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ISSUE 55
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| October 2003 |
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World Bank Nods Poverty Reduction
Programmes
The World Bank has acknowledged recent
successes scored by Government in its poverty reduction programmes.
The bank, however, challenged Government to strengthen the
Anti-Corruption Commission (ACC) and other corporate bodies
on good governance to improve on accountability in the public
sector. Director for Zambia, Zimbabwe and Malawi Hartwig Schaffer
said yesterday Government also needed to deal with factors
responsible for the poor performance and accountability of
the sector if poverty reduction programmes were to succeed.
Mr. Schaffer was speaking yesterday on behalf of the donors
at a donors' briefing on the status of the Public Service
Reform Programme (PSRP) at Mulungushi International Conference
Centre (MICC) in Lusaka. "Clearly, without real progress
on good governance and accountability in public sector management,
the likelihood of sustained progress elsewhere will be low.
"For instance, macro-economic stabilisation, which in
turn is key to stimulating private investment, is largely
a function of prudent Government fiscal and monetary policies,"
he said.
He said a number of poverty reduction
reform programmes had been launched and had since been progressing
despite some shortcomings which Government was addressing
during implementation. Mr. Scaffer assured Government that
donors would always support good programmes that aimed at
development but accountability needed to be adhered to in
the use of foreign aid. Finance Minister Ng'andu Magande said
it was a pity that Zambia continued to lose a lot of money
arising from the weak financial management and accountability
systems. He said it was for that reason that under the 2004/08
strategy and action plan, Government had identified public
expenditure management and financial accountability reforms
as one of the highest priorities.
From AllAfrica.com, Africa, 1 October 2003
NSE, Stockbrokers Fault
OPS on Pension Reform
Lagos - As controversy rages over the
planned reforms of public and private sector pension scheme,
the Nigerian Stock Exchange (NSE) and Chartered Stockbrokers
have rejected the opposition mounted by the Organised Private
Sector (OPS) which faulted Federal Government's move to harmonise
the public and private sector pensions in the draft pensions
reforms bill. The NSE and Chartered Stockbrokers, reacting
yesterday to the rejection of the harmonisation of the pension
scheme by the OPS, said the group's stand was selfish, as
it did not consider the benefit of the integration of the
private and public sectors to the economy as a whole. President
of the NSE, Alhaji Abdul Razaq, commenting on the response
of Chartered Stockbrokers calling for the outright rejection
of the OPS' views said the NSE would send a powerful delegation
to the National Assembly to lobby the Assembly members to
accept the planned reform. Speaking at the 42nd Annual General
Meeting (AGM) of the NSE, Managing Director of BGL Securities
Limited, Mr. Albert Okumagba, who spoke the mind of Chartered
Stockbrokers said the move by the OPS was capable of disrupting
government's goals of reforming the pension scheme in the
overall benefits of the nation. He noted that government's
plan was in order, especially after the submission of the
amended draft bill to the National Assembly by the Adeolu-led
Committee.
From Vanguard, Nigeria, by Funmi Komolafe,
Emmanuel Aziken, Rotimi Ajayi, 3 October 2003
Forum Seeks Public/Private
Intervention in Healthcare Celivery
The need for the public and private
sectors to come together to promote the fortunes of healthcare
delivery in Nigeria and the African continent as a whole has
been identified, just as the right of the child to be protected
from infectious diseases has again been stressed. In a chat
with Good Health Weekly about the importance of the public-private
sector interaction, Mrs. Claire Omatseye, a pharmacist with
Aventis Pasteur and member of the African Health Forum - a
partnership of about 30 stakeholders from the public and private
sectors - said it was the most acceptable option if quality
of healthcare is to improve within the continent. Omatseye,
while relating activites of the Forum towards hosting the
first ever African health summit billed to come up November
2-4 at the Nicon Noga Hilton Hotel, Abuja, said the first
objective is to have the partnership. "Government is
doing its best, but no one party can do it alone,we all need
to come together and interact at a higher level so as to give
quality to health in Africa," she affirmed. "The
public sector is challenged with making sure that Nigerians
and Africans are generally healthy. The private sector on
its own, looks after the basic few but you notice that there
is a mixture between the two activities. What we'd like to
do is take the best of both worlds- the mass appeal of the
public sector and the more efficient accountability that is
associated with the private sector and have a mix through
which we can have better health gains."
Highlighting the role of the Forum
in disease prevention, she said the Abuja Summit is being
put together at its (Forum) by bringing together renown speakers
an other stakeholders on healthcare in Nigeria and Africa.
"If we can take this partnership and move it to the next
level, we'll all be able to do better in improving the quality
of healthcare in Africa and Nigeria. The expectation at the
end of the day, is that people will be able to walk into a
hospital and come out healthy, that children born daily have
a chance of life without them dying in their first year of
life from malnutrition or malaria, or their mothers dying
during pregnancy or labor. This is what we'd like to do to
achieve health for all." Debunking myths and rumours
associated with the Oral Polio Vaccine (OPV), Omatseye said
such rumours were unfounded. "A vaccine is a drug used
to prevent disease and therefore will not cause another or
be used as a contraceptive or source of HIV transmission.
There are three things to look for in a vaccine. The first
is tolerance or side effects. These could be systemic side
effects (like fever) or local side effects (like redness or
swelling at site of administration). Second is immunogenicity
(need for antibodies ) and third, efficacy. Still punching
holes in the alleged rumours about the OPV, she assured that
all the vaccines produced by the pharmaceutical company are
WHO certified.
"Nigeria is one of the few countries
where the wild polio virus is still circulating. Why should
children get crippled when there are adequate preventive measures
available? It is the right of the child to be protected. There
are so many diseases that are not vaccine preventable, but
for the ones that are, it is the right of the child to be
vaccinated against them" Dr. Ebun Aleshinloye, also a
member of the Summit organizing committee allayed fears raised
about he safety of the OPV: "Government had done quite
well in disease prevention especially in the area of immunization.
More children are getting immunized and we are preventing
diseases that would have crippled more children and made them
more of economic hazards. The polio vaccine is very critical
to preventing a mortal, deadly and debilitating disease. In
the past we used to have a lot of cripples on our roads, but
the children we are having today are tall and well formed.
They are also well fed, thanks to prevention and better feeding."
Personal Secretary to the Lagos State Commissioner of Health,
Dr Jide Idris, and Chairman of the African Health Summit,
says while the collaboration will foster interaction between
the public and private sectors with the overall aim of enhancing
the status of healthcare delivery in the nation today. He
added that with the level of poverty and illiteracy in the
country, more emphasis needs to be placed on awareness and
education.
From Vanguard, Nigeria, by Sola Ogundipe,
21 October 2003
Public Sector Reform
Is the Solution
The lively exchange between Planning
Minister Peter Anyang'-Nyong'o and various commentators -
notably Jaindi Kisero and J. T. Mukui - addresses matters
of considerable interest and importance. The question is how
to get the economy out of "recession". To conduct
a productive discourse on this matter, and much else besides,
it seems to me necessary to be sure that we are agreed on
what it is that the economy is to recover from. This is difficult
to do without a plausible theory and persuasive evidence.
To be sure, Prof Nyong'o has postulated the problem as a "balance
sheet" recession (in plain language, a financial crisis).
But neither he nor his opposition has brought any evidence
to the debate. This article attempts to do so. What exactly
is a "recession"? It is a cyclical economic downturn.
Although definitions vary across countries, recessions are
identified by durations, usually quarters, of falling output.
Conversely, a recession is declared over if the economy expands
for a specified number of consecutive quarters. The operative
word here is "cyclical". It implies that the downturn
is known to be temporary. The duration from the bottom of
one recession to the bottom of the next is referred to as
a business cycle. The purpose of a stimulus, either fiscal
or monetary, is to create demand for goods and services.
The objective of policy interventions
is well understood to be to reduce its severity, that is,
to hasten recovery and mitigate unemployment. Underlying the
entire intellectual discourse on the conduct of macro-economic
policy is the question of how effective either of these policy
interventions is in smoothing out business cycles. This has
been the subject of the debate so far. The more pertinent
question, however, is: Is Kenya's economy suffering from a
"classical" recession? From the short view, the
economy went into recession in 1997. Growth fell from 4.2
per cent in 1996 respectively to 2.4, 1.8 and 1.4 per cent
in 1997, 1998 and 1999. It can be said that recession bottomed
out in 2000. Thus, in the short run, the economy has been
on a recovery path since 2001. Figure 1 above plots GDP growth
for the last three and a half decades (1967-2002). From the
long view, two important trends are evident. First, something
akin to business cycles is, indeed, evident. It shows five
significant troughs, one in the mid-70s, which bottoms out
in 1977, a second smaller one at the turn of the decade and
bottomed out in 1981. A third big one followed in short order
and bottomed out in 1984, a fourth one in the early 1990s
bottomed out in 1993, and the most recent, which seems to
have bottomed out in 2001.
But are these really classical business
cycles? Yes, the patient is prone to bouts of fever and headache,
but is it malaria, typhoid or something else? Let us bring
events into the picture. The first "recession",
comes in the wake of the 1973 oil crisis. The small one is
explained by the second oil crisis of 1979 and the coup attempt
in 1981. The third one is explained by the major drought in
1984, the fourth by the adverse events - aid freeze, political
turmoil and money printing - in the transition to the multi-party
system. The most recent one has been brought about by similarly
adverse effects - political violence, in particular - in the
aftermath of the 1997 General Election, compounded by drought
and political uncertainty. Thus, what looks like a cyclical
trend is, in fact, a reflection of independent negative shocks,
both domestic and external. In fact, positive shocks are also
at play: the two sharp peaks a decade apart, in 1977 and 1987,
are explained by coffee booms. From a stabilisation policy
perspective, "shocks" and "cycles" are
as different as the proverbial chalk and cheese. In economic
jargon, cycles are endogenous (i.e., a self-propagating dynamic
of the economic system), while shocks are "exogenous"
(i.e., independent and unpredictable). Drought is a good example,
the travel advisory shock on tourism a case in point.
An economic stimulus, fiscal, monetary
or any other kind, is unlikely to make an impression on the
heavens or the potential tourist. The second and, to my mind,
the most pertinent observation to be made is that each recovery
from a shock has been weaker than the preceding one. This
is clearly revealed by the dotted trend line in the graph
above, and even better in the second graph, which shows five-year
averages of both GDP and GDP per capita (i.e., adjusted for
population growth) growth rates. Quite evidently, the economic
performance has been deteriorating for much longer than many
of us like to admit. The long view suggests that the economic
recovery challenge is of a structural, not a cyclical, nature.
As of 1999, the date of the most recent national labour force
survey, there were over two million unemployed Kenyans. They
are predominantly young. The critical observation is that
the vast majority, over 90 per cent, had no job skills of
any kind, either by training beyond primary or secondary schooling
or by vocational experience. What, then, would be the impact
of an economic stimulus when the unemployed have no job skills?
A stimulus will generate demand for goods and services. To
the extent that this creates job openings, it will be jobs
that require skills. But since the supply of skilled workers
is, in the short run, fixed, this will bid up wages as firms
compete for skilled workers.
The higher wages will be reflected
in the price of goods and services. Kenyan goods will be dearer
both at home, relative to imports, and in our export markets.
In effect, stimulating the economy is more likely to translate
into trade deficits, as opposed to jobs. This is, in fact,
exactly what has been going on in Kenya over the last two
decades - unemployment and real wages rising in tandem. The
law of the market dictates that if something is in excess
supply, the price should fall, not rise. In a background paper
prepared for the Government's economic recovery strategy,
my colleagues identified three dimensions of the challenge,
specifically: open unemployment, productivity of the working
poor, under-employment. The plight of the open unemployed,
as shown above, is brought about by lack of job skills. If
Kenyans are too poor to send two million children to primary
school, it follows that they are too poor to finance skill
formation. This suggests that a publicly-funded job skills
programme for the long-term unemployed ought to be one of
the top priorities in the economic recovery effort. This would
attack both unemployment and crime.
The current policy which provides public
money for university loans and nothing for vocational training
is bad from every perspective - economic, social, political
and moral. In the pre-election proposals, there was a mention
of an employment think-tank. It is an idea that the Government
might want to give serious consideration to. The working poor
dimension is best illustrated by the informal sector. We postulated
that the principal constraint on the informal enterprises
is lack of secure property rights. With such rights, informal
enterprises would not only be able to access capital to grow,
they would be drawn into the formal sector where they can
be taxed. This suggests that the Government might want to
consider directing some of the resources it has pledged to
invest in 150,000 residential housing units into "site
and service" infrastructures for small enterprises. The
latent demand for this is self-evident: I would like to believe
that the hundreds of entrepreneurs manufacturing excellent
furniture and metal products by the roadside in Nairobi would
be willing to take out mortgages on permanent workshop sites
of appropriate scales if they were made available.
We argued that under-employment is
primarily manifested by over-establishment in the public sector.
The economic cost of over-establishment in the public sector
is more deleterious than is commonly appreciated. First, the
opportunity cost of the wage bill paid to unnecessary employees
is investment in infrastructure. Second, unnecessary workers
amount to misallocation of scarce resources, that is, "hoarding"
of skilled labour that could be much more productive in the
private sector. As we all have had occasion to experience
or observe, speed is a function of load. Government weight
is one of the key explanations of the economy's secular decline.
The solution to this is public-sector reform. It is a political
choice: to muster the resolve to shed some of this load to
make haste, or to continue to use public employment for patronage
and ethnic affirmative action until we drop dead. The choice
is ours to make. Mr. Ndii is Executive Director, Kenya Leadership
Institute.
From Daily Nation, Kenya, 23 October 2003
Pension Fund Reform:
How Not to Formulate Public Policy
I was privileged, in the course of
my duty, to have interacted with some non - governmental personalities
who had, by their claim, been patriotic enough, at no cost
to the government, to accept an assignment from Mr. President
to reform our pension system. Mr. President has, of recent,
been making reference to the formulation put together by these
"patriotic Nigerians" as the antidote to the embarrassing
plight and pains of pensioners, particularly in the public
sector. Let me say right away that it is not my intention
here to dwell at length on the appropriateness or otherwise
of pension fund reform in Nigeria. The main purpose of this
piece is to encourage the government to embrace best practice
in policy articulation and formulation. There is no doubt
about the fact that Nigeria requires a functional and effective
pension fund scheme. The pension fund system in the public
sector has virtually collapsed, and the schemes in the private
sector have limited coverage. However, comparatively, the
private sector has fared better through existence of effective
pension/provident fund schemes in some private sector companies.
Most private sector employees equally enjoy a bonus in view
of their membership of the NSITF, which, if the law setting
up the body had been effectively implemented, would have provided
a good social security and pension cover for all employees
in the private sector.
Therefore, government's intention to
institute a National Pension Fund Scheme is indeed commendable.
Unfortunately, the same cannot be said of the modalities the
government has adopted to realise this noble objective. First,
the Organised Private Sector (OPS) was presented with a finished
meal of a draft law at a meeting summoned by the Presidency
within 48 hours notice, at which organised Labour, represented
by the NLC, was also present. The OPS and Labour were expected
on the spot to give a nod to this "messianic" piece
of legislation that will put an end to the woes of pensioners.
Organised Labour saved the day by expressing surprise on the
turn of events; moreso when this messianic" piece ran
contrary to the report of an earlier Committee, the Fola Adeola
Committee, set up by the government to guide it on the way
forward for pension reform in Nigeria. Interestingly, the
Chairman of the said Committee, whose report is still being
studied by the government, was present at this meeting and
unbelievably, introduced to us, as the leader of the team
that had put together this draft law. Questions streamed in:
What has become of the Adeola Committee report? Is this draft
law based on the committee report? Why was a copy of the draft
law not sent to stakeholders in advance? etc, Thank God for
the wisdom of Mr. President who brought the meeting to an
end by mandating the Fola Adeola - led team to consult with
labour and other stakeholders on the new draft law.
From this point onward, the Fola Adeola
- led advisory team became the door to the government on this
important issue of pension fund reform. All submissions must
be channeled through this advisory team. The team became government's
contact point on the reform. The advisory team went to work.
It consulted on a one - on - one basis with identified stakeholders.
The leader of the team brought his natural charm to bear and
fully utilized his gift of the gab. The team welcomed comments
on the draft act but not a total rejection of the proposed
dispensation because it considered the reform, as packaged
by it, the only way forward for the country. The team picked
from the various submissions that were sent to it only that
which fitted its expectations. It conducted informal interaction
with the legislators to sensitize them on what is in the pipeline.
Eventually, a second draft of the law emerged. In all this,
at no time was a formal meeting held with the Organised Private
Sector. At no time was a common forum held with all the Stakeholders
present to debate issues and buy in into the new policy thrust.
There are quite a number of matters
arising from this encounter, which should be of interest to
the government and the public at large: What role should private
advisers to Mr. President play in formulating major public
policy? Where there is a role, how should they be utilized
and whom should they report to? Would it be right for consultants
or private advisers to government to serve as link between
it and the public? What should be the government's approach
in soliciting the input of stakeholders and the public into
its policy? How should feedback be communicated? What is government's
acceptable code of behaviour for those charged with the responsibilities
to relate with the public? In all these, we can surely learn
from best practices around the world. Certainly, the way and
manner the government went about the pension fund reform falls
short of best practice. Apparently, in this instance, the
entire machinery of the civil service was ignored in preference
for a so-called advisory team of technocrats that consistently
touted itself as "working for Mr. President and not the
government". There was no robust public debate on the
issue by all affected parties. While there might be nothing
seemingly wrong for government to set up an advisory team
to guide it on crucial issues of national interest, the real
problem lies in the conduct of those who have been so recognised
to serve government.
Where such a team sees itself as "all
knowing", "all powerful". "most patriotic,
"most altruistic" and others as "selfish",
"scared of change", "uncooperative", e.t.c,
then there cannot be meaningful and genuine interaction. Where
an issue is of national dimension with multiple interests,
it would be more appropriate for the government to set up
a committee comprising representatives of all stakeholders,
rather than place the fate of the nation in the hands of a
cabal of technocrats that does not appreciate the values of
openness, robust public debate and the right of people to
a position contrary to theirs. The committee set up by the
government on the reform of the tax laws stands out as a best
practice in the use of experts to shape public policy. To
a large extent, the Ogunsola Pension Review Committee and
the later day Adeola Pension Reform Committee (not the advisory
team) also qualify as a practice worthy of emulation. That,
unfortunately, cannot be said of the Adeola Advisory Team,
which crafted the controversial draft Pension Act. We must
insist that those that have been charged with public responsibilities,
in whatever capacity, display humility in service, shun contemptuous
behaviour and refrain from unnecessary touting of their distinguished
business pedigree.
They should be made to realise that
they are duty-bound to exude the best in etiquette and mannerism
in their relationship with the public. There is another lesson
here: those who cannot operate in a committee and be bound
by consensus do not deserve the privilege of appointments
as private advisers to Mr. President. Back to the controversial
draft bill on pension reform. Why would the government want
private sector employees to finance the pension fund liability
in the civil service? Where is equity and fairness in all
this? By this intended action, is the government not robbing
the dutiful and efficient Peter, the private sector pension
fund, to reward the irresponsible and inefficient Paul, the
debt -ridden public sector pension fund? The government also
plans to scrap the NSITF and place it under the supervision
of the Federal Ministry of Finance while the body winds up
its operation and metamorphose into a pension fund administrator.
Given the fact that the NSITF assets belong to the private
sector, the right thing is to allow the stakeholders in the
private sector to oversee its winding up process.
Whatever might be the laudable objective
of the pension fund reform, the mere fact that government
is targeting 500/0 of interest earned on contributors' investment
to settle public sector's pension fund debts clearly exposes
its main reason for embarking on this reform, which is to
source cheap fund to bail itself out of the embarrassing liability
of funding the public sector pension scheme. The next phase
of the controversy surrounding the pension fund reform will
soon shift to the National Assembly. Already, the executive
arm of government is celebrating its victory because of its
conviction that the legislators will merely rubberstamp the
draft bill. Time will tell if this indeed is true. The National
Assembly owes Nigerians the duty of ensuring that this draft
bill is subjected to a thorough public debate, involving all
the stakeholders, before endorsing the bill. oMr. Olusegun
Oshinowo is the Director-General of the Nigeria Employers'
Consultative Association (NECA).
From Vanguard, Nigeria, by Olusegun Oshinowo,
21October 2003
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Eastern Regional Organisation for
Public Administration (EROPA) Holds Its 19th General Assembly
and Conference
The Eastern Regional Organisation for
Public Administration (EROPA) is holding its 19th General
Assembly and Conference on "Public Administration and
Globalization; Challenges, Opportunities and Options"
in New Delhi from 5th October to 10th October, 2003. The Deputy
Prime Minister, Shri L.K. Advani will inaugurate the Conference
on October 6, 2003. The weeklong Conference will deliberate
on various aspects of Public Administration at the backdrop
of the present Globalization and Advance in Information Technology
and related Opportunities and Challenges, Globalization in
the context of Human Resource Development and Public Sector
Reforms, bringing in Transparency and Ethical Governance -
Promoting Accountability in Administration and also Enhancing
Public-private Collaboration in Public Service Delivery. The
EROPA endeavors to achieve its objective through General Assemblies,
Regional Conferences, Seminars, Training Programs and Research
& Publication. It also serves as an umbrella organization
for the training institutions of the member countries of the
Asia-Pacific region involved in training of Civil Servants.
The Objective of this Conference is
to enhance co-operation between Member countries of the EROPA
by providing an avenue for academic discussions and interaction
with individuals involved in the field of public administration.
The Conference will deliberate on the challenges and opportunities
and options spawned by the globalisation in the 21st Century
through the following dimensions: Enhancing Public-Private
Collaboration in Public Service Delivery through direct attention
to the experiences of various states and institutions in bringing
together state and market mechanisms to introduce new forms
of producing and delivering public services which were traditionally
delivered through purely state mechanisms. Globalistion, Human
Resource Development and Public Sector Reforms focus on various
aspects of human resource development, specially in the field
of: a) public management training and education; b) performance
evaluation ;c) compensation ; and d) sustaining the merit
system in the public sector.
It will document efforts at improving
these aspects of human resource development. Globalisation
and Information Technology which will address questions like
how Information Communication Technology can help solve poverty
within and across nations even as it facilitate the movement
of information and capital across national boundaries. Transparency
and Ethical Governance by examining and documenting efforts
through greater access to information in the field of fiscal
management, procurement and related areas such as the installation
of systems that provide the public more direct access to public
information. This organization had come into being in 1960
in response to a common desire among developing countries
in the Asia Pacific region to promote regional cooperation
in improving knowledge, systems and practices of Government
administration. It was the first organization in this region
devoting to development of public administration for advancing
economic and social progress of countries of this region.
The last Regional Conference of EROPA was held at Bangkok
in November, 2002, and in this Conference it was decided that
the 2003 Conference will be held in New Delhi.
From Press Information Bureau (press release),
India, 3 October 2003
A Fresh Look into the
Study of Public Administration
The study of Public Administration,
as an academic discipline, now-a-days has gained a distinct
position. However, the study has been considered as applied
rather than a theoretical one. For this reason, the analysis
and research of Public Administration is mostly directed towards
different problems and their immediate remedies. In theory,
Public Administration, for the most part, gives less importance
to the philosophic, historical and social basis of problems
enclosed to it. Mohammad Shamsur Rahman, Professor and Chair
of the Department of Public Administration, Rajshahi University
and country's pioneer in the study of Public Administration,
in his book, Lok Proshason Totto O Bangladesh Proshason has
attempted a tough job of assimilating the theory of Public
Administration and its functional part in Bangladesh context.
The book comprises 19 chapters, six schedules and a bibliography.
In the first chapter, the author has given a critical overview
of Public Administration concept. He stresses herein the weight
of Public Administration as: i) importance of Public Administration
to the people; ii) necessity of Public Administration in modern
welfare state; and iii) significance of Public Administration
as an academic discipline. Doing so, he further notices that,
Public Administration is not merely an administrative device,
rather a system of enhancement and protection of public culture.
The ideological foundation of a state
may perhaps be better; however, its implication is largely
executed by the administration too. Viewing this, he assumes
that Public Administration is a living social process of achieving
greater good. To him, it is an integral part of economic,
social and cultural life of modern state. Thus, the author
focuses a new approach of understanding Public Administration
to us. The book also contains an inventory to the study of
Public Administration in the Universities of Bangladesh. It
is designed primarily by following the syllabus of Public
Administration for the Dhaka, Rajshahi, Chittagong, Shahjalal
and the Islamic University. It is also intended to meet the
need of students of Political Science of different affiliated
colleges of National University for their Public Administration
courses. Considering the paucity of quality textbook on Public
Administration the book has a separate value too. Public Administration
is closed to Political Science and Management as well. Moreover,
it cannot ignore Sociology also. In theoretical part, the
author attempts to conceptualise Public Administration lucidly.
While discussing the origin and development of Public Administration
he also shows a close link of other Social Sciences to it.
Policy Planning and Decision Making are the key concern to
Public Administration.
Giving due attention to above matters
the book also illustrates some pertinent problems of Public
Administration like, administrative authority and leadership,
development planning for administration, bureaucracy, administrative
law, administrative control and administrative responsibility.
Discussion of Bangladesh's politico-constitutional background
along with a brief note on Bangladesh Constitution is one
of the attractive parts of the book. It includes matters related
to 11 parts on Bangladesh Constitution and a table of constitutional
amendments in detail. A table, featuring a detail of governmental
systems since the creation of Bangladesh certainly improves
quality of the book. The book gives a detail account of administrative
structure of Bangladesh, determined by the Rules of Business
made under the authority of Article 55 (2) of Bangladesh Constitution.
Thus, it designates the constitutional basis of Bangladesh
public administration. The book discusses regional settings
of Bangladesh public administration like, Divisional, District
and Thana administration, and diverse existing structures
of Local Self Government (LSG) as well. Considering the distinct
character of local governments of Chittagong Hill Tracts,
a separate chapter has been designated in the book.
The role of Ministry of CHT Affairs
has been given an appropriate denotation too. The appendices
have incorporated important documents of GOB as well. It includes
the functionaries of 23 Ministries. The book, in brief, has
made efforts to delineate the organisation, functioning and
revenue earnings of Union Parishads since its beginning in
the British rule. UP is the single sort of LSG formed through
people's direct representation. Thus, the appendices may be
handy for the researchers indeed. For including all the major
issues of Public Administration, the size of the book has
also been increased. The book, nonetheless, will provide a
fresh look into the study of Bangladesh Public Administration.
It goes far beyond the traditional approach to Public Administration
dealing with issues like, appointment, training, transfer,
salary, promotion, retirement and other issues concerned only
to the government officials. It encompasses the constitution
and laws enacted under it, the execution and the executors
of these laws, public co-operation and participation, project
planning to implementation and so on. The book will be very
useful not only for the students, but for the academicians,
researchers and the public officials too. In conclusion, we
can propose for inclusion of an entire and up-to-date list
of Bangladesh Ministries, a more professional bibliography
and indexes of subjects and names. Khandaker Muzahidul Haq
Ph.D is Researcher, Institute of Bangladesh Studies, Rajshahi
University.
From The Daily Star, Bangladesh, by Khandaker
Muzahidul Haq, 1 October 2003
Strategies For More
Efficient Civil Servants
Bandar Seri Begawan - The Civil Service
has continuously introduced and implemented several strategies
for its transformation. These programmes include 100 training
hours introduced this year at all levels to enhance skills,
ability and to contribute towards the effectiveness of the
organization continuously. This is in line with the government's
effort to introduce e-government, which will become the facilitator
of the process of the Civil Service towards an efficient,
productive and dynamic system. This was stated by Dato Hj
Hazair, Permanent Secretary at the Prime Minister's Office
turn Chairman of the Executive Committee of the 10th Civil
Service Day in his speech yesterday. Speaking on e-government,
he noted the encouraging development being achieved, whereby
projects approved mounted to 39% of the total allocation for
e-government under the 8th National Development Plan, which
amounted to $1,000 million. At the same time, short and long-term
training are continuously being carried out, be it in the
country or abroad.
Officials and staff who undergo around
200 training programmes carried out by Civil Service Institute
(CSI) from 2000 to the third quarter of 2003 totalled 25,000,
he said. "This year alone, CSI carried out close to 100
training programmes and around 4,000 government staff from
all levels engaged in such programmes. To expose officials
in the intermediary level in the latest management techniques,
a two-month long course was carried out from August this year
at Universiti Brunei Darussalam besides the executive programme
for senior officials that has been carried out annually since
1996." To overcome grievances by the public and the private
sector on the delay of professionalism forms, inefficient
counter service and inefficient Client's Charter of TPOR in
certain ministry departments, an auditing of TPOR will be
carried out this year. To give satisfaction to the customer
as well as to enhance productivity and quality of the Civil
Service and to enhance efficiency of work procedure, Quality
Control Circle (KKC) is also introduced in every ministry
and department. - Courtesy of Borneo Bulletin (Brudirect.com
News).
From Bru Direct, Brunei, by Azlan Othman,
4 October 2003
Cabinet Discusses Ways
of Further Improving Standards of Public Services
Male - The Cabinet on Wednesday discussed
ways of further improving the standards of public services,
during an afternoon meeting of the Cabinet. In the meeting,
Members of the Cabinet spoke on the existing arrangements
in government offices to provide public services and exchanged
views on possible measures that could be implemented to increase
the levels of efficiency of service provision.
From Haveeru Daily, Maldives, 9 October
2003
Pak Contribution To
Draft Of UN Convention Against Corruption Lauded
Islamabad - The special committee of
the UN General Assembly, assigned the task of drafting an
international convention against corruption, has adopted a
final draft of the instrument after extensive negotiations
in which Pakistan played a leading role on behalf of developing
world. The final text provides for the facilitation of return
of illicitly-acquired assets to the developing countries through
the cooperation of the concerned authorities in the developed
world. The Convention can prove to be a helpful tool in the
Governments' effort to recover ill-gotten wealth derived from
high level corruption in Pakistan, and stashed in western
countries. The Convention will be adopted later this month
by the UN General Assembly. It provides for the criminalization
of a wide range of corruption offences and the prosecution
of the criminals through international cooperation - White
collar crime will henceforth not go unpunished for want of
cooperation amongst states.
In a rare gesture of appreciation for
the contribution made by Pakistan, the Adhoc Committee applauded
Pakistani delegation's substantial contribution at the concluding
session of its deliberations. Pakistan Ambassador in Vienna
represented the National Accountability Bureau (NAB) in the
deliberations that spanned over two years. Kofi Annan, UN
Secretary General, has termed this Convention as one of the
most significant instrument, which shall benefit and bring
welfare to millions of people around the World. The UN-Convention
against corruption is the first international instrument of
its kind, which addresses critical issues and transactional
aspects of corruption affecting the developing states. The
negotiations, marked by a sharp divide between the developed
and developing states, resulted into a balanced text, which
considerably meets the aspirations of the Third World.
The Pakistan delegation played a leading
role on behalf of the developing states, and succeeded in
inclusion of a number of its proposals besides improving upon
several suggestions considered useful for the developing states.
A significant proposal tabled by Pakistan, that was eventually
accepted, related to giving a right to a state whereby it
could rescind an international contract in cases of corruption.
Such a provision would become very useful in cases of corruption
found in the award of international agreements and contracts
that adversely affect public interest. The case in hand being
the infamous power plant agreements in Pakistan. Other burning
issues relating to return of proceeds of corruption to the
countries of origin were debated threadbare. The developed
countries, having dragged their feet on this issue, finally
yielded to the pressure of the Group of 77 & China, which
had lent its full support to the provisions tabled by Pakistan.
The Pakistan Delegation to the negotiations in Vienna was
led by Ambassador All Sarwar Naqvi and the members of the
permanent Mission of Pakistan. Ahmer Bilal Soofi, a Lahore
- based Lawyer, assisted the Pakistan Ambassador in negotiations.
From Pakistan News Service, Pakistan, 13
October 2003
Time for Government
to Regain People's Confidence
Within a matter of only a few months,
the atmosphere in Hong Kong has turned from extreme pessimism
to extreme optimism. In June this year, just when the SARS
attack was about to subside, Hong Kong people were worrying
how deep the economy would plummet and how many more workers
would lose their jobs. The most optimistic view at that time
was that it would take Hong Kong at least a year or two to
recover. However, measures taken during the summer have completely
turned the situation around. First is the Closer Economic
Partnership Arrangement that would bring the economies in
Hong Kong and the mainland closer; and the second is the flexibility
for mainland visitors to visit Hong Kong as individuals. Suddenly,
Hong Kong people have found the economy here not as depressed
as they have thought. Business opportunities have also increased
so much that Hong Kong people are beginning to see the benefits
of the co-existence of the Hong Kong and mainland systems.
With the return of a buoyant economy, the next question that
one needs to ask is what further actions the Hong Kong Government
has to take to maintain this optimistic spirit. Obviously,
Hong Kong people feel happier because the property market
has become more stable and the stock market has picked up
again.
But there are signs, like the persistent
high rates of unemployment, that the economy is still vulnerable
and that much has to be done to ensure that it would not suffer
another setback. Furthermore, the trust of the people in the
government has to be regained. Even Chief Executive Tung Chee-hua
has admitted that the government has not been responsive enough
to the wishes of the people and pledged that government officials
would do a better job in future. In fact, the chief executive
knows well that the administration could hardly afford to
make another blunder that would further alienate itself from
the people. How then could the Hong Kong Government regain
people's confidence? The head of the Central Policy Unit of
the Hong Kong SAR Government, Professor Lau Siu-kai, has pointed
out that in the last year or so, the administration had focused
so much attention on some controversial political issues,
like the legislation of Article 23 of the Basic Law, that
it tended to be neglectful of people's feelings. To make up,
he suggested that government officials, especially bureau
and department heads, take more active steps in gauging the
reactions of the people towards government policies and measures.
Indeed, there is nothing absolutely right or wrong in public
administration and the only criterion in judging the feasibility
of a particular policy or measure is its acceptability by
the people.
To convince the public that a certain
government policy or measure is necessary and desirable is
not at all easy. Adequate preparations are a must before any
policy or measure is put to the public for consultation. More
important still is that relevant government officials must
be prepared to explain and to defend the position of the government
in public and in language that people can fully understand.
This is not to say that people's opinions must be right. But
if the government wants its policies and measures to have
their desired effect, then people must be made to feel that
their voices have fully been heard. The second important thing
for the government to do to regain the confidence of the people
is to reshuffle its priorities. For the government, the fiscal
deficit might have been the major concern as it affects the
ratings of Hong Kong in the eyes of international investors.
However, ordinary people cannot understand why balancing a
budget is so important while they are living in the fear of
losing their jobs or having their wages cut the next day when
they go to work. To create more employment opportunities should
top the government's priority list.
The existing unemployment rate of 8.6
per cent is simply unacceptable - not that Hong Kong is unused
to such high rates; but the welfare system is hardly adequate
to provide the unemployed with the necessary protection and,
most important of all, to help them go back to work. The third
important thing that the government must do is to build up
a mechanism through which its views can effectively reach
the people. There is no doubt that the government Information
Service is doing its job in conveying government messages
and Radio Television Hong Kong is also supposed to provide
outlets for official announcements. However, it is clear that
Hong Kong people have often little knowledge, not to say understanding,
of government policies and whatever little that they might
know are distorted. There is no suggestion that the government
should use more propaganda, especially when the trust of the
people is low. But certainly it would help if some government
departments, like the Home Affairs Department, which have
direct contact with the masses, talk to the people at the
grassroots about governmental views. This kind of personal
contact between the government and the people is essential
to avoid misunderstanding, but unfortunately it is completely
lacking in Hong Kong. Hence, people are getting views from
all sources except the government. To regain the trust and
confidence of the people is no easy task but it is a step
that the government must take.
From China Daily, China, 13 October 2003
Reform of Public Sector
at Half-Way Point
South Korea's efforts to reform public
companies following the 1997-98 economic crisis have been
fruitful outwardly, but there remains a long way to go in
the field of ``software,'' according to a recent report. The
Ministry of Planning and Budget (MPB) yesterday announced
the results of a competitiveness survey by the Korea Productivity
Center on 16 public firms, including Korea Electric Power
Corp. and Korea National Railroad. The research shows that
the labor and capital productivity of the public firms have
improved somewhat over the past several years, while total
factor productivity, a key measure of management efficiency,
leaves much to be desired. Labor productivity grew by a yearly
average of 9.9 percent between 1998-2002, higher than the
5.9 percent recorded between 1993-97 and the 7.7 percent by
private companies. Capital productivity also improved from
minus 5.58 percent to minus 3.71 percent. But total factor
productivity recorded a 1.46-percent drop, worse than the
0.08-percent fall seen before the economic crisis and 0.19-percent
increase by private firms.
The government admitted that previous
restructuring efforts for state-owned enterprises were focused
on scaling down business through a reduction of manpower and
asset sales. ``It was an inevitable measure to cushion the
impact of the economic crisis, although it was not without
adverse effects,'' Chang Young-chul, director of MPB's fiscal
reform bureau, said. The government will focus more efforts
on technology- and knowledge-oriented growth to enhance the
efficiency of the system at public firms, he added. During
the Kim Dae-jung administration, eight of the country's 26
state-owned enterprises were sold to private interests as
part of efforts to restructure the bulky yet inefficient public
sector. The current administration also is poised to decide
the fate of three other firms - Korea Electric Power Corp.,
Korea District Heating Corp. and Korea Gas Corp.
From Korea Times, South Korea, 17 October
2003
Human Capital Needed
to Reduce Poverty: FM
Islamabad: Finance minister Shaukat
Aziz Monday said economic growth can effectively reduce poverty
only when accompanied by a comprehensive programme for human
development. "Human capital is the primary asset and
its development is of fundamental importance in the war against
poverty," Mr. Aziz said in his address to a symposium
on human development "A Grassroots Experience" organised
by the National Commission for Human Development (NCHD) and
Pakistan Human Development Fund. The minister said that country's
long-term sustainable growth and poverty reduction prospects
are critically contingent on investment in human development
which is constrained by financial resources. "As the
demand for social services rises, the government will need
to increasingly target human resource investment to the poor
and will need to work more closely with the private sector,
non-governmental and community based organisations as well
as donors to ensure provisions to the people," he said.
The minister, who believed that education is the cornerstone
of human development and poverty alleviation, said that government
realises that the education service delivery in Pakistan is
faced with a multitude of challenges from lack of infrastructure
and facilities to severe shortage of qualified and trained
teachers.
Further, Mr. Aziz said that the government
is conscious of the fact that governance now matters critically
in economic growth and development of human capital. "A
successful public policy requires considerable emphasis on
governance without which the full potential of the economy
cannot be actualised and effective spending and improvement
in service delivery will not be ensured," he said. "Strengthening
of devolved governments is imperative for achieving human
development goals as our strategic thrust is on meeting the
actual, needs of the people at the grassroots level through
community participation, improve funding mechanism to increase
enrolment, raise literacy and improve quality, removing institutional
bottlenecks that have disrupted flow of funds in the past,
and making devolution to work for achieving social sectors
outcomes." The minister also said that government recognises
that successful implementation of on-going reform programme
both at the federal and provincial levels, and devolution
is inseparably linked with the capacity of government institutions
and the quality of civil services. "The government firmly
believes that without public-private partnership the government
cannot accomplish the formidable task of achieving the MDG.
From Daily Times, Pakistan, 21 October 2003
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Guru of Public Sector Reform
Tony Blair's new guru of public sector
reform has strong views on the role of markets and the welfare
state. Professor Julian Le Grand of the London School of Economics
is an academic who is not shy of controversy. He first came
to prominence by arguing that the middle class have captured
many parts of the welfare state, and actually benefit disproportionately
from free, state-funded health and education. Now, as he prepares
to enter No 10 Downing Street as a policy advisor to the Prime
Minister, he has set out a compelling vision of the necessity
of public sector reform. Professor Le Grand would like the
government to give more power to the people who use public
services, and give young people substantial assets to start
up in life. His appointment is a sign that Tony Blair will
not be distracted from his drive to transform the public services
by the opposition of the unions and other Labour Party members.
Shift in purpose - In his new book, Professor Le Grand argues
that it was both inevitable and desirable that the provision
of welfare services shifted away from a model which gave most
power to the providers, such as doctors and teachers, and
little to the patients or pupils who used the service. He
says that in the classic welfare state, public servants were
seen as altruistic "knights" who acted for the general
good, while the recipients were passive "pawns"
who had little say in what was provided.
Now he says that welfare systems must
be designed on the assumption that providers act in self-interest,
not altruism, as "knaves," while those who use public
services must have more choice and more rights, must be treated
more like "queens" than pawns. Professor Le Grand
says the logical conclusion of the drive towards more purchaser
power is the greater use of markets in the provision of public
services. Reforming health and education - And he endorses
the changes in the education system that have given parents
more power - such as the publishing of exam results and the
freedom to enrol in any state school that has a place. But
he wants to go further in encouraging strong schools to take
more poor pupils - by using cash vouchers, and giving each
poor family a voucher with a higher cash value. This, he says,
will give the better schools an incentive to take on more
poor pupils, because they would get more resources. Professor
Le Grand also wants to provide greater incentives for consultants
to treat more patients in the NHS. His solution is that they
should be paid on a fee-for-service basis to do extra operations
above their basic commitment to the NHS. Professor Le Grand
recognises that markets in the public sector will always be
limited by the different levels of information that the public
and professionals have, especially in health care.
And he is concerned to prevent "skimming"
of services by the better-off. But he will be a strong supporter
of the Prime Minister's drive to put patients and parents
in the driving seat including, if necessary, facing down doctors
and teachers. Asset-based welfare - Like Tony Blair, Professor
Le Grand says he is egalitarian, but feels most strongly that
the government should tackle equality of opportunity, rather
than equality of outcomes. So his most radical proposals are
for the redistribution of wealth to young people. He would
like to use the proceeds of an increased inheritance tax to
give everyone a government grant of Ł10,000 when they start
out at 18. And he would give matching government grants to
encourage people to save for retirement, and to put aside
more for long-term care - funded perhaps by abolishing tax
relief on pensions. The government has already announced modest
moves in this direction, through the "baby bond"
for all parents, and the "savings gateway" which
would match savings for those on low incomes. But with planning
for the next general election now in full swing, and other
Labour intellectuals like Matthew Taylor of the Institute
for Public Policy Research, and Michael Jacobs of the Fabian
Society joining the government, if Labour win re-election,
a third term could turn out to be its most radical. Motivations,
Agency and Public Policy: Of Knights and Knaves, Pawns and
Queens, by Julian Le Grand is published by Oxford University
Press. Professor Le Grand takes up his post as special advisor
to the Prime Minister on 6 October.
From BBC News, UK, by Steve Schifferes,
23 September 2003
Poor Pay and Conditions
Damaging Public Sector Reform
The two-tier labour market is damaging
progress on public sector reform according to a report from
the government think tank, the Institute for Public Policy
Research. The report, to be published tomorrow, says that
public-private partnerships are unlikely to gain public support
while cost improvements are gained from "cutting of terms
and conditions of low-paid public service staff rather than
through genuine productivity improvements". The report
comes as unions attack the public-private partnership schemes
under which their members are often paid less and have worse
conditions of employment. Workers' rights and public services
are expected to be dominant issues at this week's annual Trades
Union Congress. However, the report does not agree with the
unions that private sector workers should maintain exactly
the same terms and conditions as public sector workers providing
the same service. Instead the overall package of terms and
conditions should be "no less favourable". It suggests
flexible working and other management skills as alternatives
to changing terms and conditions in order to get value for
money from workers.
From Human Resources-Centre, UK, 3 October
2003
EC Adopts Communication
on Importance of E-government
The European Commission adopted a communication
signalling the importance of eGovernment as a means of achieving
world-class public administration in Europe. As part of the
Lisbon strategy, eGovernment is seen as providing an economic
boost by providing new and better services for all citizens
and companies of Europe. The Communication calls upon Member
States to express their political commitment to co-operation
at European level spanning both the private and public sector,
to accelerate the take-up and development of eGovernment.
It presents a set of actions that reinforce the eGovernment
priorities currently being addressed within the eEurope 2005
Action Plan. Enterprise and Information Society Commissioner,
Erkki Liikanen said: "It is essential for Europe to have
a public sector that helps the European economy to grow, that
provides high quality services to all and that reinforces
democratic involvement." The public sector has a prominent
role in Europe's social and economic welfare.
Public administrations need to meet
the increasing expectations of citizens and companies for
high quality and efficient services. Yet they also have to
deal with challenging economic and social conditions, institutional
change and the profound impact of new technologies. The most
effective solutions to improving public services, democratic
processes and public policies are those that combine information
and communication technologies (ICT) with organisational change
and new skills. This is what is called eGovernment. Despite
the emergence of good practices, there still remain many barriers
and obstacles to overcome before widespread take-up of eGovernment
can be achieved. In its Communication, the Commission therefore
calls for strong political leadership and commitment from
the Member States to achieve the modernisation of public administrations,
with the help of eGovernment. Administrations should ensure
access to public services for all citizens, through investment
in multi-platform approaches (PC, digital TV, mobile terminals,
public access points etc).
Trust and confidence in online interaction
with governments needs to be ensured, the privacy of data
safeguarded, and authentication and identity management issues
properly addressed. Administrations could achieve significant
productivity gains by making electronic public procurement
easier, and more widely available. Specific action is needed
to define, develop and implement pan-European eGovernment
services and promote their use. This will facilitate people's
freedom of movement in the internal market, and help to establish
a true sense of European Citizenship. Measures foreseen in
the Communication to address these issues include exchange
of good practices, support from European Union R&D, piloting
and implementation programmes, and above all the initiatives
and action plans at national, regional and local level.
From Telecom Paper, Netherlands, 30 September
2003
One Million Euros to
Promote Serbia's Public Administration
Belgrade - Secretary of the Serbian
Agency for Public Administration Development Sonja Cagronov,
Director of the Swedish Institute for Public Administration
(SIPU International) Arne Sjoberg and Director of German company
Perbit Software GmbH Richard Manuel signed a contract on the
delivery of IT system for human resource management worth
one million euros, aimed at developing the Serbian public
administration in line with European standards. The contract
includes the delivery of hardware, software, its implementation,
as well as training services, technical support and maintenance
of the delivered system in the guarantee period and in the
contract's validity period. This IT system will be introduced
in 23 institutions in the Republic. The contract is part of
the €3.7 million project "Development of the Modern Human
Resource Management in the Serbian Public Administration."
The project is financed by the Swedish
Agency for International Development and Cooperation (SIDA)
and carried out by the Serbian Agency for Public Administration
Development and consultants of the Swedish Institute for Public
Administration. The objective of the project is to provide
support to the Serbian government in efforts to develop the
system of human resource management. That would make the Serbian
public administration more efficient and aligned with modern
standards. Swedish Ambassador to Belgrade Lars Goran Engfeldt,
who attended the signing, hailed the Serbian government's
determination to reform the public administration. He said
that this agreement will be the starting point of wider cooperation
between Sweden and Serbia.
From Serbia Info, Yugoslavia, 10 October
2003
ANO Gives in on Public
Administration Reform in Slovakia
Following initial objections to the
cabinet-approved public administration reform, the ruling
coalition New Citizen's Alliance (ANO) has agreed to support
the plan. The coalition council agreed on minor changes to
the concept, related to the placement of some of the new offices.
The cabinet's plenipotentiary for the reform, Viktor Nižnanský,
was optimistic that the scheme will be passed in parliament.
From Slovak Spectator, Slovakia, 20 October
2003
Minister Outlines Public
Services Plans
Enterprise Minister, Ian Pearson today
outlined the government's vision on the way forward for joining-up
public services in Northern Ireland. The Minister was addressing
delegates attending the Society of Information Technology
Management (SOCITM) Conference, the first event of its kind
to be held in Belfast. Speaking at the Innovation Centre in
Belfast's Science Park, Mr. Pearson said: "Reform and
modernisation are central to our agenda. We want to see the
continuous improvement in the quality of public services that
everyone expects." Referring to the recently published
OnlineNI Strategy document that identified a possible way
ahead for a modernised Government in Northern Ireland, Mr.
Pearson acknowledged that such recognition to change was,
in fact, already in place. He said: "What we now have
is a vision of how e-Government might look in the future whilst
at the same time setting out a clear, long-term goal, for
the entire public service." Mr. Pearson also recognized
the role that SOCITM and similar organisations would have
to play in the transformation of government services and encouraged
all participants to "ensure that we use that knowledge,
skill, expertise and enthusiasm to best enable the change
that we all seek." The Overcoming the Barriers to Joined-Up
Government Conference was organised by the SOCITM with the
aim of developing ways of improving joined-up services to
citizens.
From 4ni.co.uk, UK, 20 October 2003
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Lebanon: Globalization Fuels Drive
for Hospital Accreditation
Workshop highlights challenges of reform
- Universal standards of sustainability, quality must be introduced
nationally - Hospital accreditation is gaining prominence
due to globalization, especially trading in health services,
and will eventually become a tool for international categorization
and recognition of hospitals, according to Makassed Hospital
director Mohammed Firikh. "The challenge calls for immediate
reform to hospitals' role as a component of the national health
system," said Firikh during the first workshop of The
Accreditation of Hospitals at the Makassed Hospital in Beirut
on Tuesday. "Countries must introduce their own standards
of accreditation based on the best interests of their health
system, safeguarding primary health care principles of universality,
equity, quality, efficiency and sustainability," Firikh
added. The forum, organized by the Lebanese Healthcare Management
Association (LHMA), a chapter of the Lebanese Management Association
(LMA), included distinguished panelists such as Private Hospital
Owners' Syndicate president Suleiman Haroun and Health Ministry
director-general Walid Ammar. The panelists said national
health systems are coming under increasing scrutiny, with
focus on cost containment and quality improvement as a result
of health sector reform.
The trend is expected to continue due
to restructured economic and social policies, globalization
of markets and enhanced worldwide communication. Studies
showed that hospitals account for 40 to 70 percent of the
national health budget and employed half the physicians and
over two thirds of the nurses in any given country. Participants
said hospitals' treatment patterns were altering due to changes
in technology and demands despite the fact that hospitals
were large, fixed assets and difficult to change. They added
that high costs and increased demand were forcing a re-engineering
of hospitals, and accreditation offered a means to enhance
standardization of care and the exchange of expertise worldwide.
They also said that pressures were intensifying to make hospitals
more accountable to national health policies. Firikh said
that "hospital accreditation objectives can be summarized
in four major points: Enhanced health systems, continuous
quality improvement, informed decision making, enhanced accountability
and regulation."
The World Health Organization's Eastern
Mediterranean Regional Office's guidelines stipulated that
to be eligible for accreditation, hospitals must be nationally
owned, multi-institutional, comprehensive, incremental and
integrated. The panelists agreed
that the regional accreditation guidelines recommended the
use of standards that defined structures, processes and results
that must be firmly established in a hospital as a prerequisite
for quality care. They said that standards of structure, process
and outcomes would require evidence of performance (qualitative
indicators) that must be simple, inexpensive and easy to observe
by the surveyors. Hospitals with different sophistication
levels would be accredited to the highest common level available
to all services. "Failure to change the behavior and
attitudes of people and organizations is the most common cause
of ineffective quality initiatives," said Firikh. "In
hospital accreditation, the challenges in setting and measuring
against standards are mostly technical while those of appropriate
change are social and managerial." According to Firikh,
priority challenges consisted of strengthening legal supports
and the establishment of a multi-institutional and independent
accreditation body.
Other challenges included the ensuring
of private and public sector participation, and application
of standards to all hospital services. Accreditation
must be based on consensus rather than numerical scoring,
with a clear differentiation between licensing and accreditation.
Sustainability of the program and the definition of the role
of surveyors are also crucial. Firikh said the strategies
for developing hospital accreditation in the region depended
on raising awareness at the national level, strengthening
of inspection units and improving administrative procedures
by health ministries. Strategies comprise the establishment
of national hospital registers, exchange of experiences via
a network of institutions and experts and collaboration with
regional and international bodies. Annual international forums,
an expert advisory group and periodical reviews must also
be considered. The workshop's panel called on member states
to plan and conduct an intensive awareness campaign to promote
concepts of quality improvement and adapt regional accreditation
guidelines, where necessary, to develop national plans for
quality improvement.
From Daily Star, Lebanon, by Ara Alain Arzoumanian,
9 October 2003
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Tory Defeat Is Opportunity to Rebuild
Public Services, Casselman Says
Toronto - The convincing defeat of
the Ernie Eves Tories at the polls today presents a long-awaited
opportunity to rebuild Ontario's public services, the president
of the Ontario Public Service Employees Union says. "For
eight long years of Tory rule, front-line public service workers
have borne the brunt of vicious and repeated attacks on the
work they do for Ontarians," Leah Casselman said. "We
look forward to working with the new government to rebuild
public services so we can start creating the kind of society
people really want." Conservative cuts and privatization
have left Ontario with public services that are too weak to
do what they are supposed to do, Casselman said. "The
Walkerton water disaster, and the Aylmer meat scandal, and
heart patients sleeping in hospital hallways didn't happen
by accident," she said. "The collapse of our public
services was carefully planned to benefit the private investors
who are the main backers of the Tory party. "Tonight
marks the beginning of the rebuilding, and our union will
be front and centre in that work," she said. "We
look forward to laying down our arms and picking up our tools."
Casselman said the union would not
be deterred by reports of a provincial deficit that could
be as high as $4.5 billion. "Our members provide great
value for money in every part of the public sector,"
she said. "In contrast, the provincial auditor found
Tory consultants who were getting paid up to six times more
than our members would get paid to do the same work. "Ending
privatization and improving management can pay huge dividends
in terms of service quality and cost. We look forward to sharing
our ideas to make things work better." Whatever the budget
situation, a Liberal government will have billions of dollars
more to put towards public services than a Conservative government
would have, Casselman said. "Since 1995, tax cuts have
sucked the lifeblood out of public services," she said.
"We welcome the end of the Tory tax cut era."
From Canada NewsWire (press release), Canada,
3 October 2003
Church Coalition Plugs
Away at Public Policy
A coalition of religious leaders will
present a progress report Thursday on their demands for change
from public officials, ranging from providing access to police
conduct reports to including black and Muslim history in school
curriculums. "It's been our experience that after the
fanfare dies down from a big public meeting, it's easy for
people to forget about what was discussed," said the
Rev. Glenn Grayson, president of the Pittsburgh Interfaith
Impact Network. "We think it's important to let people
know that while the work is by no means done, progress has
been made on all fronts," said Grayson, pastor of Wesley
Center AME Zion Church in the Hill District. The interfaith
network, which has 32 member churches, drew nearly 1,000 people
to its first public meeting in February at Grayson's church.
From Pittsburgh Tribune-Review, PA, by Tony
LaRussa, 7 October 2003
Talk to Focus on Business
in Public Policy Process
"Can or should business leaders
make public policy?" will be the topic of the 2003 Berry
College Executive Round Table fall dinner on Oct. 28 at 6:30
p.m. at the Coosa Country Club. Natalie M. Davis, professor
of political science at Birmingham-Southern College and a
frequent political commentator, is the featured speaker. She
will discuss business leadership's impact on the public policy
process, focusing on Alabama's recently defeated tax and accountability
package. She will discuss the role business played in shaping
the package and the financial backing it provided to sell
it to voters. The evening will begin with networking, followed
by dinner and Davis' presentation. Dinner discussion at each
table will center on various questions regarding business
in public policymaking, including a look at what role local
businesses played in pursuing the SPLOST to bring the Class
A Braves to Rome.
The public is invited to attend the
dinner program on a space-available basis. Cost is $30 per
person. Registration, including payment, is required by Oct.
21. Table sponsorship also is available. For more information
or to register, e-mail ert@campbell.berry.edu or call Julie
Bumpus at 238-5835. Davis holds a doctorate in political science
from the University of North Carolina at Chapel Hill. She
comments on Alabama and Southern politics for CNN and Alabama
Public Television. The Executive Round Table originated at
Georgia Tech in 1956. Berry College formed the second chapter
in 1989. The group's purpose is to encourage and help develop
students who display character and leadership. Membership
includes a balance of students, faculty and industry/business
executives.
From Rome News Tribune, GA, 8 October 2003
A Wellspring for Public
Servants
As a 2003 graduate of the Woodrow Wilson
School of Public and International Affairs at Princeton University,
I was troubled by the Oct. 8 news story "At Princeton,
Feeling Failed; Family Seeks Return of $525 Million, Saying
University Has 'Abused' Gift." Of the more than 70 students
in my graduating class, 11 now work for the federal government.
To my knowledge, only two students - not 33 percent of the
class, as a Wilson school report stated was the case in 1999
- work in private-sector jobs. While the article presented
William Robertson's opinion of how his foundation's funds
are being used, the article failed to define the university's
idea of government service. Mr. Robertson's definition is
only federal service, but a more comprehensive definition
would include other sectors of public service. Statistics
show that the Wilson school, even more than its peer institutions,
is a leader in government service graduates. Its alumni directory
lists hundreds of graduates employed by the federal government.
Mr. Robertson did not consider that while students may not
enter the federal workforce when they graduate from Princeton,
chances are good that at some point in their careers they
will. I am grateful for the Robertson family's contribution
to the school and for my education, but to remove this endowment
from a highly respected school of public affairs would have
a devastating effect on the responsibility of institutions
of higher learning to train public servants.
