealing with conflicts of interest and corruption in small states ndash Vanuatursquos experience August 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-16 time 1858

Department of labour New Zealand 2009 httpwwwdolgovtnzinitiativesstrategyrseindexasp 2009-06-29 time 2244

Esaiasson Peter Metodpraktikan tredje upplagan Stockholm 2007

Ferrieux-Patterson Marie-Noeumllle Conflict of interest ndashVanuatursquos experience Malaysia 2008 httpwwwcpa-conferenceorguploadsdocsPlenary20220-20Conflict20of20Interest20-20Vanuatupdf 2009-05-24 time 2007

Gonzales de Asis Maria Reducing Corruption at the Local Level World Bank Institute 2000 httpwwwworldbankorgwbigovernancepdfmunicipal_engpdf 2009-04-12 1809

Gunnarson Carina Jaumlmfoumlrande politik Uppsala universitet 2005 httpwwwfhsseuploadUtbildningDokumentMaterialISSjamforande_pol_2pdf 2009-04-14 time 1605

Huntington P Samuel Political order in changing societies Yale University 2006

Inter parliamentary union Parliamentary democracy httpwwwipuorgparlinereports2345_Ehtm 2009-01-08 time 1918

Larmour Peter Culture and corruption in the Pacific Islands Asia Pacific School of Economics and Government The Australian National University 2006 httpwwwcrawfordanueduaudegreespogodiscussion_papersPDP06-05pdf 2009-05-23 time 1016

Larmour Peter Pacific Islands corruption a confusing picture Asia Pacific School of Economics and Government The Australian National University July 2008 httpnewsanueduaup=538 2009-05-17 time 1818

Lee O with others Citizenship Education in Asia and the Pacific Concepts and Issues Spring 2004 httpbooksgooglecombooksid=7V0ZTrzvIDcCamppg=PA175ampdq=democracy+in+Vanuatuamphl=svPPA181M1 2009-01-06 time 2033

Miles William F S Bridging Mental Boundaries in a Postcolonial Microcosm Identity and Develop-ment in Vanuatu University of Hawaii Press 1998 httpbooksgooglecombooksid=iICOOs0UUeMCamppg=PA179ampdq=economy+of+Vanuatuamphl=svPPA178M1 2009-01-07 time 1203

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 46: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

39

Morgan Michael G Political fragmentation and the policy environment in Vanuatu 1980-2004

Pacific Economic Bulletin Volume 19 Number 3 2004 httpwwwvanuatuuspacfjsol_adobe_documentsusp20onlyvanuatumorganpdf 2009-05-25 time 2250

Nelson Hank Why the poorest countries are failing and what can be done about it Oxford Univer-sity press 2007 httprspasanueduaupapersmelanesiaworking_papers08_01wp_Nelsonpdf 2009-05-22 time 1252

Olusegun Obasanjo Positive Tradition Perverted by Corruption Financial Times October 1994

Pacific-peace net Project of the United Development Programme- Pacific Ocean httpwwwpacific-peacenetcountriesvanuatu (1-2) 2008-12-18 time 1932

Puddington Arch with others Freedom in the World The Annual Survey of Political Rights and Civil Liberties Rowman amp Littlefield 2007 httpbooksgooglecombooksid=xN5O15Xzm1cCamppg=PA876ampdq=corruption+in+Vanuatuamphl=svPPA876M1 2009-01-07 time 1630

Rajesh Tandon with others Citizens and Governance Toolkit Creating Change by Making Peoples Voices Heard Commonwealth Secretariat 2004 httpbooksgooglecombooksid=UICTSKy9HVECamppg=PA21ampdq=democracy+in+Vanuatuamphl=sv 2009-01-06 time 1927

Rothstein Bo Politik som organisation- Foumlrvaltningspolitikens grundproblem SNS Foumlrlag Stockholm 2001

World Bank Anticorruption in Transition a Contribution to the Policy Debate Washington DC 2000 httpinfoworldbankorgetoolsdocslibrary17506contributionpdf 2009-04-14 time 2011

World Bank Civil Society Participation httpgoworldbankorgEGIHKIXTM0 2009-05-24 time 1330

World Bank Competitive Parivate Sector httpgoworldbankorgFAW4ZXGJM0 2009-05-24 time 1441

World Bank Making State Institutions More Responsive to Poor People 2001 httpsiteresourcesworldbankorgINTPOVERTYResourcesWDREnglish-Full-Text-Reportch6pdf 2009-05-25 time 1317

World Bank Institute httpworldbankorg 2009-04-11 time1534

World Bank Political accountability httpgoworldbankorgZZTD74REV0 2009-05-24 time 1410

Transparency International httpwwwtransparencyorg 2009-04-13 time 2020

Quality of Government institute University of Gothenburg httpwwwqogpolguse 2009-04-11 time1509

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)

Page 47: Corruption in Small Pacific Island States231881/FULLTEXT01.pdf · 2009-08-18 · iii Master’s Thesis within Political science Title: Corruption in Small Pacific Island States -

40

8 Appendix

Interview questions

1 For how long have you worked here in NZ for how long are you going to work here

2 Which part of Vanuatu are you from

3 Are you aware of that it is election in Vanuatu this year (2008)

- How are you aware of that

4 Do you think it is important to vote

5 Are you going to be in NZ when the Election Day is in Vanuatu

6 Do you have the possibility to vote how

- And how are they going to vote for you

7 Who are you going to vote for (optional question)

8 Has the Vanuatu consul informed you about the possibilities of how to vote in case you have not signed papers with the electoral office before you came here

9 Is your community going to vote for the same person or are you going to vote individu-ally Can the chief affect your choice

10 Do you know Wan Smolbag106

11 Do you think WSB has a good reputation in Vanuatu do many people know WSB

12 Are you a member there

13 Have you visited WSB what where you interested in what did you do in WSB

14 Has WSB affected you or your community

15 Would you like to add something

106 A cultural non governmental organisation very popular in Vanuatu the purpose of questions concerning WSB was to get the interviewed relaxed and more open before the very last question (15)