A holistic strategy to prevent corruption in Bangladesh

Corruption has long been a formidable barrier to economic development, social justice, and effective governance. Traditional methods of combating corruption have largely focused on punitive measures-punishing those who indulge in corrupt activities after the corruption has been detected. While punishment is definitely part of the process of combating corruption, a growing body of research and global policy trends indicate a paradigm shift from just punishment to prevention.

This preemptive approach, which emphasises transparency, accountability and ethical behaviour, aims to address the root causes of corruption before it surfaces. This shift in the process of combating corruption underscores the need for a comprehensive strategy that tackles this vice at multiple levels: macro, organisational, and individual.

In recent years, there has been a notable surge in academic interest and policy measures over corruption, particularly on preventive strategies, due to the inherent limitations of punitive approaches and the necessity of more sophisticated, preventive measures. Increased emphasis on transparency and accountability at the macro level, organisational reforms to support these efforts, and the exploration of individual behaviours and attitudes are devised to reduce corrupt practices.

At the macro level, transparency is a cornerstone of corruption prevention. Governments worldwide have implemented various transparency-enhancing measures, including Freedom of Information (FoI) or Right To Information (RTI) laws and e-government initiatives. However, research shows that such laws alone may not significantly deter corruption as their impact on reducing corruption is contingent upon the strength of the institutions that enforce them. Like many other countries, Bangladesh has also implemented RTI laws and some level of e-governance. However, Bangladesh has remained one of the top countries with a high level of corruption as ranked by Transparency International. Therefore, it is clear that unless a conducive environment and strong institutions, especially the judiciary and law-enforcements, are not improved as per those laws, then the outcome will not be optimal.

However, fiscal transparency is found to be very promising. Studies have shown that when citizens have access to transparent fiscal data, they are more likely to comply with rules and less likely to engage in corrupt practices. Studies suggest that fiscal transparency can significantly reduce corruption by making government spending more accountable. Having access to and availability of detailed costs of government activities and projects can help journalists and enthusiasts to identify any anomaly in expenses. Since government agencies will also be aware of this, the likelihood of corrupt activities will diminish dramatically.

Good governance is equally crucial in the fight against corruption. E-government initiatives, when combined with broader governance reforms, have been shown to reduce corruption effectively. While macro-level strategies are essential, preventing corruption also requires reforms within organisations. Human Resource Management systems play a pivotal role in this context. Fair recruitment, appropriate compensation, continuous training, and performance-based promotion can reduce the likelihood of corrupt behaviour. For example, selective recruitment and promotion processes and job rotation have been shown to deter corruption by ensuring that only individuals with high ethical standards are recruited and retained in public service. The current practice of Bangladesh, especially in the administrative and law-enforcement cadres where batch-wise promotions are implemented, can be counter-productive in curbing corruption. Because this type of promotional practice does not provide incentives to perform. In addition, partisan matters also play a role in promotion which in fact reduces the incentive to avoid corrupt activities.

Compensation strategies in the public sector are also critical. Although higher wages have traditionally been seen as a deterrent to corruption, many studies suggest that the relationship between pay and corruption is more complex. Research indicates that while higher salaries can reduce corruption, their effectiveness diminishes when wages reach a certain threshold. This finding suggests that financial incentives alone are insufficient and must be complemented by other measures, such as performance-based rewards and strong ethical leadership. Higher wages or too many fringe benefits may increase corruption. In recent years, various segments of the government have had undue fringe benefits which in fact may further exacerbate the corruption situation as they may consider themselves superior even with having corrupt practices. In addition, administrative services have limited accountability to the public other than their divisions, which may work as a catalyst for corrupt activities.

Along with the macro and administrative levels, addressing corruption at the individual level is almost absent in Bangladesh. Individual level involves understanding and influencing the psychological and moral determinants of behaviour. Recent research underscores the importance of intrinsic motivation, reduced opportunity and rationalisation can shape the likelihood of engaging in corrupt activities. For instance, individuals with a strong sense of public service are less likely to engage in corruption, even when financial incentives are present.

Whistleblowing is another critical area where individual behaviour intersects with corruption prevention. Encouraging and protecting whistleblowers is essential for exposing corrupt activities within organisations. Research emphasises the need for strong organisational support systems to ensure that whistleblowers feel safe and valued when reporting wrongdoing. In recent years we have noticed that whistleblowers had to take a significant risk to publish such wrongdoing which proliferated corruption in Bangladesh.

The fight against corruption is complex and multifaceted, requiring coordinated efforts at all levels of society. While punitive actions are necessary, preventive measures are found to be more effective and sustainable. These preventative actions have to be comprehensive, integrating transparency, good governance at the macro level, robust organisational practices at the administrative or human-resource level, and finally, and importantly a focus on individual behaviours and attitudes. Since the problem is multifaceted, the actions to curb corruption need to be multi-faceted and comprehensive too.

The author is an economist and professor at Institute of Health Economics, the University of Dhaka.

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