From Washington Post, DC, 21 October 2003
Bill Would Bar Corruption
Senator Charles J. Fuschillo, Jr. (8th
Senate District) recently announced that legislation he is
sponsoring would disqualify corrupt corporations, such has
Enron, MCI/WorldCom and Tyco, from bidding on lucrative government
contracts in New York State. The "New York State Contract
Disqualification Act of 2003" would deny these corporations
access to contracts at all levels of government and would
require a written declaration from corporations stating their
right to bid on contracts in the state. The loss of state
funds due to corrupt corporations has not only affected the
day-to-day budgetary constraints of the state but has inflicted
immense damage on the state pension fund. According to a recent
report from the Office of the New York State Comptroller,
the loss seen by the State of New York due to these crooked
corporations has totaled over $13 billion. This includes a
$2.8 billion loss to the state's economy, a cut in state revenues
of over $1 billion and a decrease in the value of the state
pension fund of $9 billion.
From South Bay News, NY, 21 October 2003
Alberta Latest Province
to Consider Private-Public Hospital Projects
Edmonton - Alberta will review a $400-million
proposal this fall to build a hospital under a public-private
partnership, but critics warn they have failed in other countries
and put taxpayers at risk. However, supporters say a P3, as
such partnerships are called, is a viable method for cash-conscious
governments to develop projects more quickly. "We are
keen on looking to see if there is a way that we can actually
get important facilities that we need now by financing it
in a different manner," said Alberta Health Minister
Gary Mar. "We are certainly open-minded to this. I don't
think that people should be worried about it." Similar
public-private hospital projects are in the planning stages
in Ontario and British Columbia. If approved, the Alberta
project would see a private company build and finance a hospital
to service the fast-growing population of south Calgary about
two years before it could be built with public money, said
Bob Holmes, senior vice-president of the Calgary Health Region.
The company would then run the facility under a lease agreement
with the government-appointed health region.
The province would remain responsible
for delivering health-care services. "I don't think that
the downside risks of doing it privately are any greater than
the downside risks of doing it publicly," Holmes said.
"I have little doubt that there is a lot of public support
for this in the area that we're hoping to serve." Some
groups, including Alberta's opposition parties, say the scheme
will benefit private developers more than taxpayers. Liberal
health critic Kevin Taft said similar ventures have failed
in Australia. He also cited British studies that determined
the costs to finance such hospitals are higher. Public-private
partnerships also put taxpayers at risk because the public
is on the hook if the private firm fails, he said. "This
is a taxpayer ripoff," Taft said. "This is the kind
of thing that should outrage people across the province."
New Democrat Leader Raj Pannu said private hospital operators
will put profits ahead of patients when faced with bottom-line
financial pressures. The controversy over P3 hospital projects
became an issue during the Ontario election campaign when
former Tory premier Ernie Eves signed such a contract for
the Royal Ottawa Hospital.
Other deals were in the works for P3
hospitals in Brampton and Markham. Dalton McGuinty, Ontario's
new Liberal premier, has suggested the projects could be reviewed.
"P3s represent an extraordinary departure from our history
when it comes to public hospitals in the province of Ontario,"
McGuinty said last month. In British Columbia, the P3 hospital
concept is proceeding more smoothly. A company created and
owned by the province called Partnerships British Columbia
expects to receive proposals from four consortiums that are
competing to develop a 300-bed hospital and cancer centre
in Abbotsford. The fast-growing community east of Vancouver
has needed a new hospital since 1986, but cash-strapped governments
haven't been able to proceed. Construction of the new facility
under the P3 model is expected to begin next fall and be complete
by the end of 2007, said chief project officer Mike Marasco.
Under the deal, the provincial government will pay the winning
consortium about $40 million a year for 30 years to build
and operate the hospital. The private firm will provide services
such as housekeeping, food service, laundry, maintenance and
medical engineering. The province will own the building and
maintain responsibility for delivering health services. "We
hear from the community there is an urgent need for a new
hospital and a cancer centre," Marasco said. "They
are not interested in the rhetoric on how we get there. They
want to see this hospital built."
From Canada.com, Canada , by John Cotter,
24 October 2003
Change Civil Service
Laws
The anecdotes offer a glimpse of Colorado's
state government at its bloated, bureaucratic worst: A state
nursing home worker fired for taking money from a resident
has his termination overturned because his supervisor wrongly
used the word "theft" at his hearing. The termination
was for "misappropriation," not theft. The state
shuns new technologies that would allow it to work more effectively
for fear of putting employees out of work, rather than retraining
them for other jobs. Qualified applicants for jobs are ignored
only because they live out of state. Colorado's civil service
laws largely have outlived their usefulness and need to be
changed. When they were first approved by voters in 1918,
the state didn't have anti-discrimination laws or restrictions
on official misconduct, so the constitutional protections
were needed to combat political patronage. But the world,
and government, has changed dramatically in the last 85 years.
There are better ways to do business. A bipartisan commission
recently produced a solid set of reasonable changes that will
make it easier to hire, fire and discipline state employees.
If enacted by voters, or in some cases
the legislature, the changes also will allow government to
work more effectively and give higher education institutions
the option to create their own personnel systems. The commission
wisely suggested leaving the cornerstone of Colorado's civil
service laws intact: Promotions and hires must be made according
to "merit and fitness." "We said the system
at its core is a good system, but we need to be more flexible,"
says Troy Eid, outgoing state personnel director. It's now
up to Colorado's lawmakers to study the recommended changes
- some of which yank portions of the state's civil service
laws out of the Constitution - and put the measures before
voters. (The last major reform effort failed at the polls
in 1986.) If enacted as proposed, Colorado law would: Allow
state managers to consider all qualified candidates for a
job, not just the top three. Under the current structure,
the state spends cash to develop and administer tests to rank
candidates, meanwhile some vacancies go unfilled for months.
And people who test poorly - but are
perhaps the perfect candidate - are given a premature heave-ho.
Permit non-Colorado residents to apply for state jobs and
allow for some state employees to reside outside Colorado,
such as agents who conduct audits on out-of-state corporations
doing business with Colorado. Allow higher education institutions
to create their own personnel systems. Those that do opt out
would be required to give all employees a voice in the alternative
system and would allow current employees to retain their existing
benefits and protections if they so choose. Make it easier
to discipline employees and dismiss them for cause. The constitution
now only allows for discipline in specific circumstances.
Colorado's civil servants are the backbone of the state, and
their work must be respected. But the archaic civil service
rules that govern them are due for an overhaul. The way government
business is conducted in Colorado must be changed.
From Denver Post, CO, 25 October 2003
OMB Urged to Educate
Lawmakers on E-gov Funding
The Office of Management and Budget
needs to press Congress harder if it wants them to fund interagency
e-government projects adequately, two former federal technology
officials said Monday. In a vote on the 2004 Transportation
and Treasury budget bill (S. 1589), the Senate last week allotted
$5 million to the interagency e-government fund, $40 million
below the amount requested by OMB. The House version of the
bill grants the interagency fund $1 million. Given these figures,
House-Senate negotiators are likely to arrive at a final amount
well below that requested by the administration and authorized
in an e-government bill signed by President Bush on Dec. 17,
2002. The 2002 E-Government Act granted $345 million to fund
interagency technology initiatives over four years, allowing
$45 million for fiscal 2003, $50 million for fiscal 2004,
$100 million for fiscal 2005 and $150 million for fiscal 2006.
Last year, Congress undercut OMB's request by $40 million.
To ensure lawmakers do not shortchange the fund in future
budget cycles, the administration will need to undertake an
extensive "education" effort on Capitol Hill, said
George Molaski, former chief information officer of the Transportation
Department.
Molaski is now president and chief
executive officer of E-Associates LLC, a technology consulting
company in Falls Church, Va. OMB has not spent enough time
teaching lawmakers about the interagency fund, Molaski said.
Congressional appropriators, accustomed to funding agency-specific
projects, are "naturally hesitant" to support interagency
funds, he explained. They "don't know where the money's
going," and do not understand how the interagency pool
relates to money already granted on an agency-by-agency basis.
Karen Evans, OMB's new technology chief, will need to visit
key offices on Capitol Hill and make a strong business case
for the interagency fund, Molaski said. Evans could also seek
help from industry lobbyists, he said, though some may prove
reluctant to support interagency projects. These projects
often involve consolidation, which increases efficiency but
can result in fewer opportunities for IT contractors to bid
on work, he explained. "It's got to be communicated that
[the interagency fund] is a high priority," said Paul
Brubaker, a partner at ICG Government, a Reston, Va.-based
consulting and market research firm, and former deputy CIO
at the Defense Department. "[OMB] can choose to play
hardball if it wants to."
OMB essentially needs a new "marketing
plan" for selling interagency e-government projects to
lawmakers, Brubaker said. Congress' lack of support for the
fund demonstrates that "somewhere the case wasn't made
that this was an investment that would yield any sort of return,"
he said. OMB needs to convince lawmakers that they would not
be giving out a "blank check," he added. OMB did
not respond to a request for comment on e-government funding.
But in a policy statement about the Senate version of the
Transportation-Treasury budget bill, OMB urged lawmakers to
"support the president's $45 million request for this
important component of the president's management agenda."
Results from the "modest" amounts invested to date
demonstrate that interagency fund "can bring significant
improvements across agencies while reducing the need for each
agency to reinvent the wheel," the statement said. By
underfunding e-government projects, Congress risks impeding
progress on some initiatives, according to David Marin, a
spokesman for Rep. Tom Davis, R-Va.
For instance, the General Services
Administration's e-authentication project, the subject of
recent criticism from the General Accounting Office, has suffered
from a lack of adequate funding, he said. "More money
will mean fewer problems [with initiatives]." "By
continuously shortchanging these initiatives, the government
is being pennywise and pound foolish," Marin added. "This
is an investment that will save money and increase efficiency
in the long haul." Marin attributed the failure of lawmakers
to support the interagency fund to an "education problem,"
echoing Molaski and Brubaker's observations. Davis, chairman
of the House Government Reform Committee, has urged colleagues
to grant the administration's requests for e-government funding.
But "in the past, the Appropriations Committee has said
it opposed full funding because [the funding] is duplicative,"
Marin said. "The e-gov fund is far from duplicative,"
Marin said. "In fact, it can help overcome duplication
and redundancy. And members and staff need to know that."
From Governement Executive Magazine, DC,
by Amelia Gruber (agruber@govexec.com), 28 October 2003
Senate Would Keep E-gov
Funding at $5M
The Senate this week granted $5 million
for the e-government fund in fiscal 2004, higher than the
amount allotted by the House but still lower than the Bush
administration's request. As in past years, the administration
requested $45 million to fund e-government initiatives. And
as in past years, the Senate approved one-ninth of the request.
Congress in each of the past three years has dedicated $5
million for e-government, forcing agencies to use their own
budgets to fund their projects. Under the House version of
the Transportation, Treasury and Related Agencies Appropriations
bill passed last month, the e-government fund would receive
$1 million. Administration officials urged Congress to support
the requested $45 million for what officials called "an
important component of the President's Management Agenda,"
according to the Office of Management and Budget's statement
of administration policy released yesterday. OMB officials
have said they will need to spend more time convincing lawmakers
of the need for this fund. "As has been demonstrated
by successes from the modest $5 million invested in each of
the last two years (including e-Rulemaking, recreation.gov,
e-Authentication, geodata.gov, e-Training and firstgov.gov),
the e-gov fund can bring significant improvements across agencies
while reducing the need for each agency to 'reinvent the IT
wheel,'" OMB officials wrote.
The Senate bill does not include funding
for the Human Capital Performance Fund, for which the administration
had requested $500 million. The fund would create performance-driven
pay systems and focus on performance management. The administration
wanted the fund to help pay employees above their regular
salaries, based on performance. "The committee agrees
with the concept but denies the creation of the Human Capital
Performance Fund," according to the Senate report. "The
committee believes that an initiative of this type should
be budgeted and administered within each individual agency."
Administration officials said they were "extremely disappointed"
the bill does not support this fund. "The fund allows
a more targeted approach for promoting high performance,"
according to OMB's statement. Also in the statement, OMB officials
reiterated the intent of Bush's senior advisers to recommend
a veto of the bill if it includes a provision shutting down
the competitive sourcing initiative. The House version included
this provision, prohibiting the use of the revised Circular
A-76 to administer public/private competitions. "The
administration seeks to improve the performance of government
services based on the common-sense principle of completions,"
OMB wrote. "Now is the wrong time to short-circuit implementation
of this principle especially since numerous agencies are starting
to make real progress."
From FCW.com, by Sara Michael, 24 October
2003
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UN Members Agree on Global Anti-corruption
Treaty
Vienna - U.N. member states have finally
agreed on an international treaty to combat corruption after
two years of haggling, U.N. officials announced on Thursday.
"The convention means business," U.N. Office on
Drugs and Crime (UNODC) chief Antonio Maria Costa told reporters.
"It has teeth...I believe it's going to get a few fish."
The agreed draft criminalises bribery, money laundering and
embezzlement of public funds. It enables the recovery of illegally
acquired assets and will force states to prevent corruption
rather than merely prosecute offenders. But anti-graft campaigners
said it was not tough enough on private sector corruption.
The U.N. Convention against Corruption will be formally adopted
by the U.N. General Assembly "in the coming weeks",
UNODC's head of treaty affairs, Eduardo Vetere, said. It will
enter into force once 30 states have ratified it, which will
probably take about two years, he added. The U.S. ambassador
to the U.N. in Vienna, Kenneth Brill, gave his backing to
the treaty saying it would strengthen international efforts
to fight corruption. The convention will provide mechanisms
for the cross-border recovery of assets pilfered by public
officials.
Britain's Financial Times newspaper
on Thursday highlighted Nigeria's struggle to recover up to
$5 bln it said may have been stolen by former military ruler
Sani Abacha, much of which is in foreign bank accounts. Previous
reports have put the figure at $2.2 bln to $3 bln. "Corruption
is not only criminal behaviour which has to be prosecuted.
It also undermines society," Costa said, adding that
it hindered development in poorer countries. "When you
see that $5 bln are stolen by the former leader, now late
leader, that has a dramatic impact on the economy of that
country. "So it is much more than just trying to stop
this sort of activity but trying to salvage economies which
otherwise would go bankrupt." Peter Rooke of the independent
anti-graft pressure group Transparency International (TI)
welcomed the treaty as "an opportunity to create public
awareness and commitment to curbing corruption". But
Transparency International said measures dealing with private
sector corruption and the financing of political parties had
been watered down so much that they were optional, not obligatory.
Copyright 2003, Reuters News Service.
From Forbes, by Francois Murphy, 3 October
2003
Fighting Corruption:
Transparency Plans Backed
Apec's 21 members have agreed to fight
corruption in the region by developing specific plans by the
end of next year to promote transparency, the Apec Business
Advisory Council (ABAC) announced yesterday. ABAC, the private-sector
advisory arm of the Apec Leaders' Summit, said the leaders
had endorsed its proposed standards for transparency. These
include many of the issues now under negotiation by the 146
members of the World Trade Organisation, as part of the new
Doha round of talks. The Apec leaders' communique explicitly
pledged to "fight corruption, a major obstacle to social
and economic development, by working in 2004 to develop specific
domestic actions to combat it". The communique also pledged
to "promote transparency by implementing our general
and area-specific transparency standards through our Transparency
by 2005 Strategy". Gary Benanav, the US representative
on ABAC, said last year the Apec leaders had endorsed a general
standard on transparency. "This year, the Apec leaders
took a second and a very large step by committing to transparency
standards in specific areas," Benanav said.
The plans involve packages of transparency
standards in eight areas - services; investment; competition
law and policy and regulatory reform; standards and conformity;
intellectual property; customs procedures; market access;
and business mobility. The transparency initiatives are aimed
at reducing the opportunity for corruption and improving the
investment environment. Refocusing on WTO negotiations, enhancing
security, building capacity, implementing transparency standards
and ensuring business input for the Apec process, were amongst
the topics discussed in the dialogue between Apec leaders
and ABAC. Sir Dryden Spring - the New Zealand representative
who chaired the ABAC action-plan monitoring committee - said
almost all the Apec economies were on track to achieve the
Bogor goals for the removal of trade barriers. He said the
World Trade Organisation and the recent failure of the Cancun
talks were major topics for ABAC representatives this year.
Viphandh Roengpithya, chairman of ABAC,
said Thailand had made innovative changes to the format of
the dialogue to enable representatives to fully explore the
key recommendations to leaders and allow their views on advancing
Apec's stated goals of free and open trade to be heard. He
said Prime Minister Thaksin Shinawatra had expressed the desire
for leaders to muster the necessary political will to send
a clear and strong message that Apec is committed to the multilateral
trading system under the WTO, and to the successful and timely
conclusion of the Doha Development Agenda. Apec leaders also
expressed their view that business was rightly concerned about
the cost burden of security measures. Leaders praised ABAC's
recommendations on risk management and information technology
to ensure there is no adverse impact on trade and investment
from security measures. Apec leaders also agreed that it was
essential to build the capacity of individuals, institutions
and government "so that they can fully enjoy the benefits
of globalisation". ABAC had called for comprehensive
measures for capacity building.
From The Nation, Thailand, by Choosak Jirasakunthai,
Somluck Srimalee, 21 October 2003
Apec Ministers: Cancun,
Round Two
In a stunning reversal from positions
taken at Cancun by hard line developing nations, Apec ministers
have agreed to restart work on a compromise trade liberalisation
text drafted by Mexican Foreign Minister Luis Ernesto Derbez.
China, Indonesia, the Philippines and Thailand all agreed
to begin working with the controversial text. The four were
among the leaders of the so-called G-21, which was spearheaded
by ministers from Brazil and India at the World Trade Organisation
meeting on the Doha round in Cancun. Differences over agriculture
and "transparency" governance issues proved too
much for the G-21 Cancun delegates who, led by African nations,
walked out of negotiations. But in their final communique
released Tuesday, the 21 leaders attending the Apec summit
in Bangkok, Thailand, directed their negotiators to go back
to work on the text they left behind in September, CNN reports.
The leaders also gave in to a key US requirement that they
do more to end corruption and to "promote transparency"
in public financial management. A White House fact sheet welcomed
the development, noted that it came following "US encouragement"
and said: "The United States is prepared to move forward
with the Doha negotiations, if all parties are ready to negotiate
seriously on substance. At the same time, the United States
will proceed with regional and bilateral free trade agreements."
CNN noted that between them, the Apec economies have gross
domestic product of more than $US18 trillion, accounting for
60 per cent of global GDP. They also handle 47 per cent of
world trade. Apec includes five of the world's top 10 economies:
The United States, Japan, China, Canada and Mexico, plus another
four in the top 20 - South Korea, Australia, Russia.
From National Business Review, New Zealand,
21 October 2003
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Chiefs Justice Urges Lawyers to
Help Ensure Good Governance
The Chief Justice Mr. Justice George
Acquah on Monday urged the members of the Ghana Bar Association
(GBA) to ensure that while educating the people on the need
to reject military take over, they should also ensure that
the Government of the day "is on track and ruling in
accordance with the Constitution". Mr. Justice Acquah
made the call when he opened a three-day 2003/2004 National
Annual Conference of the GBA at Elmina under the theme: "Consolidating
Constitutionalism In Ghana: The Role Of The Legal Profession".
The Chief Justice told the Lawyers that by virtue of their
expertise it was their role as members of the legal profession
to ensure the establishment of a State where the Constitution
was operated faithfully and with responsibility and where
the administration was generally efficient and incorrupt He
further exhorted them to ensure that the rights of people
were not trampled upon arbitrarily, and that the citizens'
legitimate needs were catered for in good faith. He contended
that, even though, the members of the GBA had so far done
very well in their efforts at securing sound democratic system
for the people of this country, they needed to maintain and
deepen their defence of freedoms and rights of the people
and the rule of law.
The Chief Justice reiterated his determination
to build up the image of the Judiciary, improve and modernise
the justice delivery system to make the adjudicating process
transparent and to create a hard working bench and supporting
staff dedicated and committed to bring quality justice to
the doorsteps of the people. The National president of the
GBA, Mr. Paul Adu-Gyamfi said the Association had noted with
deep concern, mistrust, animosity and the unhealthy relationship
existing between President John Agyekum Kufuor and Former
President Jerry John Rawlings. He, therefore, called on the
Council of State, religious bodies and other peace-loving
bodies in the country, to strive to bring them together in
the interest of the nation, saying "the cat and mouse
relationship existing between them does not auger well for
our nascent democracy". Mr. Adu-Gyamfi also appealed
to political parties and the Electoral Commission to ensure
that the 2004 General Election are conducted in a peaceful
and free atmosphere. On media reportage on political issues,
he echoed the need for the media to be circumspect in their
reportage so as not to inflame passions to disturb the peace
that Ghanaians were enjoying. There were goodwill messages
from the Ghana Journalist Association (GJA), Ghana Medical
Association (GMA) American Embassy and Donewell Insurance
Company (DIC).
The Chief Justice reiterated his determination
to build up the image of the Judiciary, improve and modernise
the justice delivery system to make the adjudicating process
transparent and to create a hard working bench and supporting
staff dedicated and committed to bring quality justice to
the doorsteps of the people. The National president of the
GBA, Mr. Paul Adu-Gyamfi said the Association had noted with
deep concern, mistrust, animosity and the unhealthy relationship
existing between President John Agyekum Kufuor and Former
President Jerry John Rawlings. He, therefore, called on the
Council of State, religious bodies and other peace-loving
bodies in the country, to strive to bring them together in
the interest of the nation, saying "the cat and mouse
relationship existing between them does not auger well for
our nascent democracy". Mr. Adu-Gyamfi also appealed
to political parties and the Electoral Commission to ensure
that the 2004 General Election are conducted in a peaceful
and free atmosphere. On media reportage on political issues,
he echoed the need for the media to be circumspect in their
reportage so as not to inflame passions to disturb the peace
that Ghanaians were enjoying. There were goodwill messages
from the Ghana Journalist Association (GJA), Ghana Medical
Association (GMA) American Embassy and Donewell Insurance
Company (DIC).
From GhanaWeb, Ghana, 30 September 2003
Setting the Stage for
'Good Governance' in Africa
In mid-September, British aid organization
Oxfam published a report warning that the more the world focuses
on the fight against terrorism and the problem of weapons
of mass destruction, the greater will be the failure to pay
sufficient attention to the plight of people caught up in
conflicts in Africa. It's a thought-provoking warning. Starting
on Sept. 29, Japan will play host to the third Tokyo International
Conference on African Development (TICAD III), a major Japanese
diplomatic initiative. The main theme of the conference is
the realization of "good governance," including
democratization and the elimination of corruption. What conditions
are needed to achieve that goal? I recently visited Senegal
in West Africa, which is regarded as a model African nation.
While more than 90 percent of the people in Senegal are Muslims,
its Constitution does not specify a state religion. "Our
country cherishes the tradition to live in harmony with people
of other religious faiths," said Sidy L. Niass, chairman
of Wal Fadjri, a leading Senegalese newspaper. "Separation
of politics and religion is supported by that tradition. Radical
Islamic thinking does not agree with the Senegalese people."
Senegal is practically the only West African nation with a
stable administration in a region plagued by civil wars. It
was also one of the first African countries to introduce a
multiparty political system. While they live in a multi-ethnic
state, many Senegalese practice Sufism, a mystical form of
Islam considered heretical by Arabs.
Although rural farmers still live hardscrabble
lives under tin roofs, they seem to be enjoying a certain
amount of freedom under Islamic priests known as Marabu, and
are free from oppression. I also attended town meetings and
saw residents openly criticize provincial governments and
complain about the price of rationed well water, among other
matters. A native democracy that differs from the version
practiced in Western countries has taken root in Senegalese
society. Of course, this does not mean that Senegal's unique
Islamic model can be applied to every African country. Still,
the country demonstrates what is needed to establish ``good
governance'' and points to a direction for other countries
to follow. What is the African problem? It is about ethnic
and tribal fighting, education, AIDS and oppression. We tend
to gauge the poverty of a nation by counting the number of
citizens who live on $1 a day or less. But when we think about
what is actually going on in Africa, we realize that such
international yardsticks alone are not enough to determine
the soundness of governance. Meanwhile, negotiations for a
new round of trade talks of the World Trade Organization recently
held in Mexico collapsed. As the failure shows, we must also
not forget that the North-South problem between industrialized
and developing countries is still deeply rooted.
Sudanese President Omer Hassan Ahmed
Al-Bashir recently visited Senegal's Goree Island, where some
20 million African slaves were taken to Europe and the United
States. Al-Bashir has demanded compensation from industrialized
nations, saying the prosperity of Western countries stands
on the foundation of slavery, which deprived Africans of their
freedom and dignity. Goree Island is the starting point of
the African tragedy. No matter how much Western countries
apologize, the history of slavery continues to cast a dark
shadow over the North-South problem. According to the Oxfam
report, last year the United Nations asked member states to
provide 25 kinds of humanitarian relief, all of which were
directed to Afghanistan. Meanwhile, in Africa, 3 million people
were killed in the Democratic Republic of the Congo (former
Zaire) over the last three years, 300,000 people were killed
in Burundi in the last decade and about 40 percent of Rwanda's
population was lost to a civil war that started in 1994, the
report states.
A huge amount of money and personnel
are being devoted to the reconstruction of Afghanistan and
Iraq under the slogan of establishing "good governance."
Why can't the same thing be done to help Africa? The African
Union, made up of 53 countries, has sought to establish regional
stability with a style of intervention that does not rely
on the United Nations alone. However, it lacks the funds needed
to advance the initiative. Senegalese President Abdoulaye
Wade, who is taking the lead to advance the peace process
in Liberia, told me: "We do not have the means to provide
pay to peacekeepers. If only we had the financial backing
of the international community, Africa would be more stable.
We ask the Japanese government to expand aid, including the
building of infrastructure needed to establish peace."
Although Japan is a major donor, it is too busy dealing with
the United States to devote more attention to other important
areas. TICAD III, where many African leaders will gather,
will be a test for Japan to show its reliability and leadership.
From Asahi Shimbun, Japan, by Daiji Ssdamori, 28 September
2003
Support Obasanjo's
Anti-corruption Crusade, Nigerians Urged
Abuja - President Olusegun Obasanjo's
commitment to the anti-corruption crusade has been described
as the much needed political will which absence had thwartedprevious
efforts at checking corruption in the country. The President's
Special Adviser on the Bureau of Public Enterprises (BPE),
Sunday Onuoha, who said this in Abuja, urged Nigerians to
give Obasanjo full support in the anti-corruption as well
as other laudable programmes of the government. Onuoha made
the statment while he was being honoured by his kinsmen in
Abuja at the 2003 Item Union New Yam Festival and Reception
for outstanding sons of Item Community of Bende Local Government
Area of Abia State. Also honoured was a member of the House
of Representatives, Mba Ajah, representing Bende Federal Constituency.
Onuoha advised Nigerians to embrace the current privatisation
programme as it was aimed at making hitherto unworkable government
firms more efficient. He also assured that the Federal Government
would be non committed to making available more infrastructure
in the South East part of the country. The chairman Item Union
in Abuja. John Mba, said the community was proud to have the
likes of Onuoha in government, having distinguished himself
in community service. He urged other indigenes of Item to
emulate Onuoha and Ajah.
From Daily Times of Nigeria, Nigeria, by
Chesa Chesa, 6 October 2003
Corruption Reportedly
Worsening
Addis Ababa - Corruption is worsening
in Ethiopia and the levels are higher than in previous years,
according to the anti-graft watchdog Transparency International
(TI). Ethiopia was listed joint 92 on an index of 133 countries,
scoring 2.5 on a scale of 10. TI, which is based in Germany,
said a lack of coherent rules and regulations, red tape and
poorly trained staff were contributing to corruption. "Corruption
is a serious problem in Ethiopia," Jeff Lovitt from TI
told IRIN. "There is a problem in developing countries
because they lack strong public services." The African
Union - which has pledged to stamp out corruption on the continent
- estimates graft has cost Africa around US $148 billion.
"Corruption is currently one of the major afflictions
seriously confronting Africa," Desmond Orjiako, spokesman
for the AU, told IRIN. "Good governance is part of peace
and security and tackling corruption is a key part of good
governance," he added. "The AU has been at the vanguard
of ensuring that corruption does not spread on the continent."
In Ethiopia, the federal Ethics and
Anti-Corruption Commission has been waging war against corruption
in the country. Spokesman Abraham Gozguze welcomed the report
and said international support to fight corruption was sorely
needed in the country. "We also have to create awareness
because in many cases what we are trying to do is change the
mentality of people," he noted. He told IRIN that the
most recent case of alleged corruption in the country involved
a doctor taking a bribe to move patients up a waiting list
so they could receive treatment. Other Horn of Africa countries
such as Eritrea, Somalia and Djibouti were not covered by
the report as insufficient material was provided to enable
analysis. (UN Integrated Regional Information Networks).
From AllAfrica.com, Africa, 9 October 2003
Zero Tolerance For
Corruption Blunted
Accra - Newspapers are also to blame
for corruption perception - Information Minister, Nana Akomeah
on Thursday said the initial thrust of the government's policy
of "zero tolerance" for corruption seemed to have
been blunted. He said that it seemed measures to stop corruption
had not been comprehensive enough to deal with the root causes
of the problem or powerful enough to stand the test of time.
Nana Akomeah was speaking at the weekly media briefing in
Accra to present Governments' assessment of the Corruption
Perception Index (CPI) launched by the Transparency International
that ranked Ghana 72 on the index chart of the most corrupt
countries in the world. Ghana dipped from a high of 3.9 in
2002 to 3.3 in 2003 on a scale of 10, meaning that, "the
level of corruption in the country was increasing." He
said the evidence the index presents, sowed a recurring tendency
in the management of corruption in Ghana where measures put
in place by new governments initially made an impact and then
tapered off. "This is probably because those exposures
by the new measures served as a deterrent to others who then
stepped more carefully, but unfortunately not for long."
The Challenge, he said, was to develop strong legal and institutional
frameworks that ensured the rule of law and punished corruption
ruthlessly, no matter the source. "This approach may
be slow, but necessary ad-hoc measures have not had lasting
impact."
He said Government's strategy to minimize
corruption had been based on openness, improved public financial
management and participation, adding that Government was encouraging
participation through the media. Government, he said, was
also keen on improving the legal framework with the review
and eventual passage of the anti-corruption bills such as
the Procurement Bill; Financial Administration Bill; Freedom
of Information Bill and the Whistleblower Bill. The Minister
said that government had streamlined revenue collection with
the establishment of the Central Revenue Agencies Board. Nana
Akomeah said, even though, Government was putting in many
of the efforts to stop wrong-doing, the most significant initiative
was the endorsement of a diagnostic study of the institutions
involved in the fight against corruption. He said since the
CPI report dealt with perception, it would be prudent to find
out why the index changed between 2002 and 2003. Nana Akomeah
said one of the causes for the perception was newspaper reports
of corruption that were not borne out of professional Journalism,
but purely out of malice, mischief and political propaganda.
"Limiting corruption may not be a short term process,
but with good leadership from Government and support of all
of us the process should succeed."
From GhanaWeb, Ghana, 10 October 2003
Book on Corruption
in Ghana Launched
Accra - Mrs. Lisa Aubrey, a Political
Scientist from Ohio University, in the United States launching
a Ghanaian authored book on corruption on Friday in Accra,
said those who benefited from the vice condoned it and those
who did not condemned it. She said "the book talks about
two-facets of corruption: One that condemns it when it does
not benefit anyone and the other that condones it when it
enhances one's welfare". The title of the 131-page book,
written by Mr. Haruna Iddrisu, a legal practitioner and a
politician is "Zero Tolerance: Public Sector Corruption
in Ghana". Mrs. Aubrey described Mr. Iddrisu as an activist
and a scholar who had sought to reach the height of ethical
standards in society. The book looks at the interrelationship
between corruption and bad governance and seeks to instil
in the Ghanaian the spirit of patriotism and the need to fight
against corruption, she said.
Mr. Iddrisu, who is also the National
Youth Organiser of the National Democratic Congress (NDC)
said the book identified institutions such as Public Procurement
agencies and the Ministries, the Lands and Forestry and Trade
and Industry where corruption has been found to be very real
and evident. Mr. Iddrisus said, "zero tolerance for corruption
is an ideal thing for this country that everybody has to fight
for and it should not just be a rhetoric but rather should
be popularised and efforts made to fight it. He said he defined
the concept of corruption and its underlining causes in the
country and offered a theoretical explanation of the criminal
act. The book was dedicated to Mrs. Joyce Markham, one of
the Secretaries to the late Dr Kwame Nkrumah and the first
copy was auctioned for three million cedis.
From GhanaWeb, Ghana, 11 October 2003
Report Chronicles the
Strange Acts of Corruption in the Bench
Nairobi - Court of Appeal judge A.B
Shah talks to reporters as he walks out of the High Court
in Nairobi. Wearing their bright red flowing robes and sheepskin
wigs, Kenyan judges cut a bizarre image. They are dressed
to resemble their counterparts in Britain who, in turn, take
their cue from the fashions of the 17th century, or thereabouts,
when it was fashionable for men to wear wigs. In a number
of other countries, like the United States, judges dress in
modern fashions and look less comical. But looking bizarre
does not necessarily lead to strange or, one might say, eccentric
behaviour. It certainly should not be linked to the twin evils
of corruption and abuse of office and, in most cases, there
has been no such link. But it has been found that some of
the judges and magistrates alleged to be corrupt and to have
thoroughly abused their offices in the past also seem to have
been among the most bizarre and eccentric characters in the
public eye. The Bench's "List of Shame," as many
are now referring to Justice Aaron Ringera's report on judicial
corruption, lifts the lid on some of the weirdest individuals
ever to don a wig and a red robe in Kenya. The accusations
against the judges range from accepting bribes of more than
Sh15 million to sexual harassment, to the exhibition of behaviour
weirder than Charles Dickens could have depicted in Bleak
House. Bleak House, Dickens' ninth novel, was intended to
illustrate the evils caused by long, drawn-out suits in the
Courts of Chancery.
Dickens had observed the inner workings
of the courts as a reporter in his youth and observed that
"the one great principle of the English law is to make
business for itself". The memorable story features the
fictional long-running case of John Jarndyce and his being
heard in the High Court of Chancery. In the book, John, owner
of Bleak House, has little hope of gaining anything from it.
Meanwhile, on her aunt's death, Esther Summerson is adopted
by Jarndyce and becomes companion to his wards, Ada Clare
and Richard Carstone. Carstone has hopes that the Chancery
case will make his fortune. As the story unfolds, it is revealed
that Esther is the illegitimate daughter of Captain Hawdon
and Lady Dedlock. When the Dedlock's lawyer, Tulkinghorn,
learns of this, and tries to profit by the information, he
is murdered by Lady Dedlock's former maid. Lady Dedlock flees
and later dies at the gates of the cemetery where Hawdon lies
buried. In the meantime, John Jarndyce has fallen in love
with Esther and asked her to marry him. She consents out of
respect for Jarndyce but, during the engagement, she falls
in love with Allan Woodcourt. When Jarndyce learns of her
feelings, he releases her from the engagement and she marries
Woodcourt. The Chancery case comes to a close with court costs
eating up all the estate. Carstone, who has married Ada, dies
in despair.
According to the Ringera report, a
copy of which the Sunday Nation got, some of the judges and
magistrates were so well known by the public for their corruption
that they acquired nicknames such as "the Toll Station",
"the Blemish" and "the Cashbox". The accusations
likely to be brought against the judges are said to range
from sexual harassment to demanding and getting multi-million-shilling
bribes. The allegations arise from complaints received by
the Ringera committee and contained in a two-part report presented
to the chief justice. While the first report was released
to the media, the second report, the one that actually named
names, was only released on Wednesday last week. In one instance,
a judge demanded a Sh3 million bribe to dismiss a civil application.
He began hearing the case by advising the respondents to change
their advocates because he "did not wish to deal with
the firm then representing them" and asked for the bribe
to dismiss the application. The respondents agreed to pay
and handed over the money in two installments Đ the first
in the basement parking of the Hilton Hotel shortly after
midnight on November 28, 2000, while the second installment
of Sh1 million was collected by the judge from the reception
of the same hotel two days later. The judge dismissed the
application. In another instance, another judge committed
two offences of corruption and gross misbehaviour by having
a close personal relationship with counsel appearing before
him who was also a director and acting chairman of the respondent's
company.
In yet another case involving the same
judge, it is reported the judge helped the same counsel draft
pleadings, including an affidavit of a case he was hearing.
In fact, one paragraph of the affidavit was in his own handwriting!
It is claimed that the judge was to be paid a fee for the
advice he gave in a case he was hearing. Yet another judge
is likely to answer charges of lack of integrity, unethical
conduct and judicial misbehaviour. The judge reportedly presided
over an appeal in spite of having previously been disqualified
from hearing the case because of his intimate relationship
with the appellant for whom he was the legal consultant. The
appellant won the case and was given damages in excess of
Sh100 million. The same judge, it is alleged, was the conduit
through which bribes from a prominent Kenyan were delivered
to other judges - four in the Court of Appeal and two in the
High Court. The same judge is also reported to have received
a hefty bribe - Sh15 million - from a businessman to influence
fellow judges in a case they were hearing. However, he was
unable to do so and decided to repay the bribe and was still
doing so in instalments. Another judge is reported to have
handled Goldenberg-related cases during recess yet he was
not the duty judge. It is alleged that he not only visited
the business premises at night while handling the Goldenberg
case, but also wrote his ruling at night and faxed it to the
lawyer representing an investor involved in the case. It is
claimed the judge received Sh6 million for his troubles.
In yet another instance, the same judge
reportedly made a threatening phone call to the clerk of the
Narok County Council after the civic authority entered a consent
with the plaintiff and also grabbed 76 acres belonging to
a school in the Nkorrkorri area of Narok District. He reportedly
delayed judgment for five-and-a-half years, having concluded
hearing a dispute in December 1997 and setting judgment day
for April 2003. It is claimed that one judge had close relations
with the late drug baron Ibrahim Akasha and his family. The
judge was seen visiting the Akashas at home while criminal
cases against them were pending before him. Among the High
Court judges, one of them is alleged to have been caught red-handed
in his chambers holding a bundle of notes he had just received
from a rival party in a civil case. When his impartiality
was questioned, he refused to disqualify himself and even
threatened to jail his accuser. The judge, nicknamed Cashbox,
is reported to have asked the defendant to give him Sh60,000
and a bag of millet so that he could rule in his favour. When
the defendant refused to pay the bribe, the judge approached
the opposing party who gave him Sh60,000. The sobriquet "Cashbox"
was earned during a case he is reported to have stage-managed.
The case involved a disputed piece of land which the judge
was reported to be eyeing. He somehow managed to buy the land
in question and have it registered in his name while the dispute
was still being heard.
The story is told, for instance, of
a magistrate who, while hearing a divorce case, took a fancy
to the man in the case and, having made her feelings quite
clear on the matter, rushed through the case and allegedly
began living with the man even before the process was complete!
Another magistrate forced public service commuter mini-buses
to fuel only at his petrol station and threatened those who
defied that their vehicles would be impounded. Another magistrate
is known to cite people for contempt if they forgot to bow
to his court and to acknowledge his presence. The usual punishment
for such forgetfulness on the part of the offending person
is a brief stint in jail or, if the magistrate is feeling
lenient, a fine. Obviously obsessed with having people bow
before him, this magistrate once committed a police corporal
to jail for not lowering his head as a mark of respect when
they met at a grocer's. The same magistrate is reported to
have demanded Sh20,000 from a suspect to get him off the charge
sheet. The suspect, unusually for a Kenyan, was aware of his
legal rights. He refused to pay the bribe and immediately
wrote to the Attorney-General with a request that the case
be referred to a different magistrate. When the magistrate
found out what the suspect had done, he decided to humiliate
him by having him frogmarched around the courts and then assaulted
him in front of a group of police officers.
Another rapacious magistrate would
visit the homes of suspects and complainants to assess their
material worth before deciding on the amount of money he would
extort from them while deciding their cases. The infamous
magistrate, known simply by everyone as the "Toll Station,"
was so named for once having transferred the operations of
the traffic court to his house where he is alleged to have
received bribes from motorists to let them off. The same magistrate
is also infamous for visiting restaurants and cafes, ordering
food and drinks and then, when presented with the bill, pointing
out a seemingly innocent customer and ordering that they pay.
Woe betide any who did not. It was possible they could find
themselves brought before him on trumped-up charges. Few,
if any, ever refused to pay for the magistrate's food and
beverage. This magistrate, who was quite obviously notorious
and acting with impunity, was also known to conduct impromptu
fund-raisers at which all traders in the vicinity were forced
to make "donations" of Sh2,000 each. He was reported
to have received a Sh3,000 bribe to release a person who had
been committed to civil jail by another court. The magistrate
was also reported to often share a beer with court clerks
and secretaries while loudly discussing court matters at a
bar or other social place. Another judge was said to be putting
up a building. He would reportedly have litigants organised
to buy and transport materials to the site and, depending
on how much they brought, they would have their matters decided
for them speedily and in their favour.
The other way to get ahead in his court
was to hire a certain lawyer, who just happened to be the
judge's relative and who always won the cases he argued in
his court. This crafty fellow is said to have once conducted
a fund-raiser for his wife during which litigants were invited
to contribute "generously". Another story is told
of how the same judge stayed at a hotel and ran up a bill
of Sh56,000 which he refused to pay. When the management sued,
he threatened the process server who, apparently, also doubled
as an assessor in his court, with a fine of Sh1,000 or six
months in prison. Bizarre and darkly amusing as the antics
of the judges and magistrates described might be, it must
not be forgotten that Kenyans take the issue seriously. Therapists
will advise their couch bound patients that admitting the
problem exists is the first step to sorting it out. In the
case of the Kenyan Judiciary, for years it was visible to
the public and others on the outside looking in, that the
whole system was rotten to the core. For whatever reason few,
if any in the Judiciary, were ready to admit that there were
any problems and so nothing was done about anything. However,
about two years ago, the stench on the bench had begun to
assault the nostrils of a few conscientious judges and magistrates,
for whom turning a blind eye to corruption was no longer an
option.
In July 2001, after a very public bust
up between three Justices of the Appeal Court during which
one of them, Mr. Richard Otieno Kwach, questioned the integrity
of two of his colleagues, A.B. Shah and P. Tunoi, the then
newspaper columnist, now official Kenyan anti-graft czar,
Mr. John Githongo, wrote: "The process of judicial reform
in Kenya began some time ago. Indeed, the most talked-about
report on this subject was actually authored by one of the
judges involved in the latest flare-up. The Report of the
Committee on the Administration of Justice, dubbed the Kwach
Report, spoke of lengthy case delays, limited access by the
population, lax security, inadequate accommodation, corrupt
practices, cumbersome procedures, questionable recruitment
and promotional procedures and general lack of training, weak
or non-existent sanctions for unethical behaviour and inequitable
budgets. "The Judiciary, it said, was able to meet the
expectations of the private sector and the public only to
a limited extent. The Judiciary is the station of final recourse
for wananchi (citizens). A weak or pliable Judiciary undermines
the rule of law in the most fundamental way." With the
Kwach Report, someone from the inside seemed finally to be
admitting that there was a problem. Later, in March last year,
there was the then highly controversial visit by a group of
legal experts from the Commonwealth. At the end of their visit,
these jurors called for a drastic shake-up of the Judiciary.
The Commonwealth group urged a "short,
sharp shock" to rid the Judiciary of sleaze. Their most
drastic recommendation was that a new constitution requires
that all judges be asked to resign to pave the way for a clean
slate. This call was later taken up by sections of the Constitution
of Kenya Review Committee who had actually hosted the Commonwealth
jurors. The then Chief Justice, Mr. Bernard Chunga, on hearing
the recommendations of the experts, furiously retorted: "Experts
for what, on what, about what?" It remains one of his
best-remembered quotes. At the time, Mr. Chunga, who was himself
hounded out of office early this year after a tribunal was
set up to investigate allegations against him, accused the
team of "acting on rumours and cheap gossip." Led
by Mr. Justice George Kanyeihamba of the Uganda Supreme Court,
the Commonwealth team comprised Mr. Justice Damian Lubuva
of the Tanzania Appeal Court, Lady Justice Yvonne Mokgoro
of the South Africa Constitutional Court, Mr. Justice Robert
Sharpe of the Ontario Appeal Court, Canada, and Prof Ed Ratushny
of the University of Ottawa, Canada.
In their 64-page report, they said:
"The air is full of allegations of corruption, incompetence
and inefficiency. If the Judiciary is to carry out its function
in an acceptable manner, the air must be cleared." The
former CJ claimed that the Commonwealth report had tried to
undermine the Judiciary. He added: "A visitor cannot
come here, stay at a lavish five-star hotel and tell me that
my judicial system is at a cross-roads after only two days
of entertainment." When presenting his report to the
current Chief Justice, Mr. Evan Gicheru, Justice Ringera was
colourful in his description of the corruption dragon that
has eaten into the judicial community and warned: "It
is bound to snort, kick and jump and even attack, for corruption
always fights back." He made a point of not just stating
the facts as he had found them to be, but also of warning
the parties that appointed him that only half the work had
been done. As the Ringera Report noted, court registries are
a haven of corrupt court officials. Lawyers have contributed
to turning them into dens of thieves. Inflation of court filing
fees is rampant and this usually happens through collusion
between advocates and registry clerks. Shadows of Charles
Dickens' Jarndyce and Jarndyce again?
From AllAfrica.com, Africa, by Mwangi Githahu,
20 October 2003
New Members of Liberian
Government Must Be Corruption-Free, UN Emphasizes
United Nations (New York) - With Liberia
currently in the process of selecting members of its transitional
government and legislative assembly, the United Nations today
underscored the need to choose honest and qualified professionals.
Those appointed or elected to the new government must be "individuals
of high moral character and integrity, with untainted past
records," the UN Mission in Liberia (UNMIL) said in a
statement released in Monrovia. At the current critical juncture,
"every effort should be made to ensure that all members
of the new government are appointed or elected based upon
their professional abilities, and are those who will place
the interests of the people of Liberia ahead of any personal
interests," UNMIL stressed. The statement also pointed
out that the UN Security Council as well as international
donors are closely following developments in Liberia with
a view to reinforcing support for its peace and reconstruction
efforts. "Any setbacks at this early stage could adversely
affect international commitment and future support,"
the Mission warned.
From AllAfrica.com, Africa, 21 October 2003
'Corruption Denial
is Electioneering'
President Thabo Mbeki was trying to
"recapture lost ground" before next year's election
by telling religious leaders that there was no government
corruption in the arms deal, the United Democratic Movement
said on Wednesday. UDM president Bantu Holomisa said in a
statement that Mbeki was in a state of denial. "He seems
to be living in a state of denial if he can make such a claim
whilst an independent structure of his government, the Scorpions,
has said that it has prima facie evidence of corruption against
Deputy President Zuma," Holomisa said. He added that
it would not help to be "disingenuous" about the
allegations against Deputy President Jacob Zuma. "Religious
leaders should ignore any such claim of propriety in the arms
deal and dismiss it for the hogwash it is. The arms deal is
a festering sore that should have been excised with a proper
investigation."
On Tuesday, Mbeki gave an assurance
to religious leaders that there was no corruption in the government,
with particular reference to the multi-million rand arms deal.
"The message was that the government is not involved
in any corruption," National Religious Leaders Forum
chairman Aswhin Trikamjee told reporters in Pretoria. "The
president made it a point of assuring religious leaders that
there is nothing wrong with the present government."
Mbeki used a meeting of a presidential working group set up
to promote interaction between the government and religious
communities to dismiss the notion that there was a "big
crisis" within the government over corruption. "The
religious leaders were very, very satisfied and extremely
grateful to the president for having taken them into confidence
in this whole debate." On the arms deal, he said Mbeki
rejected claims of corruption involving the primary contract,
in which the government was involved.
From IAfrica South African News, South Africa
, 22 October 2003
Corruption Probe Slows
University Merger
Johannesburg - Sharda Naidoo, Education
And Tourism Correspondent - Asmal delays naming interim council
and name of institution pending Durban-Westville findings
- Education Minister Kader Asmal lifted the lid on the extent
of corruption problems at the University of Durban-Westville
(UDW) yesterday by delaying the announcement of the interim
council and name for the new super university in KwaZulu-Natal.
Asmal said he would only make a decision and gazette the merger
between UDW and Natal University pending the findings of a
ministerial probe into governance issues and mismanagement
at UDW. Transnet chairman Bongani Khumalo was appointed by
Asmal as an independent assessor last month to handle these
matters, following the suspension of two senior academics,
Kanthan Pillay and Anand Singh. The report will be finalised
next week. UDW's administration has for years been marred
by conflict between senior academics and administrators, with
recent incidents derailing merger negotiations with Natal
University.
Although Asmal gave assurances that
the merger would still go ahead on January 1 next year, his
hesitation to decide on a name signalled that the marriage
of the two institutions was heading for a stormy start. "The
consequences of what the assessor will say will influence
the decision on a name and interim council for the new university,"
said Asmal. He said the interim council could not be set up
because of the many issues at hand, including continuous disagreements
between the two parties on the name of the merged institution.
Natal University had proposed that the merged institution
be called University of KwaZulu- Natal. UDW suggested three
names Walter Sisulu National University, Eastern Seaboard
University of SA and King Shaka National University. Asmal
was mum on which of the above was likely to be chosen, but
the names of the other new universities suggested that geographical
information was a deciding factor in the final pick.
Asmal also refused to preempt the findings
of the probe, and how it would affect plans for the imminent
merger. "It would be unfortunate and insulting to Dr
Khumalo to anticipate the findings of his report," he
reiterated. Despite Asmal keeping tightlipped on the possible
outcomes of the investigation, evidence of fraud and several
allegations of corruption have surfaced in recent months.
These include UDW's former principal, Prof Mapule Ramashala,
being accused of borrowing R70m from Investec Bank and then
placing R69,3m in an offshore account in 1998 without the
knowledge of the university's council. It also emerged this
month that UDW principal Dr Saths Cooper, had been overpaid
R126666 since January an overpayment of R15843 every month.
Another high-ranking member of the university's management,
Prof Dasarath Chetty, received a once-off overpayment of R5000,
while the salary of a third member of the institution's executive
is also under scrutiny.
From AllAfrica.com, Africa, 22 October 2003
George Bush Commends
Zambia for Fight Against Corruption
Lusaka - United States President George
W. Bush has congratulated President Levy Mwanawasa on efforts
to fight corruption in Zambia. Mr. Bush has described president
Mwanawasa's fight against corruption as inspiring not only
to the Zambian people but by the entire African continent.
The US president said this in a congratulatory message to
president Mwanawasa on Zambia's 39th Independence Anniversary
which falls on Friday, October 24. President Mwanawasa's principal
private secretary Jack Kalala confirmed to ZANA in a statement
that Mr. Bush has also wished the people of Zambia success
in meeting the objective of fighting corruption as well as
other challenges. Mr. Kalala also disclosed that United Nations
(UN) Secretary General Kofi Annan has described the occasion
of Zambia's National Day as a crucial time in the life of
the UN.
Mr. Annan however, appealed to the
international community to redouble efforts in its fight against
poverty, the HIV/AIDS pandemic and terrorism in order to make
the world a better place to live in. "From poverty to
pollution, from AIDS to armed conflict and terrorism, the
international community must redouble its efforts if we are
to be bequeath to our children a world of choices, not constraints,
part of Mr. Annan's message read. Mr. Annan further expressed
the UN gratitude regarding Zambia's commitment and support
towards the UN global mission of peace and stability. The
Common Market for Eastern and Southern Africa (COMESA) has
also hailed Zambia for playing a significant role in the establishment
of the regional body. Comesa Secretary General Erastus Mwencha
commended Zambia for contribution made towards maintaining
and building of the role of Comesa. Nigerian President Olusegun
Obasanjo, Libya's Muammar Al-Gaddafi and Togolese president
Gnassingbe Eyadema have also wished president Mwanawasa personal
good health and prosperity for the people of Zambia.
From Zambia News Agency, Zambia, 22 October
2003
Corruption Saps a Rich
Tradition in Kenya
Nairobi - Culture of Dishonesty Leads
Government to Consider Ban on Community Fundraisers - Batha
Awino's smile was as big as the wad of cash in her hand. And
her pleas to contribute more money for the funeral costs of
Florence Aduor, a former teacher, were as silky-smooth as
her flowing, cream-colored skirt. "You can't take your
bread without the butter!" she cried to a group of about
40 friends of the departed, who were sitting in plastic chairs
in the garden of a Nairobi pub, looking nervous, clutching
their purses and glancing at one another. One friend smiled
weakly, stood up and handed over the equivalent of $5. Awino
swooped in on her like a preacher honoring a generous worshiper.
"This nice lady is called Alice, and well, she is a friend
indeed," she sang out, raising her eyebrows and shaking
her head in approval. By the end of the night, the fundraiser,
known as a harambee, generated just over the equivalent of
$1,000. It was one of several such meetings taking place that
night in the Garden Square Restaurant. But the newly elected
government is considering banning these community fundraising
parties, a cornerstone of life in Kenya. Officials say they
became a tool for corruption and graft under former president
Daniel arap Moi, as government workers routinely began demanding
donations for funerals, school fees and weddings, or for the
dispensation of birth certificates, licenses or yellow fever
cards.
And political parties had begun to
use harambees for their own purposes, ostensibly to promote
community development. But the money donated for schools and
hospitals often disappeared, officials said. People also felt
compelled to give money, goats and cows at harambees lest
they be passed over for promotions and raises at work, according
to the government. "The harambee spirit is an avenue
of corruption," said Mwalimu Mati of Transparency International,
a global corruption watchdog group. "There is a lack
of accountability, like wedding collections and then the couple
do not get married, or exaggerated illnesses. Harambees now
have a culture of dishonesty. Not all of them are like this,
but something went very wrong along the way." Kenya's
founding president, Jomo Kenyatta, introduced the community
parties as a way to bridge the gap between poor and rich in
a country without a state welfare system. Under Moi's 24-year
rule, harambees became a way of funding such basic services
as water wells and infant health care, along with college,
funeral costs and community events. The word harambee - derived
from two Gujarati words, one meaning "hail" and
the other the name of a Hindu goddess - is part of Kenya's
coat of arms and, as such, embossed on the country's currency.
"Harambee" is the national motto and is seen as
defining the pulling-together, self-help spirit of a poor
country.
There is a Harambee Avenue in downtown
Nairobi. The office of the president is called Harambee House.
The pledge of allegiance once included the word. "We
don't have to kill our communities by saying that harambees
be abolished. It's what makes a strong and united community
where people can rely on each other," said Luke Ouma,
a senior lecturer at Kenyatta University who was attending
the harambee for Aduor. He said Aduor's children could not
afford to hold a funeral on their own. Some gatherings have
food, others do not. There was none at this one and guests
wandered away to the bar occasionally to buy a beer. The restaurant
is paid a small amount for the space; the fee depends on the
size of the group. The owners said about 50 fundraisers take
place each Thursday through Sunday; tables are marked with
small pieces of white paper indicating who the harambee is
for. Invitations can be as informal as word of mouth or as
public as a newspaper ad. People know they are invited for
the purpose of giving money, and they give with pride, as
a sign of wealth, proponents of the custom said. "Many
of our present leaders, professors and economists are products
of harambees," said K. B. Makulae, a teacher who favors
the practice because many school costs are paid with the fundraisers.
"Harambees are a public siren to assist. The government
should just find a way to regulate them." When the government
formed a team this summer to study banning the practice, the
issue triggered a national debate on radio talk shows, in
the papers and even in schools.
From Washington Post, DC, by Emily Wax,
24 October 2003
Government Launches
Investigation into Corruption Allegations
Government said yesterday that it has
launched an investigation into allegations of corruption in
the mass cocoa spraying exercise. "For the recent report
in the Western Region, we have asked the Bureau of National
Investigation (BNI) to move in and they have moved in,"
Finance and Economic Planning Minister, Yaw Osafo-Maafo told
newsmen during questions and answers time at the weekly meet
the press briefing in Accra. "If we find out people have
cheated they will be punished according to the law."
Osafo-Maafo said. The government introduced the mass cocoa
spraying exercise in 2001 as a form of assistance to the farmers.
As part of the exercise the government, through the COCOBOD,
put aside ˘341 billion to purchase chemicals for the exercise.
But the agents undertaking the exercise were allegedly demanding
money from the farmers for the services which had already
been paid for by the state and should have been provided free
of charge. Others were also engaged in diverting the chemicals
to neighbouring, Cote d'Ivoire for sale. The institution of
a probe followed The Chronicle's front-page report about two
week ago that a section of the farmers in the Juabeso-Bia
District, one of the major producing areas, had been denied
the benefit of the exercise since its inception two years
ago.
The Chronicle, quoting the local chief
farmer, said some of the chemicals meant for the spraying
had mysteriously landed in neighbouring Cote d'lvoire. The
Chronicle found out that even though the government provided
the chemicals and other logistics required for the success
of the exercise, some officials handling the project in the
region diverted the chemicals thereby denying farmers access
to them. However, the minister admitted at the conference
yesterday that there had been problems with the exercise because
of the dubious activities of some people who wanted to take
advantage of the farmers' need of the service. Acknowledging
that similar problems existed in the ministries, he said the
question should be how to deal with the Ghanaian attitude
toward such practices and not leaving it on the Cocoa Industry
alone. On alleged politicization of the exercise, Osafo-Maafo
said cocoa beans did not bear the colours of political parties
and therefore it was not in the interest of the COCOBOD to
use segregation in the mass cocoa spraying exercise based
on partisan politics.
