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Collective action against corruption in Thailand and beyond

http://14iacc.org/social/collective-action-against-corruption-in-thailand-and-beyond/#more-2750

This morning, during his opening speech at the International Anti-Corruption Conference, Prime Minister of Thailand Abhisit Vejjajiva talked about the role of the private sector in fighting corruption and the importance of collective action. He mentioned two important events that happened this week in Thailand.


Opening the conference

First, 27 leading Thai firms have signed a collective action declaration on fighting corruption – committing to a series of measures designed to strengthen private sector governance mechanisms and transparency in interaction with the government. Second, the government of Thailand, the National Anti-Corruption Commission, and the private sector have signed a collective action declaration vowing to work together in a number of areas to address corruption, mainly focusing on the issue of public procurement.

In fact, that leading Thai firms have signed on to a plan of action against corruption is profiled on the front page of major Thai newspapers or business sections today. This initiative is led by the Thai Institute of Directors and major business associations and chambers of commerce and is supported by the Center for International Private Enterprise (CIPE). CIPE has also been supporting the efforts of the National Anti-Corruption Commission (NACC) to sign a collective action against corruption agreement between the government and the private sector. NACC deserves much credit in leading this and making it happen – many underestimate the effort it takes to bring the private sector and government together to and agree on a common anti-corruption agenda. In many countries, the two sides blame each other for corruption and fail to engage in a constructive dialogue on this issue.
For anyone who knows about the political and economic climate in Thailand both of these events are an important accomplishment. Corruption is nothing new here. Some of the surveys conducted recently in the country show that the public does not think that corruption is bad; and many agree that political corruption should be tolerated as long as Thailand continues to grow economically. Our own survey of the private sector conducted with this private sector coalition shows that nearly 60% of the business community thinks that corruption has grown rapidly over the past 5 years. That same survey shows procurement is the leading area of corruption activity – thus NACC’s focus on this is not incidental.

But the public is misguided – political corruption has undermined growth in the country in the recent years and has destabilized society, leading to violent protests, a government coup, and a seemingly never-ending debate on the prospect of political collapse. For business there are real costs – our survey shows that corruption ads at least 20% in costs of doing business for majority of the business community in Thailand.

That the private sector is taking charge in fighting corruption is quite important in such a political climate. If it has its own plan of action against corruption – it can, and certainly will, lead the initiative regardless of who comes to power and which political party will lead the government. It can set the terms of debate and show that transparent business is possible.

Twenty seven firms have joined this initiative on the first day – many major companies in the financial industry, pharmaceuticals, and other sectors. The number will certainly continue to grow in the comings months. It is uplifting to see that companies can come together and fight corruption, dispelling the often-held belief that the private sector is only interested in sustaining a corrupt system and benefitting from it. The challenge will be producing real results and ensuring that declarations and statements translate into real programs. Looking at what this coalition is planning to do, I have no doubts that they will be able to succeed.

Much of this work in Thailand is based on the collective action framework against corruption put together by the World Bank Institute, CIPE, Transparency International, UN Global Compact, Siemens, Grant Thornton, and other leading anti-corruption actors. You can find out more by visiting www.fightingcorruption.org

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