From Ghanaian Chronicle, Ghana, 24 October
2003
How to Win the Anti-corruption
War!
That President Olusegun Obasanjo is
hell-bent on waging war on the seemingly intractable cankerworm,
called corruption, is no longer news. Indeed, no day passes
without the President or one of his aides reminding Nigerians
that this administration is unwavering in its battle to rid
the polity of the cankerworm. And, not a few Nigerians, particularly
the downtrodden, appear to be solidly behind Obasanjo in the
crusade. But then, the people are gradually becoming disillusioned,
in fact, frustrated, because several allegations and/or accusations
have been made against known persons, but nothing concrete
appears to have been done to get to the root of these allegations
or accusations. Perhaps, the most striking is the allegation
by the FCT Minister, Malam Nasir el-Rufai, that senators Ibrahim
Mantu and Jonathan Zwingina demanded N54 million bribe from
him to ensure confirmation of his nomination as a minister.
Now, while the two senators denied making such a demand from
the minister, he is insisting that the duo are being economical
with the truth. Somewhere along the line, the Senate mandated
the Senator Olorunnimbe Mamora led Senate Ethics, Privileges
and Public Petitions Committee to probe the allegation. The
committee invited the accuser and the accused to a public
hearing, where both sides maintained their stands.
The Mamora committee submitted its
report, reflecting evidence adduced by both parties, without
any declarative recommendations; because, according to it,
the committee, was not given any term of reference to do so.
Fair enough. But the Senate, in its wisdom, returned a verdict
of "not guilty" on its accused members; stressing
that, since el-Rufai had failed to produce any documentary
evidence to back up his allegations, it would not be proper
to find any fault with Mantu and Zwingina on mere allegations.
Another fair decision, you will agree. To win the anti-corruption
war, Obasanjo must be interested in every allegation made
against every person in government or in the public serviceConversely,
however, the Nigerian public would have expected a more painstaking
investigation into this grave allegation. And, the reasons
are legion. First, we all know that if any minister had been
"forced" to cough out millions of naira to smoothen
his or her passage into office, such a minister is literally
licensed to go into office and plunder the people's treasury.
Or, where will he or she recoup the bribe from? One may ask.
We can as well add: "Where did we expect the "donors"
to find the millions to pave their ways into office?"
These questions and many relevant others
are not supposed to go without appropriate answers in a society
craving for probity and accountability. Almost simultaneously,
Senator Adeseye Ogunlewe, the Minister of Works, alerted the
nation on the apparent fraudulent deals in the maintenance
of federal roads in the South-East zone. He asserted that
Nigerian engineers in his ministry connived with contractors,
who collected huge amounts from public coffers, and did not
perform but were certified to have done well after some money
had passed round. Yet, some Ndigbo shouted blue murder and
later got the Fedral Government to re-award the contracts
for the maintenance of some of the roads; the same for which
millions (if not billions) of naira had already been paid
to some "ghost contractors" without nothing to show
for it. Now, all these allegations are there unverified and
we continue as if nothing has happened. Do you still ask why
the ordinary Nigerian is frustrated?
The ordinary Nigerian hates nobody;
but he hates a system which appears to shield the highly-placed
to his detriment. I really sympathise with President Obasanjo
because he is no longer a military leader, who can do things
with automatic alacrity. But even then, he has a duty to oil
the machinery to prosecute his anti-corruption war effectively.
He and his PDP must convince us that we need to make more
sacrifices to take this country to the proverbial promised
land. But not when political office holders and top civil
servants are dipping their dirty hands into our Commonwealth
and yet the people are forced to make sacrifices to boost
the economy. To win the anti-corruption war, Obasanjo must
be interested in every allegation made against every person
in government or in the public service. He must insist on
thorough investigation of every accusation; not only to get
to the root, but also to convince the people that the much-touted
anti-corruption war is not a battle of the tongue or one on
paper. The nation waits impatiently. God bless Nigeria.
From Daily Times of Nigeria, Nigeria, by
Dele Odebiyi, 30 October 2003
Anti-Corruption Body
Wants Information Law
Kampala - The Anti-Corruption Coalition
Uganda (ACCU) has called for an urgent law to allow the public
access information as one way to stop corruption. The ACCU
coordinator, Lydia Bakaki, said, "The Government must
present a bill in Parliament about access to information.
We want information which even the semi-illiterate will be
able to access." Byakaki said this during a press conference
on the anti-corruption week organised by civil society organisations
at the National Theatre in Kampala on Friday. The week meant
to create awareness against corruption started on October
26 and will run until November 2. "You cannot fight corruption
if you don't have the figures. The amount of money sent to
a district must be pinned on the notice board and Government
officials must be able to account for it," Bakaki said.
She said public participation regarding the Poverty Eradication
Action Plan and the local government have not been effectively
realised due to the old fashioned, restrictive and secretive
laws.
From AllAfrica.com, Africa, by Immaculate
Tumwesigye, 30 October 2003
Fish Ban Lifting Temporary,
to Check Corruption, Says Cheeye
Kampala - President Yoweri Museveni
lifted the ban on catching immature fish because law enforcement
officers were using it to extort money from fish dealers.
ISO's director of economic monitoring Teddy Sseezi Cheeye
yesterday said the President's directive was a temporary measure.
"President Yoweri Museveni did not lift the ban with
the aim of hurting the fishing industry in the long run, but
as a temporary measure to smash a racket by corrupt law enforcement
officials from the fisheries department," he said in
a statement. He said some officers were making more than sh100m
a week by selling impounded fish. The announcement to lift
the ban followed discussions between the President and members
of the Fish Processors and Exporters Association in Soroti
recently. The fish processors told the President that despite
the ban on small fish in Uganda, there were no such restrictions
in neighbouring countries. Cheeye said the law enforcers were
supposed to ensure use of the right fishing gear on the lake
but they instead chose to wait on roads and ambush trucks
full of fish which they confiscate.
From AllAfrica.com, Africa, by Joyce Namutebi,
29 October 2003
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Amend Constitution to Empower Anti-Corruption
Commission
Participants at a roundtable yesterday
called for constituting an independent, powerful and effective
Anti-Corruption Commission free from political influence.
"Form powerful, effective and independent Anti-Corruption
Commission for its proper functioning by bringing amendment
to the Constitution," they suggested. They said the proposed
Anti-Corruption Commission (ACC) should be given constitutional
protection through amendment to the Constitution so that no
political government can remove any member of it or curb its
authority in future. They observed that much of the periphery
and authority of the proposed Commission had been curtailed
in the draft Anti-Corruption Commission Bill. "If this
bill is passed by parliament, the proposed Commission will
never be a powerful and effective institution." The participants
also said the bill was drafted by the government in such a
manner that the bi-partisan approach and the participation
of civil society have not been ensured in the proposed Anti-Corruption
Commission. The dialogue on "Necessity of An Independent
Anti-Corruption Commission and Role of the Bureau of Anti-Corruption"
was organised by the Council for National Agenda (CNA) in
cooperation with The New Nation. Former Advisor to the Caretaker
Government Justice Latifur Rahman addressed the dialogue as
the chief guest. With former Chief Election Commissioner (CEC)
and CNA Chairman Justice Mohammad Abdur Rouf in the chair,
the dialogue was also addressed by Co-Chairman of CNA Justice
Sultan Hossain Khan and Chairman of the Editorial Boards of
The New Nation and the Daily Ittefaq and Executive President
of CNA Barrister Mainul Hosein.
The dialogue was participated by Chairman
of the Trustee Board of the Transparency International Bangladesh
(TIB) Professor Khan Sarwar Murshid, TIB Trustee Board Member
Professor Dr Muzaffar Ahmad, former State Minister for Foreign
Affairs and Awami League leader Abul Hasan Chowdhury, former
Advisor to the Caretaker Government Syed Manzur Elahi, former
Chairman of the Press Council of Bangladesh Justice Habibur
Rahman Khan, Advisor to the BNP Chairperson Ambassador MM
Rezaul Karim, Chairman of the Privatisation Commission Enam
Ahmed Chowdhury, Chairman of the Bangladesh Institute of International
Strategic Studies (BIISS) Ambassador MR Osmany, Abdul Mannan,
MP and Dr Mushfiqur Rahman, MP of BNP, GM Quader, MP of Jatiya
Party, former Vice-Chancellor of Dhaka University Professor
Emajuddin Ahmad, former Secretary and Director-General of
the Bureau of Anti-Corruption (BAC) Dr Shah Abdul Hannan,
Chairman of Sonali Bank Professor Dr Mahbub Ullah, Vice-Chancellor
of Bangladesh Open University (BOU) Professor M Ershadul Bari,
Maj Gen (Retd) Imamuzzaman, Brig (Retd) M Shakhawat Hossain,
journalist Gias Kamal Chowdhury and Professor KM Mohsin of
University Grants Commission (UGC). Justice Latifur Rahman
said the proposed Anti-Corruption Commission should be headed
by honest, impartial and dynamic personalities of the society.
He said initiative has been taken to
form the Anti-Corruption Commission as the existing BAC is
longer effective. "But the question is who are going
to the chairman and members of this Commission," he asked.
Justice Latifur Rahman, also the former Chief Justice of Bangladesh,
suggested that the selection committee for the appointment
of chairman and members should be free from political influence
so that honest and good people could join it. Besides, necessary
steps should be taken so that the Commission has adequate
financial capability and it can function freely. He also observed
that the executive government was facing difficulties to work
impartially due to lack of democratic political culture in
the country. Justice Abdur Rouf said whatever the selection
process proposed in the draft bill, all should accept it.
"Let us allow the selection first and then see what happens."
He said corruption in Bangladesh would go down when the colonial
administrative system was changed. "It takes a file to
move to 26 desks to get approval in Bangladesh, where it takes
a file to go through three desks in England to get approval,"
he said. Professor Khan Sarwar Murshid said the proposed Anti-Corruption
Commission must be an independent and effective body "if
we want to make it functional and meaningful." He said
the BAC has totally failed to play it proper role. It has
no significant suo moto prosecution authority. All the governments
in Bangladesh have used the BAC directly or indirectly. The
BAC has to get permission from the upper level of the government
to file a case against anyone, which is a major impediment
to its functioning.
Moreover, Professor Murshid said there
is no accountability inside the BAC. There is no scope to
monitor the corruption inside the BAC itself and take action
accordingly. Referring to the selection committee proposed
in the draft bill, he said that the composition of selection
committee did not seem meaningful to him. The chairman and
members of this Commission can be appointed by three judges
of the Appellate Division of the Supreme Court. Barrister
Mainul Hosein said no country needed Anti-Corruption Commission
for dealing with corruption. "In our socio-political
situation, we must have a powerful and independent Anti-Corruption
Commission for keeping our political leaders free from corruption,"
he said. Barrister Mainul said when politics is free from
corruption the political leaders themselves can take effective
measures for restraining corruption of others. "It is
true that there is corruption in developed countries also.
But there corruption of political leaders are not forgiven.
Even small cases of corruption of political leaders are viewed
with seriousness. They face corruption cases no matter how
small the corruption. The people even do not spare their Presidents
or Prime Ministers," he said. Prof Muzaffar Ahmad said
the authority of recruiting the employees of the Commission
should be given to the Commission itself. The Commission will
employ its staff on contract basis. Otherwise, hiring and
firing would not be possible. Besides, the staff should be
provided with handsome remuneration.
He said the TIB proposed a legal team
for investigation of the cases of the Commission. But the
good lawyers will not be available unless they are given attractive
remuneration. Prof Ahmad said it takes one to six years to
get permission from the Prime Minister's office to file any
case. Punishment of any corruption case must be deterrent.
Moreover, the effectiveness of the country's legal and judicial
systems must be strengthened. Shah Abdul Hannan said when
he was the DG of BAC, the then President intervened in one
or two cases. "But the President or the Prime Minister
should refrain from intervening in the affairs of BAC,"
he said. He said the corruption of political leaders must
be brought down at any cost to save the nation. "If the
politicians, ministers and secretaries do not indulge in corrupt
practices, there will also be no corruption in the Customs
department," he said. Justice Habibur Rahman Khan said
the chairman and members of the Commission must be patriotic.
He said the Commission must be independent to function properly.
"If the selection authority of the Commission is given
to politicians, it will get destroyed at the very initial
stage."
Prof Emajuddin Ahmad said the Anti-Corruption
Commission should be kept above all controversies. "Given
the situation in the country, there is no alternative to it
and we must have to pay attention how best we can make it
meaningful." He said corruption is confined to only five
per cent people of the country, while the 40 per cent of the
population living below the poverty line do not get involve
in corruption. He also regretted that a consensus was yet
to be developed among the two major political parties of the
country. Ambassador MR Osmany said it is impossible to contain
corruption even if three "angels" are made members
of the Anti-Corruption Commission. "Even if we want to
contain financial corruption in the country, the head of the
government has to show courage and honesty," he said.
Prof Mahbub Ullah said the main source of corruption in Bangladesh
is foreign aid. "We have so limited resources that the
scopes of corruption is much less here," he said. Maj
Gen (Retd) Imamuzzaman said it is not important who are going
to give appointment to the chairman and members of the Anti-Corruption
Commission. Rather, it is important that who are going to
be appointed as the members of the proposed Anti-Corruption
Commission. SM Al-Hosayni said the Anti-Corruption Commission
must have a self-controlled budget so that they could determine
what logistic supports they needed. He said if the Anti-Corruption
Commission members are appointed by the politicians, it would
never be able to function independently.© Copyright 2003 by
The New Nation.
From The New Nation, Bangladesh, 1 October
2003
Solomons Corruption
Probe Underway
The Australian-led intervention force
in Solomon Islands has defended its progress on tackling official
corruption. Head of the Regional Assistance Mission Nick Warner,
speaking on Solomon Islands' national radio, said an audit
of the government and public accounts had begun by advisers
and personnel installed into key ministries. Politicians and
community leaders had accused the Mission of not tackling
corruption. Mr. Warner said action would be taken if there
had been any misappropriation of funds within government by
public servants or parliamentarians.
From ABC Online, Australia, 1 October 2003
J&K the Second
State to Launch E-governance
Srinagar - Jammu and Kashmir became
the second state in the country after Andhra Pradesh, to introduce
video conferencing facility and e-governance in government
administration. Chief Minister Mufti Mohammad Sayeed who launched
the facilities on the occasion of Gandhi Jayanti, told mediapersons
that it would help in improving efficiency and aid effective
monitoring and supervising of works in all the regions of
the state. He said it would not have any bearing on the darbar
move as the 172-year old practice would continue to be an
effective arrangement for integration of the state. He inaugurated
the video conferencing system by speaking to Ministers and
officials in Jammu, Leh and Nuyoma from the secretariat in
Srinagar. The facility, created with the help of NIC would
be extended in phases to all district headquarters in the
state beginning with far-flung districts of Kupwara, Poonch
and Doda. It is expected to help the senior officers at Secretariat
to monitor development schemes at district level, listen to
public grievances and interact with locals. It would also
cut administration travel time and costs besides bringing
efficiency in work culture and enabling departments to follow
up cases with Central government ministries.
The Chief Minister, held a conference
with Ministers for Social Welfare, Rural Development, Consumer
Affairs and Public Distribution, Information Technology, Chairman
of Ladakh Autonomous Hill Development Council and senior government
officials, who were in Jammu and discussed various issues.
He enquired about the sanctioning of new anganwari centres
by the Union government, about the progress on the beautification
and creation of parking lots in Jammu city. He was informed
that necessary action was being taken on the issues with work
in progress on development of parks, walkways and public convenience
facilities. The Chief Minister also spoke to the local MLA
and other officials in Leh congratulating them on receiving
the highest tourist traffic this year and enquiring about
the current tourist flow, which he was informed was satisfactory.
The state capitals have also been connected
to Nuyoma, a far-flung area of Ladakh, through the facility.
The SDM Nuyoma apprised the Chief Minister about development
activities in the area. On the occasion, the Chief Minister
also inaugurated "smart gov," a facility for e-governance
in the Secretariat, consisting of the Central Information
System (CIS) and the Departmental Information System (DIS)
and fully computerising common applications like payrolls,
leave, audit, monitoring of plan schemes, assets management,
court cases and personnel information system. Tata consultancy,
which is executing the smart gov, said that the objective
was to integrate technology to deliver electronic work place
for better efficiency. In the first phase, working of 5 departments-
chief minister's office, science and technology, information
technology, finance and general administration, have been
put on the e-governance. The system is designed to regulate
the file movement on a priority basis and incorporates concepts
like knowledge bank, work flow automation and electronic files.
From Sify, India, 2 October 2003
Anti-corruption Watchdog
Raids MP's Office
There has been a raid by officers from
the Independent Commission Against Corruption (ICAC) on the
offices of New South Wales Upper House MP Peter Breen. Around
six or seven officers from the NSW anti-corruption watchdog
have this afternoon swooped on the parliamentary offices of
Reform the Legal System Party MP Peter Breen. Witnesses say
a parliamentary IT expert was called in to provide help with
downloading a number of computer files and many more hard
copy files were also taken away for further investigation.
The raid took about two hours. A spokeswoman for Mr. Breen
said only "no comment" when asked about the raid.
The ABC understands that ICAC officers this week interviewed
a staffer in Mr. Breen's office as well as staffers from the
offices of the Democrats and the Shooters Party. Today's raid
comes after last month's resignation of fellow Upper House
MP Malcolm Jones, who was found to have corruptly misused
parliamentary entitlements amounting to around $40,000.
FromABC Online, Australia, 3 October 2003
Bangladesh Delays Formation
of Anti-Corruption Watchdog
Dhaka - While there were a reported
874 corruption cases in Bangladesh between January and June
2003, the government's longstanding promise of establishing
an independent anti-corruption body, remains mired in controversy.
Last week's report on corruption by Transparency International
Bangladesh (TIB), based on press reports over the last six
months, underlines the urgency for setting up such a commission.
According to the report, corruption related cases between
January and June 2003 numbered 874, with 216 making specific
mention of financial losses totalling around US $one billion.
Remarks TIB Chairman, Professor Khan Sarwar Murshid, "As
in the past, the police department tops the list in terms
of the number of corruption cases, but in terms of devouring
the sum, the taxation department outperformed all." About
37.3 per cent of corruption occurred in the areas of direct
and indirect taxes, followed by the police at 22.4 per cent,
the education department at 12.9 per cent, local government
at 10.1 per cent and health and family welfare at around 6.6
per cent. The existing anti-corruption body - Bureau of Anti
Corruption (BAC) - that works directly under Prime Minister
Khaleda Zia, was termed a toothless watchdog a decade ago.
The BAC's track record proves it mainly serves as a political
weapon for the ruling party against the Opposition. But with
graft continuing to spirla, the government was forced to begin
drafting a Bill for an independent anti-corruption commission
two years ago.
Due to heavy pressure from civil society
activists and international donors, the draft was scheduled
to be completed in April. But on one excuse or another, the
government continues to delay it. Members of civil society
and social watchdogs who studied the draft, express deep misgivings
about its effectiveness and independence. They feel the proposed
commission will only widen the scope for crooks to get away
scot-free. "We fear the Commission will never be able
to function freely if its members are appointed by persons
who may face corruption charges in future," notes former
cabinet secretary Mujibul Haq. Haq is referring to the proposed
two positions of the six-member team, who will be entrusted
with recruitment. These two positions will be filled by two
political representatives, Finance Minister, M Saifur Rahman
and Law Minister, Moudud Ahmed. Ironically, both these worthies
are accused of graft in cases filed at different times. "The
recruitment body of the Commission should be headed by the
Chief Justice, and not by a minister," stresses TIB chief,
Khan Sarwar Murshid. Despite such criticism, the government
was ready to send the draft Bill for the commission to Parliament
last month. It refrained from doing so at the last moment.
Explains Law Minister Moudud Ahmed, "There has been a
lot of criticism on the Bill. In this context, we decided
to seek the opinion of experts and amend parts of it if necessary."
According to Ahmed, the draft envisages
that the commission will be empowered to take steps against
ministers, state ministers, MPs, other public representatives
and government officials of any tier. The commission members
will have a four-year term, during which they could only be
removed by the Supreme Judicial Council comprising the chief
justice and two senior members of the Appellate Division of
the Supreme Court. But different organizations including the
TIB say the Bill is riddled with loopholes. Leading Bangladesh
lawyer who drafted the country' Constitution, Dr Kamal Hossain
believes the Anti-Corruption Commission Bill 2003 lacks in
two aspects. "It does not mention an independent prosecution
department," he points out. "Besides, the Commission
will have to depend on the government for funds. This will
affect its functioning." Even the BAC, to be abolished
after the creation of the Anti-Corruption Commission, is critical
about it. In a confidential report sent to the Cabinet late
last month, the BAC offers an interesting insight. It compares
the jurisdiction of the proposed Commission with its own,
concluding that the Commission will be infinitely weaker.
The BAC report notes that although
the BAC filed 2,632 graft cases in the last three years, the
commission will fail to lodge even 2,270 such cases, as its
authority has been eroded by the removal of certain laws.
In addition, it will be unable to press charges against bureaucrats,
customs officials and bankers, who are often accused of widespread
corruption. Worse, while the BAC operates under 16 fully-fledged
laws and 47 sections of the Bangladesh Penal Code, the commission
will have only one fully-fledged law and use only 14 Penal
Code sections. The sections of the Penal Code not included
in the commission's jurisdiction, include cheating, forging
court documents and property embezzlement and misappropriation.
"That means the definition of corruption has been narrowed,"
the report says. Former adviser of the caretaker government
and ex-inspector general of police ASM Shahjahan notes, "The
proposed Bill should be discussed in detail in Parliament,
with the Opposition participating in the discussion."
Currently, the government is engaged in eliciting the opinions
of concerned pressure groups on the proposed Bill. It is uncertain
when it will be amended and prepared for approval in Parliament.
From OneWorld, UK, by Sharier Khan, 6 October
2003
GMA Downplays RP'S
Corruption Ranking
Manila - President Arroyo yesterday
tried to downplay the recent report of the Berlin-based Transparency
International (TI) which showed that corruption in the country
has worsened. The TI report is based on the perceived corruption
level in 133 countries by business leaders, academics and
risk analysts. A score of 10 means the country is "highly
clean" while zero means it is "highly corrupt."
The Philippines scored 2.5, along with Albania, Argentina,
Ethiopia, Gambia, Pakistan, Tanzania, and Zambia. Last year,
the Philippines' score was 2.6. It ranked 92 in the list.
Bangladesh was most corrupt for the third successive year
with a score of 1.3, just edging out Nigeria. Finland, Iceland
and Denmark continued to top world rankings. Thailand, to
which the Philippines is often compared, ranked 70. Burma
ranked 129 and Indonesia 122. Arroyo said in a statement that
the TI report was based on "perceptions of corruption
that does not take into consideration hard evidentiary cases
or positive actions by governments." "We may not
have breached the level of perceptions on corruption in our
country but we are surely doing something about it, which
is not reflected in the report," she said. She claimed
that government's procedural reforms and lifestyle checks
are "taking their toll on corruption" and revenue
agencies are registering increased tax collections.
From Philippine Headline News, Philippines,
9 October 2003
Indonesia Concedes
Corruption is Rampant
Indonesia's Vice President Hamzah Haz
has conceded that there is still too much corruption in the
country. Mr. Haz says one of the reasons corruption is still
rampant is because many Indonesians have forsaken religion.
The vice president's remarks came a week after a global corruption
watchdog, Transparency International, named Indonesia as one
of the most corrupt countries. Indonesia was listed on the
same level as Kenya, although it was ahead of Burma, Angola,
Cameroon, Paraguay, Nigeria and Haiti.
From GoAsiaPacific.com, Asia, 11 October
2003
South Korea's Roh Sees
''Coughs'' Before Corruption Cure
Seoul - South Korea's turbulent 55-year
history has seen presidents assassinated and driven from power
by protests and coups, but Roh Moo-hyun is the first leader
to launch what is in effect a no-confidence motion against
himself. Roh told parliament on Monday he wanted to renew
his mandate after a series of scandals by holding a referendum
in December -- just a year after he was elected for a single
five-year term. He said that if he lost, he would step down
in February and hold a presidential election in April. Roh
was promptly labelled an amateur by the opposition, which
has rejected his referendum plan. The opposition, which has
a majority in parliament, has hampered Roh's reform plans
since he took office eight months ago. Roh has been an outsider
from the time he led a student boycott in 1960 against mandatory
essays praising Seoul's autocratic first president. The self-educated
labour lawyer appears to live up to schoolteachers' descriptions
of him as being stubborn with a special talent for forcefully
expressing his opinion. Perhaps his determined streak comes
from his upbringing. Roh hails from a farming family. He could
not afford college and took low-paying odd jobs in between
self-study, finally passing the bar examination in 1975.
He spent the early 1980s defending
student and labour activists, joining the pro-democracy movement
himself in 1987. A decade ago, he quit his mentor's party
over a merger that enabled that man to become president. Last
month, Roh quit his ruling party, decimating his already weak
support in parliament. ''If we look at his political history,
every time he was in a critical moment he would either charge
ahead or use risky strategies with his political career at
stake,'' the JoongAng Ilbo daily, a staunch critic of Roh,
said earlier this week. Feisty and Forceful - His bombshell
referendum proposal brought fresh upheaval to a country already
gripped with uncertainty about a sluggish economy, a crisis
over North Korea's nuclear arms ambitions and frictions with
its security ally the United States. But in an interview with
Reuters at the Blue House presidential compound in Seoul on
Friday, Roh said his drastic move was necessary to cure corruption
in South Korean politics and that the society was sound enough
to endure the treatment. ''When you first catch a cold, you
have a cough...you also cough at the end of your sickness,''
he said. ''Consider this the cough that comes at the end of
a cold or flu,'' said Roh, 57, of the past week's confusion.
The 57-year-old stressed the need to tackle corruption even
at the cost of his job.
He has not been accused of wrongdoing.
''A politician who is as important as the president of a country
must bear responsibility for allegations of corruption relating
to himself or his associates,'' he said. Roh's decision to
put his future in the hands of voters - unveiled on October
10 in an unscripted news conference - was triggered by prosecution
allegations that a close aide of 20 years was involved in
a widening political funding scandal. The aide was arrested
on Wednesday. The drastic move has baffled many of South Korea's
48 million people, and nobody has provided a clear answer
to the question whether the constitution permits such a confidence
vote. Roh said he saw ''no legal problems'' with his proposed
referendum. Roh has accomplished the rare feat of uniting
South Korea's fractious political parties -- against him.
The main opposition party called Roh an ''amateur'' and spoke
of impeachment. Living up to a reputation for feistiness,
Roh took a swipe at his opponents, noting they had at first
welcomed the referendum idea ''when my approval ratings were
below 35 percent.'' ''But after my declaration, when public
opinion polls showed my support rising, they shifted their
position and created this controversy,'' he said. Public opinion
surveys have indicated that voters would return Roh by a margin
of about 10 percent.
From MSNBC, by Paul Eckert and Lee Suwan,
17 October 2003
Lacson Proposes New
Commission Vs Corruption
Manila - Sen. Panfilo Lacson proposed
yesterday the creation of an Independent Commission Against
Corruption (ICAC) to fight corruption in the bureaucracy.
Lacson also proposed that the ICAC should have the power to
examine the internal systems and procedures of government
agencies to reduce, if not eliminate, opportunities for graft
and corruption. "Corruption is the most serious obstacle
to our country's progress," he said. "Scant as they
are, resources are plundered by the corrupt." One consequence
of corruption, he said, is that "investors, foreign or
local, have yet to see a truly level playing field. Instead
they are pressured by the attorneys of the most powerful."
He said that "being an independent body, the ICAC could
go about its job of going after crooks in government without
fear of being pressured by Malacańang or any other top official
as what is happening right now." Lacson earlier called
for the creation of an ICAC in his Oct. 13 privilege speech,
in which he outlined several areas for legislation as a result
of his "Jose Pidal" exposé series. He is seeking
the creation of an ICAC similar to the probe body operating
in Hong Kong, saying it is a matter made urgent in the wake
of Fraport AG's extortion case against top officials of the
government, as contained in a lawsuit filed by the German
firm before the World Bank's International Center for the
Settlement of Investment Disputes (ICSID) in Washington.
The opposition senator is also pursuing
the amendment of the Bank Secrecy Law to "exclude government
officials, elected or appointed, from being covered"
by it. Lacson is proposing that Congress be given the power
to look into bank deposits when its committees conduct investigations
in aid of legislation. He said his proposal will include the
proper safeguards to prevent abuse. He is also pushing for
additional amendments to the Anti-Money Laundering Act that
will include crimes involving graft and corruption as predicate
crimes covered by the AMLA. He also wants the Anti-Graft and
Corrupt Practices Act to be strengthened. "We must tighten
the rules on the filing of statements of assets and liabilities
(SALs)." Lacson is going to ask Congress to look into
the accountability of presidential spouses who use and abuse
the authority of the president. He wants a review of the Revise
Penal Code to make way for stiffer penalties for perjury and
subornation to perjury. "The Revised Penal Code should
be reviewed, especially insofar as imposing heavier penalties
on perjury." Even the procedures by which the Commission
on Audit does its job should be changed to prevent COA auditors
from colluding with corrupt government officials and stop
the practice of wasting government money through unliquidated
cash advances, Lacson said.
Too many probe bodies - However, with
the plethora of probe bodies already in existence, there is
no need for an ICAC as proposed by Lacson, First Gentleman
Jose Miguel Arroyo's lawyer, Jesus Santos said in a statement.
Santos said the country is already "strangled" by
an "overwhelming" number of probe bodies, many of
which are investigating the same cases. "Senate probe,
congressional probe, Ombudsman probe, DOJ probe," he
said. "As a lawyer, I would like to see graft cases move
in the courts, where the facts can be presented and solid
evidence weighted factually." Another probe body, he
said, would merely entail the duplication of efforts and additional
expense. Investigations, he warned, could also take longer.
"We do not need another probe body. What we need are
facts, evidence and the candid ability to admit guilt,"
he said. "That's the only way graft investigations could
move faster." Santos added that "it is sad to see
that a senator of the Republic has publicly displayed very
little faith in his colleagues at the Senate. The senator
from Cavite shows insensitivity and a lack of respect for
his fellow senators, who are now immersed in a three-committee
probe of his earlier allegations of irregularities."
Lacson's press statement, Santos said,
"assails the independence of the Senate and paints a
tarnished picture of the character of the senators involved
in the investigation." Citing the Kuratong Baleleng multiple
murder case as an example, Santos pointed out that the wheels
of justice ground to a standstill while Lacson was chief of
the Philippine National Police and former President Joseph
Estrada held office. Lacson is one of the principal accused
in the case. The Supreme Court recently ruled for the reopening
of the case, which was dismissed on a technicality by the
Quezon City courts. "Right now, there are graft cases
against Senator Lacson before the Ombudsman, where solid evidence
has been presented from the United States government's Financial
Crimes Investigation Center," Santos said. "Lacson
and his wife Alicia have been shown to have deposited millions
in US accounts, much of it shortly before (Estrada) was ousted,"
Santos said. "There is no need for an independent commission
to probe that, because the evidence is all there."
From Philippine Headline News, Philippines,
by Jess Diaz, 21 October 2003
Ghosts of Past Fuel
Corruption, Says World Bank
Jakarta - Indonesia remains one of
the world's most corrupt countries because the "ghosts"
of the old Soeharto regime have adapted to the new environment
and are continuing to flourish, according to a World Bank
report. Despite new anti-corruption institutions and anti-corruption
laws, the old network of Soeharto cronies and the former president's
family members have shaped the new environment to their own
advantage, the report says. "Today Soeharto has gone
but those who ran the franchises largely remain," the
report says. "Their influence continues to lurk behind
new laws and policies tipped in favour of the elite or in
the quiet reclamation of their old assets at knock-down prices..."These
ghosts of the past have found many new opportunities to re-establish
their power in the fluid environment of Indonesia's simultaneous
political and economic transition." Corruption was so
much a part of Indonesian society, it was "simply unrealistic
to expect comprehensive reforms" in the short or even
medium term, according to the report's author, Sawar Lateef.
He refrained from adding to the criticism regularly heaped
on the Megawati Government for its tolerance of corruption,
saying it was normal for evolving democracies to spend their
early years getting the economy under control and providing
stable government.
The opening up of Indonesian society
since Soeharto's fall five years ago, combined with the rapid
growth of a free media, has exposed corruption almost daily
and yet it continues to flourish, the report says. "You
have a problem of a very high level of transparency without
accountability," Mr. Lateef says. The best hope for breaking
down corruption is at the grass-roots level rather than within
the country's ruling elite where there is no appetite for
reform, the report says. "The vested interests are too
powerful and the ability of the state to implement a broad-based
program of reforms is limited," the report says. Success
in tackling corruption is more likely in individual villages
where the World Bank now directs much of its funding, after
widespread criticism the bank received for its years of funding
Soeharto's regime. Now the bank has a program directly funding
20,000 community projects in half of Indonesia's poor villages
- bypassing the Government figures who in the past regularly
took a cut of any funds. "Transparency and publicity,
the involvement of local stakeholders and village leaders
and of local institutions are central to effective community
participation in the fight against corruption."
From The Age, Australia, by Matthew Moore,
21 October 2003
Reform, Fighting Corruption
Priorities in Vietnam's Assembly Meet
Hanoi - Vietnam needs
to push harder for economic reform and work to restore public
trust by stamping out widespread corruption, Deputy Prime
Minister Nguyen Tan Dung said Tuesday at the opening of the
biannual National Assembly. "The phenomenon of paying
money for positions, projects, crime reduction ... has been
mentioned in many places, but very few have been uncovered,''
he said. "The measures to fight corruption are not efficient.''
Dung mentioned the conviction and sentencing of Ho Chi Minh
City's most notorious gangster, Truong Van Cam, known as Nam
Cam, as an example of the government's clampdown on corruption.
Cam and 154 other defendants were put on trial earlier this
year in the communist country's biggest-ever criminal trial.
Dung said the country also must press forward with economic
reform ranging from eliminating government subsidies and breaking
up monopolies to allowing more foreign investment and encouraging
growth within the private sector. "There are still some
weaknesses in the economy: the economic development over the
past three years is mainly development in width ... (it) does
not secure sustainable development,'' he said.
He praised several accomplishments
achieved this year, despite the war in Iraq and a bout with
SARS that killed five and infected 63 here last spring. The
country's gross domestic product is expected to grow at 7.2
percent or 7.3 percent this year, up from 7 percent in 2002,
and export growth reached 16.7 percent, double the target
and the highest rate in three years, he said. Vietnam also
has been praised by the international community for its efforts
in poverty reduction. He said legal reform must be sped up
along with government efficiency and creating a framework
for handling land-rights issues. Government seizure of land
at below-market value is a major source of complaints in Vietnam,
mainly from farmers. It has fueled massive demonstrations
and altercations between villagers and authorities. Outside
the National Assembly building, a band of protesters waving
large Vietnamese flags and carrying pictures of the late revolutionary
Ho Chi Minh were shooed away by police. The group carried
signs calling for an end to local corruption. The 498-member
lawmaking assembly will meet until the end of next month.
From The Star, Malaysia, 21 October 2003
China Sacks Land Minister
as Property Corruption Scandals Grow
Beijing - China's minister of land
and natural resources has been sacked, an official has confirmed,
amid growing reports of corruption scandals linked to the
booming real estate market. A ministry official declined to
say why Tiang Fengshan had been removed from his post, but
the Hong Kong daily Wen Wei Po, which is close to the Beijing
authorities, said he was being investigated for corruption.
"Tian Fengshan is no longer the minister, we don't no
why he was removed," the ministry official told AFP.
"It is not convenient to talk about this issue at the
momment." Sun Wensheng, vice minister of land and natural
resources, was named on October 14 as the Communist Party
secretary of the ministry, the ministry's top post, another
official said. "Sun Wensheng, as the party secretary,
is now leading the ministry," he said. Under Chinese
law the formal removal of Tian, who served concurrently as
minister and ministry party secretary, must come from the
country's parliament, the National People's Congress, he said.
China's booming but chaotic real estate
market is riddled with corruption, with the demolition of
private homes and forced relocations fuelling social discontent.
"At present there is indeed a great deal of corruption
in real estate development especially in the relocation of
people and in city planning," Liu Zhifeng, vice minister
of construction told a press conference last month. Liu blamed
developers and city government planners, saying they had not
met the needs of the market when planning residential development
and had "blindly" undertaken projects beyond the
financial means of ordinary Chinese. Developers and city planners
also refused to follow regulations in demolishing old homes,
relocating citizens and paying compensation, a situation that
has caused widespread discontent, he said. According to China's
Marxist constitution, all land belongs to the state, a situation
that gives the ministry of land and natural resources tremendous
powers over how to develop real estate.
From Channel News Asia, Singapore, 22 October
2003
World Bank Says Corruption
Threatens Reform
Following is press release from the
World Bank on corruption in Indonesia. In a report issued
on Monday (20/10/03), the Bank says Indonesia is at a critical
juncture in the fight against corruption and must punish the
corrupt. The report stops short of directly criticizing President
Megawati Sukarnoputri for tolerating corruption, such as allowing
Indonesia's parliament to be led by convicted corruption felon
Akbar Tanjung. However, the report does mention that corrupt
officials from ex-president Suharto's regime remained entrenched
in the civil service, judiciary and law enforcement agencies.
INDONESIA AT A CRITICAL JUNCTURE IN THE FIGHT AGAINST CORRUPTION
- New report sets out a framework for anti-corruption reforms
and for safeguarding development assistance: Jakarta - A World
Bank report issued today urges Indonesia to build upon its
progress towards a more open society and a more stable economy
by tackling systemic corruption through enhanced accountability
and transparency. The report calls for the central government
to create an enabling environment for local level reforms
that strengthen public participation in the making and monitoring
of development policies and programs. The report, entitled
"Combating Corruption in Indonesia: Enhancing Accountability
for Development" is a major input to the Bank's new Country
Assistance Strategy for Indonesia for fiscal years 2004-2007,
to be released later this year.
The report examines why public accountability
fails so often, looking in detail at the roots and practices
of corruption in a number of sectors and processes.(1) "Like
so many of our Indonesian and international partners, each
day we face the challenge of corruption in all aspects of
our work and have endeavored to select and design projects
to promote development with integrity," said Andrew Steer,
Country Director for the World Bank. "This report brings
together our learning on corruption, as well as that of our
partners, to feed into our new Country Assistance Strategy
which focuses squarely on how to deal with corruption and
improve accountability. I hope that the many courageous individuals
in Indonesia engaged in this fight for greater accountability
- and in particular the newly selected members of the Anti-Corruption
Commission - will find it a useful tool." The report
argues that the nature of Indonesia's current transition makes
it very difficult to develop and implement a comprehensive
strategy to fight corruption. The current state of flux allows
the informal rules and perverse incentives of the past to
flourish, while new formal rules have yet to take hold. Vested
interests remain powerful, law enforcement institutions are
weak, and the ability of the state to implement an integrated
program of anti-corruption measures is limited.
The report however argues that this
environment could well favor solutions based on local level
or sector-based initiatives in selected regions with a genuine
commitment to governance reforms. H. S. Dillon, Executive
Director for the Partnership for Governance Reforms in Indonesia,
added, "The Partnership is working at various levels
and in various fields in the fight against corruption, and
this report, on which we have collaborated closely, comprises
an important contribution to our future work." The report
calls for a two track approach to deal with corruption: "The
first is to help strengthen demand for reforms at the local
level. The second is for the central government to pursue
a core program of reforms that create an enabling environment
for the pursuit of localized solutions." Localized solutions:
The World Bank's experience with the Kecamatan Development
Project has shown how local communities can be empowered to
take charge of planning and monitoring development in their
villages and, by so doing, serve as an effective internal
check against the misuse of development funds. At the district
level, competition for investment, increasing political competition
and enhanced bottom-up pressures are creating opportunities
for governance reforms in the regions. Decentralization is
also creating openings for local communities to manage the
delivery of public services and their natural resources more
transparently and efficiently.
All these opportunities need to be
seized. Core reforms at the Center: The report pulls together
six common policy messages from its analysis of corruption
in different sectors and processes which would be included
in a program of core reforms at the Center. o Campaign finance
reform: Unless urgently addressed, the high cost and weak
regulation of campaign finance will continue to drive corruption
in Indonesia. The report calls for efforts to establish a
more level playing field, citing best practice in other countries
which include such measures as partial budgetary funding for
campaign finance, reducing costs of electoral campaigns by
allocating free time slots on TV and radio with no additional
time allowed, and banning the use of state resources for political
purposes. o Strengthen the guardians of accountability: Four
key institutions that dominate the accountability monitoring
landscape, Bank Indonesia, the Election Commission (KPU),
the Supreme Audit Agency and the Supreme Court need to be
greatly strengthened. This calls for men and women of high
integrity and competence at the top of these institutions,
full autonomy from interference by the executive and legislative
branches, and adequate funding to help them discharge their
responsibilities.
o Funding public services adequately:
Many institutions providing key public services are severely
under-funded, forcing them to adopt informal means of revenue
mobilization through "off-budget" measures. Adequate
funding of the budget of agencies delivering these public
services is critical. o Cleaning up the regulatory jungle:
Reform and rationalization of the thicket of regulatory constraints
is essential if this source of rent-seeking is to be reduced.
o Reducing impunity: Failure to punish the corrupt creates
strong incentives for the continuation of corrupt practices.
The report therefore calls for strong efforts to make the
new Anti-Corruption Commission get off on a sound footing.
This will require the appointment through a publicly credible
and transparent process of outstanding men and women to head
the Commission, adequate funding of its budget, the full cooperation
of the police and Attorney General's office, and a selective
and strategic work program. o Enhancing transparency: Transparency
is the strongest weapon in the hands of those fighting corruption.
Easy access to information empowered by adequate legal and
regulatory backing, including sunshine laws, is recommended.
"For any of this to happen," says Sarwar Lateef,
lead author of the report, "will require strong leadership,
not just from government but from all segments of society.
The war on corruption is too important to be left solely to
government to fight".
The report concludes that the choices
facing Indonesia's leaders are stark. Failure to act now could
have severe consequences for Indonesia's long term stability.
Yet a determined and sustained reform effort that builds upon
Indonesia's recent successes in promoting historic political
reforms and securing macroeconomic stability could immeasurably
strengthen prospects for this country. The report ends by
asking how Indonesia's development partners can ensure that
they are part of the solution rather than be seen as part
of the problem. It cites five key lessons the Bank has learned
from its enhanced efforts to safeguard against corruption
in its own projects since the Asia crisis: o Better project
design can improve outcomes and reduce corruption. Bank financed
programs are demonstrating that when beneficiaries take responsibility
for helping design projects and monitor their outcomes, corruption
is often lower and project outcomes more favorable. Local
communities who learn to fight corruption in projects become
more aware of hard realities and could potentially become
champions in the war against corruption. o Greater openness
empowers those fighting corruption.
The Government of Indonesia and the
Bank are together beginning to release much more information
on new Bank-financed projects exposing procurement processes
and audit findings. If extended to all aid financed activities,
this could potentially reduce opportunities for corruption,
particularly if civil society is assisted in monitoring these
projects effectively. o There is no substitute for due diligence.
The Bank has greatly strengthened its fiduciary controls,
doubling its staff on fiduciary oversight issues, systematically
following up on complaints, conducting ex-post procurement
reviews and following up more systematically on audit findings.
o Lack of tolerance of corrupt practices sends a message.
The Bank is attempting to take decisive action when corruption
is found in activities it finances through investigations
and declaration of misprocurement. This sends a clear signal
that it will not tolerate corruption in its projects. o Partnerships
have a high pay off in the fight against corruption. The Bank
has learned that going it alone is not an option. It therefore
works very closely with other international and bilateral
development agencies, with civil society, with the media,
and most importantly with the intended beneficiaries of activities
it funds.
From Laksamana, Indonesia, 22 October 2003
MoE to Incorporate
Concepts of Anti-Corruption in the National Curriculum
Islamabad - Ministry of Education (MoE)
with the collaboration of National Accountability Bureau (NAB)
will jointly develop strategies to incorporate the concepts
of anti-corruption in the National Curriculum. This was said
by the Federal Education Minister Zobaida Jalal and Chairman
National Accountability Bureau Lt. Gen. Munir Hafeez while
speaking at the concluding session of the workshop on inclusion
of Anti-Corruption Themes in the National Curriculum. Besides,
Federal Secretary for Education Shafqat Zaidi, principals
and heads of the all the federal schools and colleges were
present on the occasion. Speaking on the occasion, Zobaida
Jalal said that to deal the issues like human rights, population
development, environment, drug abuse and preventive education
on HIV/AIDS, the education is the best strategy. She told
that our religion Islam is a complete guideline for responsible
behavior and the concepts related to the anti-corruption are
part of our educational values. "These things need to
be highlighted and emphasized. Moreover, our students and
teacher need formal orientation and training that how these
can become a part of daily lives," Zobaida added.
The federal minister went on to say
that the ministry of education will develop strategies to
incorporate these concepts on anti-corruption in the National
Curriculum. "The text book development agencies will
translate these concepts into teaching learning materials
and will be made part of the textbooks," she told the
participants. Zobaida further told that the teacher training
institutes both at the Federal and Provincial levels, will
be involved for pre service and in-service training of the
new concepts included in the curriculum. She said that their
ministry in collaboration with NAB will also look into the
possibility of awareness campaign for public through Non-formal
education including media campaign. Zobaida assured that the
themes on anti-corruption will be an important part of the
National Curriculum. Sharing his views, Chairman NAB Lt. Gen.
Muneer Hafeez said that they were planning to start this project
to include anti-corruption themes in the curriculum from the
last one-year.
He told the participants that enforcement
alone cannot do anything effective and we cannot get rid of
corruption. There was strong need of an awareness campaign
among the people, he stressed. Hafeez was of the view that
to start this project, youth was the best opportunity to target.
Commenting on the curriculum, he said that we must do every
thing in the practical way and in a very simple language so
every body could absorb it and be able to understand. He said
that our religion is the best way of life therefore the curriculum
must reflect our Islamic teachings. He emphasized that both
teachers and parents will also have to learn as they make
the character of a child. Earlier, speakers stressed on the
inclusion of Islamic values in the national curriculum. They
said that the curriculum must be based on the simplicity so
the youth could learn the accountability and transparency.
They also highlighted that the current problems, which are
confronting Pakistan and their remedial measures should also
be included in the curriculum.
From PakTribune.com, Pakistan, 23 October
2003
Anti-Corruption Bureau
to Organise Lectures
The Anti-Corruption Bureau and the
Civil Service Institute will be organising two sessions of
lecture tomorrow at the Civil Service Institute in Kampong
Rimba Gadong. Present at the first session will be the Deputy
Minister of Home Affairs, Dato Paduka Awang Haji Adanan who
will also be the guest of honour. The first session, which
will start at 7.45am, is open especially to Permanent Secretaries
and also the Heads of Departments. The second session meanwhile
will start at 1.30pm and is for senior government officers.
The two lectures will be presented by Professor Jon S. T.
Quah from the Political Sciences Department, National University
of Singapore. For the morning session Professor Jon S.T. Quah
will be delivering a talk titled "In Pursuit of Good
Governance in Asian Countries: The Role of Corruption Control
and Civil Service Reforms". In the afternoon, the talk
will be on "Ensuring Integrity in the Public Service
or How to Keep Corruption at Bay?"
Professor Jon among other things in
his lecture will touch on the reasons of corruption, the types
of corruption control and civil service reforms in the Asian
countries. He will also be making a conclusion that political
will is an important prerequisite in ensuring the effectiveness
of reformation in civil services and lowering corruption.
In the afternoon session, the professor will be talking on
the cost and results of corruption in two of the Asean member
countries, the Philippines and Thailand. For this session,
Professor Jon will be making a conclusion by stressing on
the importance of leadership through example of promoting
integrity and work culture in the public services by keeping
corruption and its adverse consequences at bay.
From Borneo Bulletin, Brunei Darussalam,
by M K Anwar, 24 October 2003
Empower Independent
Commission to Check Corruption of Influentials
Jurists, MPs, leading members of civil
society and political leaders at a roundtable yesterday called
for total independence of the proposed anti-corruption commission.
Ministers should not be nominating members of the Commission,
they said. The proposed anti-corruption commission should
be free from political influence and be truly independent,
neutral and effective, they opined. The Ministry of Law, Justice
and Parliamentary Affairs organised the roundtable at the
auditorium of the Institute Judicial Administration and Training
marking two-year completion of the present government. Minister
for Law, Justice and Parliamentary Affairs, Barrister Moudud
Ahmed presided over meeting. Former President of the Supreme
Court Bar Association and Chairman of Editorial Boards of
The New Nation and The Daily Ittefaq, Barrister Mainul Hosein
presented the keynote paper. Some of them, however, suggested
that two Members of Parliament (MPs), one each nominated by
the Prime Minister and Leader of the Opposition in Parliament
should be included in the selection committee of the proposed
Commission as member. Some others opined that involvement
of the Chief Justice in the nomination of members of the commission
would simply make the esteemed office of the Chief Justice
controversial. They suggested that the provision for involvement
of the Chief Justice should be deleted. All most all the participants
stressed the need for amendment of the "Proposed Anti-Corruption
Commission Act" which is now under scrutiny at the Parliamentary
Standing Committee on Ministry of Law, Justice and Parliamentary
Affairs.
Former Chief Justice Mostafa Kamal,
State Minister for Law, Justice and Parliamentary Affairs,
Barrister Shahjahan Omar, Attorney General Hassan Arif, Supreme
Court Bar Association President Barrister Rokon Uddin Mahmud,
senior Advocate Nurul Islam, Chief Whip of the Opposition
Vice-Principal Abdus Shahid, Abdul Mannan MP and MA Hena MP
of BNP, GM Kader MP, Barrister Abdur Razzak, Prof Muzaffar
Ahmed of Transparency International, Prof Khan Sarwar Murshid,
editor of New Age Enayetullah Khan, editor of Daily Star Mahfuz
Anam, former Inspector Generals of Police Enamul Haque and
ASM Shahjahan, former Cabinet Secretary Mujibul Haq, former
Director General, Bureau of Anti-Corruption Badruzzaman, Director
General, Bureau of Anti-Corruption Major General (retd) MA
Matin and Advocate Harun-Or-Rashid took part in the discussion.
Barrister Mainul Hosein in his keynote speech said nobody
expects to see corruption eradicated from public life easily
or overnight. But people hopes to see strong determination
on the part of the government and some drastic actions at
least against a few of the most corrupt ones. He said people
have chosen political leaders to give leadership in public
affairs and when they are affected by corruption there cannot
be any end to corruption. "We struggled for democracy
and democratic government to build good governance for the
general public. But there cannot be good governance when corruption
in high places can go unhindered," he said, adding the
extent of corruption in high places is such that it has made
the institutions of good governance difficult to foster.
The constitutional obligation for the
separation of the judiciary is facing stiff resistance, he
noted. The protection of rule of law is under constant threat
from the power of black money. Being empowered with black
money politics for some have become the other name for terrorism
or extortion, Barrister Mainul said. He regretted that it
is a national tragedy when honest public functionaries cannot
serve people honestly. "We need a high-powered and independent
Anti-Corruption Commission not for dealing with corruption
from a peon to the Prime Minister. We need such a high-powered
and independent Anti-Corruption Commission to organise assaults
on corruption of the 'high-powered' people, namely the high
government functionaries," he said, adding corruption
of ordinary people can be dealt with through the normal criminal
justice system. He said his first suggestion is that the Anti-corruption
Commission should be specifically and exclusively for stopping
corruption among highly placed public functionaries- political
or otherwise.
The charges of corruption against the
ministers including the Prime Minister and bureaucrats not
below the rank of the Joint Secretaries only shall be taken
up by the Commission. "The Anti-Corruption Commission
has to be truly independent and for this purpose it should
have sufficient budgetary allocation enabling it to carry
on the investigation of corruption charges as well as to appoint
competent lawyers to consult and conduct the cases in court.
In our situation reliance on public prosecutors shall seriously
hamper the Commission's independence and efficiency. It cannot
be enough to start corruption cases in court. The Commission
needs to be generously funded. The fight against big corruption
cannot come cheap," Barrister Mainul said. He
said the independent and powerful Anti-Corruption Commission
shall go a long way to make corruption in high places punishable.
But the people's faith in the judiciary must also be scrupulously
upheld because in the final count it is the court that will
decide corruption cases. That the lower judiciary is not unaffected
by the corruption is well established. Suspicion has now been
cast on the Supreme Court also, he noted. He said the judiciary
being a very sensitive institution, there has to be a different
way for protecting integrity of the judiciary.
The reason being even an unfounded
bad reputation of a judge is good enough for shaking public
faith in the judiciary. To prove misconduct through formal
proceedings in the Supreme Judicial Council of elsewhere is
bound to prove most difficult and more damaging for the judiciary.
Yet such a method has to be used in an extreme case. "But
it is my considered view that the lawyers and judges must
evolve an informal mechanism for handling the question of
bad reputation against a judge before it becomes too serious
calling for the extreme measure of removal of a judge formally.
But publicly such a situation is not desirable that a judge
should first be accused publicly and in the press and then
enquiry by the Supreme Judicial Council shall commence. The
Chief Justice should first be given a chance to deal with
the allegation of misconduct against a judge," he said.
He suggested that as head of the judiciary the Chief Justice
should be able to informally investigate and seek a solution
to the problem when a judge has widely held bad reputation.
Thus judges and the leaders of the bar cannot shun their responsibility
for maintaining the sanctity of the judiciary. The Bar Associations
have to play their role to punish those lawyers without whose
inducement judges cannot be corrupted.
In short all the democratic institutions
of good governance must work rightly and harmoniously to end
corruption in public life. Establishment of the Anti-Corruption
Commission will certainly be a bold step in the right direction.
Let us earnestly hope that the government would not wait further
to take the bold step courageously, he added. Barrister Moudud
Ahmed in his presidential speech said the suggestions and
recommendations of the roundtable would be placed before the
Parliamentary Standing Committee which is scrutinizing the
proposed Anti-Corruption Commission Bill. He said the government
want to make the Commission truly independent and neutral.
This is a beginning on new journey he said and reminded all
that no law is one hundred per cent perfect. "Genuinely
we want to improve the law and make the Commission effective,"
he added. Former Chief Justice Mostafa Kamal urged all concerned
to establish the anti-corruption commission as early as possible.
"Lot of good words have been said and valuable time has
passed. We are tired of talks. Let do it now," he said.
He wondered why the bill has a provision involving the Chief
Justice in nominating the panel of commission members. "You
did not give power to the Chief Justice to appoint High Court
judges. Even the system of consultation has long been taken
away. Now you are giving him authority to nominate members
of selection' committee," he said.
Justice Kamal said, "Do not use
the Chief Justice everywhere. It will only make office of
the Chief Justice controversial." He said that the corruption
relating to money laundering and e-commerce should be brought
under the jurisdiction of the commission. Barrister Shahjahan
Omar suggested that all member of the Commission should be
nominated by the Prime Minister and her nominations placed
on the floor of Parliament for approval. Attorney General
Hassan Arif suggested some technical improvement to the bill.
Barrister Rokon Uddin Mahmud said that the constitutional
provisions on Chief Justice and judges of the Supreme Court
should be studied to avoid complications before involving
them in nominating panel of members the Commission. Opposition
Chief Whip Abdus Shahid said, ministers and MPs cannot avoid
political agenda of the government while nominating panel
members for the Commission. So, he suggested the Leader of
the House (Prime Minister) and Leader of the Opposition and
the Chief Justice should nominate members to the selection
committee of the Commission. MA Hena MP of BNP said that an
effective mechanism should be evolved so that the Commission
is truly neutral and powerful. GM Kader of Jatiya Party (Ershad)
said that the anti-corruption commission should be independent
of the government. Earlier in the morning another roundtable
on "Good Governance and the Judicial System" was
also held at the same venue with Barrister Moudud Ahmed in
the chair. Senior Advocate Khandker Mahbubuddin Ahmed MP presented
the keynote paper.
From The New Nation, Bangladesh, 24 October
2003
Greens Push for Tas
Government to Launch Corruption Inquiry
The Tasmanian Greens say the State
Government's rebuttal of corruption allegations made by former
forestry auditor Bill Manning has not averted the need for
a commission of inquiry. Tasmanian Greens leader Peg Putt
says not all of Mr. Manning's allegations have been addressed
by the Government. Deputy Premier Paul Lennon today described
Mr. Manning as an individual at odds with his employer, whose
professional judgment was marred by a "mind-set of conspiracy,
secrecy and corruption". But Ms Putt says Mr. Manning's
evidence on the handling of forest practice breaches has not
been answered. "Allegations that weren't answered today
were the specific advice of the Solicitor-General, that complaints
must either be prosecuted or have fine levied in result of
breaches of the forest practices code," Ms Putt said.
"Instead he's made very clear that the practice is to
routinely disregard the letter of the law and to try and encourage
people to lift their game rather than take any action when
they make breaches."
Meanwhile, the State Opposition says
the Greens have manipulated the former forestry auditor into
making allegations of industry corruption that cannot be substantiated.
Opposition leader Rene Hidding says Mr. Manning's evidence
to a Senate hearing alleging institutionalised corruption
in the forestry industry has been fully rebutted by Mr. Lennon.
Mr. Hidding says if there was any truth in Mr. Manning's allegations,
the Government would have at least owned up to one of them.
"We'd have to say on the sheer weight of rebuttals of
that you'd have to say that the Greens are in all sorts of
trouble on this, that they've been manipulating this person
for political reasons and in fact, have pushed him so far
out that he's not been able to substantiate, it would appear,
not even one of his allegations," Mr. Hidding said.
From ABC Online, Australia, 29 October 2003
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Corruption Watchdog 'Tainted'
The ruling Socialists yesterday dismissed
as politically motivated Tuesday's report by an international
watchdog organization that listed Greece as the most corrupt
country in the European Union. The Transparency International
report ranked Greece in joint 50th place, together with South
Korea and Costa Rica, among 133 countries surveyed. It also
found that five of the new EU members set to join in May -
Cyprus, Estonia, Lithuania, Slovenia and Hungary - were less
corrupt than Greece. "I have the impression that, through
the vague and truly odd way that Transparency International's
representatives in Greece handle their data, they are effectively
trying to serve New Democracy's political aims," government
spokesman Christos Protopappas said. The head of the watchdog's
Greek office is Virginia Tsouderou, a former ND MP who served
as deputy foreign minister in the early 1990s. "Efforts
have been made to fight corruption and institutions have been
set up that are similar to if not better than European (institutions),"
Protopappas said
From Kathimerini, Greece, 9 October 2003
Corruption Increases
- Poll
Corruption in Bulgaria has increased
for the first time in six years, a survey by the Transparency
without Borders Association shows. The association is a part
of the International Organisation for Combating Corruption.
This year the corruption index in Bulgaria decreased by 0.1
points. This brings the country nine positions back from its
previous ranking, from 45th to 54th position among the 133
countries polled. The corruption index for 2003 is 3.9. For
2002 it was 4 and in 1998, the first year Bulgaria took part
in this survey, it was 2.9. The corruption index is calculated
on the basis of reports by major finance industry organisations,
including the World Bank, the European Bank for Reconstruction
and Development, Gallup International and the Economist Magazine.
The index is important for investors because they include
the size of bribes and the corruption fees as expenses in
their investment plans. An index of 10 means there is no corruption.
Finland is the closest to this ideal situation with an index
of 9.7, followed by Iceland (9.6) and Denmark and New Zealand
(9.5). The highest level of corruption is registered in Haiti,
Nigeria and Bangladesh. This year Bulgaria shares the 54th
place with Brazil and the Czech Republic. An increase in the
corruption pressure is observed in nearly all East-European
countries.
Latvia ranks 57th, Slovakia is 59th,
Poland 64th. Corruption in Bulgaria is lower than in Lithuania
(44), Hungary (40), Estonia (33) and Slovenia (29). "Obviously,
according to people the business climate gets worse and the
'big privatisation' is carried out in a shameful way,"
political analyst Ognyan Minchev said. Emi Baruh from Transparency
without Borders said that there were "suspicions of successful
corruption practices among MPs". The Council of Ministers'
Committee coordinating the combating of corruption has been
given 104 corruption tip-offs in 18 months, 13 in the past
three months. The Committee checked out six tip-offs and sent
the rest to the competent ministries and regional governors,
BTA reported. Over 260 privatisation transactions of the last
12 years have been referred to the prosecution magistrates
because of suspicions of corruption, State Administration
Minister Dimitar Kalchev said. According to him, one way to
curb the problem in the state administration is to introduce
20 or 25 e-services to avoid direct contact between the service
provider and the client. Another way is to hand over some
state activities to the private sector. Suggestions to this
effect will be made by every ministry by the end of the year,
Kalchev said.
FromSofia Echo, Bulgaria, 10 October 2003
Romanian Government
Opens Own Probe into Corruption Charge
Romania's education ministry said Friday
it had opened its own inquiry into charges that a government
minister had misused European Union funds to benefit her family.
In September the European Commission said it had launched
a corruption inquiry after it emerged that money had been
paid to the family of the Minister for European Integration
Hildegard Puwak for bogus business projects. "Following
information published by the media about this affair the ministry
has decided to establish a committee of inquiry," a ministry
spokesman said. The committee's members will include representatives
of the EU's Leonardo da Vinci centre (a programme aimed at
candidates for membership) which financed projects submitted
by Puwak's husband and son. Its findings will be published
no later than October 27, according to the ministry.
Romanian media recently revealed that
two companies run by Puwak's husband and son had obtained
150,000 euros (160,000 dollars) in EU funding to operate business
training schemes after she was appointed to her job in December
2000. According to the reports, several German companies cited
as partners in the various business plans were owned by friends
of the Puwak family and were listed with bogus telephone numbers
attached. Romanian anti-corruption prosecutors have opened
an investigation into the claims, while the country's two
main opposition parties have demanded the minister's resignation.
Text and Picture Copyright © 2003 AFP. All other copyright
© 2003 EUbusiness Ltd. All rights reserved. This material
is intended solely for personal use. Any other reproduction,
publication or redistribution of this material without the
written agreement of the copyright owner is strictly forbidden
and any breach of copyright will be considered actionable.
From EU Business, UK, 10 October 2003
Britain Needs to Get
its International Anti-corruption Act Together
A ground-breaking agreement has been
reached in the war against global corruption. On October 1,
the United Nations concluded talks on a new convention against
corruption. A signing ceremony will take place on December
9 in Mexico, where President Vincente Fox has been one of
the leading supporters of Transparency International or TI,
the anti-corruption watchdog. The date is being proposed to
the UN general assembly as an annual international anti-corruption
day. Peter Eigen, TI's founder, said: "This is an unprecedented
breakthrough." The convention was "a major instrument
to push governments to live up to new international standards
of integrity and good governance". TI played an official
part in the talks leading up to the UN convention. Mr Eigen
had been a senior official with the World Bank in Kenya. But
he was so incensed by the corruption that squandered resources
under Daniel arap Moi's government that he resigned in 1991
and founded TI 10 years ago. He returned to Kenya in July
and, standing next to President Mwai Kibaki, addressed 400
people in Nairobi, six months after the elections that ousted
Moi's corrupt regime. Grassroots "clean election"
campaigns had helped in a revolt against repression and corruption.
Kenya is cleaning out the Augean stables,
including sacking 35 public procurement officials recently
for awarding themselves building contracts, and dismissing
the head of a corrupt judiciary. According to an opinion poll
conducted for TI in Kenya, 80% of Kenyans think their government
is committed to eradicating corruption. Last week TI published
its ninth annual corruption perception index, CPI, ranking
133 countries according to how corrupt they are seen to be
as assessed by 15 independent surveys. However corrupt poor
third world regimes are perceived to be - and many score badly
on the CPI list - too often it is western business interests
which perpetuate corruption, paying huge bribes to win contracts.
To combat this, an earlier convention was drawn up by the
world's richest countries, members of the Organisation of
Economic Co-operation and Development, to outlaw the bribery
of foreign public officials. The treaty came into force in
February 1999, committing ratifying states to introduce national
legislation. Britain fares well on the CPI, ranked equal eleventh
of the least corrupt countries, with Canada and Luxembourg,
while Nordic countries top the list.
And in TI's separate bribe payers'
index, which monitors bribe paying in international trade,
Britain is the eighth country least likely to offend out of
21. Yet Britain's anti-corruption legislation is archaic,
despite being updated under the government's Anti-terrorism
Act of 2001, enacted after 9/11. This complies with the OECD
treaty by outlawing foreign bribery. Yet, according to the
police's national criminal intelligence service, there have
been no prosecutions since the act came into effect in February
2002. This hardly indicates that UK businesses have suddenly
become lily white. In an opinion poll conducted for TI, 52%
of respondents thought British businesses may still be affected
by corruption. The Home Office proposed new draft legislation
last March. But both TI and a joint parliamentary committee
chaired by Lord Slynn thought it too complex for businesses
to know their obligations or for prosecutors and investigating
bodies to implement. The legislation, as drafted, is a backward
step. "The police don't prosecute foreign bribery now,
and would face additional hurdles if the draft bill is enacted
in its present form," said Graham Rodmell of TI UK. There
is now a chance to make a redrawn corruption bill effective
in time for parliament's next sitting. The government needs
to do so if it is serious about the war against global corruption.
o Michael Smith is associate editor of For A Change magazine.
From Guardian, UK, by Michael Smith, 13
October 2003
Corruption Keeps Drinking
Society's Blood
The people feel that corruption in
Slovakia has not been slashed during the last three years,
as recent allegations of corruption in top politics cause
major concern among the public. New figures on the public
perception of corruption show that the introduction of several
laws to cut down bribery and cronyism in this postcommunist
state has made no difference in real life. Cabinet efforts
to fight corruption through introducing new legislation and
amending existing laws are missing their target; the positive
results of approved laws are yet to come. Current allegations
of corrupt behaviour and clientelism in top state posts, including
accusations against Prime Minister Mikuláš Dzurinda, are meanwhile
discrediting reform efforts aimed at rooting out corruption,
thus leaving people unconvinced that their official representatives
in cabinet and parliament really mean their anti-corruption
rhetoric. In an annual update, transparency watchdog Transparency
International Slovakia (TIS), released figures for 2003 on
the so-called corruption perception index (CPI), which indicates
how much corruption is seen as a problem in selected countries.
A total of 133 countries were listed this year. On a 0 - 10
scale, with 10 suggesting a corruption free society, Slovakia
ranked 59th, along with countries such as Columbia and Peru,
with a 3.7 index, which it has scored for the third year in
a row.
At the same time, Slovakia ranked second
to last before Poland of the region's transforming postcommunist
democracies known as V4 countries, which also include the
Czech Republic, and Hungary. Daniela Zemanovicová, program
director with TIS, said that the fact that Slovakia's index
has not changed for three years in a row does not necessarily
mean that the state's legislators were ignoring the problem
of corruption. "The respondents in the survey are analysts,
businessmen, and regular citizens and the reason why the figure
hasn't changed may be that measures that were adopted to fight
corruption still haven't brought results in real life,"
she said. While approved laws may inevitably require some
time to bring results, the public is often confused about
politicians' dedication to address corruption. Pavel Nechala,
an analyst with TIS, said that politicians often talk about
the need for anti-corruption laws, but once drafts come to
parliament, MPs do not support them. "It often happens
that a law is introduced with fanfare [to parliament], and
it passes the first reading. [In a formal process, drafts
are voted on three times to give MPs a chance to fix the original
draft].
Then suddenly, a group of MPs emerges
and they say that they have factual objections towards the
legislation, although they never said a word during previous
parliamentary discussion. As a result, the law is not passed,"
Nechala said. According to Ján
Hrubala, head of the cabinet's anticorruption unit, corruption
is not easy to get rid of, and a series of steps are needed
to cut down the problem. "There is no single cure for
corruption. Fighting it requires a series of steps,"
Hrubala said. Determined to behave transparently and push
forward honest practices, dozens of local businessmen recently
signed a so-called anti-corruption charter, in a move initiated
by Transparency International. The document binds its members
to behave transparently in their business activities. PM Mikuláš
Dzurinda, who participated in the signing of the document,
said that he was "not so completely naive as to think
that there can be a world 100 percent free of corruption".
"But the quality of this phenomenon can either be very
unpleasant or it can be so that it does not endanger society.
I would be very glad if the latter was the case for Slovakia,"
Dzurinda said.
Ironically, Dzurinda himself is now
facing allegations of cronyism. Recently, the sacked head
of the National Security Office (NBÚ), Ján Mojžiš, said that
in 2001, Dzurinda tried to persuade him to change the NBÚ's
decision to deny security clearance to the firm KISS. As a
result of the decision, the firm lost an Sk800 million (€1.9
million) tender that was part of the state information system
Govnet project. Dzurinda has denied these claims. If such
allegations remain unsolved, TIS officials said, it harms
the country's morale and reassures common people that politicians
do not genuinely try to address the issue of corruption. "For
a common citizen, solving corruption cases and allegations
relating to top positions would be a signal that there is
a genuine will to address the issue," said Zemanovicová.
Among problematic issues concerning the legislators and top
officials, issues such as changing the law on the financing
of political parties, the law on conflict of interest, and
a law reducing the immunity of MPs have remained on the agenda
for years, despite promises to address them. "Scandals,
as we are seeing them now, however, can also have a positive
impact because they can create public pressure for systematic
changes. So far, however, almost nothing is happening [to
fix the laws] in big politics," Zemanovicová said.
From Slovak Spectator, Slovakia, by Martina
Pisárová, 13 October 2003
FM: Greeks Tired of
Corruption
Papandreou backs Simitis, concedes
many people see PASOK as incapable of taking initiatives -
Foreign Minister George Papandreou, who garners the highest
public approval of all PASOK members, is a key figure in the
government's efforts to be re-elected. But he is also certain
to be a key player in whatever happens inside PASOK whether
the Socialists win or fail in the elections, as he is a likely
successor to Prime Minister Costas Simitis. In a wide-ranging
interview with Kathimerini yesterday, Papandreou reiterated
his strong support of Simitis and his own efforts to help
PASOK stay in office. But he also acknowledged that people
were tired of bureaucracy, corruption and the pervasiveness
of powerful vested interests. Asked to comment on rumors that
Simitis might pull out of his party's leadership before the
elections, allowing his successor to fight the battle, Papandreou
said: "We are at a critical political juncture in the
completion of our work, the preparations for the elections,
and the formulation of our strategy and vision for the next
term.
The prime minister himself is on the
front line of this effort and we all have a duty to help in
the struggle and serious work without getting involved in
rumormongering." And would he be a candidate for the
party leadership after the elections? "I am struggling
to create conditions for PASOK to win the elections once again.
I have always been and will always be part of that effort.
This for me is the great political challenge. I am not interested
in scenarios or working hypotheses," he said. But Papandreou
noted also the many factors that had made the public feel
tired of PASOK. "I believe that Greeks are indeed tired
of having to deal with bureaucracy, they are truly disgusted
with the extent of corruption in many sectors of the civil
service and they find it unacceptable that all of society
is held back by the petty interests of smaller or larger interest
groups that want to dominate political life," Papandreou
said. He noted, though, that the government's reform effort
could save the day. "(The people) know that Greece has
to push through reforms.
The question is which party has the
inner strength and conviction to do so. PASOK has shown that
it can set Greece on the road to progress and change. PASOK
governments have been identified with major changes that have
benefited the country and its people. Costas Simitis has made
this effort his life's work, and this is something the vast
majority of Greeks recognize," Papandreou said. He stressed
the necessity for such reforms, even at the expense of the
party's own identity. "I realize, however, that today
many people believe that PASOK has itself become part of the
establishment and that it is therefore incapable of carrying
out the necessary initiatives," Papandreou said. "That
is the challenge we will have to rise to. I believe that PASOK
is and can always be a living movement which, when necessary,
can even contradict itself in order to better serve the country,
and to transform itself into a new force for reform and change."
From Kathimerini, Greece, 13 October 2003
Dzurinda Signs Anti-corruption
Charter
Prime Minister Mikuláš Dzurinda signed
the Anti-Corruption Charter of Slovak Business, an initiative
of NGO Transparency International Slovensko that has already
been signed by more than 20 firms, news wire TASR reported.
The head of the European Commission Delegation to Slovakia,
Eric van der Linden, welcomed the country's move in fighting
corruption but stressed that Brussels still expects the Slovak
Parliament to adopt further measures in this area. Signatories
to the charter pledge not to give or receive bribes, or use
any other illegal ways to prefer business partners, state
representatives, or employees. Among its supporters are representatives
of major companies in Slovakia, including oil refinery Slovnaft,
railway operator ŽSSK, US producer of electrical and electronic
components Molex, Coca-Cola Beverages Slovakia, and Pepsi
Cola. Other signatories are the Association of Slovak Businessmen,
the Slovak Business and Industrial Chamber (SOPK), and the
Business Alliance of Slovakia.
From Slovak Spectator, Slovakia, 13 October
2003
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Anti-corruption Manual to be Adapted
for Region
Transparency International (TI), the
leading international anti-corruption and good governance
organization, and its national chapters in the Middle East
and North Africa have launched the process of adapting TI's
source book to the Arabic context, according to a Lebanese
Transparency Association (LTA) statement. The source book
is a handbook for anti-corruption practitioners, a manual
for all those working in this domain and guardians of good
practice in government and, increasingly, in the private sector,
the statement said Thursday. The source book has been translated
into Arabic. But for this anti-corruption manual to be of
value for the region a translation is not enough. TI's national
chapters are adapting it to relate to the region's reality
and political context to function as a tool for civil society
and policymakers. LTA called on researchers and economists
interested in cooperation in this process to send their applications
for the adaptation of the following chapters of the book:
building political will; independent anti-corruption agencies;
conflict of interest; nepotism and cronyism; and the right
to information, before the Oct. 30. For additional information,
please contact The Lebanese Transparency Association in Beirut
at telefax 01/293045/282238 or by e-mail to contact person,
Fourat Achkar at: faschkar@tranparency-lebanon.org
From Daily Star, Lebanon, 24 October 2003
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Governor Considers Requiring Students
to Perform Public Service
Springfield - Illinois high school
students would have to perform community service before they
could graduate under a proposal being considered by Gov. Rod
Blagojevich. Saying American children spend too much time
watching television, Blagojevich said mandatory community
service is a way to steer kids into productive activities.
"Serving their community, that's healthy, productive
good use of time that I think is better than too much time
in front of television," Blagojevich said. The idea is
still in its formative stages, but it would require every
high school student to complete a certain number of hours
of community service before obtaining a diploma. Details such
as the number of hours and what counts as community service
are under discussion. "An idea likes this is complex,
and it is not something that we can or should decree overnight,"
Blagojevich said. "We're going to work with local school
districts, with teachers and with volunteer organizations.
We'll do all of the research, but on it's face, I find the
idea very compelling." State law already allows school
districts to require community service as a condition of graduation
but does not require it. Chicago public schools, for example,
require 40 hours of community service. Maryland is the only
state where all students must perform community service to
graduate.
Students there must complete 75 hours
of "service experience," said Tracey Seabolt, service
learning specialist for the Maryland Department of Education.
That can range from a letter-writing campaign conducted from
a classroom to outdoor cleanup projects, Seabolt said. The
requirement has been in place 10 years, and it hasn't stopped
a student from graduating. "Most of the people who haven't
graduated, it was for some other reason," Seabolt said.
Blagojevich said that if school districts want more money
to implement the plan, he'll give it consideration, but they
shouldn't count on it. "They ought to stop doing that
(asking for more money) and start figuring out ways at their
own level to provide these kinds of services," Blagojevich
said. "Those at the local level ought to take some responsibility
as well." The idea of statewide mandatory service to
obtain a diploma isn't new. Ben Schwarm of the Illinois Association
of School Boards said his research shows bills requiring mandatory
service have been introduced in the General Assembly for the
past six or seven years.
None of the bills made it out of committee.
Schwarm said the association isn't necessarily opposed to
the idea. "It would be more a time problem than a money
problem," Schwarm said. "(Students) need so many
credits to graduate. It's a pretty full plate right now."
Springfield school superintendent Diane Rutledge took a cautious
approach to the idea. "To be involved in your community,
we think that's a really good idea," Rutledge said. "We
will have to se how something like that could be structured
and how that fits into the school day." A spokesman for
the Peoria public school system could not be reached for comment.
Blagojevich also said he wants to make community service a
condition for receiving an Illinois Merit Recognition Scholarship.
Students in the top 5 percent of their class who attend a
public university are eligible to receive the one-time, $1,000
grants. In addition to class rank, Blagojevich wants the students
to contribute a minimum of 50 hours of community service as
condition to receiving the money. "The service will vary
depending on where they live, what they like to do and how
they can best serve," Blagojevich said. The governor
said he will push for the change during the spring session
of the General Assembly.
From Lincoln Courier, IL, by Doug Finke,
11 October 2003
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Step Forward for Fight Against Global
Corruption
The first global anti-corruption convention
was on Wednesday finalised by delegates at talks in Vienna,
an observer said, opening the way to more effective co-operation
in prosecuting crooked public officials and recovering stolen
assets spirited abroad. The text must now go to the United
Nations' General Assembly, which is expected to rubber-stamp
the final draft, ahead of a signing ceremony in Mexico in
early December. It will come into force after 30 countries
have ratified its provisions into national law, a process
that could take two years or more. Peter Rooke, who sits on
the advisory board of the anti-graft watchdog Transparency
International, said the move sent "a powerful political
signal" that countries were getting serious about the
international problem. The convention's highlight is ground-breaking
provisions to facilitate the return of assets stolen by officials
or leaders in one country and transferred to another - a subject
that had engendered "quite a battle between the developed
and developing world", he said.
The final provisions on the return
of assets ran to between five and six pages, which will now
have to be examined closely to assess their impact. Mr. Rooke
nonetheless regretted the fact that, under US pressure, the
text shied away from dealing with private-to-private sector
corruption, as well as the financing of political parties.
He also noted that tough decisions on how the agreement should
be monitored had been deferred to a future conference of state
parties - suggesting that was a battle anti-corruption campaigners
would need to fight another day. Earlier this week the UN
announced the entry into force of its convention on fighting
international organised crime, adopted in 2000 to combat money
laundering, organised crime and human trafficking. However,
most of the countries that had ratified the convention were
developing nations, Reuters reported. Only two European Union
members, France and Spain, had ratified it, while the US,
which signed in 2000, had not.
From Financial Times, UK, by Mark Turner
at the United Nations, 1 October 2003
Annual Global Corruption
Index Results Released
\Washington - An anti-corruption organization
has released its annual corruption index at media briefings
in several world capitals. In terms of the amounts of money
involved, corruption is most pervasive in the process of awarding
government contracts, particularly in developing countries.
Transparency International says corruption flourishes where
the rule of law is not supported and the news media restricted.
It also thrives where organized crime is unchecked and government
regulation weak. Now in its 10th year, Transparency International
says while progress has been made there is enormous work still
to be done. In particular, it says, rich countries need to
provide practical support to developing-country governments
that demonstrate the political will to fight corruption. Corruption
is most pervasive in the awarding of government contracts.
Nancy Boswell, the head of Transparency International in the
United States, says procurement and investment contracts need
to be made public. "Many governments put confidentiality
clauses into their contracts with companies so that the companies
are not permitted legally to disclose the payments they are
making to those governments," he said. "This insures
a closed circuit, where governments can help themselves if
they want to."
Michael Hershman of the U.S. chapter
of Transparency says rich countries are not free of corruption.
He says while Paris-based Organization for Economic Cooperation
and Development agreed to an anti-corruption code, offenders
have not been prosecuted. "They [these codes] have not
led to prosecutions," he said. "There has been no
evidence of widespread enforcement of these conventions. And
so there is beginning to be a credibility problem." While
he makes no allegations of wrongdoing, Mr. Hershman expresses
concern at what he says are less than transparent reconstruction
contracts in Iraq that have been awarded by U.S. authorities.
Too many of those deals with the U.S. aid agency, he says,
have involved single company, non-competitive bidding. Transparency
International says throughout the world there needs to be
increased educati`on on ethics and the difference between
right and wrong.
From Voice of America, by Barry Wood, 9
October 2003
Work Completed on UN
Treaty to Fight Corruption Worldwide
Work on a United Nations treaty to
combat corruption worldwide, including the return of assets
obtained through bribery and embezzlement to the country of
origin, has been completed, with Secretary-General Kofi Annan
hailing it as a milestone in improving the lives of millions
of people around the planet. "This Convention can make
a real difference to the quality of life of millions of people
around the world," Annan had told the ad hoc committee
in Vienna drawing up the treaty delivered by Antonio Maria
Costa, Executive Director of the UN Office on Drugs and Crime
(UNODC). "It is particularly heartening that you were
able to complete this process in less than two years,"
he said of the Convention on Corruption, which will be put
to a ministerial signing conference in Merida, Mexico, from
9 to 11 December. Once adopted, the treaty will enhance cooperation
between governments and help standardize the way in which
individual countries deal with corruption in their national
legislation.
The requirement for Member States to
return assets obtained through bribery and embezzlement to
the country of origin represents a new fundamental principle
in international treaties. In a number of countries, corruption
has led to the depletion of national wealth. Some of those
countries, whose former dictators have stolen hundreds of
millions, or even billions, of dollars, have made a great
contribution to the search for new rules, including the Philippines
and Nigeria. Preventive measures in the Convention include
norms of conduct for public officials, greater transparency
based on public access to information on government businesses,
and stricter procurement regulations and measures against
money laundering.
From Arabic News, 9 October 2003
Global Corruption Survey
Claims Improved Governance in Armenia
Transparency International, an international
non-governmental organization, has ranked Yerevan among the
least corrupt former Soviet republics. Azerbaijan and Georgia,
along with Central Asian states, lagged near the bottom of
the NGO's annual corruption survey. Armenia came in 78th place
in Transparency International's 2003 survey of 133 countries,
formally known as the Corruption Perceptions Index. Among
Caucasus countries, Armenia ranked far ahead of Azerbaijan
and Georgia, which shared 124th place together with three
other states. Corruption in Baku and Tbilisi is "pervasive,"
according to the annual survey. Bangladesh rated as the world's
most corrupt country, while Finland ranked as the cleanest.
Russia ranked 86th. Among Central Asian states, Kazakhstan
and Uzbekistan tied in 100th. Kyrgyzstan was 118th and Tajikistan
was 124th. Turkmenistan was not rated. The ranking was determined
by the extent of their corrupt practices as perceived by business
leaders, academics and risk analysts. All countries were evaluated
on a 10-point scale, in which a score of 10 represented an
absence of graft. Armenia scored 3.0 in Transparency's Corruption
Perception Index, up from 2.5 points it received in 2000.
The score, though low in absolute terms, puts the country
just below the NGO's threshold for a "high level"
of corruption.
Representatives of the International
Monetary Fund (IMF) have endorsed Transparency International's
findings, based on separate studies conducted by international
lending institutions. "A number of other studies ...
have basically confirmed the observation that if one looks
at the CIS as a whole, Armenia is among the better performers,"
said James McHugh, the IMF resident representative in Yerevan.
McHugh cautions at the same time that the Armenian authorities
still have "a long way to go" in promoting the rule
of law. This is also the point stressed by independent Armenian
experts. "In my opinion, going up from 2.5 to 3.0 in
three years is a modest achievement," says Arevik Saribekian
of Transparency International's Armenian branch. "Corruption
may indeed be down but we shouldn't consider it a high score."
Corrupt practices, which date back to the Soviet era, have
long been as a serious hindrance to Armenia's economic development,
which is also hampered by the unresolved conflict over Nagorno-Karabakh.
[For background see the Eurasia Insight archive]. Improper
conduct, including bribery and nepotism - remains relatively
common among government bureaucrats. Bribes are often offered
to get officials to turn a blind eye on tax evasion, cover
up a criminal case, speed up bureaucratic paperwork or even
enroll a student in a state university.
The impact of graft has been particularly
negative on the country's investment climate. Some forms of
lucrative economic activity (e.g., imports of fuel and basic
foodstuffs) still require government patronage. Also, many
businesses have long complained about harassment from corrupt
tax and customs officials. Authorities in Yerevan have been
under growing pressure from the IMF and other Western donors
to tackle the problem. In recent years, they have simplified
Armenia's business legislation and enacted a set of laws aimed
at complicating abuses committed by government officials.
However, virtually no senior government officials have been
sacked or prosecuted on corruption charges. In late 2001,
the government received a $340,000 grant from the World Bank
to work out a comprehensive anti-corruption strategy. Publication
of the document has since been repeatedly delayed and is now
expected by the end of this year. Armenian opposition leaders
have expressed skepticism over whether President Robert Kocharian's
administration has the political will to implement an anti-corruption
plan. Kocharian critics maintain that corruption serves as
a key pillar of Armenia's oligarchic political order.
To support their claims, opposition
point to Armenia's presidential and parliamentary elections
earlier this year, which were both marred by widespread allegations
of fraud. [For background see the Eurasia Insight archive].
McHugh, however, noted the Armenian government has registered
significant anti-corruption results in recent years, singling
out Armenia's banking and energy sectors as the areas where
progress has been particularly evident. "There is a perception
out there that Armenia is a very corrupt country," McHugh
explains. "But what we see from these indicators is that
perhaps that impression is too negative and that the situation
is improving." In the words of another member of Transparency
International's Armenian affiliate, Varuzhan Hoktanian, a
lot will depend on public scrutiny over the implementation
of anti-graft measures. "World experience shows that
countries with strong civil societies are less corrupt because
their citizens hold their rulers in check," he says.
"Government programs alone don't solve problems."
From Eurasianet, by Emil Danielyan, 20 October
2003
The Fruits of Foreign
Aid - Corruption
The Poverty of Nations: International
Monetary Fund Socialism (And Corruption) Run Amok - On Sept.
23, the World Bank Group and the board of governors of the
International Monetary Fund will meet in Dubai to try - yet
again - to determine how current international monetary issues
should be addressed. Let-s hope they bring some fresh ideas
because - despite a $1.5 billion annual budget, 100-plus offices
and more than 10,000 employees - their current approach isn't
working. The World Bank-s motto is: Our dream is a world without
poverty. But its assistance has done little or nothing to
alleviate poverty and, in many cases, has helped perpetuate
the systems that brought the hardship in the first place.
Consider the "accomplishments" of the International
Development Association (IDA), the branch of the World Bank
Group that lends money to the world-s poorest countries. India,
its top recipient of aid, has received $28.8 billion since
1961; Kenya, ranked 10th, has received $3.2 billion since
1964. On average, the top 10 recipients of IDA aid have been
on this dole for 37 years. What do they have to show for it?
Their per capita incomes have climbed from between $117 and
$447 in the 1960s to between $124 and $527 today. Bangladesh,
the world-s No. 3 recipient of foreign aid and a member of
the IDA-s top 10, is, coincidentally, also the world's third-poorest
country. Why? Transparency International, an organization
that spotlights corruption in government, ranks it the world-s
most corrupt country. The group
says Bangladesh's corruption means its gross domestic product
is 4.7 percent lower than it otherwise would be.
The pattern of squandered money holds
for the top 10 recipients of IMF loans - Brazil, Turkey, Argentina,
Mexico, South Korea, Russia, Indonesia, India, Philippines
and Pakistan. This group has received between $3.6 billion
(Pakistan) and $53 billion (Brazil) since 1958 (except for
Russia, which didn't begin to receive loans until 1992). And
now, after four decades of well-intentioned assistance, most
of these countries' economies remain repressed and poor. There
are a few exceptions, most notably South Korea, which made
significant improvements in enforcing contracts and policing
property rights. As a result, its per capita income has climbed
from $1,325 in 1960 to more than $14,000 today. In most cases,
though, the assistance hasn't helped. Why? Largely because
recipients have failed to address the main causes of their
economic ruin - corruption, repressed economies, weak judicial
systems and excessive state ownership of key enterprises.
Every year, The Heritage Foundation and The Wall Street Journal
issue an "Index of Economic Freedom." The Index
surveys 161 countries and rates each on a 1 to 5 scale, with
1 representing the world's freest economies - those with low
tax rates, transparency in government, reduced red tape and
a strong commitment to property rights, among other factors.
In almost every case, countries at the top of the scale, the
1s and 2s, are far wealthier than the 3s, 4s and 5s, indicating
a strong correlation between economic freedom and per capita
income.
It-s simple: When governments establish
strong courts, strong property rights and strong rule of law,
when they lower or eliminate tariffs, make it easy to open
businesses, privatize state-owned enterprises and reduce barriers
to foreign ownership, incomes rise and economies flourish.
The World Bank and the IMF won-t come close to realizing the
dream of "a world without poverty" as long as they
keep feeding money to countries with repressed economies and
weak judicial systems. These factors breed corruption and
deter growth. And the aid merely enables the problems to persist.
Argentina, for example, recently used IMF funds to pay government
debts so it could avoid much-needed reform of its corrupt
public sector. Fortunately, the world has begun to see the
folly of bestowing huge financial aid packages on countries
without the economic freedom or rule of law to properly take
advantage of them. Last year, at an economic summit in Monterrey,
Mexico, President Bush set the tone with his proposal for
Millennium Challenge Accounts, which would make U.S. foreign
aid contingent on countries reforming their economies and
judicial systems. Other experts, such as Allan Meltzer of
Carnegie-Mellon University, suggest the World Bank and the
IMF change their lending practices so they send funds only
after reforms have been made. If this meeting leads to changes
along these lines, it will have been more than worthwhile.
If not, that dream of a world without poverty will remain
just that - a dream.
From Pravda, Russia, 24 October 2003
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Kilimo Lashes Out At Corrupt Civil
Servants
Nairobi - Home Affairs Minister Linah
Jebii Kilimo yesterday said the Civil Service is the epitome
of corruption, inefficiency and wastefulness. And Kilimo called
on civil servants to shed off the tag by fighting theft which
is an obstacle to development. "We can only rid ourselves
of this debilitating tag by accepting that there is a problem
and then go ahead to seek solutions," said Kilimo. She
was addressing heads of departments in the Home Affairs Ministry
during a sensitisation programme organised by the Kenya Anti
Corruption Commission. The workshops are being held under
the Public Service Integrity Programme launched by the Head
of Civil Service, Mr. Francis Muthaura, in April. The programme
seeks to restore integrity, responsibility, accountability,
transparency, efficiency and responsiveness for better service
delivery. Kilimo said the respect the public service enjoyed
in the 60's and 70's has been eroded.
She said the workshop signifies the
Government's determination to overcome corruption as an obstacle
to development. "The public service (used to) attract
people in the private sector which is not the case now,"
said Kilimo. She said the anti-corruption net will be cast
wider to rid the Government of the vice and called on the
public to stop giving bribes. "We must stop giving bribes
to public officers and demand services as a matter of right
not privilege," she said. Acting Director of the Kenya
Anti Corruption Commission, Mr. Gideon Mutua, said earlier
civil service reform programmes failed because they were not
well co-ordinated. He accused civil servants of extorting
funds from the public. Mutua said the Government had formed
corruption prevention teams in all ministries, parastatals
and local authorities to meet the Public Service Integrity
Programme targets. He said 1,400 integrity assurance officers
had been trained in public service.
From AllAfrica.com, Africa, by Andrew Teyie,
30 September 2003
Dariye Tasks Civil
Servants on Development
Plateau State Governor, Chief Joshua
Dariye, has charged public officers and political appointees
in the state to be committed to the vision and mission of
re-engineering the state. Dariye gave this charge at the swearing-in
of 19 commissioners, 11 special advisers, 17 Transition Implementation
Committee chairmen and heads of government parastatals in
Jos. The governor warned that the era of misrepresentation
and mispresentation was over, adding that adequate machinery
has been put on ground to detect and flush out "apostles
of doom" and "promoters of primordial and sectional
interests." "You are all aware that we made far
reaching, wide and substantially exhaustive consultations
before your appointment. The oath taken today is a covenant
with God, with your constituencies and a covenant with the
entire state. I urge you to keep constant touch with your
various home local governments so that the peoples' felt needs
are truly identified, understood and communicated to me,"
he charged. Dariye urged the TIC chairmen to see their call
as selfless service and that the welfare of their people should
be their primary concern. "We shall closely monitor your
conduct and will not hesitate to show you the way out if your
behaviour is considered inimical to the attainment of the
objectives." THISDAY checks revealed that security operatives
had a hectic time controlling the surging crowd that witnessed
the occasion which took place at the Azi Nyako Youth Centre.
From This Day, Nigeria, by Funmi Peter-Omale,
6 October 2003
Changes in Civil Service
to Continue, Says Kibaki
The Government will continue its deliberate
and systematic changes in the public service to bring it to
same level with those in the developed world, President Kibaki
has said. Only necessary changes would be made and they should
be viewed as normal, he said. "We are doing what is necessary
because Kenya must join other modern nations," he said,
when he addressed Kenyans living in UK and Ireland at a London
hotel on Wednesday night. He emphasised that his Government
would perform and deliver to the people, adding that it was
ready to do anything to improve the lives of Kenyans. The
head of State criticised a tendency by some people in responsible
positions to use their positions for personal gain, saying
the era of exploiting the public was long gone. He told Kenyans
in the diaspora that they could contribute to the development
of their country at home from their foreign bases and urged
those with special skills needed home to come back and join
in rebuilding the country. He told those who were underemployed
in foreign countries that they could be engaged in more satisfying
and gainful employment in Kenya. The President, who was applauded
throughout his speech, said there was an impetus for the acceleration
of the East African Community, adding that East Africans were
being encouraged to engage in economic activities on an equal
basis. The three countries were moving towards regional integration
together with Rwanda and Burundi to make the region a single
market.
From Daily Nation, Kenya, 10 October 2003
High Wage Bills to
Hamper Services
Councils to have less for operations
and maintenance - The immediate impact of the salary increases
will be a sharp rise in the wage bills of the cash-strapped
local authorities. The ratio of wages as a share of total
revenue will hit the roof for most of the local authorities.
And, the consequence will be that most of the councils will
have less money to spend on operations and maintenance. The
inevitable result will be further deterioration in services.
Clearly, these salary increases were neither based on productivity
nor the cost of providing better services. The pressure came
from recent salary awards to MPs and civil servants. With
their counterparts in Parliament having awarded themselves
huge increases early this year, it was a forgone conclusion
that the councillors were going to demand their share. Indeed,
it is doubtful that the increases were fully costed and funding
implications worked out before they were implemented. In a
sense, what has happened is a perfect case of extravagance
in the middle of poverty. Not a single local authority in
the country operates a surplus budget. Municipal and town
councils are steeped in debt, with massive sums owed to institutions
like Kenya Power and Lighting Company, National Social Security
Fund (NSSF), and National Hospital Insurance Fund (NHIF).
The typical profile of a local authority
is a deeply-indebted outfit with millions of arrears in salaries
and allowances, and which owes statutory organisations and
the workers' savings and credit societies hundreds of millions.
Putrid garbage mountains, potholed roads and the notoriously
erratic water supplies characterise the lot of Kenya's local
authorities. Workers' strikes, allegations of corruption by
mayors and chairpersons, and crippling cashflow problems beset
most of the towns and local authorities. Until recently, the
claim was that the councils did not have adequate sources
of revenue since the abolition of the Graduated Personal Tax
more than 30 years ago, and the service charge in the late
1990s. It used to be said that there was an imbalance between
their financial obligations and the revenue instruments at
their disposal. Yet, no major changes in the quality of services
has occurred since the introduction of the Local Government
Transfer Fund. This year alone, the Government intends to
transfer Sh3.7 billion to local authorities.
The greatest problem facing local authorities
in Kenya is mismanagement of resources. They have inefficiently
administered the revenue instruments at their disposal. Take
property rates, for example, collections are poor and lawyers
owe councils hundreds of millions of shillings. And, despite
the fact that the law gives them the flexibility to revalue
for rate adjustment, most of the rates have remained static
for many years. Councils are also allowed to impose all manner
of fees covering a wide range of activities, from hawking,
ambulance fees, cesspit cleaning, to approval of permits for
buildings. These fees remain static for years, with councils
not bothering to ensure that the fees cover the cost of the
services provided. Nothing illustrates mismanagement of services
by local authorities as Nairobi water works. Intermittent
supply has become the rule and all categories of customers
have to rely on costly substitutes, such as tankers and water
vendors.
The poor, comprising 40 per cent of
the total population and mostly living in informal settlements,
suffer most. The Water and Sewerage Department neither has
the managerial or financial autonomy to provide quality services.
Billing is inefficient and monies are diverted from improving
the service to paying salaries. What are the likely implications
to the macro economy? If the salary awards are implemented,
the Government risks a floodgate of of claims for increases
in wages by other categories of public servants. It is noteworthy
that increases awarded to civil servants in the last Budget
have yet to be implemented. When the Government recently implemented
parts of an award to the police, the International Monetary
Fund protested that it had broken the benchmark for the ratio
of wages to the GDP, which it had agreed with the lender.
These salary increases will complicate relations with donors.
From Daily Nation, Kenya, by Jaindi Kisero,
10 October 2003
Moleketi Urges Civil
Servants to Put Interest of People First
Pretoria - Public Service and Administration
Minister Geraldine Fraser-Moleketi has called on public servants
to respect the rights of people, especially the elderly and
the disabled. She was speaking at the Home Affairs offices
at Qaukeni Municipality during her visit there, which was
part of Imbizo Focus Week. 'Everywhere there is a cry from
elders about the ill treatment they get when visiting government
offices, we want that to come to an end,' said the minister.
'Together with public servants and the communities, we will
make sure that we root out [bad behaviour and instil respect
among our people],' she said. The minister issued certificates
to at least 100 youth, trained by the Umsobomvu Fund. Six
were given grants to start up their own businesses. Minister
Fraser-Moleketi also visited the Masimanyane Arts and Craft
Centre for the disabled.
From AllAfrica.com, Africa, by Nomonde Makaula,
20 October 2003
MPs Accuse Government
of Bias in Hiring of Civil Servants
MPs criticised the Government's method
of recruiting civil servants, complaining that it was partisan.
The lawmakers lamented that certain districts had been left
out altogether in recent recruitment of civil servants and
particulary that of military, security and district officers.
Assistant minister in the Office of the President, Morris
Ndzoro, had a hard time defending the Government against allegations
that recruitment of officers favoured certain regions. He
was responding to a question by Mr. Francis Kagwima (Tharaka,
Ford Asili) who had complained that Tharaka District was discriminated
against during the recruitments. He wanted to know what the
minister was doing to ensure that the district was included
in all financial allocations and recruitments. . Mr. Kagwima
shocked the House with claims that the district was not included
in the Government Financial Estimates. He proved his allegations
by displaying the current estimates to the assistant minister.
But House Speaker, Francis Kaparo,
said the estimates were currently under debate. He asked OP
to send a circular to all Government departments to "let
them know of the existence of Tharaka disctrict. Mr. Guracha
Galgalo (Moyale, Kanu) complained that only five people from
Moyale District were picked in the recent military recruitment
drive while 300 came from Nyeri District alone. However, Mr.
Muhika Mutahi (Mukurwe-ini, Nyeri) disputed the allegation
saying that only two people were picked. Dr. Oburu Oginga
(Bondo, Narc) complained that recruitment of DOs and security
officers was done in a partisan manner. Mr. Osman Kamama (Baringo
East, Ford-People) described the alleged partisan recruitment
as a "grave matter.'' He claimed out of the 2,400 people
recruited into the army, 1,400 came from the Mount Kenya region
and 27 from the Kalenjin community.
From Daily Nation, Kenya, by Njeri Rugene,
28 October 2003
Kenya to Get Sh3.5b
for Civil Service Reforms
Kenya may finally get a Sh3.5 billion
funding from the World Bank and the International Monetary
Fund (IMF) when the executive boards of the multi-lateral
lenders meet next week. The money, which is the second tranche
of the Sh10.5 billion credit approved three years ago, will
go towards economic and public sector reforms. However, its
release depends on agreement between the government and the
IMF over the multi-million Poverty Reduction and Growth Facility
(PRGF). The agreement will also require waivers to take into
account a shortfall in Civil Service retrenchment and difficulties
in implementing the core poverty expenditure program. The
IMF had approved a Sh13.3 billion PRGF credit for Kenya three
years ago but the agreement expired last August with an outstanding
Sh10.5 billion that was never released. A new program is currently
being negotiated with the Fund and hopes are high that the
IMF board will approve it and put Kenya back into the lending
program that went off the track in 1997. Though the World
Bank and the government have held high level discussions that
saw credit extended to April next year, there are still contentious
issues that may delay release of the full amount. Among them
is privatisation of Telecom Kenya, which has been outstanding
for the last three years.
The Bank maintains that privatisation
of Telcom Kenya is a key aspect of the much needed environment
for faster growth and poverty reduction. Bank sources say
that upon its election, the Narc government requested for
more time to develop its long-term privatisation strategy
that would also cater for the sale of the giant parastatal.
And a Privatisation Bill is being prepared. The credit, by
far the largest that the Bank has given to Kenya in the last
decade was also meant to improve accountability in the public
sector focusing in particular on procurement and financial
management and on the Judiciary. It was also meant to assist
the government to shift public expenditure towards core poverty
reducing programs identified in the poverty reduction strategy
paper (PRSP). However, the new government has downplayed the
PRSP and instead developed an Economic Strategy Paper that
is yet to be discussed and a work plan to implement it developed.
But the World Bank, in the Country Economic Memorandum released
last month, says reducing poverty will require allocating
public spen
ding towards pro-poor programs, and
eliminating obstacles to the full participation of women and
other groups in the economy. "The government has made
considerable progress in addressing issues linked to the second
tranche of US$50 million that was suspended in January 2001,"
observes the Bank. Among the achievements are the new procurement
regulations currently in place. A
directorate of Public Procurement has been established and
the Public Procurement Bill may also be discussed before Parliament
breaks for Christmas. However, the implementation of civil
service reforms, which include right sizing of the government
consistent with refocusing of the public sector to its core
functions and the policy priorities, has not succeeded. Retrenchment
of 23,000 civil servants was completed in 200/2001 and additional
downsizing done in public-funded organisations including state
universities. "Core poverty recurrent expenditure were
largely protected in 200/2001 and 2001/2002 budgets, although
progress in protecting core poverty development expenditures
was disappointing" the Bank says.
Though the Kenya Economic and Public
Sector Credit was approved after the former regime showed
its commitment to reforms, little success was achieved. Prior
to approval of the credit, former President Moi appointed
a new team popularly referred to as the "dream team",
and headed by the renowned conservationist Dr Richard Leakey.
The team, which also comprised of current Kenya Airways managing
director, Titus Naikuni, was mandated to steer economic recovery
by tackling long-standing development problems including endemic
corruption in the public sector. The first tranche was released
on the commencement of the project in August 2000. It was
pegged to economic governance, public sector reform, privatisation,
expenditure prioritisation, and portfolio improvement. The
team however failed to deliver due to what analysts say was
lack of political will. Consequently, the World Bank, which
had released the first tranche of US US$50 million (Sh3.5
billion) withheld the balance. The third and last tranche
of a similar amount is tied to the privatisation of Telcom
Kenya.
From Financial Standard, Kenya, by Benson
Kathuri, 27 October 2003
MPs Accuse Government
of Bias in Hiring of Civil Servants
Nairobi - MPs criticised the Government's
method of recruiting civil servants, complaining that it was
partisan. The lawmakers lamented that certain districts had
been left out altogether in recent recruitment of civil servants
and particularly that of military, security and district officers.
Assistant minister in the Office of the President, Morris
Ndzoro, had a hard time defending the Government against allegations
that recruitment of officers favoured certain regions. He
was responding to a question by Mr. Francis Kagwima (Tharaka,
Ford Asili) who had complained that Tharaka District was discriminated
against during the recruitments. He wanted to know what the
minister was doing to ensure that the district was included
in all financial allocations and recruitments. . Mr. Kagwima
shocked the House with claims that the district was not included
in the Government Financial Estimates.
He proved his allegations by displaying
the current estimates to the assistant minister. But House
Speaker, Francis Kaparo, said the estimates were currently
under debate. He asked OP to send a circular to all Government
departments to "let them know of the existence of Tharaka
disctrict. Mr. Guracha Galgalo (Moyale, Kanu) complained that
only five people from Moyale District were picked in the recent
military recruitment drive while 300 came from Nyeri District
alone. However, Mr. Muhika Mutahi (Mukurwe-ini, Nyeri) disputed
the allegation saying that only two people were picked. Dr
Oburu Oginga (Bondo, Narc) complained that recruitment of
DOs and security officers was done in a partisan manner. Mr.
Osman Kamama (Baringo East, Ford-People) described the alleged
partisan recruitment as a "grave matter." He claimed
out of the 2,400 people recruited into the army, 1,400 came
from the Mount Kenya region and 27 from the Kalenjin community.
From AllAfrica.com, Africa, by Njeri Rugene,
29 October 2003
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Fight Corruption by Making Civil
Servants Efficient
The ACA director-general has suggested
that the anti-corruption agency should go after bribe givers
instead. It is a very good suggestion yet it seems to further
protect the civil servants who will have the added choice
of reporting any offer below their expectation. Our government
should improve the efficiency of the civil service to such
an extent that there is no room or need for any offer of bribe.
Who wants to bribe if there is no need for it? I would blame
it on the immediate supervisors who should be able to monitor
the workload properly so that any delay is dealt with before
the public perceives that a bribe is needed to move the file.
Court cases and bankruptcy cases are known for missing certain
files for a fee. The service can be either for the file to
go missing so that the person gets a period of "unofficial
reprieve" or for the person desperately looking for a
file. Dishonesty seems to be rampant everywhere. At any of
those car parks which are manually operated, the ticket is
likely to differ from the counterfoil. In cases where the
cashier uses a till, if one asks for a receipt, it is likely
to be one meant for an earlier parker.
Where there is a proper till being
used at a warehouse sale, given the opportunity, the cashier
will use the calculator instead so that he can pocket the
money. To give credit where it is due, I do find improvements
in many places like the JPJ, Kedai Telekom and so on. Recently,
I was pleasantly surprised when I went to the Ipoh Immigration
Department to renew my passport. The counter staff served
with a smile and not only did she not tell me off for not
completing the form properly, she actually filled in the few
missing information which she had in her record! How I wish
other departments are as customer friendly as this. Sometimes,
minor inconvenience matters a lot to the public and it only
needs a considerate officer to realise it and make it possible
at minimum cost. Once, I was at the EPF building in Ipoh to
make a withdrawal. It required a photocopy of my IC. Being
early, the Greentown Mall shops were still closed and I had
to walk half a kilometre to Fair Park to do it. It occurred
to me then that the EPF's existence is due to the employees'
contributions and therefore we should be served rather than
being made to run around for something as simple as photocopy
IC.
If the commercial sector can do it
for free, why not the EPF? Instead of having fanciful buildings
and lending hundreds of millions to companies which banks
would not lend or getting involved in housing developments
which it has no experience nor the right to do so, it should
have provided better service and better returns. The lack
of accountability in the civil service, especially in the
Land Offices, is incredible, judging from the yearly reports
of the auditor-general. No remedial action seems necessary
as it will only carry forward to the next year. Any wrongdoing
discovered will have the culprit transferred to another department.
All they need are competent accounting staff and good internal
controls, as well as strict enforcement of deadlines to present
the accounts. If the Registrar of Companies can penalise companies
for late submission of accounts, why can't the government
do it to their own departments? Every year we hear of ministers'
rhetoric to improve, for example, the issue of land titles
and certificates of fitness for new buildings, yet the problems
remain. It is either the ministers are out of touch with reality
or there are no effective follow-up action to ensure compliance.
From Malaysia Kini, Malaysia, 2 October
2003
JS Body Seeks Career
Policy for Civil Servants
The parliamentary standing committee
on the establishment ministry has recommended introduction
of a career policy for the government officials. A four-member
committee comprising officials of the establishment ministry
was formed at its yesterday's meeting to prepare a draft within
three months. The government officials are frustrated as the
competent ones are not getting the opportunity for career
development, the committee observed. This is happening due
to the absence of a proper career planning and development
policy. The four-member committee, headed by a joint secretary
of the establishment ministry, will submit the draft to the
parliamentary standing committee by year-end. The committee
will then meet with the prime minister, who is in charge of
the ministry and also a member of the committee, and discuss
the matter. After the draft is finalised , it will be placed
before parliament to make it a national policy, said Mia Golam
Mohammad Parwar, member of the committee. The establishment
ministry has set up a career planning and training wing, but
it has not started operating, Parwar told The Daily Star yesterday.
The meeting was informed that 98 officials are now acting
as officers on special duty (OSDs). Chairman of the committee
Sarder Shakhawat Hossain Bakul presided over the meeting held
at the Jatiya Sangsad Bhaban.
From The Daily Star, Bangladesh, 1 October
2003
Quarter of Public Servants
Bullied
One in four public servants has experienced
bullying or harassment at work, a State Government survey
has found. But only a third of them reported the incident
as they felt there would be no change or they'd be unpopular
with workmates. Five per cent of public servants surveyed
in June said they had been subjected to verbal threats in
the workplace, while 6 per cent had been shouted at. Of the
6000 or 36 per cent of public servants who responded to a
survey from the Commissioner for Public Employment, 10 per
cent said they had experienced intimidating or aggressive
body language at work. A further 13 per cent reported "persistent
nitpicking or unjustified criticisms" while 10 per cent
had been humiliated through sarcasm or insults. One per cent
said they had been threatened with physical violence. Public
Service Association secretary Jan McMahon said bullying in
the workplace was on the rise, partly because of pressure
caused by staff cutbacks. "The workloads are just through
the roof," she said. There was a "significant"
bullying problem among corrections officers she said, and
union-run training courses on how to deal with the issue were
in constant demand. Premier Mike Rann said the reported bullying
was unacceptable. "We don't want that in our workplace,"
he said.
From South Australia Advertiser, Australia,
by Melissa King, 30 September 2003
Declaration of Assets
by Generals, Civil Servants Demanded
Islamabad - Pakistan Peoples Party
Friday stressed the need to declare all assets by all military
generals and civil servants following the members of parliament
and provincial assemblies. In a statement issued here Friday
a spokesman of PPP said that the PPP welcomes the requirement
of declaration of assets and liabilities by the legislators
as an element of transparency, public scrutiny and good governance.
The Party has accordingly directed its legislators to comply
with the law and submit to the Chief Election Commissioner
a statement of their assets and liabilities as on June 30,
2003. "The Party has also noted with deep concern the
media reports that at least two sitting ministers of the government
namely Finance Minister Mr. Shaukat Aziz and Education Minister
Ms Zubeda Jalal have failed to submit the required declarations
by the due date. This is a matter of grave concern as it shows,
on the one hand, the scant respect the ministers have for
the laws of the land and that the law is intended to be yet
another coercive instrument against the opposition on the
other. "The Party demands of the allegedly defaulting
ministers to publicly explain their position as to why they
failed to submit declarations", he said.
"The Party also believes that
transparency, public scrutiny as elements of good governance
and accountability should not be confined to the 1170 legislators
alone. For the law to have some measure of credibility and
equity, it must also require the Generals and senior civil
servants to make public every year their assets. If the assets
of 1170 legislators can be advertised every year in the name
of transparency and public scrutiny what is the justification
to exempt the 400 odd generals and senior bureaucrats from
the ambit of such a law? "The people of Pakistan have
a right to know how many residential and commercial plots,
agricultural lands, plazas and bank balance was owned by an
officer upon entry into the defense service and how much was
owned at the time of exit as a general and the magic of the
multiplication of their wealth beyond known mathematical formulae"
he added. "The Party hopes that the Chief Election Commissioner
would also make public his assets and liabilities. There may
be no law requiring the CEC to make public his assets. However,
The CEC's call to the legislators to declare assets will have
great moral force if he were to also declare his assets and
no minister of the cabinet would be able to flout the law
with impunity as it seems is the case at present", the
spokesman maintained.
From PakTribune.com, Pakistan, 3 October
2003
Civil Servants Told
To Take Isra' Mikraj An Example
Bandar Seri Begawan - The Israk and
Mikraj or the Ascension of Prophet Muhammad, peace be upon
him, should be taken as an example among the Muslims, including
government officers and staff. Muslim civil servants will
then be able to run their daily life, particularly in managing
official affairs and community, based on the Islamic teachings.
The Ministry of Home Affairs last night organised an Isra'
Mikraj celebration as an effective way for its officers and
staff, including penghulus and kampong ketuas who serve in
the ministry. The religious function was held to instil the
teamwork spirit among them. Present at the ceremony was Dato
Paduka Haji Awang Adnan, Deputy Minister of Home Affairs.
A religious talk by Awang Haji Alihassan Bin Haji Mohammad
Said, a lecturer from the Islamic Dawah Centre, highlighted
the ceremony. The Isra and Mikraj event is commemorated to
guide Muslims to always conduct excellent services. Courtesy
of Radio Television Brunei.
From Bru Direct, Brunei, 7 October 2003
Minister Bats for Efficient
Civil Service
Tutong - The civil service should be
enhanced, efficient and more effective to ensure the implementation
of development programmes are in accordance with the country's
inspiration. Dato Awang Haji Adnan, Home Affairs Deputy Minister,
made this remark at the Civil Service Day Celebration for
Tutong District at the Tutong Civic Centre yesterday. He said
the civil service acts as catalyst for development, progress,
peace, welfare and harmony of the residents in the country.
Dato Awang Haji Adnan said with the development of Information
Communication Technology (ICT), the civil service should not
only act as provider, facilitator and regulator but should
act as agent of change, creative and thinker. He also presented
certificates to retired government staff for the Tutong District.
More than 100 people, including 52 women received their certificates.
The Deputy Minister also presented appreciation certificates
to nine people for exemplary service rendered in the district.
The winners of the poetry writing competition in conjunction
with the Civil Service Day for Tutong District level also
received their prizes. First place went to Dayang Hajah Safiah
Binte Metusin who wrote 'Kearah Kecemerlangan Perkhidmatan
Awam'. Second place went to Awang Jaman Bin Haji Jumahat with
his poem entitled 'Tonggak Negara' and third Awang Abdul Manan
Bin Haji Rauf with his poem 'Nasihat Perkhidmatan Awam'. Courtesy
of Radio Television Brunei.
From Bru Direct, Brunei, 7 October 2003
Budget to Benefit Public
Servants, Pensioners
The Budget 2004 will be investment
and development oriented, Finance Minister K.N.Choksy told
the Daily News yesterday. The Budget will be presented in
Parliament next month. Public officers, corporation employees
and pensioners will also be beneficiaries, he said. The Minister
presented the Appropriation Bill in Parliament yesterday.
The total expenditure slated for 2004 will be Rs. 352 billion,
of which Rs. 209 billion will be for recurrent expenditure
and Rs. 143 billion for capital expenditure. Additionally
there will be debt service repayment and pension payments
in a sum of Rs. 313 billion. There is no reduction in outlay
for Samurdhi, the fertiliser subsidy, school uniforms and
textbooks. The total provision for foreign funded projects
has been increased from Rs. 70 billion in 2003 to Rs. 89 billion
in view of the enhanced foreign aid. This will be invested
in road development, supply of power, enhancing agricultural
production and development of irrigation. Consequent upon
the Government's success in reducing interest rates, the Interest
Bill for 2004 will be Rs. 121 billion as against Rs. 130 billion
in 2003. This saving has been allocated to capital expenditure.
The projected increase in revenue is Rs. 30 billion. Steps
have been put in place to enhance revenue collection.
According to a Finance Ministry release
yesterday, the expenditure is for maintaining the Public Services
and undertaking development work. The expenditure figures
included in the Appropriation Bill do not include certain
items of expenditure for which Parliamentary approval has
already been granted under various laws such as those on re-payment
of Public Debt, payment of Interest on Public Debt, Pension
Payments etc., amounting to Rs. 313.8 billion. Therefore,
the total expenditure that has to be incurred during the year
2004 will be Rs. 668.6 bn. On the receipts side, the revenue
and foreign grants are estimated to be Rs. 356.1 bn. Hence,
approval is sought by this Bill to borrow Rs. 312.5 bn from
both domestic and foreign sources. Both the expenditure and
revenue have been estimated on the existing basis without
taking into consideration any policy change. Certain sectors
such as highways, and water supply have been allocated more
funds than was done in 2003 due to the inflow of foreign aid.
Out of the estimated receipts of Rs. 356.1 bn tax revenue
amounts to 81% while non-tax revenue and other receipts amounts
to 19 per cent. Of the tax revenue, direct taxes amounts to
17.5 per cent while the remainder is from indirect taxes such
as Value Added Tax, Import Duties, and Excise Duties.
From Daily News, Sri Lanka, 9 October 2003
Empathy Required from
the Civil Service
"The Civil Service should not
consider the public a rival but instead consider them as good
partner. It is from the public that civil servants are able
to find weakness and shortcomings in the management and the
government administration." This was the Titah of His
Majesty the Sultan, during the 10th Civil Service Day held
at the BICC, on Oct 4. The core message in His Majesty's Titah
is the requirement for the Civil Service to have "empathy"
which according to the dictionary means "the capacity
to understand and respond to the unique experiences of another"
"Good citizens deserve a good government with the latter
depending on the mechanism. All parts of the civil service
are government mechanisms. In this respect, civil servant
must be determined, honest, transparent and forward looking"
stated His Majesty. "Contributions from the public do
not cause authority and credibility of the public service
to diminish.the procedures and conditions applied to the public
including foreign and local businessmen should always encourage
an environment for growth and healthy and quality entrepreneurship."
There are many who would regard the "titah" as mere
reminders for the civil service to do better. Very few would
look at the "titah" as criticisms of the "Civil
Service". And yet very few would regard the "Titah"
as a signal to an organizational "crisis" that requires
immediate attentions and remedy.
The core component of His Majesty's
leadership is that of "care" and there have been
many occasions where he has been branded as the "caring
monarch". "No one should be unduly concerned because
our public service is transparent. It has been put on a pure
and true track, following the teachings of Islam" The
good teachings of Islam that that places demands on us to
build an "ummah" where "empathy" is the
main essential ingredients and values. The "caring monarch"
projects the visions well articulated by Dr A Ciaramicoli
of Harvard Medical School as follow: When we are empathic,
meaning that we are capable of understanding each other on
a deep level, actually feeling the emotions and understanding
the thoughts, ideas, motives, and judgments of others. Empathy
is the bond that connects us, helping us to think before we
act, motivating us to reach out to someone in pain, teaching
us to use our reasoning powers to balance our emotions, and
inspiring us to the most lofty ideals to which human beings
can aspire. Without empathy we would roam this planet like
so many disconnected bits of protoplasm, bumping into each
her and bouncing off without so much as a how-do-you-do, awake
but unfeeling, aware but uncaring, filled with emotions but
having no means of understanding or influencing them. By
increasing our awareness of other people's thoughts and feelings,
empathy shows us how to live life fully and wholeheartedly
Empathy is primarily interested in that process of becoming,
enlarging, and expanding, or in truth that's what empathy
is - an expansion of your life into the lives of others, the
act of putting your ear to another person's soul and listening
intently to its urgent whisperings.
Who are you? What do you feel? What
do you think? What means the most to you? These are the questions
empathy seeks to explore. This is a good passage on empathy
and reflects many of the essentials in the Islamic "ummah".
The ideals of "persaudaraan" the ideals of "neighbours
or jiran" are all encapsulated in the passage. There
are very many programmes and procedures in the Civil Service
that focuses on working together in teams. There are many
projects that looks at the problems and provide technical
and procedural solutions but there are few that addresses
the "empathy" or the caring aspect of the administrations.
The "caring" values
for people. The "ingau ku" for people. The "ingau
ku" for the public. The "ingau ku" for the
success of your business. There are officers who defines the
caring administrations are those related to the work of Pusat
Dakwah, and the Welfare Departments in providing care for
the unfortunates and the displaced. Providing homes for the
fire victims, collecting charities are all that represent
good governments. They may not consider good customer relations
and good customer cares as the foundations for good governance.
They are wrong because there are many unexpressed frustrations,
there are many minor crisis, there are many more temporary
loss of income and many more discomfort and hardship that
can be averted through "empathy" in the front lines
of the administrations. Courtesy of Borneo Bulletin.
From Bru Direct, Brunei, by Bakar Jair,
10 October 2003
Record-high Wage Cuts
for Civil Servants
Tokyo - The House of Councillors enacted
an amended law Friday to carry out record wage cuts for central
government employees to make their pay match sagging private-sector
wage levels. The government-proposed revision to a law governing
salaries for central government employees, which has already
passed the House of Representatives, will take effect Nov
1. (Kyodo News)
From Japan Today, Japan, 10 October 2003
Brunei Civil Service
Could Face A Major Shake Up Says Minister
Kuala Belait - Brunei's Civil Service
could be in for a major shake up. They are to be reformed
to meet the challenges of a changing world. And Civil Service
members are urged to continue their efforts in finding new
ways to ensure the smooth running of the administrative machinery
and to be more dynamic, progressive and responsive towards
public needs. The staff should also be able to solve problems
on time professionally. Dato Haji Suyoi, Deputy Minister of
Education speaking at the Public Civil Day celebration for
the Belait District yesterday added that the government was
taking various steps for public civil service to become an
excellent sector. These include efforts to reform the public
civil service to become a catalyst to be prepared to meet
challenges of the 21st Century.
The reforms include promoting quality
work culture through teamwork, introduction of civil service
innovation award, a revision of the various departments' organisational
structure. These efforts will propel the service towards empowerment
in line with future demands and a civil service vision for
the 21st century. Sixty retired government officers also received
their certificates at the event. Apart from that government
staff and officers, village heads, penghulus and kampong ketuas
as well as retired government officers and staff had a health
check-up by officers from the Suri Seri Begawan Hospital,
Kuala Belait. The theme of this year's civil day celebration
is "Toward Excellence of the Public Civil Service".
- Courtesy of Radio Television Brunei (Brudirect.com News)
From Bru Direct, Brunei, by Dato Haji Suyoi,
11 October, 2003
CEO of Civil Service
College Attends Launching of Dubai's Premier Institute for
HRD
Singapore - Dean and CEO of the Civil
Service College of Singapore (CSC), Brigadier-General (NS)
Yam Ah Mee, will be attending the opening ceremony of the
Dubai Institute for Human Resource Development (DIHRD) in
Dubai on Monday. A statement from the Civil Service College
said, CSC is the only Asian institution invited by DIHRD to
attend the opening ceremony. In August, a Memorandum of Understanding
(MOU) was signed between CSC and DIHRD to engage the services
of CSC in providing training and development for government
employees of Dubai. This is the first MOU signed between government
institutions of both countries, following the official visit
by Prime Minister Goh Chok Tong to the United Arab Emirates
in February 2000. The MOU covers delivery of standard short
courses, tailored courses and study tours, staff secondment,
student exchange, IT system acquisition and E-Learning services.
DIHRD recognises CSC's experience in providing public administration
and management training. Its other prestigious partners include
the UK Civil Service, Bradford University School of Management
and Edexcel International. Dubai Crown Prince and UAE Defence
Minister, General Sheikh Mohammed bin Rashid Al Maktoum will
be the guest of honour at the ceremony. DIHRD is set up under
the directive of the Crown Prince, with the vision of unleashing
human potential and setting the pace for innovative management
thinking and practices.
From Channel News Asia, Singapore, 13 October
2003
Asean Civil Servants
Gather In Brunei In Spirit Of Cooperation
Bandar Seri Begawan - The 12th Asean
Conference on Civil Service Matters (ACCSM) has agreed that
further evaluation be carried out by a working group and will
report to the next technical meeting in Bandar Seri Begawan
next year. Dato Haji Hazair, Permanent Secretary at the Prime
Minister's stated this in his capacity as chairman of ACCSM
Executive Committee in a media conference at the close of
the meeting yesterday afternoon. Dato Haji Hazair added that
the conference has also been able to identify and chart the
areas of future cooperation in the field of civil service
by taking stock and supporting Asean leaders' aspirations
towards Asean Vision 2020 and initiative towards Asean integration
with particular reference to the Bali Concord Two.
Earlier, Dato Haji Hazair and other
Asean delegation leaders signed the "Letter of transmittal".
In his closing remarks the Permanent Secretary noted that
the success of the conference is a manifestation of true spirit
of commitment and determination between Asean civil services.
The gathering also serves to strengthen the scope of cooperation
in the field of civil service and further cement the bond
of friendship, understanding and cordial relations between
Asean agencies through civil service. The event took place
at the Empire Hotel and Country Club in Jerudong. On Tuesday
night, the leaders and representatives attending the 12th
Asean Conference on Civil Service Matters were entertained
to a dinner hosted by Pehin Isa, Special Advisor to His Majesty
at the Prime Minister's Office and the Minister of Home Affairs.
- Courtesy of Radio Television Brunei (Brudirect.com News)
From Bru Direct, Brunei, 15 October 2003
Civil Servants, Soldiers
to Plant Trees
Bogor - Civil servants and soldiers
have been told to donate 10 trees each for the municipality's
regreening project that culminates on Nov. 12, an officer
said on Friday. Capt. Dede Komaruddin of the Bogor district
military command said an estimated 53,000 trees would be collected
from the bureaucrats and soldiers. "The trees will be
planted along the banks of the Ciliwung and Cisadane rivers,
and along several roads downtown. Some of the trees also will
be donated to residents of the Cimanggu housing complex, who
have no trees in their backyards," he said. He added
that soldiers had been cultivating longan and durian fruit
tree seedlings over the last five months.
From Jakarta Post, Indonesia, 17 October
2003
Forum to Discuss Civil
Service
Government Reform - The local and international
experts will talk about exams, management and training issues
related to how a government bureaucracy works - Distinguished
international and local academics and government officials
will participate in a two-day symposium starting today that
aims to give advice to the Democratic Progressive Party (DPP)
on how to modernize the nation's civil service. Examination
Yuan President Yao Chia-wen said the purpose of the International
Symposium on Government Reform and Civil Service System is
to provide a forum where Taiwanese academics can exchange
views and ideas with overseas academics on various issues
relating to government reform and the civil service. "It
is through this exchange that we hope to learn from other
countries' experiences and development of civil service systems
which can therefore help the country enhance its overall national
competitiveness," Yao said last night at a welcoming
banquet at the Examination Yuan. "We also hope that this
exchange will result in various visionary and novel ideas
that can result in a blueprint for the country's development
on government reforms and the civil service system,"
Yao said.
According to Yao, the symposium will
deal with four main topics: examination system for the legal
civil service; the effect of government reform on the civil
service; efficient management of civil servants and training
for higher-level civil servants. Among those giving speeches
are Deborah Hensler, Stanford University professor, Udo Bartsch,
president of the Federal Academy of Public Administration
of Germany's Federal Ministry of the Interior, and Examination
Yuan Secretary-General Chu Wu-hsien. Yao, Han Chung-Mo Law
Foundation Chairman Lee Hung-hsi and Judicial Yuan President
Weng Yueh-sheng will preside over some of the discussions.
A reputable specialist or scholar in each field will give
a speech in each session, which will be supplemented and analyzed
by other interlocutors from either the government or academia.
Aside from civil servants, symposium participants will include
members from civil groups, the private sector and universities,
according to a press release from the Examination Yuan. The
symposium, to be held at the National Library in Taipei, is
organized by the Examination Yuan, the Han Chung-Mo Law Foundation
and co-organized by the Law School of the National Taiwan
University, the Ministry of Examination, the Ministry of Civil
Service and the Civil Service Protection and Training Commission.
From Taipei Times, Taiwan, by Huang Tai-lin,
13 October 2003
NTUC Income Cuts Monthly
Insurance Charges for Civil Servants to 60 Cents
Singapore - NTUC Income is cutting
insurance premiums for civil servants and statutory board
employees and their families to just 60 cents a month. This
is a 25 per cent reduction designed to make life and accident
insurance more affordable for the 50,000 workers who fall
under this scheme. The government puts civil service insurance
out to tender every three years. NTUC Income has had the contract
since 1997 and recently re-secured the business for another
three years, starting the first of this month.
From Channelnewsasia.com, Singapore, 21
October 2003
Civil Service Alignment
Meet Draws to a Close
The two-day symposium on 'Civil Service
Alignment Programme', co-organised by Management Services
Department and Civil Service Institute of the Prime's Minister
Office drew to a close yesterday. It was held at the Ministry
of Industry and Primary Resources premises. The symposium
was officially launched Tuesday by the Permanent Secretary
at the Prime's Minister Office, Dato Paduka Awang Haji Hazair.
Also present were Permanent Secretaries, Deputy Permanent
Secretaries, Directors, Head and Deputy Heads of Department
as well as senior government officials. The Civil Service
Alignment Programme was first introduced in January earlier
this year. It aims to assist Civil Service Management in ensuring
that projects and activities conducted by ministries (and
departments under it) are in line with the objective of the
National Development Plan (RKN) and the vision of Civil Service.
Various activities have been implemented to educate relevant
parties on the procedures of the Civil Service Alignment programme.
Among them were Alignment Workshop for the Department Directors
(January 27-29), Extra Alignment Workshop for Ministries /
Department Directors (May 10), Leadership Seminar for Permanent
Secretaries and Deputy Permanent Secretaries (June 16-17)
and visits to ministries.
Meanwhile, the main objective of the
symposium on Civil Service Alignment Programme was to shed
some insight on the strategic planning and projects that would
be implemented by each of the ministries and departments under
them. The main purpose of holding the symposium is to improve
and upgrade transparency and accountability of all levels
in ministries and departments under them. It also hopes to
upgrade the coopertation and synergy of all levels within
the Civil Service, as well as to implement and ensure that
resources allocated for project plans from each ministry and
departments under them would give 'good value-for-money'.
Additionally, it hopes to promote the sharing of information
on strategic planning by ministries and to upgrade the alliance
between ministries. The symposium is in line with His Majesty's
titah, which was delivered during His Majesty's 57th birthday
celebration in July. It stressed the need for all ministries
and government departments to focus on alignment programmes.
During the closing ceremony yesterday, the Director of Civil
Services Institute, Dr. Azaharaini bin Haji Mohd Jamil delivered
his closing remarks. He is also the co-chairman of the symposium
committee.
From Borneo Bulletin, Brunei Darussalam,
by Achong Tanjong, 23 October 2003
Civil Service Slams
'Salt in Wound'
Civil service unions attacked the planned
11 per cent cut in the government's operating expenditure
over the next five years, warning that the quantity and quality
of public services would be affected. Henry Tang has yet to
announce details of the cuts, but has said not all bureaus
and departments would suffer cuts and that the timing was
flexible. Civil Servants' General Union chairman Felix Cheung
said public-sector staff were already under tremendous pressure
in the face of pay cuts, restructuring and other cost-cutting
measures. He said the civil service had already suffered after
1.8 per cent was trimmed from the operating expenditure and
the additional 11 per cent would add salt to their wounds.
Local Inspectors' Association chairman
Tony Liu said the cuts would have a big impact on the quantity
and quality of police services, especially because demand
for manpower would only increase at border checkpoints to
deal with the influx of mainland tourists. "There's no
way but for the police force to reprioritise the services
again. Non-core duties such as looking for lost dogs or repairing
water pipes will be greatly reduced," Liu said. "I
don't worry about police morale - I worry more for the safety
of the public because our services will be affected."
Democrat Cheung Man-kwong said he was greatly disappointed,
predicting "bloodshed" in the education sector.
"They [the cuts] amount to more than HK$5 billion and
will deal a heavy blow to the education sector. How can education
reform be carried out without money?" the lawmaker representing
the sector asked. "Policies such as four-year university
education and small group classes will be dumped."
From The Standard, Hong Kong, 23 October
2003
Top Civil Servant's
Joyrides Only a Tip of Iceberg
The report on misuse of government
aircraft by a top civil servant is just the tip of the iceberg.
What about ministers who use them for their political party
functions? This is particularly common among ministers who
have access to aircraft under their ministries e.g. Defense,
Home (police) and Housing and Local Government (Fire Department).
In Malaysia, there seem to be no concept of division between
official government matters and party business. About 10 years
ago, a military helicopter carrying a certain defense minister
crashed in Pahang while on a trip to attend a party function
in his hometown. Come election time this use will escalate.
The tab is being picked-up by the taxpayers.
From Malaysia Kini, Malaysia , 28 October
2003
China's First Law on
Civil Servants to Debut
Beijing - The Internal and Judicial
Affairs Committee of the 10th National People's Congress (NPC)
has proposed legislation regarding civil servants, said its
chairman here Tuesday. After a 10-year trial of the regulation
on civil servants, it is time to draft China's first law on
civil servants, said He Chunlin, who was at the fifth meeting
of the 10th NPC Standing Committee to elaborate on the proposal
to top legislators. In the first session of the 10th NPC this
March, nearly 200 representatives raised six proposals calling
for such legislation. He said his committee made the proposal
after seriously deliberating the bills and conducting relevant
investigations. His committee also received the written proposal
from related governmental departments. In January of 2001,
China's Ministry of Personnel established aspecial working
group responsible for drafting the law on civil servants jointly
with other related departments. The almost completed draft
law is now under revision by the related governmental departments.
From Xinhua, China, 28 October 2003
Singapore Expert Talks
To Brunei Civil Servants On Corruption
Bandar Seri Begawan - Political will,
is the important factor in ensuring the effective reformation
in Civil Service and to reduce corruption. This was stressed
by an expert from Singapore, Professor Jon Quah at a talk
entitled 'In pursuit of good governance in Asian countries:
The role of corruption control and civil services reforms.'
Permanent Secretaries, Deputy Permanent Secretaries and Department
heads attended the presentation. Professor Jon Quah also touched
on the reasons of corruption, and in the form of corruption
control and reformation of civil service in Asian countries.
He added the importance of leadership as an example in upgrading
the work culture in civil service by avoiding corruption and
its negative effects. The talk was jointly organised by the
Anti-Corruption Bureau and Civil Service Institute in conjunction
with Civil Service Day. - Courtesy of Radio Television Brunei.
From Bru Direct, Brunei Darussalam, 26 October
2003
Civil Service Tries
Short-term Hiring
Some ministries offering short-term
contracts for permanent posts; scheme lets ministries assess
job compatibility - Singapore's biggest employer, the civil
service, is hiving off some jobs into contract hires, with
several ministries employing officers on short-term contracts
for permanent posts. This year, the Ministry of Finance (MOF)
has at least 20 officers on contracts for jobs across the
organisation, from research to corporate services. The Ministry
of Manpower (MOM), walking the talk it gives to employers,
is among the first in the public sector to offer one- to two-year
contracts to staff at all levels. It took the step in the
middle of last year, but promising officers are offered permanent
jobs even before their contracts end. 'This move reflects
changes in the broader employment market towards greater flexibility,
which MOM itself needs to keep pace with,' said a ministry
spokesman. At the Finance Ministry, the flexible scheme 'allows
both the MOF and the officer a period of time to discover
how compatible they are,' said its spokesman. Officers on
contract get similar pay and perks as the permanent staff,
so they are not disadvantaged in any way, said MOM's spokesman.
At the Education Ministry, only a small
group of foreign teachers is employed on contract while the
majority of teachers are permanent staff. It does, however,
offer jobs on the permanent establishment or contract terms
to new recruits under the executive and administrative staff
schemes. The trend towards non-permanent employment has been
growing in the last few years. The number of people working
in temporary jobs rose from 59,400 in 2001 to 74,600 last
year. Unlike outsourcing of work that is contracted out, these
contract employees carry out the organisation's work while
on its payroll. In yet another move away from its iron rice
bowl image, the civil service is also showing poor performers
the door within nine months and giving those stagnating in
their jobs the option to leave and reapply for work, but in
a lower-level job. A Public Service Division (PSD) spokesman
told The Straits Times that a person deemed an underperformer
at his appraisal is given nine months to pull up his socks.
However, a person who is going nowhere
in his job can opt to leave without worrying about being shut
out of the service forever. Adopting what industry observers
described as a revolving door approach, the Government is
willing to consider them during its recruitment exercise.
These policies allow ministries to refresh themselves and
remain vibrant, said the PSD spokesman. Ministries that have
yet to take the new routes for contract employment have different
views on the matter. The Ministry of National Development
said it would look into employing officers on contract in
the future. The Home Affairs Ministry hires staff on contract
only for non-permanent posts and they make up less than 5
per cent of its total staff strength. Manpower experts say
the new policies are timely as the uncertain economy makes
it difficult to project far into the future. Mr. Na Boon Chong
of Hewitt Associates is especially struck by the revolving
door policy and thinks it is worth emulating. 'It seems to
be a face-saving way of getting poor performers off the jobs
they occupy. Perhaps, the private sector should adopt it too.'
From Straits Times, Singapore, by M. Nirmala,
26 October 2003
Small Salaries Not
Main Cause of Corruption, Says Minister
Jakarta - Small salaries are not the
main cause of corruption within Indonesia`s bureaucracy, Finance
Minister Boediono said here Thursday. "It is not true
that the small salaries of civil servants are the reason that
corruption is so rife in Indonesia," the minister said
at a function to mark the 57th anniversary of Financial Day
here on Thursday. While the state still lacked the financial
capability to pay higher civil servants` salaries, what Indonesian
civil servants were now receiving was not very low compared
to their peers in Vietnam, China or India, he said.
From Antara, Indonesia, 30 October 2003
Many Civil Servants
Assigned to Study Abroad Don't Return
Jakarta - State Minister for State
Administrative Reforms Feisal Tamim said many civil servants,
including high-ranking officials, assigned to study abroad
or at foreign universities fail to return to Indonesia or
their institutions. "There are many problems which cannot
be predicted in the sending of civil servants on study assignments
abroad," he said. Feisal was explaining the results of
an exercise to collect data on the civil administration after
a meeting with Vice President Hamzah Haz here on Wednesday.
From Antara, Indonesia, 29 October 2003
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We Want 1,000 Civil Service Jobs
Here
North West campaigners are bidding
for up to 1,000 civil service jobs to come to Cumbria in a
Government review. The Lyons Review is looking into 20,000
civil servants' jobs being moved from London to other parts
of the country. The North West Regional Assembly is campaigning
for 5,000 of those to come to the region and is urging local
authorities, MPs and other bodies to get behind the plans.
Cumbrian MPs have already had informal talks with ministers
about what the county has to offer. Workington MP Tony Cunningham
said West Cumbria has already proved it can do the job as
the British Cattle Movement Service has expanded since it
moved to the town in 1998. Mr. Cunningham said the success
of the cattle tracing service in Workington proved local people
can do the job. He said: "It came here with a couple
of hundred jobs. There are now around 800. We have a very
loyal, flexible workforce. "There used to be a language
problem when Welsh farmers phoned up but now over a dozen
Welsh people work there and are living in the area. We have
proved we can accommodate these things. "And with new
technology such as internet and email, it doesn't matter where
things are. "We've also got reasonably priced land, quality
of life that's second to none, the best scenery, and reasonable
house prices."
Simon Barwick, who is director of policy
development for the NWRA, said: "We've not had the best
deal in the past and we want the biggest slice of the cake
we can get. "The North West has lots to offer. It makes
sense to re-locate agriculture here rather than having it
in Whitehall where the nearest field is 20 miles away. Why
not let it go to Carlisle? "It's also more affordable
here. It costs the Government three times as much in overheads
to have a civil servant working in London than in the North
West because of office space costs. "It's up to local
authorities and other partners to support this and put forward
their ideas. The more joint working in the region that goes
on now, the more we'll get out of it." Sir Michael Lyons
is carrying out the review of civil service relocation and
the NWRA has drawn up the case for the North West. Reports
will be submitted to Chancellor Gordon Brown by November.
Carlisle MP Eric Martlew said the city would be a perfect
base for the Department for Food, Environment and Rural Affairs.
Mr. Martlew said: "One think tank has already suggested
Carlisle as a possible base for Defra. Being a big agricultural
community, it's sensible to move it here."
From Carlisle News, UK, by Nicola Jolly,
3 October 2003
EU Civil Servants Pension
Reform Gets Go-Ahead
EU foreign affairs ministers have approved
a controversial pension reform for EU civil servants, which
is set to increase their pension age and make new entrants
work more years to receive the maximum level of pension. The
deal came after the Unions, representing thousands of EU civil
servants, backed down from their request to change the proposals
and yesterday (29 September) gave the go-ahead for the proposed
reforms. Germany, Austria and Denmark, however, voted against
it feeling the changes did not go far enough. These new rules,
proposed by the Commission in 1999, will come into force by
May 2004 when 10 new countries join the EU bloc. According
to the new rules, the staff retiring age will be raised from
60 to 63, however, up to 10% of the civil servants will be
able to retire beforehand - under certain conditions. The
monthly salary contributions to the pension fund will also
decrease from 2 to 1.9 % each year, making it harder for EU
officials to reach the maximum level of pension. Another controversial
change is that pensions will not be adjusted according to
the prices of the capital city where the EU civil servant
will have their pension, but according to the country as a
whole - meaning that some EU civil servants could be receiving
a lower pension than what they are receiving now.
The present measure being abolished,
known as "coefficients capitale" allows pensioners
to have the same buying power irrespective of where they reside.
Unions complained that prices in capital cities are generally
higher than in the rest of the country, and that this measure
also risks hindering the free movement of persons at their
pension age. Agreement on Members' Statute - The EU foreign
affairs ministers also agreed on the reform of the statute
of Euro-parliamentarians, which would see the system of salaries
for MEPs made much more transparent and MEPs being paid the
same salary irrespective of their country of origin. Agreement
was also reached on the financing of the pan-European parties,
where 8.4 million euro will be made available from the Community
budget from July next year. In order to qualify for the money,
parties have to be represented in at least a quarter of the
member states of the European Union. Otherwise, the party
must have obtained at least three percent of the votes cast
in the most recent European elections in each, of at least
four, member states.
From EUobserver.com, Belgium, 20 September
2003
Civil Servants Encouraged
to Get Out More
The DTI wants its staff to leave their
desks and meet those most affected by its policies, writes
Richard Tyler - Civil servants within the Department of Trade
and Industry are being encouraged for the first time to regularly
take time out of their working week to go to talk to the businesses
affected by their policymaking. Stephen Haddrill, director-general
of the fair markets section of the DTI, has established a
set of guidelines for his staff and these have been taken
up by the Cabinet Office, which is seeing whether they can
be applied to other departments. "In the past there's
been a tendency to require people to go through a traditional
box-ticking exercise without providing the motivation that
better regulation is important," said Mr. Haddrill. "The
DTI now expects its staff to get out and about in businesses,
whether preparing changes to regulation or just to make sure
you understand how businesses are working on the ground."
Mr. Haddrill said this approach included seeking and assessing
feedback from businesses on major pieces of legislation. The
first to benefit from the new approach is the work-life balance
legislation, brought in this April. "We have a big research
programme to enable us to assess the impact of that in two
to three years' time. That will involve consultancy work but
also going out and talking to businesses," he said.
Mr. Haddrill said the DTI was working
"very closely" with the Cabinet Office to "encourage
this approach across Whitehall". The changes have been
welcomed by William Sargent, chairman of the Small Business
Council, who said the "change in culture" among
civil servants he worked with was "beginning to happen".
"There's a long way to go, but there's nothing like a
start," he said. "The civil servants think they
are doing it right. They don't deliberately get it wrong but,
just like in business, things do go wrong. You do, though,
have to go out and find out why it has gone wrong." As
part of this new focus on assessing how regulations are working,
several feedback schemes have been launched, which are attended
by a team of policymakers led by Bill Hallahan from the Small
Business Service. One, called The First Step, is examining
the experience of entrepreneurs looking to start out in business.
The first of three meetings targeting young professionals
has already been held at Therapy coffee bar, in Earlsfield,
south London.
A second, aimed at parents, is planned
for October 23. Charlotte Bram, a former lawyer and the coffee
bar's founder, has organised the meetings, which see business
role models and specialists answer questions and give advice.
The questions from the floor are noted by the SBS staff present
and the areas where policy appears not to be working are fed
back into government. "You have to ask the right people,"
said Ms Bram. "It's no good going to people in Business
Link, as they have their own agenda. You have to ask the people
who want to set up in business. "I came on board because
I had a very difficult experience setting up in business.
The point was brought home to the SBS when they came to visit
me. There's all this wealth of money, millions and millions
set aside to help small businesses, but somewhere along the
line the existing advisory businesses are failing. "There
are so many available. The problem is, when you approach these
organisations it's a bit like finding a rough diamond. It's
very difficult to find someone who actually knows what they
are talking about."
From Telegraph.co.uk, UK, 6 October 2003
Mayo Hopes for Inclusion
in Movement of Civil Servants
Several towns in Mayo are among more
than a hundred towns and cities across the country hoping
to gain from Government decisions on the decentralisation
of civil servants which now look likely to be taken before
Christmas. Among the Mayo towns hoping to feature are Claremorris,
Ballina, Castlebar and Westport. Ballina got a bit of a boost
during the week when Government Minister, Mary Coughlan, said
Government departments should be decentralised to places like
'Ballina or Ballinasloe' and not to places that are already
over-developed. But Mayo towns and other towns of similar
size will have to renew their campaigns for inclusion in the
programme with some vigour in order to stave off a Department
of Finance suggestion that civil servants should be transferred
to 'fringe' areas of Dublin city as a means of relieving city
centre congestion.
The President of Westport Chamber of
Commerce, Mr. James O'Doherty, said it would make a complete
mockery of the whole concept of decentralisation if all it
turned out to be was a movement of civil servants from Dublin
city down the road to the suburbs. 'That was never what the
Government had in mind and it certainly could do little to
relieve congestion or the over-development of Dublin'. The
moving of civil servants is still being considered by Cabinet,
with Ministers still weighing up their options, said Mr. Dermot
Quigley, a principal officer at the Department of Finance.
Roughly half of the civil servants working in Dublin would
have to leave the capital if the target of 10,000 decentralised
posts were to be reached, said Mr. Quigley at the Oireachtas
Committee on Finance and the Public Service. But nearly four
years after the Government first announced its intention to
do so, the Cabinet has yet to decide which civil servants
are to leave Dublin or where they might go.
In the absence of a deadline, the Government
continues to consider submissions from individual Departments,
unions and from the 130 towns and cities lobbying to house
decentralised offices. More than 10,000 expressions of interest
have been received from Dublin-based civil servants. This
figure, however, includes those indicating they would be prepared
to move to more than one location. It is unlikely that any
Department will be transferred in its entirety as there will
be a need for senior civil servants to be close to the capital
so long as it remains the centre of political and economic
power, Mr. Quigley has said. It could be argued, he said,
that senior civil servants should be near not only the Government
and the Attorney General but also to the "movers and
shakers" in the political and business worlds. In a poll
of civil servants Westport was favoured by many as a place
they would like to relocate to.
From Mayo News, Ireland, 7 October 2003
Conservatives Pledge
Lower Taxes and Public Services Reform
Shadow Chancellor, Michael Howard,
has committed Conservatives to cut taxes and reform public
services. In his keynote Conference speech, Mr Howard declared,
"we believe in low taxes. We are the party of low taxes.
All our instincts are for low taxes." He pledged, "we
can and we will reform public services. We will always be
a lower tax government than Labour. And we do plan to cut
taxes." Promising that a fair deal on tax would go hand
in hand with improving public services, Mr. Howard said Conservatives'
plans would be carefully costed and clear for all to see.
"Reforming and improving the public services is the only
way to break Labour's vicious circle of ever higher taxes
and ever failing services. It is the key to everything we
want to achieve. It has got to be done and we'll do it."
Under Labour, he said, people and businesses had been "hammered
by higher taxes and too much of their money is being wasted".
Mr. Howard said that under Labour there
had been 60 tax rises and "still no delivery" on
improvements to public services. "Tax rises this year
alone cost a typical family Ł568 a year. Labour's council
tax rises are driving those people on fixed incomes like pensioners
into real hardship. "Labour talk about relieving poverty.
The sad truth is they are creating poverty.""The
fact is people are fed up. Fed up with endless tax rises.
Fed up with endless promises and fed up with failure to deliver."
The Government's central failure was that they had spent the
money, but not carried out the reform. He mocked Chancellor
Gordon Brown's speech to the Labour conference last week,
saying, "in two days flat he went from the Incredible
Bulk to the Incredible Sulk - from Brown to green with Blair
in between." He added, "everybody knows that, under
Labour, taxes will rise again. Tax rises are at the heart
of Labour. Old Labour, New Labour. Any Labour. They have put
up taxes. They are putting up taxes." The Liberal Democrats
too, he said, wanted to pile on extra taxes, like a regional
income tax, VAT on new homes and a development tax.
From Conservatives.com, UK, 9 October 2003
MPs to Call Campbell
and Head of Civil Service
Alastair Campbell and Sir Andrew Turnbull,
the head of the Civil Service, are to be summoned before a
powerful committee of MPs to answer questions on the treatment
of Dr David Kelly. Mr. Campbell, who had earlier refused to
appear before the Public Administration Committee, will be
asked about Downing Street's role in releasing Dr Kelly's
name to the press. He is expected to be called next week when
MPs return to the House. It would be Mr. Campbell's first
appearance on the political scene since standing down as the
Prime Minister's director of communications and strategy.
Now that he has left Number 10, he may not be able to refuse
a summons. Mr. Campbell would be questioned as part of the
committee's review into the Government's communications policy.
The Public Administration Select committee
has already asked Sir Andrew, the most senior civil servant
in Whitehall, to appear and explain whether the Civil Service,
as Dr Kelly's employer, abided by its "duty of care"
to the scientist. Dr Kelly apparently committed suicide after
he was named by the Government as a source for a BBC story
about an intelligence dossier on Iraq's weapons of mass destruction.
The cabinet secretary is understood to be cautious about the
invitation and his office is negotiating with the committee
on the terms of his appearance and the date. "Why wasn't
the head of the Civil Service involved in the whole issue
of how to treat Dr Kelly?" asked one source close to
the committee. The Hutton inquiry into the death of Dr Kelly
will take evidence today from Sir Kevin Tebbit, the permanent
secretary at the Ministry of Defence.
From Independent, UK, by Marie Woolf, 13
October 2003
22,000 More Civil Servants
in One Year
The Conservatives accused the government
yesterday of overseeing an unnecessary rise in the number
of bureaucrats, after figures showed the number of full-time
civil servants had increased by 22,000. The official statistics
released by the Cabinet Office revealed that there were 512,400
permanent civil service posts on 1 April, an increase of 22,160
compared with the same date in 2002. David Davis, the shadow
deputy prime minister, said the rise was typical of the government's
approach. "With a million people still on the waiting
list, gun crime doubling and one in five trains running late,
the government choose to invest in over 20,000 extra bureaucrats,
rather than delivering the money to front-line public services.
"Their centralising and complex policies continue to
be the reason why Labour have taxed and spent and failed,"
he said. The Cabinet Office said many of the additional staff
had been taken on at the Foreign Office, due to an increased
volume of work resulting from the Iraq war and reconstruction
effort.
From The Scotsman, UK, by Jason Beattie,
17 October 2003
Civil Service Jobs
Boost
The number of permanent civil servants
has increased by 4.5 per cent in the past year. Cabinet Office
figures released on Thursday revealed that there are 10,740
more staff in Whitehall than in October last year. On April
1 this year, the total number of government employees was
512,400 - a 2.6 per cent increase on October 2002. Whilst
the number of casually employed staff fell by 2,040, the number
of permanently contracted staff rose by almost five per cent.
The government put the rise down to an increases in the workload
of some departments. The number of Foreign Office staff has
risen in response to the Iraq war and the continued growth
of the Welsh assembly's work has led to an expansion in its
workforce. More staff have also been employed in the Home
Office as part of a drive to cut the asylum backlog. The Crown
Prosecution Service has also recruited more staff "in
order to meet its commitment to increase its force and reflect
its changing role within the criminal justice system".
The data also revealed that 2.8 per cent of senior civil servants
are from minority ethnic backgrounds and 1.7 per cent are
disabled. The Cabinet Office revealed that 26.4 per cent of
the senior civil service are women - with 23 per cent of those
in the "very top management posts" being female.
From ePolitix, UK, 16 October 2003
Civil Servants Pass
Half Million Mark
The total number of staff employed
by the civil service has grown by more than 10,000 during
the past six months. The number of permanent civil servants
now stands at 512,400, an increase of 12,780 since numbers
were last released six months ago. However, there has been
a drop of 2,040 in the number of casual staff employed by
the Government since October last year. In the complete year
to April the number of permanent staff increased by 22,160
(4.5 per cent) and there was a decrease of 2,910 in the number
of casual staff, so the overall level of staffing increased
by 19,260 (3.8 per cent). According to the latest figures
from the Cabinet Office, diversity in the civil service remained
roughly static with 52.3 per cent of staff female and around
8 per cent from ethnic minority groups. Some of the changes
in staffing numbers were due to departmental changes with
responsibility for various agencies and schemes moving across
government.
From PersonnelToday.com, UK, 20 October
2003
ICTU Defends Benchmarking
Deal for Public Servants
The Irish Congress of Trade Unions
has hit back at critics of the benchmarking scheme for public
servants, accusing them of opposing a process that will bring
significant benefits to Irish society. Several prominent politicians,
including Fine Gael leader Enda Kenny, have called for the
deal to be renegotiated because of the costs it will incur
for the Exchequer. However, ICTU said today that the process
had already delivered positive reforms and it accused critics
of the deal of failing to see its obvious benefits. IMPACT
spokesman Peter McLoone said: "We've achieved significant
reform of the public service pay determination system, we've
achieved industrial peace and stability and we've set about
a programme of modernisation and change that will bring improved
services, will bring about better performance and will give
greater efficiencies and value for money."
From Ireland Online, Ireland, 16 October
2003
Letter Reveals Civil
Servant Felt Pressure
Suicide victim targets media - Sunday's
suicide of Finance Ministry official Rubini Stathea, who had
been involved in a case concerning demolition of plush seaside
dwellings, revealed the contradictions in the relevant legislation,
infighting between state agencies, and suspicions over the
state administration's illicit dealings with the rich and
powerful who can thus circumvent the law. Stathea left behind
six letters, one of which, addressed to the chief editor of
Eleftherotypia newspaper, Seraphim Fyntanidis, was published
yesterday. The letter provided an explanation of her suicide,
implying that she had been under pressure by colleagues, politicians
and, above all, the media, especially television reporters.
"I wish my own end to be the beginning for a little effort
by everyone to become better, the civil servants a little
bit more industrious, responsible and effective, the politicians
a little more honest, the judges a little more trustworthy
and the journalists less carnivorous," Stathea wrote.
She went on to ask forgiveness of her
husband, Panos Tzavaras, for "ruining his political career"
- he is a member of the ruling PASOK party and a municipal
councillor - and proclaimed that most civil servants are honest,
the government "with exceptions, the best I've ever seen
and the prime minister the most honest we have ever had. I
believe that the majority of judges are honest and that there
are good journalists, too." The other five letters were
addressed to her husband and children, the family doctor and
three of her superiors. All letters are in the hands of the
authorities investigating the circumstances of her death:
The recipients received copies. Government officials expressed
"deep regret" at her death. Stathea had issued two
contradictory orders within two days last week, first prohibiting
and then allowing the demolition of the wall of a seaside
villa. The five-year-old demolition order had been issued
by the Environment Ministry and Stathea's initial order halting
the demolition was based on a 27-year-old court decision.
From Kathimerini, Greece, 15 October 2003
'Vital Role' of Front
Line Public Service Staff Celebrated
A new booklet launched today highlighting
the "vital role" front line staff play in improving
public services will be distributed to 30,000 senior managers
across the public sector. The publication 'Leading from the
Front Line' contains a number of case studies from across
the country. The Prime Minister's Adviser on Public Sector
Reform Wendy Thomson said: "'Leading from the Front Line'
highlights the good work happening on the ground - where it
really counts for customers and communities. It is services
like these, led by committed people that are setting the pace
on reform and best practice." The role of front line
staff was reflected also reflected by the Charter Mark awards
ceremony. The awards promote "choice, flexibility and
innovation in public service". The 2002 Charter Mark
Award Ceremony acknowledged 790 public service winners for
excellence in customer services. Over 2,400 public sector
organisations are now recognised by the scheme. Both the booklet
and the awards encourage public sector leaders to share their
ideas and best practice.
From 4ni.co.uk, UK, 22 October 2003
Public Service Pay
Deals 'Top Private Sector'
Economic analysts say the level of
pay rises is being pulled up by increases in the public sector,
which are outstripping deals in private firms. Average deals
in the three months to September were worth 3.3%, but the
figure was 3.5% in the public sector and 3% in private companies.
Relatively high pay awards have been agreed recently in parts
of the construction, food, drink and tobacco processing industries,
while in other parts of manufacturing increases have been
lower than 3%. The report, by pay analysts Incomes Data Services,
said that in the finance sector more emphasis was being placed
on bonuses rather than salary rises. Of almost 100 pay deals
covered in the report most were worth between 2.5% and 3.5%,
including a 3% rise for administrative and ground services
staff at British Airways. Just seven of the settlements were
worth less than 2.5% and one was below 2%, while one in four
gave rises of 4% or higher. One of the bigger deals was 5%
for 7,000 workers in the demolition industry in a move to
improve minimum rates.
From Ananova, UK, 26 October 2003
Top Civil Servants
Hit at Cabinet Secretary
Sir Andrew Turnbull, cabinet secretary
and Whitehall's top mandarin, is facing a revolt from senior
colleagues accusing him of lack of leadership and a tendency
to curry "political favour" by "denigrating"
the performance of the civil service. In a remarkable attack,
the First Division Association, which represents Britain's
most senior civil servants, said there appeared to be "a
culture among a small number of people at the centre who seem
to believe that political favour is won by denigrating the
performance of the civil service. That is unfair, damaging,
is not supported by the evidence and in practice does not
serve the interests of ministers". The intervention came
as a senior Whitehall insider took Sir Andrew to task for
failing to take a lead on how the civil service should respond
to the Hutton inquiry.
The insider said he was constantly
asked by employees for guidance on contact with the media,
following the disclosure of the extent of the weapons scientist
David Kelly's contacts with the press and television. But
Sir Andrew refused to advise his most senior colleagues, saying
such matters should await Lord Hutton's report. "We've
got guidelines for everything but what we need is a bit of
leadership," the insider grumbled. The FDA also warned
that Sir Andrew's programme for modernising the civil service
is too technocratic. It paid too much attention to delivery
of targets and performance management and too little to preserving
the values and ethos of the civil service, the FDA said. It
needed to emphasise more the moral leadership senior civil
servants have to provide.
Jonathan Baume, general secretary of
the FDA, said the need had been highlighted by the Hutton
inquiry, which had exposed "the very complex, difficult
decisions that people have to take and advise on". In
a commentary on Sir Andrew's modernisation programme, the
FDA acknowledges the civil service must be "fit for purpose"
- the challenge Sir Andrew has put before it, emphasising
that if it fails to deliver the government's agenda its own
future will be in question. However, the FDA says it "does
not support what appears to be an underlying premise of Sir
Andrew's approach which is that somehow the civil service
is a failing organisation". Most civil servants do a
thoroughly professional job, it says. But, where departments
are widely perceived to be failing, "it is usually the
case that there has been a political failure".
From Financial Times, UK, by Nicholas Timmins
and Cathy Newman, 29 October 2003
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Focus On Your Core Businesses Department
Heads Told
Bandar Seri Begawan - It is the objective
of the civil service to provide more efficient, effective,
and productive ethical services by prioritizing measures that
could reduce cost and avoid wastage in implementing government
projects. Dato Awang Haji Hazair the Permanent Secretary at
the Prime Minister's Office said that with the application
of such steps the distribution and utilisation of resources
of an organisation could be implemented with more competence
and justifiable stability. He was speaking at the launch of
the alignment symposium in Civil Services yesterday. He added
that efforts in conducting a symposium such as this was in
line with the titah of His Majesty the Sultan of Brunei on
his 57th birthday in July in which the monarch stressed that
all ministries and government departments should give serious
attention on alignment programme. Dato Haji Hazair went on
to say that alignment programme serves to provide heads of
department and management to interact, cooperate and nurture
high values such as transparency and accountability apart
from providing every ministries with the opportunity to apprehend
about each other's strategic programmes.
He added that each department should
focus attention at all times on their core business. To achieve
good management, he elaborated each department should evaluate
the vision, mission, objective and role of its purpose. By
observing such measures, duplications in areas of authorisation
and work with other ministries could be avoided. Permanent
Secretaries, Deputy Permanent Secretaries, Directors, Assistant
Directors, Heads of Departments and Deputy Heads of Departmentd
are attending the two-day symposium. The symposium is to discern
and share information on strategic planning of ministries
to further increase strategic alliance among ministries. The
Management Service Department and the Civil Service Institute
is conducting the symposium at the Ministry of Industry and
Primary Resource in Berakas. Courtesy of Radio Television
Brunei.
From Bru Direct, Brunei Darussalam, 22 October
2003
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Scandal Rocks Civil Service
Editorial - Rarely has Canada's auditor
general been so forceful. On Tuesday, Sheila Fraser was pulling
no punches, calling on the federal government to launch a
police investigation of former privacy commissioner George
Radwanski and his top officials, citing a "reign of terror"
and abuse of public funds. For those with short memories,
Radwanski resigned June 23 after a Commons committee said
it had "lost confidence" in him, adding he had misled
them using falsified documents. Fraser, as the federal government's
auditor, was asked by Parliament to audit the department,
and what she found caused her to make it clear nothing short
of a criminal investigation is warranted. Naturally, Radwanski
was just as determined in his own defence, calling Fraser's
audit a "vicious personal attack."
However, given the propensity for auditors
to have everything double and triple-checked, we have a feeling
that Fraser would not have made the strong statements she
did if she did not have an overwhelming amount of evidence
to back up her claims. Consider: "Many senior executives
(willingly or by omission) turned a blind eye to breaches
of law and policy." Or when Fraser blames two government
bodies - Treasury Board Secretariat and the Public Service
Commission - of failing "to respond decisively when they
became aware of problems." There's more, much more, but
it is evident a real problem exists here, perhaps a problem
that is a microcosm for a civil service that has grown out
of control in Ottawa and needs a good wake-up call. Sheila
Fraser is just the person to give it.
From The Pembroke Daily Observer, Canada,
1 October 2003
Candidates Back Civil
Service Commission
Whether Wilmington will keep its civil
service commission is a big issue in the race for city council.
Tuesday night firefighters and police officers asked the candidates
what they would do with the commission. All agreed to keep
it, including George Wrage - who promised to give them a pay
raise. And Christian Verzaal - who is married to a police
officer - says the commission should cover all city employees,
among other powers. "The powers and duties explained
in the city charter state they can approve policy and approve
promotions," Verzaal said. The forum was included the
County's Association of Educators. You can watch our own mayoral
forum live here on WECT Saturday at 7 p-m.
From WECT, NC, 1 October 2003
Wisconsin Public Service
Announces Promotion
Green Bay, WI - Janet K. McKee, formerly
Director of Treasury for Wisconsin Public Service Corporation,
has been promoted to Assistant Treasurer. McKee, 49, graduated
from the University of Wisconsin - Green Bay in 1988 with
Bachelor of Science degrees in Managerial Accounting and Business
Administration/Finance. She is a Certified Public Accountant
in the state of Wisconsin and is a member of the Wisconsin
Institute of Certified Public Accountants. McKee joined Wisconsin
Public Service in 1996 and has worked in both the accounting
and treasury areas where she was responsible for the financial
planning, cash management, and accounts payable functions.
Prior to joining Wisconsin Public Service, Ms. McKee held
the positions of Accounting Manager and Assistant Controller
for Schneider Communications. McKee and her family live in
Green Bay, Wisconsin. Wisconsin Public Service Corporation
is an investor-owned electric and natural gas utility serving
more than 450,000 natural gas and electric customers in northeastern
and north central Wisconsin, as well as an adjacent portion
of Upper Michigan. Wisconsin Public Service is a wholly owned
subsidiary of WPS Resources Corporation (NYSE: WPS).
From Pressi.com (press release), 3 October
2003
Argentina's Federal
Police Chief Fired on Corruption Charges
The Argentine government has fired
its new federal police chief on corruption charges. Justice
Minister Gustavo Beliz told a news conference in Buenos Aires
Thursday that General Roberto Giacomino, the country's Police
Commissioner, was removed from his post for awarding over-priced
service contracts to companies linked to his relatives. General
Giacomino was named Police Commissioner only four months ago.
His appointment was part of a government shake-up by President
Nestor Kirchner, aimed at stamping out corruption. No one
has yet been named to lead the federal police following General
Giacomino's dismissal.
From Voice of America, 3 October 2003
Civil-Service Bill
Could Weaken a Toothless Tiger
The fallout from the George Radwanski
affair is spreading and could block a major overhaul of the
civil service legislative structure currently before Parliament.
The Public Service Commission, supposedly the overseer to
ensure the integrity of the civil service, has been shown
in the Radwanski case to be a toothless tiger, hopelessly
mired in its own red tape and bureaucratic bumbling. So, if
it took the commission more than two years to catch up to
the former privacy commissioner under the existing rules,
does it make sense to further weaken its role? That is what
would happen in C-25, a massive bill governing all aspects
of the civil service, which is currently stalled in the Senate.
Auditor-General Sheila Fraser has exposed in excruciating
detail not only Mr. Radwanski's expensive tastes and jet fuel
addiction, but how he and his associates at the top of the
privacy office systematically manipulated the system to hire
and promote friends, to give themselves huge and unwarranted
raises and to bend the rules for their financial benefit.
But an equally big scandal is the fact that both the Public
Service Commission and the Treasury Board knew there were
problems in the privacy office and had done very little about
it until the Commons government operations and estimates committee
began investigating Mr. Radwanski last spring. In the summer
of 2001, barely a year after Mr. Radwanski was appointed,
the director of human resources left the privacy office and
informed the PSC there were big problems.
The PSC investigation and audit took
almost two years and, in a move that smells of political expediency,
delivered its reprimand about Mr. Radwanski's mode of operation
on June 16, after the government operations committee had
issued its first stinging report. The Treasury Board knew
the privacy office's expenditures were out of control but
instead of cracking down, it provided an extra $73,000 for
personnel costs. The Achilles' heel at the PSC is a policy
of delegating to the deputy ministers of the various departments
the right to both hire civil servants and to reclassify positions.
In return, the deputies sign a Staffing Delegation and Accountability
Agreement and the PSC is supposed to monitor the departments
to ensure hiring is based on merit. The process is also supposed
to be transparent and not subject to patronage, either political
or bureaucratic. But here's the rub: The PSC used to have
51 auditors monitoring the departments, but after government
downsizing, there are now only six. After the tip from the
former human resources director, the PSC tried to use this
delegation agreement to tug gently on Mr. Radwanski's chain,
to zero effect.
The PSC explanation was they were dealing
with problems with 72 delegation agreements at the time they
were looking into the privacy office, but had concentrated
on larger departments since the privacy commissioner had only
100 employees. Bill C-25 proposes to shift even more responsibility
for hiring to individual departments to "afford public
service managers the flexibility necessary to staff, to manage
and to lead their personnel to achieve results." This
is combined with a watering down of the merit principle and
a reduction of the competitive process. The word "competition"
doesn't even appear in the proposed act. Scott Serson, president
of the PSC, expressed concerns about some of the changes in
C-25, but the Treasury Board and the Privy Council Office
who drafted the bill have turned a deaf ear. But several Conservative
senators have heard him and the other criticisms and were
questioning the bill even before the Radwanski story broke.
Senator Gerald Beaudoin has moved an amendment to C-25 to
restore the merit principle and Senator Noel Kinsella will
make another try to insert provisions to protect whistle blowers.
Maybe in the process, the Public Service Commission will regain
some teeth. If not, maybe we should put the whole organization
out of its misery.
From The Globe and Mail, Canada, by Hugh
Winsor, 6 October 2003
Budget Cuts Put Public
Service in Peril
Eighty-seven billion dollars is a lot
to ask, even for the difficult task of building a democracy
in a country that has never had one. Two hundred million dollars?
Not as impressive. Well, that's how much money AmeriCorps,
the country's premier federally funded national service organization,
asked for last year. They didn't get it. So what? Why should
you care? City Year is one reason. City Year is an AmeriCorps
program that strives to improve the nation from within by
doing community service in 15 sites across the country. City
Year provides services ranging from domestic violence prevention
to environmental protection, with the primary focus on teaching
underprivileged children how to fight social injustice and
"build a beloved community," a term taken from a
speech made by the Rev. Martin Luther King Jr. Think of City
Year as the "domestic Peace Corps." City Year was
founded here in Boston in 1988 and since then has revitalized
more than 3,617 outdoor spaces, worked with more than 364
corporate partners, served more than 772,250 children, and
completed more than 10.9 million total hours of service. Whether
you know it or not, if you live in Boston (or any of the other
places where a City Year site is located), City Year has positively
affected you. Maybe you take walks in a park beautified by
City Year. Maybe you use a public garden space set up by City
Year.
Then again, maybe you know how City
Year has affected you. Maybe a City Year corps member is a
positive role model and mentor to your child. Maybe you have
found a no-cost, enriching place to send your child (City
Year for Kids) while you work through school vacations. Maybe
City Year helped you recover from an abusive relationship.
Or maybe you are one of the thousands of proud City Year alums
who during your year of service gained valuable skills and
a new perspective on life. We are City Year Corps members.
We are an 18-year-old white male born and raised in Wayland
and a 22-year-old African-American female born and raised
in Roxbury. Although we have grown up with two different backgrounds,
we have joined forces to do national service because we think
it is our duty as citizens of the United States. One of us
serves on the East Boston team teaching the "Building
a Beloved Community" curriculum to middle school students.
The other serves on the environmental initiative team teaching
elementary school students in a hands-on outdoor classroom
setting, which allows them to experience and appreciate nature,
an opportunity that many children in the city wouldn't have
without City Year.
Every team at City Year works with
kids at an after-school program and completes physical service
projects at least once a week. We work 50-hour weeks and get
paid a living stipend that is the equivalent of about $3 per
hour. We are proof that the youth of today do care and are
ready to make sacrifices for our country. We both have friends
who wanted to serve in City Year but couldn't because of the
cuts in funding. As a result of these cuts, this year's corps
has 60 fewer members than last year, a cut of 37.5 percent.
Keep in mind that City Year is just one of more than 1,000
AmeriCorps organizations, many of which got shut down entirely.
As City Year Corps members, we constantly keep in mind the
lives of children, who will be leading our country in the
near future. We are planting seeds in the young so that when
they grow they can be leaders and role models for the subsequent
generation. Our funding has been cut, and while these cuts
have been devastating, we are still striving for excellence
and striving to make a difference. This is an important year
for City Year and AmeriCorps as a whole. We must and will
prove that national service is an important component to building
a stronger, more ideal community. Kemba Gray and Zach Meyer
are City Year members who live in Boston.
From Boston Globe, MA, b Kemba Gray and
Zach Meyer, 10 October 2003
Civil Servants Have
Nothing to Fear
Minister of State in the Prime Minister's
Office and the Ministry of the Civil Service John Williams,
is urging persons working in the public sector not to view
the new Performance Review and Development System (PRDS) with
fear, but rather to see the various opportunities that will
be provided across the public service, and reflected in the
professionalism experienced by the wider Barbadian society.
Williams, under whose ministry falls Public Sector Reform,
described the PRDS system as the single most important aspect
of our public sector reform programme. It has the potential
to significantly transform the public service through the
way employees and managers relate to each other. The senator,
who was at the time giving the feature address at the opening
ceremony of the PRDS Training of Trainers Course, told participants
that feedback received thus far indicated that persons are
satisfied that the PRDS system is a vast improvement over
"the existing and long-standing unsatisfactory method
of managing work performance within the public service".
He stressed that the system was not
intended to apportion blame, but rather, "to create an
environment that facilitates learning and development, that
promotes transparency at every level, and that leads to improved
productivity across the public service". Williams noted
that as we move into a regional single market and economy,
we must be able to guarantee the public "a minimum level
of performance through the full adoption of a system of Customer
Charters for every department of Government". He noted
that this can only be successful if everyone is working to
his/her potential, and all areas of weakness are identified
and addressed. He also said that it was important that everyone
works toward having a public service that is unparalleled
in the region and beyond, in terms of performance and customer
satisfaction.
From Barbados Advocate, Barbados, by Janelle
Husbands, 14 October 2003
Civil Service Binge
to Hit Economy
Federal government payrolls expanded
by 24% during past five years: CFIB study - Spending on federal
public service jobs and wages, slashed drastically during
the mid- and early 1990s, is surging and threatens economic
growth if allowed to continue unchecked, according to a new
study. Federal government employment - not including military
positions - stood at 290,098 jobs as of June 2003, up 24%
from 234,570 jobs in November 1998, according to data compiled
by the Canadian Federation of Independent Business. Also,
federal employees in public administration on average enjoy
wages 15.1% higher than those of their private-sector counterparts,
the business group reported yesterday. With benefits included,
that differential jumps to 23.3%. In 1995, the wage difference
already stood at 8.9%, according to the CFIB. That was about
the time when Ottawa began to cut public-sector jobs and freeze
salaries in a bid to balance the budget. "I think they're
remarkable and they're alarming," Rick Casson, a Canadian
Alliance member of the House of Commons finance committee,
said of the CFIB's findings. "We cannot, as a country,
continue to increase the amount of spending at the levels
we have - spending is outpacing the economic growth by far,"
Mr. Casson said yesterday. "Sooner or later, it will
come crashing down around this government's ears."
Catherine Swift, CFIB president, said
the growth in public-sector compensation is more than simple
catch-up for the wage freezes of the mid-1990s, saying, "That's
just excess on top of that, frankly." "If the feds
don't get a grip on their spending ... then what's going to
happen is that we're going to limit the extent to which the
economy can successfully grow," she said. Calls for comment
from the Treasury Board of Canada Secretariat, which helps
manage the government's human and financial resources, were
not returned yesterday. Ms. Swift presented her group's findings
to the Commons finance committee yesterday. The CFIB wants
Ottawa to measure and publicly disclose disparities between
public and private sector compensation, as well as review
pay scales. Spending is also increasing on public-sector positions
provincially and municipally, but the federal government leads
the pack, the CFIB report found. Provincial employees in public
administration have wages that are on average 9.1% higher
than ones for comparable positions in the private sector.
The same differential is 11.4% for municipal public-administration
employees. With benefits are taken into account, those disparities
rise to 14.8% and 14.2% on average in favour of the public
sector respectively, the report found. Where high-level executive
positions are concerned, the disparity is usually reversed
in favour of the private sector.
Still, employment growth in public
administration continues to outpace other industries. Last
month, Statistics Canada reported public administration employment
grew by 6.1% in the first eight months of the year - the strongest
pace of any industry. At the same time, public-sector wage
settlements are running more than twice as high as the core
inflation rate. The latest government data shows third-quarter
wage increases in the public sector averaged 3.8%, compared
with 2.3% in the private sector. TD Bank senior economist
Marc Levesque said Ottawa has been focusing on expanding its
ranks ever since then-finance minister Paul Martin "slayed
the deficit." "It's not necessarily a bad thing
that the government is hiring people," Mr. Levesque said.
"The fiscal situation of the federal government is still
in pretty good shape." Ms. Swift strongly disagreed,
arguing it is "perverse" that private companies
are having a harder time finding staff while governments lure
away top talent with higher compensation. Walter Robinson,
the federal director of the Canadian Taxpayers Federation,
said it is the growth in the size of the federal public service
that is more alarming. "There's ramifications there for
taxpayers," Mr. Robinson said. (wdabrowski@nationalpost.com).
From National Post, Canada, by Wojtek Dabrowski,
22 October 2003
Yukon Civil Servants
Buck Wages Trend
Whitehorse - Government workers in
the Yukon aren't so high-paid compared to their private-sector
counterparts in the territory. A study by the Canadian Federation
of Independent Business found the wage gap between the public
and private sectors is growing - except in Yukon. In the Northwest
Territories, government workers make almost 25 per cent more
in wages and benefits, compared with a national average of
23 per cent. But the Yukon bucks the trend, says CFIB head
Catherine Swift. "In the Yukon we found virtually no
difference between the public and private sector," she
says. "The economy of the Yukon with a heavy resource
dependence would certainly be one reason you would find that."
Where a private-sector worker in the N.W.T. makes $52,018,
a public sector workers would make $63,009, says the CFIB.
in the Yukon, a public servant would make about $2,600 more
than a private worker earning $45,206. That's a premium of
just 1.1 per cent, the organization estimates. The CFIB's
research, however, shows Yukon public servants have seen their
wage erode in the last 15 years compared to the private sector.
in 1985, a worker in government made about 21 per cent more
than a private-business worker. Swift says the Yukon's poor
economy and small private sector work force also influenced
the results.
From CBC North, Canada, 24 October 2003
Double Duty: Public
Servants on Stump
One week in the life of Ernie Fletcher,
United States congressman and Republican candidate for governor:
Monday brings a barbecue and other campaign events in western
Kentucky. Tuesday, it's a press conference in Frankfort and
a fund-raiser in Eastern Kentucky. Wednesday, there's a gubernatorial
debate in Erlanger. Thursday and Friday, it's off to Washington
for votes on the House floor. Saturday, it's back to the campaign
trail. Holding one public office while running for another
means living a politically schizophrenic existence. "It's
a tremendous task running for statewide office while serving
in Congress," said Fletcher campaign spokesman Wes Irvin.
It also requires frequent judgment calls that can turn into
campaign fodder for your opponent. Democrats have criticized
Fletcher for missing important House votes, while Fletcher's
running mate, Steve Pence, has suggested that the Democratic
candidate - Attorney General Ben Chandler - should step down
while he runs for governor. Both candidates dismiss the criticism
as nothing more than political rhetoric and insist that they
have proven adept at being a public servant and gubernatorial
candidate. "I believe, and other folks believe, that
he has been able to balance serving in Congress and running
for governor at the same time," Irvin said of Fletcher.
Chandler's responsibility as attorney
general "has always and continues to come first,"
said Brian Wright, a spokesman for the attorney general's
office. "As a matter of fact, he may be pressing us more
than ever to get things done." Juggling the dual roles
has been especially challenging for Fletcher. Congressional
duties require him to frequently be in Washington, while his
responsibility as a gubernatorial candidate dictates that
he hit the campaign trail in Kentucky. Fletcher is a physician
and a former fighter pilot, and his staff suggests that his
medical residency and military experience provided good training
for his hectic life in politics. "His work ethic and
his drive is so tremendous that he hasn't slowed down one
bit," Irvin said. Fletcher generally spends Tuesdays,
Wednesdays and Thursdays in Washington on congressional business
and the rest of the time on the campaign trail in Kentucky,
Irvin said. If he's in Washington and has to return to Kentucky
for a campaign event in the middle of the week, he usually
flies home on a private plane at his campaign's expense. "We
certainly have not done anything on this campaign on the taxpayers'
dime," Irvin said.
Wright said the attorney general's
office doesn't keep track of the time that Chandler spends
in Frankfort. Chandler talks to the attorney general's staff
several times a day while he's on the campaign trail and frequently
comes in the office in the evenings after everyone else has
gone home, Wright said. "Sometimes he's in the office
making decisions as attorney general. Sometimes he is in Hazard
or Paducah or Louisville making attorney general decisions,"
Wright said. "He considers himself always behind the
desk no matter where he is. It really is a 24-7 job, without
walls or borders." Chandler's campaign manager, Mark
Nickolas, said his campaign team works closely with the attorney
general's staff to coordinate Chandler's schedule. Democrats
have lashed out at Fletcher for missing a number of key votes
in Congress this year. The House clerk's office declined to
release Fletcher's voting record. According to the Fletcher
campaign, though, the congressman missed 80 votes from January
of this year through the end of September. Those missed votes
include proposed changes to federal overtime regulations and
coal mine safety. "Maybe if he spent more time doing
his job, he could spend more time getting the tobacco bill
passed," Nickolas said, referring to a Fletcher-sponsored
measure that would set up a buy-out for tobacco farmers.
The bill is pending in the House.
Irvin countered that Fletcher has maintained a 95 percent
voting record in his five years in Congress and missed fewer
votes than other congressional members running for office.
Irvin also points out that voters returned Fletcher to Congress
last year even though he had already set up an exploratory
committee for the governor's race. "They sent him back
to Congress knowing he was going to be running for governor,"
Irvin said. The Chandler campaign rejected Pence's argument
that Chandler should resign as attorney general. Pence, a
former U.S. attorney, offers his own experience as the proper
path to follow in such a situation. When Fletcher tabbed him
as his running mate, Pence said, he quit his prosecutor's
job. Nicholas dismisses the comparison as "apples to
oranges. "(Pence) is somebody who was nominated and confirmed
for a position," Nickolas said. "He can't possibly
do both. It's not legal. Ben is an elected official. It's
a very different scenario."
From Kentucky Post, KY, by Michael Collins,
17 October 2003
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Stakeholders Discuss Draft on Social
Dialogue in Public Service
Accra - Mr. Yaw Barimah, Minister of
Manpower Development and Employment, on Wednesday said either
government, employer or workers should always reach consensus
on social dialogue issues to ensure healthy labour front that
would increase productivity for accelerated national development.
He said some social partners always take entrenched positions
when particular issues were being discussed and such behaviours
often prolong the implementation of certain policies. This
was contained in a speech read for the Minister at the opening
of a two-day workshop national on social dialogue in Public
Service reform in Accra. The workshop, under the theme: "To
test the practical guide for strengthening social dialogue
in public service reform" organised by the International
Labour Organisation, is a follow-up to conclusions adopted
by the joint meeting on the impact of decentralisation and
privatisation on municipal services held in Geneva in October
2001.
Participants would discuss and validate
the draft on practical guide for strengthening social dialogue
in public service, which underscored a win-win approach that
focused on the issue rather than the person. They would also
examine and evaluate the reforms undertaken in Ghana in the
light of the various recommendations made in the practical
guide. The draft also looks at a process that facilitates
problem solving and decision making to enhance the effectiveness
of public service as well as the quality of life for public
service workers. Mr. Barimah gave the assurance that the government
would ensure a healthy labour front by promoting employment
social right, social dialogue and social protection and create
an enabling environment that would promote and encourage private
sector development. Dr Alex Glover-Quartey, Head of the Civil
Service said efforts by the service to engage workers in the
formulation of policies that concerned them have proved futile
adding, "this workshop will give us the opportunity to
dialogue and put across our concerns". He said the introduction
of technology had brought about retrenchment in public service
and called for the policy to consider and address this issue.
From GhanaWeb, Ghana, 1 October 2003
Belgium Offers Aid
to Burundi for Health, Civil Service
Kampala - Belgium has pledged an undisclosed
sum of cash to support the reconstruction of the war-torn
central African nation of Burundi as it moves towards peace,
Belgian Foreign Minister Louis Michel and Cooperation Minister
Marc Verwilghen said on Wednesday. They were speaking at a
conference called by Ugandan President Yoweri Museveni at
his official home in Kampala, as part of their tour of the
Great Lakes region. Verwilghen told reporters at the conference
that Belgium would sign "three conventions committing
us to support the present government in Burundi": two
offering aid to Burundi's beleaguered health system and one
pledging funds for "the administration of the country
so it can pay its civil servants". Museveni, who is the
chairman of the Regional Initiative on Burundi, said the country
was nearing a final peace deal bringing all the belligerents
together. "One sticking point is the FNL [Forces nationales
de liberation] that is unhappy with some of the details of
the deal. We will continue to strongly pressurise them to
come to a final agreement," Museveni said. Michel said
Belgium was focusing a lot of energy on finding solutions
to troubles in the Great Lakes. "We have promised a sincere
engagement of Belgium with central Africa and we intend to
deliver on that. We have already been working closely with
the governments of Burundi and the DRC," he said. (UN
Integrated Regional Information Networks).
From AllAfrica.com, Africa, 9 October 2003
FG to Overhaul Public
Service Soon
Abuja - President Olusegun Obasanjo
in Abuja on Tuesday declared that the Federal Government has
concluded arrangements to overhaul the public service sector
to make it viable. Obasanjo also said at the opening of the
33rd yearly accountants conference that the Independent Corrupt
Practices and Other Related Offences Commission (ICPC) and
the Economic and Financial Crimes Commission (EFCC) would
be reinvigorated to strengthen the process of accountability
in governance. Obasanjo, who was represented by the Finance
Minister, Mrs. Ngozi Okonjo-Iweala, restated his government's
determination to continue to lead by example by living above
board. He said: "We will carry to its logical conclusion
our initiative to overhaul the administrative structure in
the public sector in an effort to further engender transparency
in public governance." The President, however, urged
the accountants to live above board in their dealings with
the public and to create what he called islands of integrity
in their respective organisations with a view to serving as
models to deviants. He pointed out that while members of his
government were doing their best to ensure accountability
in office, the additional support expected from the Institute
of Chartered Accountants of Nigeria (ICAN), would facilitate
the achievement of a virtuous society.
The President, who acknowledged that
the average Nigerian was going through severe hardship, however,
cautioned that except a patient braced up and swallowed the
right pill with its bitterness, he might never be whole as
aimed. "This patient called Nigeria must live, not by
chance, but by our collective will and through the dedicated
application of the right therapy which are prescribed by the
new initiative of government," he stressed. The President
of ICAN, Basorun J. K. Randle, in his welcome address, said
the time had come for all Nigerians to do away with what he
called indecision and waywardness, and support the present
administration's drive towards greatness. Federal Capital
Territory Minister, Mallam Nasir el-Rufai in his own address,
used the ICAN members to join hands with the government in
the development of the FCT adding that the city should not
be perceived as just the home of civil servants alone. Said
he: "we cannot go on with our self-indulgence and posture
of apathy - fertilised by our own mentality. This is the time
to draw the curtain and close the chapter on indecision and
waywardness." This years conference with the theme "Meeting
Expectation," which began on Monday at Sheraton Hotel,
will end on Thursday.
From Forbes, by Anthony Obiechina, 22 October
2003
Public Service Commission
Should Formulate AIDS Policy: Secretary
Harare - The Public Service Commission
should urgently formulate an Aids policy that will provide
guidelines on how to deal with the pandemic in the civil service,
Public Service Association executive secretary Mr Charles
Chiviru said yesterday. In an interview, Mr. Chiviru said
his association was lobbying for the establishment of the
policy that would go a long way in dealing with HIV/Aids in
the public service. "The policy will focus on issues
like how to deal with HIV-positive civil servants at the workplace
level and procedures in dealing with terminally ill employees,"
he said. The private sector, Mr. Chiviru said, had been on
the forefront of developing HIV/Aids policies at the work-
place while the civil service was lagging behind. "For
instance, we don't know how many of the about 160 000 civil
servants countrywide are infected with the HIV and such information
is important for future planning purposes," he said.
The PSA, Mr. Chiviru said, had already
trained at least 1 200 people to spearhead HIV/Aids programmes.
He said since civil servants provided essential services to
various people that included those living with HIV/Aids there
was need for guidelines on how they could deal with such people.
It was vital for the public service to have a policy on HIV/Aids
since it played a pivotal role in influencing other sectors
to develop policies on specific issues, Mr. Chiviru said.
He said the PSA would next week hold a workshop to discuss
ways of dealing with the pandemic in the civil service. The
prevalence of HIV in the 15-49 age group in Zimbabwe has dropped
from 34 percent to 24,6 percent, according to the latest figures.
At least 1,8 million people were living with HIV while 761
000 children had been orphaned by Aids. Patients suffering
from Aids-related illnesses occupied between 50 and 70 percent
of the beds in hospitals.
From Ananova, UK, 26 October 2003
Ministry Spends Half
of Its Budget on Social Services
Harare - The Ministry of Public Service,
Labour and Social Welfare has spent $16.5 billion of the $32
billion budget allocation it was awarded last year to cater
for humanitarian assistance, a Parliamentary inquiry has revealed.
In its report to Parliament prepared by the Portfolio Committee
on Public Service, Labour and Social Welfare explaining the
expenditure patterns of the ministry, the inquiry showed that
half of the allocated money was spent on social services and
for providing food relief to people who had been affected
by drought. "The Department of Social Service consumes
a large part ($16.5 billion -sic) which is more than 50 percent
of the ministry's vote," the report said. "This
is largely because it provides support to children, disabled
and elderly persons, drought relief as well as public assistance.
Your committee will focus mainly on the social protection
line items." The inquiry was headed by ZANU PF legislator
Webster Shamu and comprised eight other members of Parliament
from both the ruling party and the opposition Movement for
Democratic Change. The ministry comprises largely of seven
departments, which had to be sustained through the $32 billion
allocated last year. Of that amount, administration and "general"
consumed $12 billion, Labour Administration used up $574 million,
Public Service Commission $1 billion, Social Services $16.5
billion, Salary Service Bureau $375 million and Training Centres
$681 million.
By June this year, the labour and administration
department had spent 53 percent of the allocated $574 million,
which the ministry says falls within the 50 percent target
of expenditure for six months but warned that some expenditures
set for later in the year might affect the projections. "However
a closer look at some of the line items indicates expenditure
overruns that may affect service delivery in the remainder
of the year," the ministry said. The report said the
ministry was also affected by the shortage of fuel and lack
of adequate transport, which resulted in the "department
failing to carry out career guidance and counselling as well
as inspections. Ultimately, the department failed to resolve
labour disputes as effectively as they should have done".
As part of cost cutting measures, the parliamentary inquiry
recommended that the ministry should consider revising upwards
rates paid for use of private business "on official business".
The inquiry also recommended that even though the ministry
had exhausted the drought relief budget by June, there was
need to constantly monitor drought relief distribution to
ensure that it reaches the intended beneficiaries.
From AllAfrica.com, Africa, 30 October 2003
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Exhibition on Public Service Day
The 10th Public Service Day for the
year 1424 Hijrah/2003 will be held at the International Convention
Centre, Berakas on October 4, 2003. In conjunction with Public
Service Day, a special exhibition by the ministries and government
departments of Brunei will be held. The public is invited
to view the exhibition that will commence from Oct 4 till
6 2003 starting in the afternoon.
From Borneo Bulletin, Brunei, 3 October
2003
Public Services 'Safe
Under WTO'
Publicly funded services such as schooling
and efforts to save the environment were safe under world
trade talks, a Senate committee was told today. Department
of Foreign Affairs and Trade first assistant secretary Bruce
Gosper said there was no doubt that publicly funded services
were safe from challenge under the World Trade Organisation.
The Senate's Foreign Affairs, Trade and Defence committee
is investigating Australia's bids under the General Agreement
on Trade in Services (GATS). GATS is a part of world trade
talks, but focuses solely on trade in services. Countries
are not bound by the GATS agreement, and can pick and choose
the changes in services they make under it.
From NEWS.com.au, Australia 1 October 2003
Andhra Hottest on E-governance
IT-savvy Andhra Pradesh has topped
the list of states with maximum number of hot e-governance
projects, followed by Madhya Pradesh, as per the latest DataQuest
magazine ranking. Andhra Pradesh has five e-governance projects
such as e-seva and Saukaryam, while Madhya Pradesh has played
host to three projects - including the popular Gyandoot project.
The e-Gov 20 Hot Projects ranking has placed Gujarat, Karnataka,
Kerala and Maharashtra together in the third slot with two
projects each. Arunachal Pradesh, Delhi, Himachal Pradesh
and Tamil Nadu are the other states in the list, with one
project each. The DQ e-governance special report compiles
20 hot and successful e-governnace projects currently operational
in the country that is actually making a difference in the
government-citizen interaction. Some of the projects listed
in the report are Akshaya and Friends (Kerala), Warana Wired
Village (Maharashtra) and Delhi Slums Computer Kiosk project.
From Rediff, India, 24 September 2003
Sultan Highlights Excellence
In Brunei's Civil Service
Bandar Seri Begawan - His Majesty Sultan
Haji Hassanal Bolkiah has highlighted the need to put more
efforts to achieve excellence as the main objective of Brunei's
civil service. His Majesty made the titah at a ceremony marking
the 10th Civil Service Day at the International Convention
Centre in Berakas this morning. He said public service is
the driving force behind the government machinery, and if
it is weak and non-dynamic, the nation will not be able to
progress. In relation to this, His Majesty stressed that the
Info-Communication Technology (ICT) era has given an impetus
to His Majesty's government to be committed in implementing
the e-government concept. Under the e-government concept,
the Sultan said, members of the civil service have to accept
the challenge of changing work style as well as establishing
a new work-culture that gives priority to knowledge and skills
in ICT. The full implementation of e-government in the year
2005 under the 8th National Development Plan is to improve
the quality of the civil service, where hopefully, every employee
will have a more positive and progressive approach to work.
His Majesty continued in highlighting the importance of cooperation
between the civil service and the public. The Monarch called
on both sides to carry out their responsibility in reciprocity,
besides acting as good and patriotic citizens.
His Majesty said among the signs of
true patriotism is cooperating with the government in preserving
the peace and stability of the country. "The government
asks no more than this and a good citizen deserves a good
government," he added. The Sultan stressed that a good
government will prevail only if it has a good machinery and
all the members of the civil service are part of that machinery.
"Thus, they must be transparent, hardworking, honest
and progressive thinking. Any mechanism that does not possess
such characteristics is deemed out-of-date and redundant,
he pointed out. His Majesty said the civil service needs to
change how it thinks and acts, when it is clear that the old
ways have to be changed. "The time for change comes when
the old methods cause discontent and become more susceptible
to criticisms," he said. His Majesty added that when
such factors occur, it means the old ways need to be reviewed
for any possible changes. He further said public contributions
are vital in helping to detect any shortcoming or weakness
in the management and administration of the government. According
to His Majesty, the contributions of the people will not cause
the authority and credibility of the public service to diminish.
The Monarch emphasised that the role
of the public service as the facilitator and implementer of
government policies cannot be challenged. To achieve this,
His Majesty highlighted the procedures and conditions applied
on the public, including local and foreign businessmen and
investors who should always encourage an environment for growth
as well as healthy and quality entrepreneurship. "The
mechanisms should strengthen and smooth out efforts towards
the progress and development of the nation, not obstruct them,"
he said. The Monarch also made a strong reminder that no one
should be unduly concerned, because the public service is
a transparent one that has been put on a pure and true track
that is the religion of Islam. "The members of the public
service must remember it and prove that they cannot be influenced
by anything that would deviate them from proper ethics,"
he added. His Majesty concluded by saying God-willing, the
civil service will achieve the excellence desired by every
one because of the people's sincerity and willingness to make
self-evaluation.
On arrival at the International Convention
Centre in Berakas, His Majesty was greeted by Pehin Dato Awang
Haji Isa, Special Advisor to His Majesty at the Prime Minister's
Office and the Minister of Home Affairs, YAM Pengiran Lela
Cheteria Sahibun Najabah Pengiran Anak Haji Abdul Aziz, and
the executive committee of the Public Service celebration
led by its chairman, Dato Awang Haji Hazair. With His Majesty
were His Royal Highness the Crown Prince Haji Al-Muhtadee
Billah, and Her Royal Highness Princess Hajah Masna. At the
function, His Majesty presented prizes to the winners of the
final contest of Quality Control Conference. From 38 teams,
three won gold medals. They were 'ukaz' from the Brunei Islamic
Religious Council Department and Wizforce and Synergy teams,
both from the Pharmaceutical Service Department of the Ministry
of Health. His Majesty also presented certificates to 23 division
one officers and 58 officers from division two who have retired
from the government service. Before leaving, His Majesty toured
an exhibition.
From Bru Direct, Brunei, 4 October 2003
Service Fees to Help
Combat Corruption
The Customs Department is seeking the
assistance of the Council of State, the government's legal
advisory body, in drafting a new ministerial announcement
to allow the assessment of service fees for shippers and agents.
The cabinet last month formally approved the proposed assessment
of fees for all services provided by the Customs Department,
to take effect before the end of the year. Funds raised from
the service fees will be used to finance new information technology
investments by the department, the installation of x-ray inspection
systems for use in ensuring the security of container shipments
as well as closed-circuit television stations at customs clearing
points nationwide - a main part of the Customs Department's
drive to curb endemic corruption at ports and customs clearance
points. Department officials want the service fees to replace
the traditional payments of under-the-table bribes to customs
officials to help expedite clearance procedures. The new auditing
and monitoring systems, besides serving as a deterrent, are
expected to help in gathering evidence for prosecuting corrupt
officials.
Chaowalit Sethameteekul, customs director-general,
said other agencies, including the Anti-Money Laundering Office,
would be asked to help in investigating and prosecuting any
corruption cases. He said the cabinet decision would permit
the assessment of service fees to be used for a five-year-trial
period. If the system proved effective in improving operational
flexibility and clamping down on corruption, the charges could
be extended for another five years. Mr. Chaowalit said the
Customs Department estimated annual revenues from the charges
at around 800 million baht. Around half of the revenues are
slated for various IT investment programmes, with the remainder
paid as performance incentives to officials working in customs
clearance operations. "We have set up the system to close
as many loopholes as possible to prevent officials from demanding
bribes."
From Bangkok Post, Thailand, 6 October 2003
Government to Build
Private Network For e-Government After 2005
As a part of its policy to enhance
security and functionality of the electronic government, the
government plans to construct a separate telecommunication
network dedicated to the e-government, starting 2005 when
the second phase nationwide information super highway project
is completed. The government decided to take this initiative
because it realized the necessity of a comprehensive protection
of administrative information as it had bitter experience
with the National Education Information System (NEIS) and
it foresaw the possible occurrence of similar incidents in
the future. To draw up a plan for this project, the Ministry
of Information and Communication held a three-day workshop
from October 7 to 9 attended by specialists and representatives
from related organizations, and communication and broadcast
industries.
According to the draft plan drawn up
at the workshop, the private communication network will intensify
control over access to government administrative data to fundamentally
block hacking and vicious abuses, and its security will be
improved by tightening the management of encryption, authentication,
and keys. The administration will also classify electronic
data of the government and public organizations by security
value, and transact important data of government agencies
over the private network to be built after 2005, dealing those
of public organizations over the existing information super
highway. President Roh Moo-hyun showed keen interest in this
initiative and instructed government agencies involved to
materialize the plan. "In early stages of the e-government,
Korea underwent various adverse effects such as electronic
residence certificate cases in the 1990s and the contentious
NEIS incident in recent months," said a ranking government
official. "The new private communication network for
e-government will be an alternative for improving credibility
and efficiency of the government, as well as for enhancing
civil services."
From Etnews, South Korea, by Seo Han &
Kim Yu-kyung, 9 October 2003
Brunei Envisions e-Smart
for 21st Century Civil Service
Bandar Seri Begawan - Brunei has drawn
up a strategic framework identifying a robust roadmap towards
envisioning an e-Smart Government in line with the 21st century
civil service vision. Pengiran Dato Paduka Haji Hamid, Permanent
Secretary at the Prime Minister's Office, spelled this out
in his working paper on the spearheading k-Economy through
e-Government in Brunei. The paper was presented at the k-Economy
International Conference which continued yesterday with several
concurrent sessions in Information and Communication Technology
(ICT), human resource development, small and medium enterprises
and e-government. He said, His Majesty's government is hoping
to establish an electronic governance in serving the nation
better.
Meantime, Dato Awang Haji Abdullah,
Permanent Secretary at the Ministry of Communication, in his
working paper entitled 'Laying the infrastructure foundation
for the k-Economy in Brunei Darussalam' focused on the information
and communication technology. According to him, nowadays business
to business is being done more through online purchasing.
A graph in the United States of America from 1998 until 2004
showed online sales is increasingly by more than eight trillion
in the year 2000 and 12 trillion by the year 2004. Internet,
he said, is globally used. And, there are about 100,000 internet
users in Brunei. Singapore and United States of America showed
a largest number of internet users with more than 500,000.
- Courtesy of Radio Television Brunei (Brudirect.com News).
From Bru Direct, Brunei, 10 October 2003
Punjab Signs E-gov
Pact with HFCL
The Punjab government has entered into
a strategic agreement with HFCL Infotel for the e-governance
and citizen services projects. According to the memorandum
of understanding, HFCL Infotel will provide free data connectivity
for the government's e-governance and citizen services projects.
Announcing the agreement, Punjab chief minister Amarinder
Singh said in Chandigarh, Andhra Pradesh had pumped in Rs
10,000 crore in the infotech sector through public private
participation in the last five years whereas Punjab had merely
spent Rs 10 crore in the corresponding period. He claimed
that Punjab would soon emerge as one of the leading states
in the infotech sector. The state government had signed a
MoU with Microsoft, he added. Microsoft will impart computer
education in the government schools. The state government
has recently singed an agreement with Quark, a multinational
company engaged in the infotech sector, to set up an information
technology park in the Ropar district at a cost of Rs 3,500
crore. It is expected to generate over 100,000 direct and
indirect jobs.
The state government is also planning
to launch Sukhmani, a project aimed at providing integrated
citizen services like municipal services, land records, transport
services, registration of property, social security services
and police administration under one roof. Heritage festival:
The Punjab government would be organising a three-day Kapurthala
heritage festival, beginning on October 17, to tap the state's
tourism potential, the chief minister said in New Delhi yesterday.
The Kapurthala festival was part of the state government's
plans to organise a series of cultural celebrations this year
with an objective to bring alive the "cultural vivaciousness"
of the state and place it on the international map, he said.
Announcing that a similar festival would also be held in Amritsar
and Patiala, the chief minister said, "these festivals
will showcase the rich cultural heritage of Punjab and help
attract both national and international tourists". Kapurthala
was the natural choice as a venue to kick off the festivals
because it had a number of heritage sites which included royal
palace and the world renowned Moorish mosque, he said.
From Business Standard, India, 9 October
2003
Ha Noi Launches E-government
Website
Ha Noi - Ha Noi authorities on Friday
officially launched a website the "first step towards
an E-government" which will strengthen public administration
in the capital city. "This is a landmark step towards
an electronic society in the Ha Noi. The city has recorded
important achievements recently but it lacks a strong public
administration", Ha Noi Mayor Hoang Van Nghien said at
the opening which coincided with the 49th anniversary of the
capital's liberation from the French colonialist regime. About
13 billion VND is earmarked for the first phase of the portal's
construction available on the web at www.hanoi.gov.vn. "The
municipal government is committed to a transparent administration
through this project aimed at publicly and efficiently providing
the city's citizens with information about public policy.
This will save their time and money", Nghien said. An
administrative breakthrough is expected. The website will
provide 439 documents which can be filled on-line. Information
on infrastructure project and land and property planning details
can now be seen on the website. Nghien said investment will
continue to be make a "safe and reliable website".
The project is expected to become fully operational by October
next year.
From Viet Nam News Agency, Vietnam, 10 October
2003
Brunei Keen On E-Government
Says Senior Official
Bandar Seri Begawan - His Majesty's
government is active in implementing e-Government project
at ministries and departments. Some of the management between
the public and government agencies can only be implemented
electronically by using info-communication technology so that
it can be done with more cost effective, easy and efficient.
Awang Haji Matassan Bin Haji Mohamad Daud the Permanent Secretary
for Administration and Finance Ministry of Development said
this at the World Standards Day celebration and the launch
of Safety Month yesterday. He said the management would certainly
involve the delivering of data by way of digital process whether
in the form of texts or in the form of image such as drawing,
pictures or maps. He said in making a structure for e-government
project, we would need to give attention to suitable standards
and combination data in accessing the information so it can
be used wisely and the operation could be interconnected.
Talking about Safety Month, he said
that safety at work is a factor in upgrading the work productivity
especially in industry such as the construction industry where
workers are exposed to several dangerous situations and work
environment, which can cause risks. This year's celebration
carries a theme 'Global standards for global information society'.
The theme stressed on how important the world standards in
digital information era is being used in operating the Info-Communication
Technology management. Subsequently, a talk on occupational
safety and health in construction by an invited speaker from
Australia, followed. He said 1.1 million workers die every
year as a result of work and 25 per cent are killed as a result
of exposure to hazardous substances. Approximately 250 million
accidents and 160 million occupational diseases occur to workers
each year. He added 68,500 accidents occur per day that is
one accident every eight second. 600,000 lives would be saved
every year if available safety practices and appropriate information
were used. World Standards Day is celebrated every year to
take a glimpse on the standard development, which has been
achieved as well as to focus attention towards the next planning.
- Courtesy of Radio Television Brunei.
From Bru Direct, Brunei, 16 October 2003
Only 2 in 1000 Volunteer
for Public Service Last Year
Only about one person in a thousand
volunteered for public service last year, according to a study
by the Korea National Council on Social Welfare (KNCSW). The
KNCSW announced yesterday that although approximately 125,000
people registered for volunteer work at 957 social welfare
centers throughout the nation in 2002, the number of those
who actually did any public service numbered 71,500, or roughly
1.5 people per 1000. Furthermore, the number of volunteers
who worked regularly, at least once a month, came to 1,439,
only two percent of those doing actual voluntary work. According
to the spokesperson for the KNCSW, Kon Hee-jin, "This
number is much lower than the comparable number in the so-called
welfare states such as the United States and Britain."
Kon went on to comment that the percentage of the population
that is known to provide some type of volunteer service is
more than 56 and 48 percent in US and Britain, respectively.
"Our research was only based on registrations at 975
social welfare centers. The number of volunteer workers in
the country, therefore, may be much greater when considering
those working voluntarily on personal basis outside the system.
However, the economic value of their work was still minimal
when compared to the value of volunteer work U.S. and Britain."
While volunteer work in Britain accounted for more than 5
percent of the country's 1998 Gross Domestic Product (GDP),
the value of volunteer services rendered by Koreans came to
be worth only about 6.5 billion won ($5.4 million). By profession
students make up the largest group - 51 percent - of volunteers,
followed by housewives with 24.2 percent.
From Korea Times, South Korea, by Byun Duk-kun,
20 October 2003
Shanghai Progresses
with an Efficient E-government
Shanghai government website, www.sh.gov.cn,
is offering a wider variety of services and responding to
people's quests faster to step up its efforts toward buidling
a functional government online. Local residents have got easier
access to educational, medical, civil affairs and social security
services through a mouse-click via the Internet. Foreigners
have cut monthlong process of visa application and export-import
operational affairs to just a couple of days or scores of
minutes. With a click away on the portal, more lifestyle,
business and diplomatic things are facilitated faster online,
ranging from civil services to exit-entry applications, and
from policy consultations to faculty recruitments, for people
both in and out. With a daily page view of more than 200,000,
www.sh.gov.cn is selected one of the best two portals among
all the 36 online government websites in China by an authoritative
computer magazine this year. The other winner is of the Beijing
government. In the "government efficiency" round,
Shanghai scored the highest. For example, a vice president
of a US-based company came all the way to express his gratitude
to the portal after it helped the Chinese Embassy grant him
an interim entry visa with stunning high efficiency a couple
of days ago.
With all the application and granting
business completed within 20 minutes online, instead of several
days offline, the president arrived in Shanghai right on time
for an emergent meeting. The high efficiency of the portal
has also benefited people in other areas. Online "annual
check" shortens the times of visits local companies should
pay to the industrial and commercial authorities from three
to one. Online "recruitment & test" reduces
the official seals people need for their job approvals from
seven to one, with out-of-town candidates for local government
posts needing to come to Shanghai three times only for writen
test, interview and health check, rather than five or more
times in the past. Timely reply to needy quests is another
feature heralding the city's strive for a functional online
government. The taxation and fiscal administration is responding
to citizens' online questions within three working days, rather
than 21 days offline previously. The information commission
has integrated its 18 permit-approving procedures to 14 and
later, to nine, shortening the time needed for the ratification
for a report of feasibility from 20 to 15 days. Top government
officials have also started to read "letters to governors/mayors/directors/chiefs"
in person, in a bid to achieve the goal of offering 100 percent
reply to citizens in the near future.
From EastDay.com, China, by Vicky Xu, 21
October 2003
MP to Set Up IT Network
to Support E-governance
New Delhi - The Madhya Pradesh Government
is planning to set up an information technology network in
the State to support e-governance in sales tax, entertainment
tax, land records and other revenue earning departments. "The
State Government wants to set up an IT network to support
online transactions and dealings in revenue earning departments,
a release said here, quoting Chief Minister Digvijay Singh.
The State Government has recently computerised commercial
tax, treasury and electricity billing departments. The State
Government is also keen to encourage e-marketing through 2000
"chaupals" which have been connected through an
IT network.
From The Hindu, India, 17 October 2003
Kit Siang: Inequitable
Distribution o Public Services
Kuala Lumpur - DAP National Chairman
Lim Kit Siang urged the government to rectify by 2005 the
situation of drastic reduction in the ratio of non-Malay public
servants. He said the ratios of Chinese and Indian public
servants have fallen drastically from 29.7% and 9.8% respectively
in 1980, to only 8.2% and 5.2% now. He urged the government
to hold a special debate on this issue. Lim said in a statement
that the Barisan Nasional government first introduced the
New Economic Policy for 20 years, followed by the National
Economic Policy for 10 years, with the purpose of restructuring
the Malaysian society in a bid to eliminate poverty. However,
he lamented that the figures of racial distribution of public
services in the country have shown that the government's policies
have failed. He said the ratios of Chinese and Indian public
servants cannot reflect the population ratios of 24% and 8%
for Chinese and Indians respectively.
From E.Sinchew-i.com, Asia, 22 October 2003
E Government Executive
Forum
An E Government Executive Forum on
"Next Generation E Government: Delivering Friendly, Accessible
and Integrated Public Services" was held yesterday afternoon
at the Members Grill of the Empire Hotel and Country Club.
It aimed to bring industry leaders together and spearhead
development of solutions for the next generation of E Governments
worldwide. The event was organised by Ecquaria and Sun Microsystems
along with partners e.cop.net, Elixir technology, e Suria
and SCS Information Technology. Participants for the seminar
included around eighty members from the government and ten
from the private sectors. It showcased Ecquaria and Sun Microsystems'
experience in aiding Singapore's deployment of its "Public
Services Infrastructure" (PSI), a government-wide infrastructure
with an estimated 1,600 public services online and an emphasis
on the best practices for Next Generation E Government. The
first wave of E Government saw the development of Intranets
and electronic services from various government agencies.
The forum explores the possibilities
and improvements that can be done to further leverage on these
investments, with the objective of transforming the public
service into a networked government that delivers friendly,
accessible and integrated electronic services that delight
customers and citizens. Present on behalf of Sun Microsystems
was Mr. Boon San Gan, Managing Director as well as Mr. Bernard
Kam, Technical Consultant. Among the seminar's speakers were
representatives of companies as well as other users including
LCDR Julianto G. Bucayan, Jr. (PN). The Sun Java Desktop System
featured during the seminar consists of a judicious selection
of integrated and tuned desktop software, mostly based on
open source and standards. The Java Desktop system fully integrates
the latest Java Runtime Environment, Standard Edition (JRE).Courtesy
of Borneo Bulletin.
From Bru Direct, Brunei Darussalam, by Huraizah
Ahmad, 22 October 2003
e-Government Drives
IT Growth
Australia's emphasis on e-Government
deployments is helping to drive IT growth at between four-and-a-half
and six percent in 2004, up from relatively flat growth in
2003, trade show organiser CeBIT reports. Speaking at the
launch of CeBIT Australia 2004 in Sydney, CeBIT Australia
managing director Jackie Taranto explained that Australia
now ranks number two globally in e-Government implementation
behind the United States and ahead of the UK, Canada and Germany.
This example is providing the stimulus for other areas to
embrace the e-business culture. "To support this emphasis,
we've incorporated a one-day e-Government forum into next
year's show," says Taranto. "This is a first."
The forum will take place on 4 May 2004. Taranto says the
forum will facilitate knowledge exchange between industry
representatives and provide a global platform showcasing Australia's
e-expertise. Among the already successful e-Government programs
implemented in Australia are the e-Tax online lodgement system,
JobSearch and the Business Entry Point for all dealings between
government and private enterprise. An electronics tendering
system is also currently being implemented.
Taranto confirmed CeBit's commitment
to Australia and NZ by highlighting that the Sydney event
is one of only four regional venues, along with New York,
Shanghai and Istanbul, and, despite pressure to do so, the
company "has no plans to open CeBit at another venue".
"[We] believe in the innovative resource of this region,"
Taranto adds. "That's why we have set up our [IT] event
here." CeBIT also plans to strengthen "future parc"-a
highlight of this year's exhibition-at the 2004 show. Among
the R&D on show at this year's event was Canberra-based
Seeing Machines' faceLAB driver fatigue monitoring system
(see Electronics News 22 May 03 front cover) and Victoria
University of Technology researchers' development of a wireless
technique, which takes advantage of the multipath fading channel
that plagues many indoor WiFi installations (see same issue,
page 4). CeBIT Australia runs from 4-6 May 2004 at Darling
Harbour, Sydney.
From Dial Infolink Electronics, Australia,
by Steven Keeping, 24 October 2003
PM's E-governance Plan
May Soon Have Links in Place
New Delhi - This could easily be the
most ambitious networking project Prime Minister AB Vajpayee
has announced after the national highway development project.
The project, when fully implemented in four years, could have
a revolutionary impact on the economy, more potent than that
of the highway project. The e-governance programme announced
by the PM, during his Independence Day speech in '02, is finally
taking shape. At current estimates, the project could cost
about Rs 12,500 crore and the Centre's share would be about
Rs 5,300 crore. The states' share would be about Rs 3,100
crore, while the balance is to come from financial institutions
and the private sector. The proposal involves massive computerisation
and networking to make available on the net information about
almost all government functions - ranging from land records,
registration of vehicles, municipalities and civil supplies
distribution to income tax, customs, passport, provident fund
and insurance. Also proposed are PoliceNet, EduNet, E-employment,
Health-Net and human resources management systems. India portal,
state portals, country gateway, electronic document interchange,
e-procurement and e-biz would be the other components of the
project. A payment gateway is also being planned, to be set
up in consultation with the Reserve Bank of India, Bankers
Association of India and the lead nationalised banks, to facilitate
e-commerce transactions and payments over the internet.
From Economic Times, India, by Tina Edwin,
28 October 2003
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Swiss Launch E-government Initiative
The Swiss could soon be benefiting
from better government services over the internet, thanks
to an initiative to develop e-government. The project aims
to cut down on bureaucracy and boost Switzerland's e-government
ranking compared with other European nations. On Monday, a
national project was launched to better coordinate the internet
activities of Switzerland's vast patchwork of cantons and
communes, which are currently responsible for their own websites.
The economics minister, Joseph Deiss, said the initiative,
eVanti.ch, would not only boost Switzerland's image as an
internet-savvy nation, but would also help ease collaboration
between the government, cantons and communes at very little
cost. Deiss added that the standardisation and improvement
of e-government services would ensure the smooth running of
Switzerland's federalist system and would lead to a cheaper,
more user-friendly service. The finance ministry, which is
coordinating the project, said it planned to rapidly increase
the number of services in a bid to cut down on bureaucratic
paperwork, to the benefit of the population, the economy and
of the government itself.
The news is likely to be welcomed by
the Swiss who, in a study released in August, said they would
like more public services to be available online. Some 83
per cent of the 1,000 people surveyed said they would use
the internet for everyday administrative tasks such as registering
a change of address or searching for jobs. Cyber image - During
Monday's launch, eVanti.ch organisers said the initiative
was also designed to make Switzerland a more attractive place
for investors and help it climb up e-government rankings.
Switzerland is currently languishing at number 15 out of 18
countries in European e-government rankings. The finance ministry
said it aimed to move the country up into the top third of
the rankings by the end of 2005. It plans to create an online
databank of information relating to e-government, encouraging
visitors to the site to put forward suggestions. The ministry
said it would also monitor Switzerland's e-government progress
more closely. The Swiss government has already launched several
projects in the domain of e-government, including the online
administrative information portal, www.ch.ch, and has experimented
with e-voting in canton Geneva. (swissinfo with agencies).
From Neue Zürcher Zeitung, Switzerland,
29 September 2003
Making e-Government
Happen in the United Kingdom
Rotherham Metropolitan Borough Council
(RMBC) places Location-Based Intelligence at the heart of
its e-Government strategy - The UK's e-Government initiative
to provide all services online by 2005 is currently a major
focus for local authorities and councils. While turning this
concept into reality has been fraught with challenges, Rotherham
Metropolitan Borough Council (RMBC) has made significant progress
in delivering online services to its citizens by placing location-based
solutions at the heart of its IT strategy. Rotherham's initial
e-Government goals were to provide methods of working that
would make it easy for citizens to contact the Council, allowing
them to access services directly. This would include online
access where the boroughs' citizens could find information
relevant to their location, based on a single postcode search.
This kind of information would encompass everything from access
to planning regulations through to vital services such as
bin collection times. Through achieving this high level of
information access, RMBC has seen a dramatic cultural change
in the way different departments are now working together
and sharing core information to deliver better, timelier services.
Rotherham Metropolitan Borough Council (RMBC), a 'Beacon'
Council serving a population of 248,000 in the North of England,
has successfully exploited the potential of GIS for many years
and has utilised the benefits of MapInfo Professional, across
dozens of departments for functions such as planning, research,
statistical analysis and service delivery.
These intensive users tended to be
GIS experts who typically created and edited data. Their work
was and still continues to be shared with other council employees
who require 'lighter' functionality for answering the thousands
of 'who, what, where' questions that a council deals with
on a daily basis. Effective though this has been, RMBC's use
of GIS still remained largely 'departmental' serving the requirements
of individual groups of users 'working in silos'. Little information
was shared outside of these departments and consequently it
was difficult to reap the advantages that working with one
consistent set of data brings, nor was it easy to deal with
inquiries both internally and from the public without passing
requests from one individual to another and so on. In order
to meet its e-Government objectives an essential task for
RMBC therefore has been to ensure that all staff, regardless
of location and level of technical ability, were connected
to the full range of council information internally. But it
also was vital that this information could be shared effectively
across the entire organisation. For Rotherham Metropolitan
Borough Council, the goal of 'joint working' has been made
possible with the Unique Property Reference Number (UPRN),
derived from Rotherham's Local Land and Property Gazetteer
(LLPG). This digital database, maintained using MapInfo's
BS7666 toolbox, provides the key to joining up RMBC's services.
"Location-based information is
the key to the way a Local Authority works and the LLPG provides
the common thread, enabling us to link the many disparate
address-holding databases that council employees work with
every day, from council tax to social services to education
and a multitude of specific departmental data", explains
Richard Copley, principal systems analyst (GIS) for RMBC.
"For the first time, we will be able to store a single
Unique Property Reference Number (UPRN) in all our address-holding
systems. The use of the UPRN as the common search element
will enable council employees to retrieve all information
held by Rotherham Council on that location instantly. This
will not only be more efficient but once completed will also
provide a significant time saving on current procedures",
he adds. Currently Rotherham is working hard to make the UPRN
an integral part of its entire IT systems and it has already
recorded a major achievement in making much of its location-related
data available to all internal users cost-effectively via
an Intranet based solution called MapKey. This solution was
built on MapInfo MapXtreme, an Internet mapping server for
enabling the broad deployment of mapping applications. MapKey
empowers the council's 3,000 employees to utilise, via a browser,
an easy-to-use secure website to access and share location
enabled data. The system, which receives in excess of 600
visits per day, is available from every PC within RMBC and
currently makes over 150 different datasets available to everyone
within the council - information that hitherto has not been
shared.
Data is stored on central GIS web servers
making maintenance, updates and dissemination simple. This
includes maps and analysis created in MapInfo Professional,
aerial photography and databases of location enabled point
information. As more and more address holding databases are
integrated with the LLPG so more information can be retrieved
that is relevant to a specific location. The key benefit of
this new enterprise wide system was accessibility for all,
according to Richard Copley. "MapXtreme has delivered
a level of accessibility previously unknown by RMBC. The GIS
data held on our Intranet is now available to everyone. A
point-and-click format makes it easy-to-use by all our employees,
regardless of whether they are power or relatively inexperienced
users." While Rotherham has succeeded both in sharing
information internally and making disparate data accessible,
it has also done much to improve its services to customers.
The principle way in which it has achieved this is through
a dedicated contact centre for handling calls from the public.
RMBC has also invested in a new, multi-functional website
called Rotherham Connect (www.rotherhamconnect.com). Here
citizens in the borough can go online to directly access a
variety of information including planning, education, housing,
local taxes and other address-specific information.
Such has been the success of the site
that it recently won a prestigious CRM award in the UK. "We
want our customer's contact with us to be a quick and successful
experience. We don't want people to be passed from 'pillar
to post' in their attempt to find the answer to an inquiry",
Copley said. "Rotherham Connect provides an interface
between us and our customers. Underpinning the delivery of
this service is the high quality spatial information, which
already exists in our Council departments." While RMBC
still has some of its original 'joined-up government' goals
to attain, it has demonstrated that for any local authority
e-Government project to succeed, location enablement is a
key factor. Equally important however has been the cultural
change that the process has driven within RMBC. "There
is a new openness and understanding of the importance of sharing
our information and joining up our services", Copley
concludes. About the Author - Matthew Spencer is EMEA Marketing
Manager at MapInfo (www.mapinfo.co.uk) and can be contacted
by email at: matthew_spencer@mapinfo.com - MapInfo Corporation
is a global software company that integrates software, data
and services to help customers realise greater value from
location-based information and drive more insightful decisions.
MapInfo solutions are available in 20 languages through a
network of strategic partners and distribution channels in
60 countries.
From DirectionsMag.com, IL, by Matthew Spencer,
1 October 2003
Most Advanced E-government
System Adopted for Vehicle Licence Renewal
Malta's e-government system will soon
launch an on-line vehicle licence renewal service that is
completely transaction-based and the first of its kind in
Europe. This service will be operating the most technologically
advanced digital framework that incorporates a multitude of
operations. The Minister for IT and Investments, Dr Austin
Gatt, is expected to launch the service as part of the e-government
programme spearheaded by himself. Speaking to The Malta Business
Weekly, the head of Minister Gatt's secretariat, Claudio Grech,
said that the framework is a real first for government on-line
systems in Europe. "The MITTS developers did a superb
job. The framework provides a seamless operation to clients
despite including the required input from at least four different
sources, which include insurances, VRT stations, the law enforcement
system and the ADT, to enable the renewal of a vehicle licence,"
said Mr. Grech. "The government will continuously maintain
the on-line system that has been purposely designed for insurance
agencies and brokers. It will enable customers to renew their
vehicle licence either through their insurance company while
paying for their insurance policy or by accessing the system
on-line and paying their licence themselves by using a debit
or credit card," added Mr. Grech. "The on-line vehicle
licence renewal system took over a year to develop at a cost
of Lm0.25m.
Furthermore, the system was specifically
developed to help the insurance agencies and brokers facilitate
on-line renewal of vehicle licences for their customers,"
said Mr. Grech. The on-line system only requires three steps
to complete and each step requires straightforward information
that is available on every insurance policy such as vehicle
registration number, policy number and ID card. Asked to comment
on rumours that insurance companies are expecting a payment
fee of Lm1 per transaction to operate the system, Mr. Grech
confirmed that a fee of Lm1 was proposed for every licence
renewed on-line from their agencies. "This proposal potentially
added a cost of Lm0.25m to be forked out by the government.
This will not make any financial sense especially when considering
that the government invested Lm0.25m to set-up the system
while insurance companies are not required to make any investment.
Besides, the on-line system has been designed to reduce costs
rather than increase overheads. After all, the scope of e-government
is providing excellent public services at a lower cost to
the tax payer," said Mr. Grech. "This system was
primarily designed to reduce the inconvenience of having to
queue to pay their vehicle licences. The current system requires
clients to renew their insurance policy and subsequently visit
the Licensing and Testing Department to renew their vehicle
licence.
Some insurance agencies and brokers
provided an added service by sending someone to the Licensing
Department to renew the vehicle licences for their clients,"
added Mr. Grech. He added that with the on-line system, this
procedure will be simplified as all insurers will have the
possibility of registering the renewal of insurance policies
in real time from their office. This will permit clients to
renew their vehicle licence on-line and avoid queuing. Besides,
insurance companies will also be able to issue vehicle licences
immediately as an added benefit for their clients. The system
is capable of logging instantly every vehicle insurance policy
that is renewed or taken out new to enable the issuing of
a vehicle licence. According to the Laws of Malta, a vehicle
licence cannot be issued unless an insurance policy covers
that vehicle. When asked whether the insurance sector is expected
to make any investments to adopt this on-line system, Mr.
Grech said that no investment is required as the system will
be made available at no cost to the companies. "The government
has also committed itself to train insurance personnel that
will be using the system during insurance policy renewals.
All insurance companies require is a PC connected to the internet,"
said Mr. Grech.
"The government has also bought
the necessary security digital certificates to avoid any investment
requirement by the insurance companies while ensuring that
maximum protection is offered to clients. These certificates
will also be renewed by the government on a yearly basis for
on-going security," added Mr. Grech. "Insurance
brokers have already received the required training to operate
the system and should be able to offer the service by end
of October. Insurance agencies, are in the process of determining
those employees that will require training. The system is
practically complete from e-government side and we are waiting
for the Malta Insurance Association to formally advise when
to officially launch on-line vehicle licence renewal,"
said Mr. Grech. Contacted by this newspaper, the director
general of the Malta Insurance Association, Dr Anton Felice
said that the association has had close consultations with
the government to ensure that the on-line system is effective
and foolproof. "In October 2001, the Malta Insurance
Association had prepared a report on the possibility of an
on-line payment system for vehicle licences that is similar
to what is being proposed by the government," said Dr
Felice. "The MIA is in favour of on-line renewal of vehicle
licences and insurance policies. However, it ensured that
certain issues posed by the Law were amended to provide a
wider scope for this on-line system which should be launched
soon," added Dr Felice."
The MIA has been working with government
to ensure that insurance policies are paid prior to renewal
of a vehicle licence. Obviously customers have to prove that
their insurance is paid prior to obtaining their new vehicle
licence. This is a safeguard to guarantee that no vehicle
is driven without adequate cover for injuries or losses to
third parties," said Dr Felice. "Discussions are
currently being held to work out how insurance companies can
update the Licensing and Testing Department about those insurance
policies that are renewed. A central database, the Motor Insurance
Information Database, will be set-up and will include up-to-date
details about all registered vehicles and the insurance policy
holders cover they hold. This should ensure an efficient vehicle
licence renewal for owners," explained Dr Felice. "Another
concern that the MIA has is credit risk especially when payment
is effected through cheques. Fraudulent cheques are not the
norm. However, it is the exception that disrupts the system.
The MIA wants to ensure that insurance companies are not defrauded
of the money due to government for licence renewals. Thus,
the MIA will instruct its members to accept only cash or credit
card payments for vehicle licence renewals," said Dr
Felice.
From Malta Business Weekly, Malta, by Chris Sultana, 2 October
2003
Log on to E-government
State Administration Minister Dimiter
Kalchev this week announced the launching of e-government
in Bulgaria. The first services to be provided on the internet
are changes in address registration, information on the court
registration of companies in Bulgaria and on social security
contributions, the government information service said. It
is expected that the administration will offer at least 20
e-services to physical and legal entities by 2005. They include
company registration, filing of customs declarations and car
registration. It will become possible for the following documents
to be submitted on the internet by the end of 2003 or the
beginning of 2004: tax returns, VAT payment data, uniform
documents for statistical and tax purposes. It will also be
possible to participate in public procurement procedures worth
up to 10 000 leva, Finance Ministry chief secretary Tencho
Popov said during the ceremony. E-government services require
a digital signature certificate, provided by the state company
Informatsionno Obsluzhvane (Information Service).
A digital signature and a reading device
for the computer cost 125 leva a year for physical and 300
leva for legal entities. So far Informatsionno Obsluzhvane
has issued 16 000 digital signature certificates, mostly to
juristic persons, its director Nikolai Gelev said. The Web
portal is: http://egateway.government.bg. Kalchev said that
the completion of the national optical cable network, which
will link all state and municipal services into an integrated
system, would cost between 40 million and 50 million leva.
This allocation has been requested from the 2004 budget. The
optical cable network will save 100 million leva a year, which
are now paid to BTC, he said. Also this week the Government
officially launched an information web portal on the EU integration
progress and processes. At the internet address www.europortal.bg,
the state administration will publish documents on the pre-accession
negotiations, information about events and opinion polls.
From Sofia Echo, Bulgaria, 2 October 2003
Government Seeks New
IT Spending Supremo
Peter Gershon is set to leave his government
post next year, and the hunt is already on for a successor
- Headhunters have started the search to replace the influential
Peter Gershon as CEO of the government's procurement watchdog
the Office of Government Commerce (OGC). His contract expires
next year. Gershon took the three-year post in 2000 and has
made it a key part of the OGC's role to crackdown on the billions
of pounds of taxpayers' money wasted on botched public sector
IT projects by introducing strict 'gateway' reviews and checks
on all new technology programmes. Such was his influence in
the corridors of power and high-profile successes such as
negotiating a Ł100m saving through a central government licensing
deal with Microsoft that Gershon was persuaded to stay on
an extra year and will now bow out at the end of March 2004.
A headhunting firm has now started
searching for someone to fill the position, which offers a
Ł145,000 salary - although that is somewhat less than Gershon,
who was briefly the highest-paid civil servant, currently
takes home. A spokesman for the OGC said there will be a lot
of competition for what will be a key role in the government's
Common Systems Strategy for standardising IT across the public
sector. "There is no indication or speculation yet as
to whether the person will come from the private sector, as
Gershon did, or be a senior civil servant. It is wide open
but the best person will get the job," he said. Gershon
has not yet publicly revealed his plans for post-OGC life
but the spokesman said that now the recruitment process is
in the open there are likely to be approaches and lucrative
offers from the private sector. Last month e-envoy Andrew
Pinder raised the prospect of a government-wide CIO role being
created out of the merging of his own office and the OGC but
the OGC spokesman said nothing has yet come of that proposal.
From This is London, UK, by Andy McCue,
2 October 2003
Hewlett Packard Keeps
Contributing to Bulgaria's E-government Project
Hewlett-Packard opens on Monday its
second information Public Center in Bulgaria - another step
of the company's contribution to the country's e-government
project. The new center was built in the Glavnitsa region
near the town of Silistra, and the first one is situated near
Blagoevgrad. Locations for the centers were selected according
Hewlett-Packard's idea to give people in remote regions admission
to the online administrative services that the e-government
provides. Four such services are already available, and another
16 are said to be on the way. Building of the two centers
cost a total of USD 60,000.
From Novinite, Bulgaria, 6 October 2003
IT Benefits to Public
Services Could Be Economic Catalyst
Over dinner last week with Bob Downes,
who heads up the Scottish operations of BT, we discussed to
what extent it would be possible, or helpful, to force organisations
to adopt the latest technologies. There are precedents elsewhere
and it does have implications for the Smart, Successful Scotland
strategy. Among the other guests present last week there was
a bit of a murmur of indignation. Enforcement sends a lot
of people into a cold sweat. They hate being told that they
have to do something. Except that other countries are driving
their economies and public services by forcing citizens, and
their public and private sectors, to use technology. Not only
is it working to produce greater efficiencies and benefits,
but it is leaving Scotland behind. The issue of our dinner
debate was the take-up of broadband technology and why only
4.9% of those in Scotland who have access actually bother
to take it. But we could have been talking about any technology
whose wider adoption would stimulate growth. Two nights later
Gordon McKenzie, who runs the Scottish operations of Microsoft,
insisted that the Irish had got it right. So had the Maltese
and the Latvians, those giants of Europe. They had sensibly
tied economic development to public policy so that one stimulates
the other. They are making substantial progress as a result.
Scotland has failed to do this, partly
because political infrastructure is not weighted towards it,
but mainly through a lack of political will and imagination.
In Ireland, the enterprise ministry told the telecoms companies
that if they did not lower prices for internet access to schools
there would be legislation. As McKenzie points out, that enforcement
order linked public policy and economic development at a stroke.
If they complied, the telcos would get the business and the
schools would get their internet links. No messing. McKenzie
argues that because the Scottish government is a spending
authority, rather than a revenue-raising body, it therefore
plots policy accordingly. But he warns that if Scotland continues
to see itself as a spending country, then it will never pay
any serious attention to wealth creation. It is arguable -
and there are plenty in the business community who would argue
this point - that the ability to raise rates refutes this
argument to a certain degree. But the more important point,
that the Executive and its agents should integrate economic
and public policy, is a fascinating one. Countries that we
would regard as no bigger and certainly no more influential
than Scotland are way ahead of us in taking advantage of this
integration. It has to be said that the Executive has made
some attempt at doing this.
During her time as enterprise minister,
Wendy Alexander tried to harness the power of public-sector
spending to stimulate demand for broadband technology. But
there was a lack of real enforcement and so we still have
this daft situation where Scottish Enterprise pursues an e-business
strategy then joins in the great paper-chase with its customers
- a mentality that also persists in our police and health
services. Nobody is pulling all the strings together to make
sure that we apply the benefits of information technologies
to our public services so that they act as a catalyst for
the economy instead of a drain on its resources. The Catalans,
by contrast, have done exactly that, drawing electronic government
together under the auspices of a company to execute government
services. Riga, the capital of Latvia, is way ahead of Glasgow
and Edinburgh in delivering public services electronically.
Once the accession countries join the European Community,
we will be viewed as seriously behind the times for insisting
on doing things the old way. McKenzie, who is passionate about
all this, may one day have a chance to put his grand plan
into action.
He is the latest senior businessman
to show an interest in succeeding Robert Crawford as chief
executive of Scottish Enterprise, and he has obviously been
putting some thought into how a McKenzie-led Scottish Enterprise
would prioritise its agenda. Should he get the job, he could
change all our lives. He argues that Scotland is not only
missing out on an opportunity to use its vast public sector
to stimulate the economy. It is also missing a chance to become
a European or world leader in a technology in which it has
already made great strides: smart cards. There are many companies
dotted around the country that have leading-edge smart-card
technology. One of these in East Kilbride has developed smart-card
technology for the Department of Transport that would improve
ticketing on public transport. With the right initiatives
instigated in the public sector - among the many thousands
of students, for instance - it would be possible to stimulate
a new industry, improve the efficiency of public services,
and help with the learning and skills of citizens who use
them. It would represent the Smart, Successful Scotland mantra
in action, taking it from the parliamentary debate and strategy
document into the real world. And, as seeing is believing,
we would all become supporters to the cause, and be better
off because of it.
From The Scotsman, UK, by Terry Murden,
11 October 2003
'Building of E-government'
Nearing Completion
Around 95 per cent of the government's
services should be available online in the next six to nine
months thanks to the introduction of a state-of-the-art electronic
identification system, IT and Investment Minister Austin Gatt
said yesterday. The system was the "last pillar in the
building of e-government", allowing private information
to be accessed by the appropriate individuals, he said. The
advanced electronic version of the ID card has been developed
by Microsoft and Malta Information Technology and Training
Services (MITTS) and the system was intended to be replicated
and sold worldwide, Dr Gatt said. It is intended for use in
the online services - ranging from VAT to income tax, social
policy and health - that have still to be introduced. So far,
only the e-government services accessible to everyone are
available online. The system offers 100 per cent security,
Dr Gatt said, explaining that the government would be operating
the system, but would not be issuing the so-called "password".
The latter was in the hands of a separate private company
- the same concept behind credit cards and Personal Identification
Numbers.
Dr Gatt was speaking at the inauguration
of the 12th Information Technology & Telecommunications
fair at the Trade Fair Grounds, in Naxxar, with his ministry's
hi-tech stand forming the backdrop and offering a "glimpse
at the future". The fair, he said, was "growing
in importance year after year" and the number of participants
and visitors reflected the government's policy on IT. Dr Gatt
augured that the costly new system would not only be used
by the government but would be taken up by private companies
too. The minister augured that users would only need to have
one identification code to access the various services. Dr
Gatt said the delay in the introduction of the system was
caused by government bureaucracy. The tender to appoint an
administrator was issued in July 2002 but the Department of
Contracts took over a year to evaluate it, only to draw the
same conclusions that had been drawn a year before. Dr Gatt
said the next challenge lay in educating the public to use
the services, as well as bridging the digital divide, which
still required more work.
Maltacom chief executive Stephen Muscat
said a substantial increase in the amount of bandwidth for
use by internet service providers had been commissioned. This
was considered to be necessary also in view of the government's
initiatives in the field. Maltacom, the sponsor of the fair,
was busy setting up the necessary infrastructure on the island,
such as Wi-Fi, which was being installed in areas where it
was thought the demand would grow. Visitors to the IT&T
Fair, which is open until Sunday, will have the opportunity
to experience the latest technologies, Trade Fairs Corporation
president Ian Mizzi said. All the space available at the fair
grounds has been allocated, he said. Last year, the IT&T
fair was attended by about 25,000 visitors and Mr. Mizzi was
sure the number would continue to grow. The fair is open from
6 p.m. to 10 today and tomorrow, from 5 p.m. to 10 on Saturday
and from 10 a.m. to 12.30 p.m. and 3 p.m. to 9 on Sunday.
From Valletta Times, Malta, by Fiona Galea
Debono, 15 October 2003
Efforts to Set up an
Internet Portal for Pan-European Public Services Have Stalled,
Says the EU
Europe's e-services portal is confronting
"huge practical difficulties" and will not be available
until next year, the EU's e-government programme has admitted.
The portal, which is an ambitious attempt to set up the first
"pan European" online services, has been in development
for over a year as a pilot but is not to become fully operational
until key obstacles can be overcome. When the project first
began the EU had a publicly available url for the portal,
but it has now been closed down. In its October 2003 strategy
update, the EU's Interchange of Data between Administrations
(IDA) programme says it recognises that one of the stated
political aims is to set up a portal for e-government services
which work across Europe. "But behind the political will,
it should be noted that there are huge practical difficulties
involved in coordinating such a type of portal.
All EU national administration websites
are structured in their own unique way, providing different
levels of information on their public services, according
to their importance and availability locally." One example
given is that while most national governments provide information
about income tax online, they do not offer advice if an individual
is paying tax in another country. Creating a portal designed
to provide such information, incorporating the differences
between national administrations as well as overcoming language
barriers "is a highly complex task", says the report.
The IDA's strategy paper says the portal will be kept as a
pilot until 2004 for "learning and demonstration"
purposes. But it does say that eventually it will become operational
and will be the "the reference public portal for citizens
and enterprises interested in cross-border activities within
the enlarged EU."
From Kablenet, UK, 21 October 2003
Have Your Say on Public
Services
The Government is asking people for
their views on the best ways of improving efficiency in the
public services to release more resources to the frontline.
Spending on public services has risen significantly and increased
the number of frontline staff working in areas like schools,
hospitals and police forces. By 2005/6 the Government will
be spending Ł320bn on public services, with Ł70bn controlled
by central Government. The aim of the review, announced by
the Chancellor in this year's Budget, is to ensure that frontline
staff get the resources they need to do their job even better
and to remove the bureaucracy that can get in their way. It
will focus on six key areas: o Procurement - the way the public
sector buys goods and services; o Back office functions -
like finance, IT and human resources; o Transactional services
- could modern technology be better used?; o Policy, funding
and regulation of the devolved public services; o Policy,
funding and regulation of the private sector; o Productive
time - are staff spending too much time serving the organisation
at the expense of customers? More details about the consultation
are available online and people can submit their views until
21 November. The review will be led by Peter Gershon, Head
of the Office of Government Commerce. He will report back
next summer.
From 10 Downing Street (press release), UK, 20 October
2003
Public Service Staff
Share Success Stories
A new booklet launched today showing
the vital role front line staff play in improving public services
will be distributed to 30,000 senior managers across the public
sector. The publication 'Leading from the Front Line' contains
a number of relevant case studies from across the country.
The Prime Minister's Adviser on Public Sector Reform Wendy
Thomson said: "Leading from the Front Line highlights
the good work happening on the ground - where it really counts
for customers and communities. It is services like these,
led by committed people that are setting the pace on reform
and best practice." The critical role of front line staff
was reflected also reflected by the Charter Mark awards ceremony.
The awards promote choice, flexibility and innovation in public
service. The 2002 Charter Mark Award Ceremony acknowledged
790 public service winners for excellence in customer services.
Over 2,400 public sector organisations are now recognised
by the scheme. Both the booklet and the awards encourage public
sector leaders to share their ideas and best practice.
From 10 Downing Street (press release),
UK, 22 October 2003
E-gov Must Offer Value
for Money: Report
In its report, Gartner said that the
governments of Western Europe will spend USD67.8 billion on
e-government and information technology in 2003 but said that
with this kind of expenditure, there will be pressure to show
that it has been worthwhile. "It's a lot of money,"
warns vice president of research at Gartner, Andrea Di Maio.
"That is a lot of hospitals, schools and trains. Technology
has the ability to deliver fantastic improvements across society
and is an asset equally worthy of investment, but governments
must prove that it has broader benefits to the people that
pay for it, or they risk public disillusionment." This
is particularly relevant to Ireland, where the government
has come under increasing pressure over spending cutbacks
in vital areas such as the health sector. Though many of Ireland's
e-government initiatives have won important awards, Minister
for the Information Society Mary Hanafin has faced criticism
this year over costly delays to certain e-government projects
including the all-important Public Services Broker, a kind
of e-government central nervous system. Before Hanafin took
on the job of Minister for the Information Society, there
were calls in the private sector for the government to appoint
an e-Minister. Though Hanafin filled that job, some expressed
disappointment that the position was not a full cabinet post.
For it part, Gartner said in its report
that establishing e-ministers, or public sector Chief Information
Officers (CIOs), to oversee the adoption of e-government and
ensure that it delivers value for money for taxpayers, is
essential. These should be followed by what Gartner calls
Domain Information Officers (DIOs), who would focus on architectural,
application and data modelling needs, the report said. "This
arrangement would strike a better balance between a centralised
and decentralised approach to government management of technology,"
said Di Maio. "Departments pursue individual agendas
without an eye on accountability or cross-departmental prioritisation
and assessment. The result is repetition of effort and wasted
resources, and the money being spent is not matching the government's
stated objectives." By putting government services on-line,
it is hoped that the public can have greater access to information,
forms, government services and range of other functions such
as tenders and planning permission applications. In fact,
e-government has grown to become far more than the re-jigging
public sector Web sites, with the term now referring to the
re-engineering of way public services are delivered with efficiency
and customer service as primary goals.
From Electric News Net, by Patrick Kelly,
23 October 2003
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E-government Programme Communicates
with the Private Sector
Amman - To facilitate dialogue between
local IT firms and the e-Government programme, int@j hosted
a workshop earlier this week. The conference was part of efforts
to communicate programme objectives and goals, and share with
the industry the challenges being faced in implementing e-Government,
according to an int@j statement. The e-Government programme
aims at contributing to the Kingdom's economic and social
development by providing access to government e-services and
information for all citizens, irrespective of location, economic
status, IT literacy, and educational background. "Jordan's
e-Government model is not replicated from other national programmes.
It is a truly unique Jordanian model that builds on best practices
from around the world," stated Mahmoud Khasawneh, chief
information officer and head of e-Government. "Our emphasis
has been on equipping qualified subject matter experts in
the area of programme management, technology, and change management,
with the goal of developing and supporting e-Government operations
and management."
Team members from the e-Government
Programme Management Office (PMO) updated the local ICT industry
on the role of the office, which provides support and capability
to government departments for the coordination of management,
implementation and interoperability of e-services. PMO Quality
Assurance Director Nadia Naber said her office "aims
to support other ministries and communicate the standards
and methodology to support consistency in operations across
government." Emphasising the programme's objective of
successfully delivering e-Government initiatives and projects
through dedicated project managers, Khasawneh highlighted
the progress of select e-services in the Kingdom. Fatima Abdel-Rahim,
e-Services manager, added that "we are now in the process
of development and implementation of key citizen services,
including income tax, drivers and vehicle licensing, land
and surveys, and borders and residency service." Updating
other developments, Khasawneh said: "we have created
operations at the National Information Technology Centre,
and it is a great source of pride that this centre is being
run by a local company, and not a global entity with a call
centre that is introducing the concept of customer services
to government."
The PMO team shared the strategy towards
the development of the e-Government portal, emphasising that
100 government agencies had been scanned with content gathered,
developed the look and feel of the site, and that content
managers across government had been assigned. Government Portal
Project Manager Fadi Mari said the various private sector
companies working with the PMO on the implementation of the
portal "have been working together as one team,"
and that the aim of the portal was to "facilitate citizen
access to e-services." The PMO team also updated the
sector on the various projects including e-procurement and
e-accounting, the secure government network currently connecting
six ministries, as well as other shared services. Khasawneh
also shared with the local IT industry, challenges in implementing
e-Government in Jordan, including staffing, technology, programme
management, change management, communications, readiness and
acceptance.
From MENAFN, Africa , 9 October 2003
Jordan King in Singapore
for Agreement on e-Government and ICT Cooperation
Singapore, Jordan sign pact to spur
info-comm technology, investments - Jordan wants to jump start
its online government services, so it has turned to Singapore
for help. The two countries on Tuesday signed a broad agreement
to promote co-operation in various areas of infocomm technology.
The signing of the agreement was witnessed by Jordan's King
Abdullah II and Prime Minister Goh Chok Tong. As part of the
deal, Singapore will provide Jordan with e-Government consultancy.
Singapore has been offering government services online for
several years now, and it plans to share this expertise, especially
in areas like financial management and portal management,
with Jordan. Other potential spin-offs - partnerships between
local and Jordanian companies on e-government projects, and
increased trade and investment between the two countries.
Earlier, King Abdullah II and Mr. Goh
discussed regional and global developments, including the
situation in the Middle East and Iraq. And with a bilateral
free-trade agreement being negotiated, their talks also touched
on ways to strengthen economic ties between Singapore and
Jordan. The King also made a quick stop at the Assyakirin
Mosque in Jurong and had a discussion with Minister in charge
of Muslim Affairs, Associate Professor Yaacob Ibrahim and
mosque officials. "We had a good exchange and good discussion
with him about how the mosque building fund is, and how Muslims
are practising their faith in Singapore. His Excellency offered
some suggestions about how we can work together closely. I
think these are good moments for us between the two countries
and I appreciate the opportunity given to us by His Excellency
to visit the mosque here in Singapore," said Associate
Professor Yaacob.
From Channel News Asia, Singapore, by Julia
Ng, 14 October 2003
Government Departments
to Demonstrate Diversified Online Services under Dubai eGovernment
Umbrella at GITEX Dubai 2003
The Dubai eGovernment stand at GITEX
Dubai 2003 will witness strong participation by 21 government
departments and ministries who will showcase a host of online
services offered through the unified portal www.dubai.ae.
The departments will demonstrate the applications of several
systems deployed by Dubai eGovernment to enable them to deliver
improved services through multiple channels, including mDubai,
the channel for mobile services, and AskDubai, the state-of-the-art
contact centre. 'The participation of government departments
at GITEX 2003 as part of the Dubai e-Government stand, consolidates
our efforts to project the www.dubai.ae portal as the main
gateway to access any service of any government department,'
said Salem Al Shair, Director eServices, Dubai eGovernment.
'The portal is entering an important phase in which the government
departments will migrate to more efficient payment systems,
and more innovative ways of categorizing services. This will
ensure the success of the e-Government project which has adopted
best-of-breed technologies to bring about a revolution in
the way people interact with the government'.
Briefing the participating departments
at a meeting held recently at the Dubai Chamber of Commerce
& Industry, Marwan Al Naqi, Project Manager for GITEX
at Dubai eGovernment, said: 'This is going to be the biggest
ever participation by Dubai government departments in GITEX.
It is also the most significant, because there has been more
sophistication and upgrade in our services since our last
participation in GITEX last year. It is the perfect platform
to showcase our eServices to a key audience that has a high
degree of awareness of computers and IT.' Over 130 representatives
from the participating departments took part in the meeting.
They were briefed on the various activities and the point
of sale and publicity material that has been designed for
distribution at the GITEX stand. Among the 21 departments
demonstrating their online services at the e-Government stand
at GITEX are, Department of Health & Medical Services
(DOHMS), Dubai Development Board (DDB), Dubai Municipality,
Dubai Civil Defence, Land Department, Dubai Transport, Awqaf
& Islamic Affairs Department, Real Estate, Dubai Chamber
of Commerce & Industry, Department of Civil Aviation,
Dubai Police, Department of Economic Development, Department
of Tourism and Commerce Marketing (DTCM), Dubai Government
Workshop, Dubai Ship Docking Yard, Justice Department, Tanmia,
Department of Information, Ministry of Labour and Social Affairs,
and the Dubai Naturalization and Residency Administration
(DNRD).
'This is our second joint promotion
of government departments under the Dubai e-Government umbrella
at GITEX,' said Al Naqi. 'It is a matter of great pride to
bring, under one roof, so many key departments to the public.
Their presence reflects their commitment to fulfill the objectives
of Dubai e-Government to automate and integrate services as
part of Dubai's ultimate goal of creating a wired community
fully equipped to conduct government transactions electronically.
We have added more innovative services and initiatives since
our last participation in GITEX and we would like to encourage
visitors to try them out.' The Dubai eGovernment stand located
at Hall No. 6 at GITEX Dubai 2003, will consist of 30 kiosks.
Visitors to the Dubai eGovernment stand
will be able to view and test the hundreds of services now
available online for the members of the public and the business
community, from various government departments. Dubai Land
Department will demonstrate the application of mDubai and
AskDubai, for more effective delivery of its online services
such as request for parcel plan, update ownership information,
locating a parcel, letter of ownership, real estate agent
index and land transaction index. Dubai Development Board
will showcase its online services utilizing Ask Dubai, mDubai
and eJob. The Department of Islamic Affairs (Awqaf) will also
highlight its applications of eJob for recruitment. Dubai
Civil Defence will demonstrate how AskDubai is proving to
be the central contact centre to provide a highly effective
link between the various departments and the people. Dubai
Municipality will highlight eServices in lab testing results
of Dubai Central Labs, food control health certificates, clinic
health certificates, veterinary certificates, online statistical
information, building services, Geographical Information System
and parking fines inquiry.
From AME Info, United Arab Emirates, 17
October 2003
Planned Smart ID Cards
to Pave Way for E-government
Abu Dhabi - A landmark plan involving
supplying UAE nationals and expatriates with smart identity
cards to replace their driving licence and all cards used
in health and other services will put the UAE on the way to
a fully electronic state, a police spokesman said yesterday.
Each electronic card, bearing a special number, will include
the individual's blood group, fingerprints, and other biological
characteristics. It will be linked to all government departments
to ensure quicker services. "This card will bear the
most personal information about the holder," said Lt
Col Ahmed Nasser Al Raisi, Director of Information Technology
at Abu Dhabi Police. "It will be an alternative to many
personal cards being used by citizens and residents, including
the labour and health cards, the driving licence and other
cards. This vital project will help the UAE in strategic planning
and provide a ready population census. It is considered the
infrastructure for the planned UAE electronic government."
The Ministry of Interior announced in August it had struck
a deal worth around Dh194 million with France's Sagem company
to produce the advanced cards, which are expected to be distributed
to the public in November next year. The card will have a
lifetime validity and expatriates can keep it even after leaving
the UAE and re-use it when they return on a visit or for work.
From Gulf News, United Arab Emirates, 18
October 2003
A Grim Arab Survey
of Rights and Education
Amman, Jordan - Arab experts issued
a report on Monday that finds the Arab world lacking in three
areas they deem fundamental to development: freedom of expression,
access to knowledge and empowerment of women. The group, which
was criticized by Arab officials for a similar report last
year, said the challenges caused by the deficiencies "may
have become even graver." One of the authors, Clovis
Maksoud, said he hoped the document would generate debate
among Arabs to seek "objective and constructive change
from within." Arabs want to take part in decision-making,
not "remain marginalized and frustrated," said Dr.
Maksoud, a Lebanese professor of international relations at
American University in Washington and a former Arab League
diplomat. The report was commissioned by the United Nations
Development Program in Amman. More than 40 Arab scholars contributed,
advised by representatives of various United Nations agencies.
The report, covering 21 Arab countries and the Palestinian
territories, called for more access to knowledge, focusing
on family upbringing, education and the news media.
Knowledge can help the region expand
human freedoms and become a "powerful driver of economic
growth through higher productivity," it said. The report
said illiteracy persisted among women, particularly in less
developed nations, and many children lacked access to basic
education. Arab media outlets operate "in an environment
that sharply restricts freedom of the press and freedom of
expression and opinion," while journalists "face
illegal harassment, intimidation and even physical threats,"
the report said. The report noted that the Arab region had
18 computers for each 1,000 people, compared with the global
average of 78. Fewer than 2 percent of Arabs have Internet
access, compared with 79 percent of Americans. Concerning
women's rights, some progress has been achieved but much remains
to be done, the report said, praising the representation of
women in some Arab parliaments and appointment of others to
senior public service posts. The report also criticized the
United States and other nations for making it harder for Arabs
to study, live and travel to the West since the Sept. 11,
2001, terrorist attacks. (http://www.nytimes.com)
From The New York Times, 21 October 2003
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Putnam Says E-gov Faces a Startling
Array of Challenges
Agencies must overcome four challenges
to make e-government successful, and none of the four deal
with funding or resources, said Rep. Adam Putnam, chairman
of the Government Reform Subcommittee on Technology, Information
Policy, Intergovernmental Relations and the Census. The Florida
Republican told an audience of industry and federal officials
yesterday that to make e-government work, agencies must lessen
federal managers' resistance to change; hire talented federal
workers; and prioritize cybersecurity and privacy, and intergovernmental
coordination concerns. "We've seen progress, and as the
administration takes it to the next level, we have to shine
the light on the successes and market them," Putnam said
at a lunch sponsored by the Industry Advisory Council, a Washington
association. "The magnitude of these challenges is startling."
Changing the culture, along with matters of security and privacy,
are the biggest issues agencies must overcome, Putnam said.
He recalled a recent hearing his subcommittee held on smart-card
technology in which the General Accounting Office reported
that there are 62 smart-card systems in place across government.
"We built up smart card stovepipes just as we appeared
to be learning to break them down through the [25 Quicksilver]
initiatives," he said. "This is of great concern
to the subcommittee. We have to move forward in a smart way."
As to security and privacy, the government
needs to look at whether it should collect personal data,
and whether that data would be helpful in combating terrorism,
Putnam said. Worms and viruses also pose great risk to public
and private systems, he added. "The federal government
needs to do a better job of tracking and capturing these people
who create and release these viruses," Putnam said. "We
need to change the law enforcement mentality of how they look
at these crimes. We will work with the FBI to make sure they
have the resources they need and if there are any legislative
changes that could help." Putnam also is considering
legislation that would require publicly traded companies to
receive third-party verification that they can protect their
IT infrastructures. "This is similar to the Year 2000
plans," he said. "This forces executive attention
on this serious issue. I think we will strike the right balance
with these requirements." Putnam's subcommittee has scheduled
at least five more hearings before November, including two
with Homeland Security Department officials next week.
From GCN.com, 1 October 2003
Wisconsin Public Service
to Power Customer Service With Informatica Data Integration
Redwood City, Calif. - Informatica
PowerCenter to Help Wisconsin's Leading Utility Improve Customer
Analysis - Informatica Corporation (Nasdaq: INFA), a leading
provider of data integration and business intelligence software,
today announced that Wisconsin Public Service Corporation,
a subsidiary of WPS Resources Corporation (NYSE: WPS), has
selected the Informatica PowerCenter data integration platform
to help improve customer service through enhanced customer
analysis. "As competition in our industry emerges, it
is essential that we maintain a deep understanding of our
customer base so we can continue to meet their evolving needs,"
said Nancy Fictum, IT project manager at Wisconsin Public
Service. "We selected Informatica PowerCenter to help
us enable strategic customer analysis because of its proven
performance, as well as its metadata-centric architecture,
which will give us more confidence in our data by enabling
impact analysis and data lineage tracking." Wisconsin
Public Service provides electricity and natural gas to more
than 450,000 customers in northeast Wisconsin and a portion
of upper Michigan. To provide
its account management representatives with information about
how customers are using its energy, the company is developing
a data warehouse for detailed analysis by location, type of
customer, and usage loads and times. This data will help the
company's marketing team to better target and price new and
existing products and services.
In addition, Wisconsin Public Service's
research and planning departments will be able to better estimate
capacity and facility needs by analyzing customer usage patterns.
"With the impact of deregulation, utility companies must
become more agile in order to ward off competition,"
said Sanjay Poonen, senior vice president of worldwide marketing
at Informatica. "We are pleased to work with a forward-looking
company such as Wisconsin Public Service to help ensure that
their management is equipped with timely, accurate business
information." By using PowerCenter to migrate billing
and meter data from its 14-year-old customer information system
into a client/server data warehouse environment, Wisconsin
Public Service expects to reduce time-to-deployment and streamline
integration, in turn enabling more efficient support for business
users. Wisconsin Public Service will also use PowerCenter
to support its future initiatives to expand customer analysis.
In 2004, Wisconsin Public Service plans to complete the implementation
of automated meter reading, which will read customers' meters
every hour, rather than every month. Wisconsin Public Service
will use PowerCenter to feed these large amounts of data into
the data warehouse for more detailed analysis across the enterprise.
Informatica PowerCenter is the industry-leading data integration
platform for building, deploying and managing enterprise data
warehouses, as well as other data integration projects. Informatica
PowerCenter helps users transform data from disparate enterprise
systems and sources into reliable information to support strategic
business initiatives.
From PRNewswire, 6 October 2003
USDA Launches E-Government
Resource For Commodities Information
Agriculture Secretary Ann M. Veneman
has announced a new e-government resource designed to provide
one-stop information about USDA commodities. The Commodity
Food Network (CFN) provides a single-point-of-contact to all
online federal resources and services related to the purchase
and distribution of USDA commodities. "The Commodity
Food Network will enable schools, community feeding organizations,
state agencies, Native American tribal organizations and others
to have instant access to information about USDA commodities,"
Veneman said. The Commodity Food Network is available at http://www.commodityfoods.usda.gov/.
Source: USDA Release.
From Crop Decisions, MO, 8 October 2003
Frank O'Bannon's Support
of Indiana's e-Government Portal Results in Top e-Government
Awards
Indianapolis - Efforts to get Hoosiers
online instead of standing in line to interact with state
government - a priority of the late Governor Frank O'Bannon
- continue to gain national recognition. Last month, the state's
Web portal (www.IN.gov) was ranked third in the Taubman Center
for Public Policy at Brown University's fourth annual survey
of state eGovernment performance. Indiana's official eGovernment
portal was also awarded third place in the Best of the Web
contest sponsored by the Center for Digital Government, an
international research and advisory institute on information
technology use in government. Indiana was the only state to
receive a top five ranking in both studies. Frank O'Bannon
had urged state government to focus on putting more information
and services online as a way to help Hoosiers and people all
around the world do business with the state, said spokeswoman
Mary Dieter. "Governor O'Bannon would be so pleased to
hear that the state's official Web portal, accessIndiana,
has won third place in the Brown University survey and Best
of the Web contest," said Dieter. "He was an absolute
believer in making government open and accessible to the people
it serves, and he thought that Web-based services were the
best way to accomplish that."
O'Bannon died on September 13 after
serving seven years as governor. He had 15 months left in
his term. In Brown University's study of state eGovernment
Web sites, accessIndiana ranked high in readability, disability
access, privacy and security policies, as well as a number
of online services. Brown University's complete findings are
available at www.insidepolitics.org. Indiana's services from
the Bureau of Motor Vehicles, departments of Revenue and Labor,
Legislative Services and the Health Professions Bureau caught
the attention of the Best of the Web judges. They also praised
the portal's common look and feel, branding strategies, new
Web-based GIS, and digitally certified records pilot. Full
details on the results are available at the Center's Web site,
at www.centerdigitalgov.com. "The governor regularly
said that he wanted to take more people out of line and put
them online to do business with the state. Our excellent Web
site is making this happen, and he would be very happy about
that," Dieter explained. "For years, Indiana has
led the nation in providing better service to its citizens
through the use of innovative technology," said Laura
Larimer, Indiana's chief information officer. "This recognition
is a tribute to the support and vision of Governor O'Bannon
and is a legacy that we plan to build upon."
From Business Wire (press release), 6 October
2003
White House Vows to
Step Up Progress on E-gov Efforts
Two White House Office of Management
and Budget officials briefed reporters Wednesday on the status
of OMB's e-government initiatives and hinted at future plans,
stating that whether or not Congress centrally funds e-government,
the initiatives are moving forward. The press conference featuring
OMB Deputy Director Clay Johnson and e-government administrator
Karen Evans was called to introduce Evans, most recently the
chief information officer at the Energy Department, to the
media and field questions on the e-government initiatives.
Earlier this month, Evans replaced Mark Forman in OMB's e-government
slot. Evans said OMB plans to finish implementing the e-government
initiatives next year and continue improving security and
privacy. OMB also will work to educate state and local governments
and the public about the new services available to them through
the initiatives, she said. "The federal government continues
to make strides in service while saving taxpayers' dollars,"
she said. Evans dismissed the idea that the change of senior
leadership at this point in the process would affect the initiatives'
deployment. "It's always difficult when there's a change,
but I think the momentum will pick up," she said, adding
that the government's chief information officers "want
to accomplish this mission."
Evans added that about 60 percent of
federal agencies will be in compliance with rules for eliminating
government paperwork by the Oct. 21 deadline. The law requires
the agencies to give individuals or organizations that do
business with the government the option to transact business
electronically. Further implementation of act will become
part of the e-government initiative, Evans said, but agencies
will have to determine where it will be "practical"
to move forward. Johnson stated that by questioning the idea
of a central appropriations fund for e-government, Congress
is not calling the initiatives into question but just wants
them funded from the federal government's broader $60 billion
information technology budget. He said OMB will do that if
necessary and already has done so to a limited extent this
year. "If Congress doesn't fund it, then the beat goes
on," he said, adding that Congress opposes the idea of
a central fund because OMB "hasn't been effective enough
in communicating the idea."
From GovExec.com, by Ted Leventhal, 16 October
2003
Group: Federal civil
Service Expanding Rapidly
Ottawa - The federal public service,
which dwindled during the spending cuts of the mid-1990s,
has become the fastest-growing sector in the labour market,
a business group said Tuesday. In a presentation to the Commons
finance committee, the Canadian Federation of Independent
Business also said public servants get wages and benefits
that are, on average, 23 per cent higher than those in the
private sector. The federation, which represents 105,000 small
and medium-sized businesses, said provincial and municipal
jobs are also growing and also enjoy a wage premium over the
private sector, but not to the same extent. Catherine Swift,
the federation president, said Ottawa's workforce has grown
by 24 per cent since 1990. She said this growth, coupled with
the attractive wage and benefits package, make it hard for
private employers to find workers. It's a sign that Ottawa
is back on the big-spending bandwagon when her members want
tax relief, she said. Swift said there should be a public
debate on the differentials between public- and private-sector
wages. She agreed, however, that the wage differentials vanish
at the higher echelons of the public service, with senior
executives in the private sector far outstripping their civil
service counterparts in salaries and benefits.
From Canoe News, Canada, 21 October 2003
Nation's Highest Honor
for Public Service Awarded to Bozeman Public Library
Library to Be Honored at Awards Ceremony
in Washington, DC and Receive $10,000 - Dr. Robert Martin,
director of the Institute of Museum and Library Services,
one of the top three federal cultural agencies, announced
that the Bozeman Public Library is one of only three recipients
to receive a 2003 National Award for Library Service, the
highest honor the country gives libraries for extraordinary
service to the public. The Free Library of Philadelphia and
the Pocahontas Free Libraries (West Virginia) also received
the award. From the grant center that helps organizations
apply for funding to computer and Internet classes; from kids'
book discussion groups, to the annual community-wide Dr. Martin
Luther King, Jr. celebration, the staff and volunteers have
made their library an active, living part of the community,"
said Dr. Martin. "I commend the Bozeman Public Library
and am proud to honor them with the National Award for Library
Service." The Bozeman Public Library is at the center
of one of the fastest growing counties in the nation. Though
it is a city library, it has an agreement with Gallatin County
to provide its services to almost 50,000 residents. More than
1,200 people with diverse interests and needs use the library
daily.
The library, guided by a strategic
plan developed with citizen input meets that meets the myriad
needs of its community. As a technology leader it supports
a portal to 150 community Web sites enabling residents access
to cultural, political, educational, and practical local information.
An example of its public outreach is a unique partnership
with public radio, enabling the (KEMC) in Billings, Montana,
to operate a recording booth in the library to give voice
to local experts in broadcasts. From classes in Japanese to
dialogs with Mongolian economists to Sunday concerts, the
library has something for everyone. Lecture series with Montana
State University; reading programs with Intermountain Therapy
Dogs encouraging children to read by letting them read aloud
to non-threatening canine listeners. "I'm thrilled that
the Bozeman Public Library has received a distinguished award
from such a prominent organization," said library director
Alice M. Meister. "It validates the hard work of our
staff and volunteers. We are grateful for the recognition."
For more information, see: www.imls.gov.
From Yahoo News (press release), 21 October
2003
Evans: E-gov Marches
On
Hershey, Pa. - The White House's e-government
chief told a conference audience that she will focus on completing
current e-government initiatives and reducing redundant tech
spending. "The [Bush] administration really does stand
fully committed to the e-gov component of the president's
management agenda," said Karen Evans, the Office of Management
and Budget's new administrator of the Office of E-government
and Information Technology. "We'll continue to make those
progresses." Evans, speaking this morning at the Industry
Advisory Council's Executive Leadership Conference, said she
expects agencies to press forward with the 24 e-government
initiatives. "As we complete them, we will take them
off the list, and they will move to the business lines,"
she said. "You'll hear the number declining, and that's
a good thing." Changes at OMB do not mean changes to
the President's Management Agenda, she said. "It just
means there's another team in place and we're moving forward,"
Evans said. "The agenda is in place, and we're going
to achieve the results laid out in the agenda." She vowed
to continue developing the federal enterprise architecture
and implementing the E-Government Act of 2002.
Her predecessor, Mark Forman, did "a
tremendous amount of work" that she plans to continue
with equal fervor, Evans said. Referring to the management
score card, Evans said she wants to see agencies move beyond
a green score, which is given to agency projects that hit
their goals in five areas: strategic workforce management;
expanded use of e-government; increased competitive bidding
of government services; improved financial performance; and
linking performance to budget. Many agencies are working to
improve from red or yellow scores, and they should continue
to progress even after they hit green, Evans said. "I'm
just making the assumption that we'll be green," she
said. "Green is what we should have been doing all along.
It's the baseline." Beyond green, she said, all agencies
should have electronic dockets for rulemaking or using a fully
integrated enterprise architecture, for example. "The
sky's the limit," she said. The key to meeting ambitious
e-government goals is cooperation among agencies and OMB,
Evans said. "It really truly is a partnership - leadership
through partnership," she said.
From FCW.com, 21 October 2003
E-Government 2003 and
Beyond
Administrator of E-Government and Information
Technology, OMB - President Bush last year unveiled an ambitious
e-government reform plan aimed at cutting red tape and allowing
citizens to interact with government more easily via the Internet.
The Office of Management and Budget is tasked with executing
that vision, under the leadership of Karen Evans, the newly
appointed administrator of e-government and information technology.
Evans, the former CIO of the Department of Energy, was online
earlier today to take questions about her work as the president's
new e-government czar. washingtonpost.com reporter Cynthia
L. Webb moderated the discussion. An edited transcript is
below. Background on Evans: Prior to her work at the Dept.
of Energy, Evans worked at the Dept. of Justice as assistant
director for information services and later as division director
for information systems management. She also was deputy director
for the applications management division at the Dept. of Agriculture.
Evans also serves currently as director of the federal CIO
Council.
Editor's Note: Washingtonpost.com moderators
retain editorial control over Live Online discussions and
choose the most relevant questions for guests and hosts; guests
and hosts can decline to answer questions. Cynthia L. Webb:
Good morning, Karen. Thanks for joining us today. And congratulations
on your recent appointment as the OMB's administrator of the
Office of Electronic Government. You have been tasked with
an important job, but also a complicated one. What are your
primary goals as overseer of the Bush administration's e-government
and IT initiatives?" Karen Evans: Hi Cindy. I'm really
excited to be here today as the Administrator of E-Gov and
IT at OMB and I'm looking forward to our session on line.
My primary goals as the Administrator are to: Drive toward
full utilization of the President's E-Gov initiatives; Progress
the work of the Federal Enterprise Architecture and individual
agency enterprise architectures; Institutionalize effective
IT management practices within agencies, including privacy
and security; and Implement the E-Gov Act of 2002.
From Washington Post, by Karen Evans, 22
October 2003
GAO: E-Gov Efforts
Still Lacking
Three years ago, Congress enacted the
Government Paperwork Elimination Act requiring federal agencies
to provide the public with the option of submitting, maintaining
and disclosing information electronically by Oct. 21, 2003.
The E-Government Act of 2002 further requires that public
comments should be accepted "by electronic means."
Tuesday, the General Accounting Office (GAO) said the government
had achieved mixed results in reaching those goals. "Unfortunately,
the public remains more than a mouse click away from submitting
comments on proposed federal regulations," said Sen.
Susan Collins (R.-ME), chair of the Senate Governmental Affairs
Committee. "I'm encouraged by the steps the government
has taken, especially with the introduction of Regulations.gov.
But it's still difficult to navigate through the tangled online
regulatory Web sites of individual agencies." The Regulations.gov
site was created earlier this year, but the site has seen
little traffic from the public. According to the GAO, the
site contains 91 percent of the government's proposed regulations
open for comment, but it has not been widely advertised to
the public and most agency sites fail to link to it.
The GAO also said the low number of
public submissions could primarily be blamed on confusing
terminology by some federal agencies to describe their links
to proposed rules and limited search capabilities on other
government sites. "The E-Government Act requires that
the public be given a greater voice in the rulemaking process
through use of the Internet," said Sen. Joe Lieberman
(D.-CT), author of the law. "The GAO found slow and inconsistent
progress towards that goal. The Regulations.gov site, although
functional, is barely used. And the Environmental Protection
Agency was found to have made the least progress of the major
regulatory agencies, which raises questions about why the
EPA was designated the lead agency for the Administration's
e-rulemaking initiative." The GAO report recommended
that director of the Office of Management and Budget (OMB)
should instruct agencies to provide a link to Regulations.gov
on their Web sites to allow users to identify proposed rules
open for comments and that the agencies should note in the
preambles to the proposed rules the availability of Regulations.gov.
From InternetNews.com, by Roy Mark, 22 October
2003
Commerce's Bodman to
Head PMC E-gov Committee
E-Government managers are getting a
new chief operating officer. The Office of Management and
Budget today announced that Samuel W. Bodman, the deputy secretary
of the Commerce Department, will be appointed the chairman
of the E-Government Committee of the President's Management
Council. The PMC is made up of agency deputy secretaries,
who are considered COOs. OMB looks to the council to promote
projects and initiatives, especially in the e-government arena.
Bodman replaces Cameron Findlay, who left the Labor Department
this summer to take a post as the general counsel for AON
Corp. of Chicago, according to a department spokesman. In
his new role, Bodman will work with Karen Evans, OMB's administrator
for e-government and IT, to ensure that federal IT policy
initiatives-such as the 25 Quicksilver projects, the President's
Management Agenda and an effort to buy enterprise software
licenses-maintain support from agencies and continue to move
forward, said Clay Johnson, OMB's deputy director for management.
At Commerce, Bodman manages the day-to-day operations of the
agency, which has 40,000 employees and a $5 billion budget.
Before coming to Commerce, Bodman spent 31 years as a consultant
to new businesses. He also was a professor at the Massachusetts
Institute of Technology. He graduated with a bachelor's degree
from Cornell University and earned a doctorate in chemical
engineering from MIT in 1965.
From GCN.com, by Jason Miller, 24 October
2003
Academia Gets Creative
with Web Services
A Web service can help you catch a
bus. Or test an electronic circuit from a dorm room. Or even
take English writing tests in a new way. These creative uses
of Web services-a method for connecting software systems over
the Internet-at the Massachusetts Institute of Technology
stand in stark contrast to the more mundane, workaday uses
of Web services at corporations. But these applications suggest
that Web services may be an important link in realizing the
vision of broad access to information originally promised
by the Web browser. The ideas for tracking bus locations or
performing technical experiments over the Web came out of
a joint research program between Microsoft and MIT. The goal
of the initiative, called iCampus, is to improve the quality
of campus life through technology. Although the five-year,
$25 million program has been in place since 1999, the broad
industry support of Web services standards over the past two
years is giving professors and students the means to unlock
access to hitherto hard-to-access information - and change
the learning experience in the process. For Microsoft, its
$25 million investment is far from purely altruistic. On top
of gaining more credibility in the academic research world,
Microsoft is garnering valuable insights into how it should
design future software.
Although iCampus is specifically focused
on using technology to improve teaching, Microsoft said the
lessons it is learning can be applied to business, particularly
to Microsoft's primary customer: the information worker. The
university's experiments with Web services, collaboration,
security, Tablet PCs and visualization tools will translate
directly back into Microsoft's product planning cycle, according
to Randy Hinrichs, group research manager of learning science
and technology at Microsoft. "I've learned that it's
hard to see the difference between knowledge workers and students
on campus. They do the same thing--they take data that's out
there and they go to their customer to deliver knowledge assets,"
Hinrichs said. "We got lucky and got more than what we
bargained for in terms of helping us define how products should
integrate into fields outside of education." iCampus
is another effort by Microsoft to expand its presence in the
academic community, where future professional software programmers
are trained. In an ongoing competition to gain market share
against Java tools providers and open-source software, Microsoft
is trying to make access to its Web services development tools
simpler for students and faculty. Meanwhile, back at the iLab.
At MIT, Web services has emerged as one of the central themes
of the iCampus project, said Hal Abelson, the co-director
of MIT's Educational Technology Council and professor of electrical
engineering and computer science.
Because Web services protocols have
industry backing, universities and companies are more willing
to invest in and experiment with the software technology.
"All Web services are is distributed computing, which
people have been talking about since 1983," said Abelson.
"(But) the ability to open up information allows us to
create a new kind of resource that just wasn't there before."
Consider iLab. The project to offer remote access to lab equipment
was conceived before Web services standards had fully gelled.
But with Web services underpinning their applications, MIT
academics can imagine instituting a barter system with other
universities to share time on expensive testing equipment
used by students across the globe. iLab was born in microelectronics
classes taught by electrical engineering professor Jesus del
Alamo. In 1998, he rigged up a system to let microelectronics
students at MIT test transistors over the Internet, rather
than requiring the students to be in the same room as the
equipment. The obvious benefit for students was more convenient
access to labs. But del Alamo could see potentially more significant
benefits for MIT. With a networked system, the university
could schedule access to expensive equipment more efficiently
and open up access to its gear by other academic institutions.
Through the iCampus initiative, del Alamo and other colleagues
expanded the basic idea of remote lab testing to other academic
disciplin
es. They chose Web services as the
software to link highly specialized lab equipment with university
networks and the Internet. MIT set up a cross-discipline team
called the Center for Educational Technology Initiatives.
The group is in the process of building a generalized system
designed to allow universities to bring the Web to many types
of lab equipment--from heat exchange machines used in chemical
engineering classes to shaking tables used to test the sturdiness
of civil engineering projects. "The attractiveness of
Web services is that we thought that the protocols would be
much more likely to not be tripped up by different network
policies at different universities," said Jud Harward,
senior architect at MIT's iLab project. "We wanted something
vendor-independent that would work across organizational lines."
MIT has already used an early version of its lab-sharing system
with a partner at the University of Singapore and is working
on a project to extend lab access to African universities
as well. Surfing at the bus stop - Another iCampus Web services
project, spearheaded by MIT graduate students, received $30,000
in funding to improve the campus life of students on the roadways
of Cambridge, Mass., and Boston, rather than in its ivory
towers. The brainchild of two MIT graduate students -Salil
Soman and Krishnan Sriram - ShuttleTrack is a system that
lets students find out where shuttle buses are located as
they drive along their routes.
Rather than stand waiting in the cold
New England winter weather hoping they haven't missed the
last bus home, students can use their PCs or Web-enabled handheld
devices to check where a bus is. The application, which was
written with Microsoft's Visual C# development in about six
months, uses GPS tracking equipment and cellular modems attached
below bus seats to transmit location information to a central
server in MIT's transportation office. The application stores
information in an XML-based Web services data format, which
allows people with many different devices to check bus locations.
Using Web services formats to store and publish data, the
application can distribute scheduling information in a variety
of formats, including plain text or graphics, said Sriram.
Web services has largely been used to ease technology integration
woes at large corporations, but one of the much-hyped benefits
of Web services is the ability to buy online access to software,
rather than installing applications in-house. Project leaders
from another iCampus initiative are doing exactly that: selling
its test-taking software application as a service. The iCampus/MIT
Online Assessment Tool (iMoat) application, which is already
in use at MIT and other universities, is a replacement for
freshman-placement writing exams.
Students register to take a test and
are sent reading material via e-mail. Three days later they
submit an essay. A teacher uses the same iMoat application
to grade the exam on a PC. Rather than asking students to
use pen and paper to write on a subject unprepared, iMoat
was meant to give students a more realistic setting for composing
essays--that is, writing on a PC after some preparation, said
Leslie Perelman, the principal investigator of iMoat. The
Web services-based system is also less costly than sending
dozens of professional graders to a hotel to read through
thousands of exams, and it can be more competitive with machine
scoring systems, he said. "This is a hard time to get
universities to buy or subscribe to a service because even
universities are cutting budgets. (Now educators) can tell
university administrators that they can save money,"
Perelman said. For MIT, the iCampus project is not specifically
about Web services as much as it is about using technology
to change the learning experience, in part by extending access
to information as widely as possible. Like MIT's OpenCourseWare
initiative to publish course material online, the use of Web
services in iCampus reflects MIT's goal of "strengthening
the intellectual commons by putting information out there
and sharing," Abelson said.
From Cnet Asia, Asia, by Martin LaMonica,
28 October 2003
Government Plans to
Form Two New Companies - 'Yards' Debts to Be Written Off
The government is planning to form
two new companies to replace the current set-up at the two
shipyards, sources said yesterday. One of the companies, Malta
Shipyards Ltd (MSL), will continue to run the shipyards with
a whittled down workforce while the other, Industrial Projects
and Services Ltd (IPSL), will take up the two 'yards' 900
surplus workers. Malta Drydocks Ltd and Malta Shipbuilding
Company Ltd will be dissolved. After lengthy and painstaking
negotiations, the government last week reached agreement in
principle with the General Workers' Union over the new set-up
and the union will now submit the agreement to the shipyard
workers for their approval. Under the government's plan, early
retirement and voluntary redundancy schemes will be offered
to employees of IPSL. Those who do not take up the offer could
be seconded to government departments, local councils or the
private-public partnership projects. They could also be seconded
to the private sector, but only voluntarily or after consultation
with the union. All of them, however, will retain their current
working conditions, including the seniority they enjoy and
the right to return to IPSL if the job they are seconded to
is terminated in future. Four schemes will be launched, similar
to the ones offered two years ago.
A retirement scheme on a two thirds
pension will be offered to those aged 56 and over. Those aged
between 50 and 55 will be offered a lump sum equivalent to
15 weeks' pay for every year, and could opt for a two thirds
pension when they reach 56. Those aged between 40 and 49 will
be offered an ex-gratia payment equivalent to 3.25 times their
current basic salary, capped at Lm17,000. Those under 40 will
be offered eight weeks' pay for every year of service capped
at Lm12,000 for those with more than 15 years service or Lm10,000
with less. A minimum of Lm5,000 has been established. It is
expected that the schemes will cost the government over Lm7
million. The government will write off the shipyards' debts,
which amount to Lm310 million, so that both companies will
start off with clear balance sheets. The government will take
back the land at the Marsa shipyard, including the dock, and
the Number One dock in Cospicua in return. A formula has also
been found to give a wage rise that meets the General Workers'
Union's aspirations, the sources said. Two collective agreements
are expected to be signed next week.
One will be between the GWU and MSL,
the other between the government or the management of IPSL
and the GWU. A technical meeting between the union and shipyards'
management lasting some six hours took place yesterday to
finalise the draft agreements. The union is convening meetings
for shipyards executive committees and delegates tomorrow
when it will explain the agreement painfully negotiated with
the government. Sources said there were mixed feelings among
delegates over whether to approve the agreement, with some
saying the union was rushed into it and others arguing that
the union could not have done more in the circumstances. The
government has repeatedly warned that it was prepared to take
the decisions that needed to be taken over the shipyards.
Although there was a faction of shipyard workers who were
advocating taking to the streets, others were sceptical about
such tactics, which they feared could turn public opinion
even further against them and allow the government to close
down the shipyards once and for all.
From Las Vegas Sun, NV, by Natalino Fenech,
28 October 2003
|
| |
|
|
Global E-government
European Commission proposes biometric
ID measures | Readability is a problem for most US government
sites - European Commission seeks to boost e-government: The
European Commission has adopted a communication outlining
measures to promote the uptake of e-government across Europe.
The communication stresses the importance of the implementation
of e-government as a means of improving economic and social
conditions. "It is essential for Europe to have a public
sector that helps the European economy to grow, that provides
high quality services to all, and that reinforces democratic
involvement," said Erkki Liikanen, EU Enterprise and
Information Society Commissioner. One of the key areas that
needs attention, according to the communication, is accessibility
to public services for all citizens, which can be promoted
through investment in multiple platforms, including PCs, digital
TV and mobile terminals. The EC also advises that confidence
in on-line interaction with the government is essential, and
that issues surrounding data protection and authentication
and identity management need to be properly addressed. The
communication also recommended the widespread rollout of electronic
procurement for the public sector. The full communication
document can be downloaded here. Did you know you can get
the eGovernment Digest sent direct to your inbox every week?
Just email us to get your free copy.
European Commission proposes biometric
ID measures: The European Commission has adopted a proposal
to compel EU member states to store biometric data for visa
and residence permit applicants in a uniform format. The proposal,
sent to the European Council and European Parliament, would
make it mandatory for all member states to store digital facial
http://www.unpan.org/information/worldgovernancewatch/images of immigrants who apply for visas or residence permits,
as a primary means of biometric identification. Member states
would also be required to store fingerprint data, as a secondary
biometric identifier. The EC said the proposals were aimed
at "ensuring interoperability" between member states'
immigration systems. The EC also said that the use of biometric
technology would help combat document fraud and abuse of the
asylum system. The EC had been considering the adoption of
fingerprinting as a primary means of biometric identification
earlier this year, but it is thought that its decision to
opt for facial imaging was influenced by the US government's
move to integrate facial biometrics into passports. Readability
is a problem for most US government sites: The majority of
federal and state Web sites in the US pose problems of readability
for citizens, according to an annual e-government survey by
researchers at Brown University. In a study of over 1,600
state Web sites and 60 federal sites, the average readability
level - assessed using the Flesch-Kincaid test, a reading
evaluation tool used by the Department of Defense - was found
to be 11th-grade level (around age 16).
It is thought that half of all Americans
have a reading ability at or below eighth-grade level (around
age 12). Just 12 percent of government Web sites had an eighth-grade
or lower reading level, while 67 percent had a 12th-grade
ability level. The same study assessed government Web sites
in terms of accessibility for users with sight or hearing
impairments. Only 33 percent of state and federal sites met
the accessibility standards set by the World Wide Web Consortium,
while 24 percent fulfilled the criteria for accessibility
laid out in Section 508 of the US Rehabilitation Act of 1973.
Outsourcing is quickest-growing tech sector for US government:
Outsourcing is the fastest-growing technology segment within
the US federal government, according to a new study by market
research firm INPUT. The report predicts that US government
spending on outsourcing will grow from USD8.5 billion in fiscal
2003 to more than USD15.5 billion in fiscal 2008, equating
to a compound annual growth rate of 13 percent. Input senior
analyst Lauren Jones Shu attributed some of the growth to
the large number of federal IT workers who will reach retirement
age within the next five years, "giving federal agencies
little choice but to pursue outsourcing to meet the technology
needs of initiatives like e-government and information sharing
in defence of the homeland."
Indeed, the recently established Department
of Homeland Security (DHS) is a key example of the use of
outsourcing "as a way to quickly ramp up to fulfill [its]
mandate," said Shu. The DHS has also said it wants to
outsource its travel services, payments to retirees and annuities
recipients, and its support services. Swiss favour more e-government
services: The majority of Swiss citizens would like more government
services to be made available on-line, according to a survey
by the GfS Research Institute. Eighty-three percent of those
questioned said they would be willing to use the Internet
to interact with the government to perform everyday activities,
such as registering a change of address. However, most people
expressed reservations about divulging their personal details
over the Internet, with more than three-quarters of those
surveyed saying they would only feel comfortable using e-government
services if the security of their personal information was
guaranteed. The Swiss government has just launched a national
project aimed at making the nation more Internet-savvy and
at boosting its e-government rankings among its peers in Europe.
The country's finance ministry, which
is coordinating the project, said it planned to speed the
rollout of e-services for citizens, in an effort to curb bureaucracy
and paperwork. New Zealand ramps up e-government rollout:
Government departments in New Zealand are working on around
150 separate e-government initiatives, according to a study
by the State Services Commission (SSC). The survey of 36 public
sector agencies found that about 25 percent of the projects
have already been delivered. The initiatives range from Internet
voting trials for the 2008 general election, through to the
publication of court judgements on the Internet, to the development
of an employment portal. Other planned projects include an
on-line authentication system for the identification of citizens
accessing e-services. According to the SSC, government bodies
said the ramping up of on-line initiatives was fuelled by
the promise of an increase in efficiency and cost-effectiveness,
as well as improved quality of service for citizens. The study
revealed that around one-fifth of the e-government schemes
involved collaboration between various agencies.
From Electric News Net, by Sylvia Leatham,
1 October 2003
Global E-government
Public sector needs new approach to
ROI from e-government: Governments need to adopt a new approach
to measuring the return on investment (ROI) of investments
in technology, according to a study by Deloitte Consulting.
The report advises that public sector bodies should evaluate
their IT investments not just in terms of the cost savings
they reap for the government, but also by taking into account
the financial benefits of such investments for citizens and
businesses. Report author William Eggers dubs this new methodology
Citizen Advantage and notes that e-government "could
potentially save individuals and businesses billions of dollars"
by reducing the time and effort required to comply with regulatory
and reporting requirements. The report also cites the potential
economic advantages of the rollout of e-government "because
the regulatory environment is often a critical factor in a
company's decision on where to locate." One example of
a successful e-government initiative that has created Citizen
Advantage, according to the report, is the US State of Oregon's
one-stop process for building construction approvals, which
saves the construction industry USD100 million a year in reduced
delays and decreased permit processing costs.
New EC portal encourages worker mobility: The European Commission
recently launched its "European Job Mobility Portal,"
an on-line resource for jobseekers and employers across the
European Union. The portal, known as EURES, links up the public
employment services of the countries of the European Economic
Area and Switzerland, as well as regional and national bodies
involved with employment issues, such as trade unions and
employers' organisations. The site contains a facility to
search for employment vacancies across Europe, along with
an area where jobseekers can post their CVs on-line. The site
also provides information on living and working conditions
in various countries, along with details of labour market
conditions. Another section of the site provides a guide to
education and training opportunities throughout Europe. "The
European Job Mobility Portal...will enable people to make
choices based on full information on the opportunities available
to them," said Anna Diamantopoulou, EU Employment and
Social Affairs Commissioner. "It is an invaluable addition
to our range of tools to encourage greater job mobility within
the EU."
UK's agricultural ministry brings forms on-line: The UK's
Department of Environment, Food and Rural Affairs (Defra)
has announced that it has chosen an e-government solution
from Adobe to enable the electronic delivery of some of its
services. Defra is planning to bring a number of its forms
on-line in order to accelerate processes for clients as well
as for Defra employees. The implementation of Adobe's Document
Server for Reader Extensions, an application specifically
designed for forms-based processes, will allow Defra clients
to securely download and electronically submit application
forms for a number of services, such as government grants
and export certificates. As well as saving time for applicants,
the new technology is expected to improve efficiency for Defra
staff, reducing their need to re-key information and streamlining
application processes. "The thousands of forms we create,
sometimes up to 20 pages long, need to be carefully managed.
Defra has therefore been actively investigating ways to simplify
the application processes for a number of years," said
Defra's IT Programme Manager, John Kennedy.
Malta enables on-line vehicle licence renewal: The government
of Malta is set to roll out a transactional on-line service
for the renewal of motor vehicle licences. The service, which
Malta's Ministry for IT and Investments claims is the first
of its kind in Europe, will enable vehicle owners to renew
their licences over the Internet or through their insurance
company or broker. The current system that is in place requires
vehicle owners to visit the Licensing and Testing Department
in person, after they have renewed their insurance policy.
The new MTL250,000 (EUR542,000) on-line system was designed
for ease of use: citizens using the system only need to input
their vehicle registration number, insurance policy number
and ID card number, before paying by debit or credit card.
Moreover, all insurance companies will have access to the
on-line system, and it is expected that the service will generally
be offered as an add-on for customers who are renewing their
insurance policies. Insurance firms will have to pay a MTL1
(EUR2.16) fee for each on-line licence renewal.
Fairfax residents help catch tax cheats: Officials in Fairfax
County in Virginia, USA, have introduced an on-line facility
aimed at catching tax evaders who fail to pay their vehicle
registration fees. Under county law, new residents in the
area and purchasers of new vehicles have 60 days to file a
registration form, pay a tax and purchase a decal (a special
sticker) for their vehicle. Program Target, the new on-line
system developed by IT solutions provider McDonald Bradley,
links the state's motor vehicle department database with the
various county tax databases and provides a Web site where
people can report suspected tax cheats. Fairfax residents
who notice vehicles without decals on display can input details
of the vehicle on the Web site. The system will then try to
match up the information provided against database records.
Users of the site can also check up on the status of previously
reported tips. According to McDonald Bradley, the site received
several thousand visits in its first few days of operation.
Bulgaria unveils first e-government services: The Bulgarian
government has announced the launch of the first of its e-government
services. Unveiling the services, State Administration Minister
Dimitar Kalchev said that from now on, citizens would be able
to use the Internet to register a change of address, obtain
information about their social security contributions, and
view certain details about companies. There are also plans
to implement a number of on-line tax filing services by the
end of this year or early next year. Kalchev said the government
intends to roll out at least 20 on-line services for citizens
and businesses by 2005, including vehicle registration, company
registration and customs declarations. Users of the e-services,
which require digital signature certificates, will be issued
with special smart cards for on-line identification. Separately,
the government launched a Web portal to provide updates on
the progress of Bulgaria's accession to the European Union.
From Electric News Net, by Sylvia Leatham,
9 October 2003
Global E-government
NZ government may partner with IT industry:
The government of New Zealand is considering a collaboration
with the private sector IT industry. Through the partnership,
the government hopes to promote the export of IT systems developed
for or piloted by the public sector. The idea was first proposed
at a conference organised by IT consultancy Synergy and attended
by several government ministers in July this year. Government
ministers are due to meet later this month to decide whether
to take the proposal further. According to a report in The
Dominion Post, the main motivation behind the proposal is
the hope that government spending on IT could fuel growth
in the ailing ICT sector, if the public and private sectors
work together to extract value from government investments
in IT. Government procurement accounts for around 40 percent
of all IT purchases in New Zealand.
IBM to help Brazil use open source
software: IBM has signed an agreement with the Brazilian government
to help it develop expertise in open source software. In a
statement, the IT giant said it had signed a letter of intent
with the government that outlines a common interest in developing
products based on open source standards and software, such
as Linux. According to IBM, open standards "bring better
interoperability, lower costs and greater scalability"
for the public sector. "Linux can play a fundamental
role in the economic development strategy of developing countries,
such as Brazil," said Rogerio Oliveira, president of
IBM Brazil. The news of the agreement is Big Blue's third
announcement in recent weeks involving governments and Linux.
The UK government has said it is to engage in a series of
tests of Linux software, while the Russian government is working
with IBM to establish a Linux competency centre in Moscow.
Public sector IT directors favour outsourcing:
More than half of public sector IT managers in Europe are
in favour of selective IT outsourcing, according to a new
study by Synstar. The IT solutions company surveyed 700 European
IT directors, including those in Ireland and the UK, for its
annual Pressure Point Index report. Fifty-three percent of
survey respondents in the government sector said that selective
outsourcing - outsourcing certain managed services - was the
most effective method of trimming costs while improving performance.
The type of functions IT managers said they would like to
outsource were infrastructure support (39 percent), user support
(27 percent) and staff management (6 percent). Just 12 percent
of respondents said they would be happy to surrender control
of their IT strategy. Apart from reducing costs and improving
performance, some of the other benefits of selective outsourcing
cited by managers were access to skills that are lacking in-house,
a guarantee of service levels and value for money.
Singapore gives guidance to Jordan:
Jordan has enlisted the help of Singapore to develop its e-government
program. The two countries signed an agreement this week to
promote co-operation in the areas of e-government and ICT
development. Under the deal, Singapore will provide e-government
consultancy services to Jordan. Singapore was recently ranked
the number one country for e-government in an annual study
by Brown University, and earlier this year a similar study
by Accenture rated Singapore as the number two country for
e-government. The accolades reflect the fact that Singapore
has so far e-enabled around 1,600 public services. Singapore's
Information and Communications Acting Minister George Yeo
said his country planned to share its e-enabling expertise
with Jordan, especially in areas such as financial management
and portal management. Government ministers also hope the
relationship will help foster partnerships between Singaporean
and Jordanian companies on e-government projects, as well
as increase trade and investment between the two countries.
Czech Republic launches e-government
portal: The Czech government has launched its new e-government
portal, known as the Public Administration Portal. The site
aims to provide a one-stop shop for citizens and businesses
who wish to find information on and communicate with public
sector bodies. The site currently offers information on Czech
and European legislation, contact details for central, regional
and local authorities, and a guide to public services for
key life events, such as birth or marriage registration. The
Ministry of Informatics said that additional services will
be rolled out over the coming months, expanding the site's
functionality to include transactional services, which will
be supported by the use of electronic signatures. There are
also plans to add an English-language section to the site
to provide information for tourists and English-speaking residents.
The Ministry of Informatics said the new portal would cost
CZK40 million (EUR1.25 million) a year to run.
From Electric News Net, by Sylvia Leatham,
15 October 2003
Global E-government
Energis wins UK broadband contract:
The UK government has awarded a contract to telecoms firm
Energis for the provision of a secure broadband network to
link up government departments, agencies and local authorities.
The STG40 million contract, which saw Energis beat off competition
from companies including BT and Cable & Wireless, involves
the installation of a next-generation Government Secure Intranet,
based on IP virtual private network technology. The new high-speed
network will support voice, video and data transmissions and
will provide better support for real-time applications, and
it is envisioned that 300,000 people will eventually use the
network. Trials of the network are expected to begin in early
2004, with full migration from the existing C&W network
scheduled for the end of next year.
Malta to have 95 percent of services on-line next year: The
government of Malta has forecast that about 95 percent of
its services will be available on-line in the next six to
nine months. IT and Investment Minister Austin Gatt said that
the government was planning to implement an electronic identification
system, which he described as "the last pillar in the
building of e-government," to facilitate access for citizens
to its e-services. The system involves the issuing of electronic
ID cards developed by Microsoft in collaboration with Malta
Information Technology and Training Services (MITTS). Using
just one ID code, citizens will be able to access services
dealing with taxation, social services and health issues which
are due to be rolled out in the near future. Minister Gatt
said the ID system was intended to be reproduced and sold
to governments, as well as private sector companies, around
the world. Looking further ahead, Gatt said the next step
for e-government was the education of the public in the use
of the services, as well as bridging the digital divide in
the country.
Thailand stalls national ID card plan: Thailand has put its
THB1.6 billion (EUR34 million) plan to launch national smart
ID cards on hold. According to a report in The Bangkok Post,
the Cabinet has asked the Information and Communications Technology
(ICT) Ministry to take over the project, which was being handled
by the Interior Ministry's Bureau of Registration Administration
(BORA). BORA had awarded a contract for the supply of 20 million
magnetic stripe cards when the Cabinet intervened, saying
that it wanted the ID cards to be high-tech smart cards. The
ICT Ministry plans to review card specifications for the project,
along with materials and the system for the issuing of cards.
Earlier this month, the ID card plan was criticised by research
firm Gartner, which said that the project was poorly planned
and that the project's leaders had not consulted adequately
with the government, private sector, public or industry experts.
Gartner analyst Dion Wiggins said that planning and launching
the ID card system could take one to two years; the government
had originally planned to launch the system early next year.
US rolls out electronic food safety
system: The US government is rolling out a system that will
require all importers of food to electronically notify the
Food and Drug Administration (FDA) in advance. The new regulations,
which require food manufacturers and distributors to register
with the FDA, involve the implementation of key elements of
the Public Health Security and Bioterrorism Preparedness and
Response Act of 2002. From 12 December, food importers will
have to use the Bureau of Customs' Automated Commercial System
to notify the FDA of all incoming shipments. The FDA said
it is expecting around 420,000 entities to register under
the new system, and it expects to receive about 25,000 electronic
notifications of incoming shipments per day. Registration
may be done over the Internet, by mail or by fax. Officials
said the new regulations should make it easier to ensure food
safety in the US.
From Electric News Net, by Sylvia Leatham,
22 October 2003
Global E-government
Lithuania's Eurovet revolution: The
Lithuanian State Food and Veterinary Service is to adopt a
new system called Eurovet to track the country's livestock,
to be implemented by Irish company E-blana. The contract is
worth EUR1.5 million to E-blana, and is the first time an
electronic tracking system will be put in place in Lithuania.
The system is part of an overall plan to prepare the country
for inclusion in the EU, and is funded in part by PHARE, the
EU's mechanism for preparing and funding applicant countries.
Eurovet will comprise details of over 2.5 million animals
and E-Blana will work in conjunction with ALNA, a Lithuanian
firm. Chief Technology Officer for E-blana Michael McGrath
said, "This contract is a very significant win and underpins
the suitability of Eurovet to meet current legal requirements
and provide public health assurance and animal welfare transparency."
Macromedia solutions in Washington: San Francisco company
Macromedia has formed a new group within the company that
will offer Web support specifically for government sites.
While government agencies in the US already use some Macromedia
products, from November 3 they will have the opportunity to
avail of what Macromedia calls "whole-product, one-box
solutions specifically targeted to their needs". Significantly,
the solution will enable what the company calls "non-technical
users" to update content, create templates, and speed
up processes. The package will include the Macromedia Solution
for Policy Compliant Websites, Macromedia Government Solution
for Rapid Application Development, and the Macromedia Government
Solution for Simplifying Web Updates. The firm is hoping to
cash in on huge e-government spending in the US - last year's
budget was USD50.4 billion, and this year's budget is estimated
at USD57.3 billion. The US administration has requested a
budget of USD59.3 billion for 2004, and it is estimated that
over 71 million people used a government Web site in 2002.
Dubai raising standards for e-government: Dubai's e-government
strategies appear to be positioning it as a leader in the
region with calls for other Arab Emirates countries to follow
its lead. Dubai has become one of the first countries to offer
totally integrated on-line services available through one
portal (www.dubai.ae), which also provides access to corporate
services. A senior delegation from the UAE Air Force and Defence
Institute recently visited Dubai's e-government chiefs to
study their system. "Dubai e-government has become a
highly successful IT initiative in the region and we would
like to leverage its expertise to develop our processes further,"
said Colonel Mohammed Ibrahim Al Disi, who led the delegation.
Attitude problems haunt UK's e-government plans: Fujitsu's
Government Consulting Division has conducted research which
shows that despite an investment of STG5 billion in e-government,
over 71 percent of people prefer to use the telephone when
dealing with local authorities. Fujitsu says this particularly
applies to the disadvantaged, who simply will not or cannot
access government technology. Combined with the number of
people who do not access e-government by choice, this brings
the number of people who still telephone their local authorities
to 96 percent. Other findings show that while approximately
45 percent of UK households are on-line, just 15 percent of
men and seven percent of women over 65 use the Internet. The
figures make depressing reading for those pushing the e-government
agenda in the UK. While e-commerce and on-line banking have
grown to 27 percent and 21 percent respectively since 2000,
the numbers using e-government services have increased by
only 1 percent.
IT in the fight against organised crime: Serbia's Organised
Crime Directorate (OCD) is to implement a state-of-the-art
system to investigate organised crime in the country, with
the new equipment financed by the German government. Organised
crime has been a persistent problem in the country since the
breakup of post communist Yugoslavia. Peter Jung, liaison
officer for Germany's criminal police division, has said that
helping Eastern European countries to fight crime will harmonise
them with general European standards. The new system, worth
EUR800,000, will especially help to fight financial crime,
providing faster links and improved processing of information.
At a press conference in Belgrade on October 28, Serbian Minister
of the Interior Dusan Mihajlovic welcomed the new equipment
pointing out that other projects, such as police training
in human rights, and communications training for police, would
benefit from this investment.
From Electric News Net, by Patrick Kelly,
29 October 2003
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New Fiscal Scheme in Government
Working
The new financial reform system known
as the Financial Management Improvement Programme (FMIP) is
already proving to be a success at all levels of governments,
Finance secretary Thaddeus Kambanei said yesterday. He said
since the setting up of the program, many provincial treasury
offices have updated most of their bank reconciliation accounts
and completed financial statements and reports. "Good
financial management and governance is the key to effective
and efficient delivery of services to the people, and whilst
the Government is embarking on a number of financial reforms,
provincial treasurer's must take special responsibility by
ensuring that financial services provided by the Government
are delivered to the rural population," he said. This
week when Treasury Minister Bart Philemon presented a ministerial
statement on the FMIP in parliament, he said the appointment
of financial controllers to national departments has resulted
in the reduction in bogus claims from K7 million to K1 million
in the Defence Department. He said improved planning, budgeting
and account system in order to improved fiscal management
and resource allocation would be the key results of the program.
The FMIP is funded by the Asian Development Bank (ADB), AusAID
and the United Nations Development Program (UNDP). It is tasked
to implement best practice and transparency in Government
financial management at the national, provincial and local
level government levels.
From The National, Papua New Guinea, by
Baeau Tai, 3 October 2003
Project on Public Finance
Management Reforms Begins
Ha Noi - A project to reform Viet Nam's
public finance management started in Ha Noi on Tuesday. Attending
the kick-off ceremony were leaders from the Ministry of Finance
(MOF) and the Ministry of Planning and Investment (MPI), the
British Ambassador and representatives from the World Bank
(WB), international organisations and members of the diplomatic
corps in Ha Noi. The project consists of three components:
strengthening management of the State budget and the treasury,
enhancing the capacity to plan the State budget; and managing
public debts and other financial risks. The project will be
carried out until 2008 at a cost of 71.4 million USD, including
54.3 million USD in preferential loans provided by the WB
and 10 million USD in grants given by the UK Development Agency.
The project will cover all State finance
agencies and treasuries from central to district levels, provincial
Planning and Investment Services and a number of agencies
enjoying State budget funding. A number of ministries and
local administrations will join the project on a trial basis.
The project is aimed at building a modern information system
capable of providing up-to-date and accurate data on budgeting
activities. The system will assist in the enforcement of the
new State Budget Law, meant to increase the pro-activeness
and responsibility of grassroots units in the management of
allocated funding. The project will help the MOF and the MPI
devise a finance plan and mid-term spending plan for a number
of sectors on a trial basis. These plans will serve as tools
for monitoring State budget funding. The project will also
help set up a system to supervise and manage both domestic
and foreign debts.
From Viet Nam News Agency, Vietnam, 7 October
2003
Government Proposes
"Tax Holiday" to Lure Talent
Speaking at the 2003 Tax Conference
Of The Institute Of Chartered Accountants Of New Zealand,
Finance Minister Michael Cullen has tipped a plan that would
give some imported workers a "tax holiday" on income
earned abroad. The proposal is a response to recommendations
in the Tax Review 2001, which suggested "that individuals
with no previous connection to New Zealand who become residents
for tax purposes should be taxed only on their New Zealand-sourced
income for the first seven years - in other words, tax on
their overseas income should be exempted for that period"
Dr Cullen said. He added, "some people who come here
to work may find themselves facing tax on offshore income
that they might not have faced had they made a different choice
of residence. These extra tax costs faced by highly skilled
overseas recruits may in many instances already be passed
on to New Zealand businesses in the form of higher remuneration.
"The skills needed for a flourishing, knowledge-based
economy are in demand throughout the world.
The people who have these skills are
increasingly mobile, and New Zealand businesses have to be
able to compete with businesses in other countries to attract
them to work here. "In recent months the government has
been developing the idea of a temporary exemption from tax
on overseas income for these people, with the focus on reducing
costs for New Zealand businesses. We are also considering
widening it to include returning New Zealanders who have been
out of the country for at least ten years and are coming back
to work here," he said. Dr Cullen said that details of
the proposed programme would be announced in "the next
few weeks" along with a discussion document. In related
news, Dr Cullen said that the government was looking at a
range of proposals to encourage foreign investment, including
one in which profits from sales of certain shares might be
exempt from New Zealand tax when the investor is exempt from
tax in its own jurisdiction.
From Sofia Echo, Bulgaria, 2 October 2003
Policy Failures and
Asset Bubbles
The government in Seoul is rightly
concerned about the bubble in real estate prices, as most
evident in soaring apartment prices in parts of Seoul. Data
from the LG Economic Research Institute (LGERI) indicates
that average apartment prices are up by 25 percent since 2001,
exceeding growth in nominal GDP by a multiple of four. But
the promise to stabilize real estate prices by implementing
more 'tough measures' rings hollow. As it is, the previous
20 or so `tough' policies already implemented this year to
prevent apartment prices have had little effect. And so a
three-fold increase in taxes on housing property to curb speculation
will only allow a bit of 'stealth' wealth redistribution.
In the case of the property bubble, it is time to realize
that a misunderstanding of the nature of the illness has led
policymakers to undertake the wrong treatments. Without an
appropriate diagnosis, public policy remedies are just as
ineffective as when medical doctors guess wrong about the
conditions of their patients. While it is true that an irrational
tax system can cause distortions in behavior, the tax code
is not the primary problem behind soaring property prices.
Likewise, the blame cannot be put onto parents who wish to
live in the Kangnam area of Seoul so their children can be
close to schools there. To understand the problem and to establish
appropriate countermeasures, consider some of the common interpretations
of the sort of asset-price frenzies like 'tulipomania' or
property bubbles.
Although economic theory provides no
explanation of psychological urges, there are a few good economic
explanations for the existence of speculative bubbles. Unfortunately,
many economists and analysts peddle misinterpretations while
overlooking the sensible ones. According to Lord Keynes, asset
bubbles arise from "animal spirits" released by
capitalism. Although this is perhaps the worst assessment,
it is also the most widely accepted. A similar thesis with
wide acceptance speaks as though there can be a 'madness of
crowds.' It is not surprising that these interpretations offer
so much appeal, especially to non-economists that are contemptuous
of people who have become rich through speculation. These
portrayals are of investors as gullible or stupid people that
require guidance from the government. (Meanwhile, the same
governments can exploit those lucky enough to be successful
by squeezing them for tax revenues to support redistributive
political programs.) However, careful reflection indicates
that there is a serious disconnect from reality in the above
explanations of bubbles and speculative frenzies. Let's start
with the condition of stability that characterizes most markets,
most of the time. Each day there are trillions of transactions
that take place within millions of markets for different goods
and services conducted by billions of people.
And this has been occurring with increasing
scope over hundreds of years. Markets tend to be stable because
of the qualitative nature of individual players. Some will
be better informed and some will be better informed. There
will be optimists about the direction of prices, bulls, and
there will be pessimists about prices, bears. It these conditions
were absent, markets would continuously spin out of control
and would collapse frequently. While there have only been
some truly dramatic instances of bubbles, it is truly remarkable
that there have been so few. It turns out that the real cause
of bubbles is excessive credit expansion by central banks.
Without extensive expansion in long-term credit, there would
be no financial support for the `irrational' urge to continue
throwing money at speculative ventures. Unless there is monetary
expansion to finance new bank credit, the transactions in
the rest of economy would have to fall by an offsetting amount.
Consider the dot.com bubble. New technologies generated promises
of large potential returns and were met by exaggerated optimism.
But hysteria alone was not responsible for pushing valuations
beyond any connection to economic reality. Speculative manias,
like in property, operate similarly in that price increases
of an asset attract more investors seeking quick capital gains
from the expectation of even higher prices. Inevitably, the
speculative frenzy runs out of steam when asset prices reach
levels that are obviously unsustainable.
At that point, a round of profit taking
sparks panic and flight out of the asset so that prices collapse.
The good news is that a collapse in real asset prices after
a bubble bursts on its own cannot induce a recession. This
is because declining prices are a symptom and not a cause
of economic downturns. Indeed, falling prices of the over-inflated
assets are the painful but necessary process of readjustments
to restore stability in affected markets. At the same time,
financially imprudent central bankers cause substantial economic
pain in other parts of the economy. Expanding credit and making
interest rates artificially low will divert resources and
production towards badly conceived investments made temporarily
viable by cheap credit. Eventually, these misguided investments
will become unsustainable and lead to idle capital, excess
capacity and rising unemployment. In turn, banks become illiquid
and then insolvent as firms cannot service their debts as
their cash flows dries up so that the number of defaults and
non-performing loans rises. There is a simple rule that the
government must remember if it wishes to stabilize the real
estate market. And it is that both booms in the overall economy
and speculative bubbles are symptoms of the irresponsible
inflation of credit resulting from central bank policy. **
Christopher Lingle is a member of The Korea Times' Economic
Editorial Board and Professor of Economics at Universidad
Francisco Marroque in Guatemala. His E-mail address is: CLingle@ufm.edu.gt.
From Korea Times, South Korea, by Christopher
Lingle, 13 October 2003
Accounting System Switch
Putrajaya - The Government is working
towards replacing the somewhat "conservative" accounting
system currently applied in the Accountant General's Department
with a more commercial-driven method that is in line with
the changing times. Second Finance Minister Datuk Jamaluddin
Jarjis said the Government wanted the department to look into
swapping the present cash accounting method with the accrual
system in order to modernise the public accounting mechanism.
Dr Jamaluddin, who was speaking to reporters after launching
the department's Quality Day celebrations and its new logo,
said the move was geared towards improving the nation's financial
management and to provide a clearer picture of the country's
fiscal status. "The Government is studying the other
countries which are using the system and may either decide
on going fully accrual or implementing a method combining
both systems," he said. Countries like the United States,
Britain, Australia and New Zealand have implemented the accrual
system to streamline financial management and as well as to
facilitate transparency and accountability.
Besides allowing for a better co-ordination
of public resources, the accrual system records economic transactions
even in the absence of cash payments and keeps tabs of the
nation's assets and liabilities as well as its debtors and
creditors. This is as opposed to the cash accounting system
which records transactions only when cash payments were made.
On another matter, Dr Jamaluddin said the department was in
the process of initiating a discussion with Bank Negara to
find ways to enhance its internal control and security system
to prevent untoward incidents like the cloning or forgery
of government cheques. "The department must look into
utilising the latest technology to overcome any fraudulent
acts," he added. According to Dr Jamaluddin, it was the
country's long-term plan to upgrade security by implanting
microchips into government cheques to counter possible forgery.
He said that government cheques now carried computer-generated
signatures as a security facet.
From The Star, Malaysia, by Wani Muthiah,
21 October 2003
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Controversy on Tax Policy in Bulgaria
Members of the National Council on
Tax Policy (NCTP) and Deputy Finance Minister Stamen Tassev
have agreed to discuss the Council's suggested amendments
to tax legislation, the Finance Ministry has announced. Tasev
is responsible for the tax policy of the Government. The NCTP
consists of representatives of trade unions, employers and
industries' organisations. There has been harsh reaction to
the Government not keeping to its promises regarding tax changes.
After refusing to decrease the corporate tax from 23.5 per
cent to 20 per cent and setting it at 22 per cent, the Finance
Ministry has also refused to change also the rules for taxation
of natural persons. It also will not fullfil an election campaign
promise by the governing party to reduce profit tax to zero
per cent when the profit is re-invested. In May, Finance Minister
Milen Velchev's team an-nounced that the income under which
no tax will be calculated would be 120 leva a month for the
following year and the lowest tax for people with low income
would be 12 per cent. But the new amendments to the tax legislation
envisage a tax minimum of 110 leva and a lowest tax of 15
per cent.
Calculations done by the Finance Ministry
showed that decreasing the tax on the lowest income bracket,
and raising the tax minimum by 10 leva, would mean losses
of 70 million leva, the Ministry said. The other arguments
for not reducing the tax burden was that given a projected
seven per cent rise in incomes, the tax burden will increase,
which contradicts the Government's programme for reduction
in taxes and improvement of the business environment. "The
IMF supported the reduction of the corporate tax to 20 per
cent. It has always been the Government's intention to lower
tax rates and we've supported that and we still do,"
said Gerald Shiff, IMF's country director for Bulgaria in
an interview with Pari daily. At the end of last week,Velchev
said that the introduction of family taxation was possible
after 2005, when the National Revenue Agency has to start
operating. Accor-ding to him, however, the limit of the annual
turnover of entrepreneurs subject to patent taxation will
be reduced from 75 000 to 50 000 leva. Excise duties on petrol
will increase by 12.5 per cent, which is expected to push
the price up by about five stotinki a litre. Excise on cigarette
doubles to 0.4 stotinki a piece plus 43.5 per cent of the
price.
From Sofia Echo, Bulgaria, by Elena Kodinova,
2 October 2003
Poland Details Plan
to Slash Public Spending
The Polish government detailed Thursday
a plan to slash spending and save 32 billion zlotys (seven
billion euros, 8.21 billion dollars) by 2007, receiving a
generally positive reaction from analysts and the market which
had feared a swelling budget deficit and public debt as Poland
prepares to join the European Union. Economy and Jobs Minister
Jerzy Hausner told a news conference the government hoped
to save around 20 billion zlotys between 2004 and 2007 by
cutting spending on public administration, including cutting
its staff, slowing defence spending and closing or merging
several government agencies and fighting the underground market.
The leftist government of Prime Minister Leszek Miller also
launched consultations on a series of social measures, which
should lead to the adoption of a series of draft laws on retirement
and health care, which if approved would allow another 12
billion zlotys worth of savings by 2007.
Hausner told the news conference that
if the plan was pursued, Poland would avoid passing the 60
percent of gross domestic product limit laid down in the constitution
for public debt in 2003 and 2004, although it might be passed
in 2005 and 2006. "I can guarantee that in the years
2003 and 2004 this danger will not exist," Hausner, who
is also deputy prime minister, said. "In 2005 I would
not be able to promise it and in 2006 there is a risk,"
he said. The first response to the plan from analysts and
the markets was positive. "The first analyses of this
programme are positive, all the more so as it addresses areas
considered up to now as taboo, including the way pensions
are valued and insurance for farmers," Marcin Mroz, an
analyst as Societe Generale Warsaw told AFP. "The market
reacted well to the plan. Since its presentation by Economy
Minister Jerzy Hausner late Wednesday the currency firmed
2.5 percent against the euro," he said. On Thursday the
zloty, which has recently had the wobbles was quoted at 4.51
against the euro.
However, Mroz acknowledged Poland was
not out of the woods, saying it had "a market on a knife
edge". "Monetary fluctuations or low revenues from
privatisation risk increasing the fiscal pressure," he
said. Poland's draft budget for next year, which is before
parliament, provides for a public debt of 58.6 percent of
gross domestic product in 2005 and 59.4 percent in 2006 before
dropping to 58.7 percent in 2007. The budget is based on expected
economic growth of five percent, against the 3.5 percent forecast
this year, and a public deficit of 45.5 billion zlotys, or
5.5 percent of GDP. The deficit is important as Poland, if
it seeks to join those countries using the euro following
its accession to the European Union May 1, will be required
to hold its public deficit to less than three percent of output.
Annual inflation is set at two percent, against 0.7 percent
in 2003, and unemployment at 17.8 percent, compared to 17.5
percent at the moment. In a reference to legislative elections
planned in Poland in 2005 Hausner urged the opposition in
parliament not to block the budget. "The opposition should
not block this programme because it is possible that it will
have to carry it out itself," he said. Miller's government
is deeply unpopular, with polls showing it is backed by only
21 percent of voters.
From EU Business, UK, 9 October 2003
S&P Forum Reviews
German States' Fiscal Reform Needs
(The following statement was released
by the ratings agency) New York - The drastic weakening of
state budgets since 2001 could prove to be the catalyst for
a new direction in the fiscal landscape of federal Germany.
As a result, Standard & Poor's Ratings Services believes
a grand coalition of states, rather than central government,
could become the motor of important fiscal reforms over the
next 12 months, leading to improved financial performance
for rated issuers in this sector. "German states are
now proactively generating proposals for reforming tax legislation,
which should allow them to gain more weight in fiscal policymaking,"
said Alois Strasser, credit analyst and a director of Standard
& Poor's Public Finance Ratings Europe. "These are
encouraging first steps. Nevertheless, additional structural
reforms are needed to improve German states' budget performance
and check rising debt burdens. Such moves will be a prerequisite
for maintaining the states' current credit ratings."
Addressing investors at a Standard & Poor's forum on public
finance issues held in Frankfurt on Oct. 10, 2003, Mr. Strasser
said that German states could derive benefit if they build
on their willingness to use the influence granted to them
under the German constitution to put forward new legal initiatives.
Faced with the prospect of continuing
lower-than-expected tax revenues, the states are undertaking
more profound structural budget consolidation plans for 2003
and 2004. Most states are taking advantage of new powers to
cut or lower formerly uniform year-end gratuities and vacation
allowances that were imposed nationally, amounting to between
63% and 80% of a public sector employee's monthly salary.
Certain states are also using their new right to increase
government employee working time to more than 40 hours per
week. Moreover, some of the largest German states, which are
governed by political parties that oppose one another other
at national level, are presenting joint initiatives to make
significant structural cuts in public spending. The premiers
of Hesse (AA+/Stable/A-1+) and North Rhine-Westphalia (AA/Stable/A-1+),
for instance, have recently put forward a joint initiative
to cut subsidies and transfers granted by public authorities
in Germany, gradually increasing savings in 2004 and 2005,
to reach EUR10.5 billion per year by 2006. Furthermore, a
working group of states led by Baden-Wuerttemberg (AAA/Stable/A-1+)
has presented a project for a profound overhaul of the German
tax system, including lowering tax rates, enlarging the tax
base, and abandoning tax exemptions, which have often been
far-reaching in Germany. Such
fiscal projects would need to be approved by both the Bundestag
and Bundesrat. Nevertheless, it is unusual for large national
fiscal projects to be initiated by the states rather than
by the central government.
Beyond party frontiers, the states
also consider effective measures for budget consolidation
are necessary and in their joint interest. German states have
suffered a heavy decline in tax revenues averaging 7.9% in
2002, compared with 2000. This is a result of the effects
arising from the first stage of a national tax reform implemented
in 2001, which lowered income and corporate tax rates, and
sluggish economic growth in Germany. In the first half of
2003, the average German real GDP declined by 0.1%, compared
with an already low 0.2% growth in 2002. Of the total 16 German
states, Standard & Poor's currently rates six for their
own debt issuance: Baden-Wuerttemberg, Bavaria (AAA/Stable/A-1+),
Brandenburg (AA/Stable/A-1+), Hesse, North Rhine-Westphalia,
and Saxony - Anhalt (AA-/Stable/A-1+). Standard & Poor's
rates a further five states in their role as guarantor for
public sector banks. ANALYST E-MAIL ADDRESSES alois_strasser@standardandpoors.com
christian_esters@standardandpoors.com PublicFinanceEurope@standardandpoors.com
Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis
system, at www.ratingsdirect.com. Alternatively, call one
of Standard & Poor's Ratings Desks: London (44) 20-7847-7400;
Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or Stockholm
(46) 8-440-5916. Members of the media may contact the Press
Office Hotline on (44) 20-7826-3605 or via media_europe@standardandpoors.com.
Contact: Alois Strasser, Frankfurt (49) 69-3 39 99-240 - Christian
Esters, Frankfurt (49) 69-3 39 99-242 Copyright (c) 2003,
Standard & Poor's Ratings Services - Copyright 2003, Reuters
News Service.
From Forbes, 13 October 2003
Corruption in Russia
Still a Problem for Investors
From Mr. Ethan S. Burger. Sir, It is
ironic that the Financial Times of October 9 includes not
only reports saying "Russia makes investment grade"
but also a largely positive Special Report on Russian finance.
Earlier last week, Transparency International released its
2003 Corruption Index, showing that Russia has been ranked
as 86 of 133 countries in terms of level of corruption (www.transparency.org/cpi/
2003/cpi2003.en.html) This ranking represents a worsening
in perceptions of the level of corruption in Russia over the
past two years. Furthermore, last year Transparency International
conducted a survey, the results of which indicate that corruption
is not restricted to particular regions of the country or
branches of government (www.transparency.org,ru/ proj_index_doc.asp)
Granted, some Russian companies have made progress in their
corporate governance.
The government has improved its criminal
procedure code, instituted certain judicial reforms and increased
the meagre salaries of state officials. Unfortunately, the
rule of law remains largely absent when sensitive political
issues are involved or the economic stakes are high. The Russian
budget and economy have been helped by high world energy prices
but this is not likely to continue indefinitely. While large
companies may have an easier time doing business in Russia,
the same appears not to be true for small and medium-size
businesses (both foreign and Russian). Much remains to be
done before one can invest in Russia without running significant
risks or encountering serious problems. Ethan S. Burger, Scholar
in Residence, Transnational Crime and Corruption Centre, School
of International Service Adjunct Associate Professor, Washington
College of Law American University, Washington, DC 20016,
US.
From The Financial Times, 13 October 2003
IMF Forecasts 13% Inflation
in Russia in 2003
The International Monetary Fund believes
inflation in Russia will be around 13% in 2003, which is slightly
higher than the official forecast, said the officials from
the IMF mission for studying the economic situation in Russia,
which worked in Moscow on October 2-10. The IMF officials
have advised the Russian monetary authorities to focus on
tougher inflation control, even if this is accompanied by
a higher mobility of the currency rate and results in a tougher
budget and tax policy. Jose Fajgenbaum, deputy director of
the IMF Second European Department, who headed the mission,
pointed out the considerable improvement in the macroeconomic
situation in Russia in 2003. Among these improvements he mentioned
the high real GDP growth (which IMF experts project at 6.25%
in 2003), a strong balance of payments, an increase of reserves
and a considerable reduction of the foreign debt. At the same
time, inflation in Russia, although continuing to decrease,
is projected at a higher level than the official forecast
of 12% and is expected to reach 13% or more in 2003, he said.
The main thing is to focus on reducing inflation, David Owen,
head of the IMF Second European Department, said. In 2004,the
Russian government intends to lower inflation to 8- 10%. However,
IMF experts recommend aiming at the lower limit of this range,
which they believe would require tougher inflation control,
even if this results in a higher mobility of the currency
rate.
From Gateway 2 Russia, Russia, 13 October
2003
Tax Rises Threat to
Trade, Says Blair
Prime Minister Tony Blair today sent
out a stern warning that future tax rises would harm British
business in its battle to remain competitive. His comments
appeared to be a clear message to Chancellor Gordon Brown
that higher taxes would be politically dangerous. However,
they were also aimed at other Cabinet ministers - such as
Commons leader Peter Hain - who are advocating raising income
tax rates. The Chancellor has faced warnings from the City
that falling revenues mean he will either have to put up taxes
or increase borrowing, or both, to maintain growth. Blair
used a newspaper interview to endorse Brown's prediction that
the way ahead will be 'tough'. But he repeatedly hit out at
higher taxation, lambasting a Liberal Democrat plan to bring
in a new 50% top rate. The Prime Minister stressed the threat
posed to Britain from countries with surging economies such
as China and India. He warned in The Times: 'You have also
got to make sure that you remain competitive in your economy,
including on the levels of taxation.' Blair also reasserted
his opposition to calling a referendum on the European Union's
new constitution, claiming it would 'convulse' his Government
for months. With the Tories launching a drive to get a petition
with one million signatures backing a national vote, the Prime
Minister said: 'We are taken as having sold something out
- we have not.' He said under the blueprint key decisions
on tax, foreign policy and defence would still be taken by
individual governments.
From This is London, UK, by Patrick Hennessy,
13 October 2003
Sobotka to Become Deputy
Prime Minister, Will Oversee Public Finance Reform
Finance Minister Bohuslav Sobotka will
become the country's new deputy prime minister in charge of
public finance reform, Prime Minister Vladimir Spidla told
journalists Wednesday. According to Spidla, Sobotka will be
charged with managing the successful implementation of the
second phase of the government's public finance reform plans.
Sobotka's main task in his new post will be to coordinate
the drafting of bills aimed at reforming the pension and tax
systems, stabilizing the health care sector and fighting corruption.
Responding to the announcement, Sobotka said he considered
it a "promotion," and proof of the seriousness with
which the Cabinet viewed finance reform. Sobotka also made
an effort to differentiate this government with that of the
previous one led by Milos Zeman. "The post of deputy
prime minister does not mean one is above other ministers.
In this government, the prime minister
leads and the deputy ministers coordinate," said Sobotka.
Analysts were generally neutral on the appointment, saying
that it was not likely to have a major affect on reforms.
David Marek of Patria Online told the daily Lidove noviny
(LN) that Spidla's decision to name Sobotka to the new post
was a signal that the reforms had become an even greater priority
for the government than they were at the outset of its term.
While this could benefit the Czech economy, Marek said he
would not overestimate the importance of the new post. Sobotka,
32, must be officially appointed to the new post by Czech
President Vaclav Klaus. Spidla has reportedly already held
talks with Klaus on the matter. Klaus is currently on a state
visit to Slovenia. Sobotka's appointment is expected to take
place within a month.
From Interfax, Czech Republic, 24 October
2003
Show of Pride for Public
Finance
Rome - The premise is that "with
the euro we have been able to examine the value of our savings",
which with the euro "Europe has attained monetary stability",
but we must not forget that "such stability is not enough
for the well being of a community if it doesn't promote development
and increase the national per capita income", said president
Ciampi while speaking during the ceremony to recognize 'labor
knights', asking for a "show of pride": "Italy
- he said - will recover market quotas if the whole system
aims united at the goal of growth. This is why we need cohesion,
the capacity for dialogue, and the feeling that we are living
a shared destiny". Ciampi also asked for "the need
to keep public finances under control. We know - continued
the president - we need to continue with an elevated principal
advance to absorb the weight of the public debt. This, even
if reduced, in terms of the Gdp compared to the highest levels
of the mid 90's, hangs over stability and long term development".
From Agenzia Giornalistica Italia, Italy,
24 October 2003
Budget: Buttiglione,
We Will Amend Public Service Legislation
Rome - The Minister for Community Policies,
Rocco Buttiglione, said the legislation regarding local public
services contained in the enormous bill linked to the Budget
and modified following an amendment from the League will revert
"to its original version or even lower. He added, "I
am sure that it will be corrected". The League proposal,
approved by the Senate Commission, extends the transitory
period for opening the local public services market, in the
case of mergers between small municipal companies, by two
to three years beyond the term of December 31 2006. The legislation,
explained Buttiglione in the House, is against European law
"and European law overrides national law. There are some
who think they live on another planet however we are in Europe
and this law only generates enormous confusion. We intend
to bring it in line with community law".
From Agenzia Giornalistica Italia, Italy,
24 October 2003
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Finance Minister: Privatization
Not the Only Reform Issue
International creditors want overhaul
of civil service, too - Finance Minister Fouad Siniora said
Monday that privatization was only one of a number of reform
measures required from Lebanon by international creditors.
Speaking during a news conference he held at the Dubai meeting
of the International Monetary Fund (IMF) and World Bank, the
minister said that it was incorrect to boil down the "Paris
II" conference to privatization only. "Saying that
the Paris II conference called for privatization only is distorting
facts," Siniora said. "Lebanon has pledged before
the nations that attended the Paris II conference to rationalize
the use of its national resources," he added. He explained
that the desired reforms concerned health and education policies
as well as the retirement pension system, working hours and
other issues. He said Lebanon endures the problems of both
rich and developing nations: "As far as the economy is
concerned, for instance, there are people who work and others
who don't and rely on those who do." He added that the
way the Lebanese retirement system was implemented put a "significant
burden on the workers." Siniora said that it was very
important to introduce reforms to the way civil service institutions
were managed because reforms were "necessary and not
superfluous." He added that such reforms "could
not wait." "Privatization is just a part of the
comprehensive batch of required reforms, which are aimed at
slimming down the civil administration," he said.
He recalled that he had tried to introduce
"some crucial reforms" to the 2003 Lebanese national
budget. But, "while these reforms were not approved,
this does not mean that they are not needed." He said
that all those he had met from the international monetary
bodies had asked him about whether or not privatization had
been implemented in this country. "It is not in Lebanon's
interests to delay the privatization process. We should launch
the necessary measures and wait for the right privatization
offer to sell. Otherwise we shall not sell," he said.
He added that up till now, the privatization operation had
not been taken seriously. Siniora also recalled what the IMF
and World Bank officials had told him. "They said that
we Lebanese had a good reform program, so why is it that we
couldn't implement this program?" He added that Lebanon
had submitted to the Paris II organizers an overview of its
planned reforms. He said the government had achieved the objectives
it set out to achieve in the 2003 national budget, specifically
in the area of national revenue. "As for the expenditure
side, it increased as a result of the LL340 billion paid to
Electricite du Liban (EDL). This was different from the LL300
billion which the EDL would borrow from the Central Bank,"
he said. Siniora added that there was one objective which
had not been fulfilled, specifically in the area of maritime
state properties.
From Daily Star, Lebanon, by Elie Hourani,
29 September 2003
Campaign Against Financial
Corruption
Tehran - In a meeting held by the three
branches of power, the new approach of the committee of campaign
against economic corruption was discussed. In the meeting
Iranian President Mohammad Khatami lauded the committee of
campaign against economic corruptions' performance saying:
"Tracing the root causes of corruption is the main task
of the committee." "Legal cases go through the usual
procedures but what is of great importance is the irreparable
losses caused by the inefficiency of the systems." Khatami
added. The meeting which was attended by the heads of the
executive, legislative and judiciary branches of power and
their representatives at the committee of campaign against
economic corruption dealt with such issues as smuggling, misuse
of the current process of distribution of tea, fuel, flour,
bread and land as well as the necessity of recognition of
the systems' vulnerabilities.
From IranMania News, Iran, 23 October 2003
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Self-Funding eGovernment Projects
Help Solve States' IT Budget Woes, According to BearingPoint
Executive
Boston - BearingPoint, Inc., (NYSE:
BE), one of the world's largest business consulting and systems
integration firms, announced today that Mary Kurkjian, director
and head of the company's state and local government and education
practice in New England, will address the topic of self-funded
government technology projects at an upcoming conference sponsored
by Government Technology magazine. Kurkjian will conduct a
workshop titled, "Self-Funding Models for eGovernment,"
at the Massachusetts Executive Leadership Forum, which will
be held October 15 and 16 at the Executive Conference Center
at Bayside. "The biggest challenge to technical innovation
in government today is often a lack of funding," said
Kurkjian. "However, self-funding models allow projects
to be financed through convenience fees or other revenue generating
mechanisms bringing down budget barriers and enabling new
projects to move forward." In addition, Kurkjian will
highlight Enhanced Comm-PASS, an upgrade of the Commonwealth
of Massachusetts' procurement system that BearingPoint has
just begun implementing.
Among many other innovations, the project
is self-funded through a subscription fee paid by vendors
looking to do business with the government. "Enhanced
Comm-PASS is a great model because it's a win for everyone.
The Commonwealth gets a better
procurement system, vendors get added value, and taxpayers
don't have to pay the bill. Massachusetts officials should
be proud of their vision in conceiving this project,"
said Kurkjian. BearingPoint has extensive experience working
with state and local governments on projects that employ alternative
or self-funding models. One example is eFiling for Courts
powered by BearingPoint and Microsoft. This managed service
allows state and county courts to accept electronic filings
without incurring the costs of acquiring, building, and operating
systems of their own. The solution is funded through transaction
fees charged to the filing attorney, which is typically substantially
less than the traditional fees charged by couriers, express
mail services, and other court delivery mechanisms. Kurkjian
is a veteran of both government and the technology industry.
Prior to joining BearingPoint, she
was a senior manager in Massachusetts state government and
a vice president at Unisys, a leading information technology
firm. A graduate of the University of Michigan and the Kennedy
School of Government at Harvard University, Kurkjian was the
founding director of a highly acclaimed executive education
program at Harvard. To register for the Massachusetts Executive
Leadership Forum, visit http://www.govtech.net/events. About
BearingPoint, Inc. - BearingPoint, Inc. (NYSE: BE) is one
of the world's largest business consulting, systems integration
and managed services firms serving Global 2000 companies,
medium-sized businesses, government agencies and other organizations.
We provide business and technology strategy, systems design,
architecture, applications implementation, network infrastructure,
systems integration and managed services.
Our service offerings are designed
to help our clients generate revenue, reduce costs and access
the information necessary to operate their business on a timely
basis. Based in McLean, Va., BearingPoint has been named by
Fortune as one of America's Most Admired Companies in the
computer and data services sector. For more information, visit
the Company's website at http://www.BearingPoint.com. This
press release may contain forward-looking statements, the
accuracy of which is necessarily subject to risks, uncertainties
and assumptions as to future events that may not prove to
be accurate. Factors that could cause actual results to differ
materially from those expressed or implied include general
economic conditions and the factors discussed in our most
recent Form 10-K. We undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
From PRNewswire (press release), 7 October
2003
Accounting and Finance
Starting Salaries to Stay At or Near 2003 Levels in 2004:
Optimistic Outlook for Managers and Senior Accountants
Menlo Park, Calif. - Average starting
salaries next year for accounting and finance professionals
should remain consistent with 2003 levels, according to the
just-released 2004 Salary Guide from Robert Half Finance &
Accounting and Accountemps. Additionally, experienced accountants
who can help businesses improve cash flow and address new
reporting requirements will be in demand, research shows.
Robert Half Finance & Accounting and Accountemps are the
full-time and temporary placement divisions, respectively,
of Robert Half International Inc., the world's first and largest
staffing firm specializing in accounting and finance positions.
The 2004 Salary Guide is based on an analysis of the thousands
of job orders managed by the company's U.S. offices. "While
salary levels overall will likely remain stable, candidates
with highly sought-after skill sets may see modest gains in
compensation," said Max Messmer, chairman and CEO of
Robert Half International. "Companies faced with increasing
workloads are recruiting financial professionals in areas
such as internal audit, credit and collections, and general
accounting. "Employers are hiring selectively, focusing
their recruiting efforts on professionals who can provide
solid leadership and contribute immediately to critical business
operations," Messmer added.
Stable Salaries Forecast in Public
Accounting - Average starting salaries for public accountants
should remain little changed from 2003 levels. Managers at
midsized public accounting firms ($25 to $250 million in annual
sales) can expect base compensation of $57,000 to $74,250,
a 1.4 percent increase over last year. Average starting salaries
for senior accountants at large public accounting firms (more
than $250 million in annual sales) are forecast to rise an
average of 1.1 percent, to the range of $48,750 to $62,250
annually. Both directors and managers at large public accounting
firms are expected to see base compensation increase 0.9 percent,
with average starting salaries ranging between $77,750 to
$119,000 and $63,000 to $82,250 per year, respectively. Corporate
Accounting Outlook - In the corporate sector, managers and
senior accounting professionals will see the strongest salary
growth i
n 2004. General and audit accounting
managers at large companies can expect a 2.9 percent increase
in starting salaries, with average base compensation of $60,250
to $81,500. Starting salaries for senior tax and cost accountants
at large companies will rise 1.6 percent, to the range of
$48,750 to $62,500; those at small companies will see a 1.9
percent increase, with base compensation between $41,750 and
$52,000 per year. Credit and collections clerks at large companies
will experience the biggest percentage increase in starting
salaries of any single position in corporate accounting. Their
base compensation is expected to rise an average of 5.1 percent,
bringing starting salaries to between $29,250 and $37,500
per year. Credit managers/supervisors and assistant credit
managers at large companies will also see notable gains, with
average starting salary increases of 4.2 percent and 4.1 percent,
respectively.
From Viet Nam News Agency, Vietnam, 7 October
2003
Casino Money Helps
Finance Public Services
Elizabeth - Ambulance stations have
been built. Sidewalks have been improved. Scholarships have
been awarded to help high school seniors prepare for college.
It's indisputable that the presence of the Caesars Indiana
riverboat casino has played a role in promoting the well-being
of many aspects of life in Harrison County and its environs.
Supporters of a proposed casino in Orange County envision
the same kind of contributions will enhance the overall wealth
there. Gambling opponents believe the risk of increased crime,
bankruptcy, gambling addiction and family stresses would outweigh
the benefits a casino can bring. Citizens, in a Nov. 4 referendum,
will decide whether the casino is a go. Harrison County had
its own casino opponents and narrowly approved a referendum
in a 5,855 to 5,602 vote in 1996. James Goldman, a 57-year-old
dairy farmer and Harrison County Commissioner, understands
the reluctance some Orange County residents have for embracing
the proposal for a casino. "Our community," Goldman
said, "felt those same issues, a concern about what the
riverboat would bring, and it has brought nothing but good
things to Harrison County. There was talk of all kinds of
illegal things. That never came to pass when it was voted
in. ... In the very beginning, I was apprehensive like many
people, but I tried to keep an open mind and listen."
Goldman said he trusted the task force
that was organized to explore the ramifications of gaming
in the county. "It has been a great, great blessing for
Harrison County," Goldman said. In the five years since
Caesars opened, it has paid more than $100 million in direct
taxes (gaming, admission and property taxes) to Harrison County.
The county shares 16 percent of its riverboat funds with Crawford,
Floyd and Washington counties (which border Harrison) and
with local municipalities. A document prepared for the Indiana
Gaming Commission to review in considering Caesars' five-year
license renewal reports an amount of $15,687,868 was distributed
to the adjoining counties. In addition to the 16 percent,
another 2 percent of the funds each year are divided among
the towns in Harrison County for infrastructure. A portion
of the Caesars tax money that is kept in Harrison County is
dedicated to education. In remarks made to school board members
in Orange County earlier this year, North Harrison schools
superintendent Monte Schneider said 17 percent of casino money
is earmarked to education in the county, where there are three
public school systems.
The money is funneled through the county
government. Schneider told the Orange County audience, "For
the last four years, we've received approximately three-quarters
of a million dollars ... essentially to spend it on what our
school board chooses to do." County officials also decided
to help school systems cut their debt service funds. Also,
Schneider said his school system has received about $314,000
in scholarships. In addition to the local taxes Caesars has
paid, another $49 million in voluntary contributions from
the casino has benefited Harrison and Floyd counties. That
includes about $35 million paid to community foundations in
the two counties. The five-year, license-renewal document
reports that through June 30, the Harrison County Community
Foundation had distributed $5,286,027 while the Caesars Riverboat
Casino Foundation, Inc. had distributed $1,727,448. Goldman
said the money that has come through Caesars has helped to
bolster roads and rural water systems. He also said discussions
have begun about building a new hospital in a better location.
The existing Harrison County Hospital, in the town's southeast
portion, "is boxed in and cannot grow," Goldman
said. Caesars revenues already have helped to improve emergency
services in the county.
Goldman, as well as Harrison County
Chamber of Commerce executive director Darrell Voelker, talked
about new ambulance stations that have been added in the northern
and southern parts of the county and about the benefits to
other emergency services. Voelker said, "They (Caesars
officials in a one-time amount of $540,000 paid voluntarily)
made public safety a huge priority. There have been tremendous
enhancements to the fire departments, including buildings
and trucks and equipment." While the numbers illustrate
Caesars' spending in five years, not everyone is convinced
the casino is an asset to the county. One of the more outspoken
critics has been Earl Becker, 54, of Elizabeth whose opposition
to the construction of Caesars focused largely on where it
was built. Becker maintains the chosen site, a flood-plain
area known as Bridgeport, was not as suitable as a location
farther west on the Ohio River at Mauckport. "The Mauckport
site," Becker said, "had a lot of superiority as
a project site, and there are a lot of environmental negatives
associated with Bridgeport."
Becker maintains no substantive evaluations
were done to determine the casino's impact on roads, schools
or the environment. Becker also suggested a casino does not
create wealth, but redistributes it. "That's pretty accurate
from an economic standpoint. There are winners. There are
losers." Further criticizing the riverboat, Becker said,
"From the day that casino came, everybody in this county
is now a second-class citizen. The only first class citizen
is the casino. ... Through their employees, they have the
larges political constituency in Harrison County." In
Orange County - According to the Indiana Legislative Services
Agency, an Orange County casino would generate an estimated
$7.6 million each year in wagering taxes and $1.9 million
in admission taxes. The agency reports that the money would
be distributed as follows: Orange County: $746,000. Crawford
and Dubois counties: $249,000 each. French Lick and West Baden
Springs: $535,000 each. Historic Hotel Preservation Commission:
$554,500. West Baden historic hotel preservation and maintenance
fund: $3.3 million. Indiana Department of Commerce: $483,000.
Property tax replacement fund: $2.85 million.
From Times-Mail, United States, by Roger
Moon, 22 October 2003
The Bank of New York
Hosts First Annual New York Public Sector Symposium
Meeting for Public Finance Officials
from New York State and Municipal Agencies; NYC Comptroller
William C. Thompson Jr. Delivers Keynote Speech - The Bank
of New York today announced that it has held its first annual
Public Sector Symposium for public finance officials, "Doing
More, With Less," to discuss the challenges of managing
fiscal budgets and public investment portfolios in volatile
markets, while responding to the increasing demands of the
citizens they serve. The all-day event was held on October
23rd at the Union League Club in New York City. In his opening
address, Thomas A. Renyi, chairman and chief executive officer
of The Bank of New York, said, "Today's difficult economic
environment is challenging state and municipal agencies throughout
the public sector to do more with less resources. In response,
The Bank of New York has instituted the New York Public Sector
Symposium as an annual forum at which agencies can exchange
ideas and perspectives about the common challenges they face,
as well as leverage solutions from the private sector."
The Honorable William C. Thompson Jr.,
Comptroller of the City of New York, delivered the keynote
address. In his remarks, Mr. Thompson said, "In these
difficult times, it is particularly important that all of
us who are concerned with the fiscal challenges facing New
York City and State work together as partners. New York is
home to the best and the brightest in the field of public
finance, and a symposium like this one offers an excellent
opportunity to share ideas and develop creative solutions."
"Doing More, With Less" offered an interactive forum,
including discussions about creative strategies for municipal
debt management, including tax lien securitization, auction
rate securities, pension obligation bonds, and tobacco bonds;
contingency planning and disaster recovery; investment allocation
in a low interest rate and low revenue environment; fraud
prevention measures for check and ACH disbursements; and municipal
liquidity strategies.
Among the symposium's highlights were
a panel discussion featuring Stephen Kagann, chief economist
to New York State Governor George E. Pataki, on whether federal
tax cuts are good for local economies; a luncheon address
by the Honorable Edward I. Koch, former mayor of New York
City; and an economic outlook by Kevin J. Bannon, The Bank
of New York's Chief Investment Officer. According to Mr. Bannon,
"Following a period of considerable economic uncertainty
and difficult market conditions, The Bank of New York looks
forward to the recent improvements in economic activity continuing
and for investor confidence to gain strength in the year ahead.
However, because economic and investment conditions will remain
challenging, the Bank is pleased to be able to provide forums
that deal with issues such as maximizing returns on short-term
funds and meeting long-term pension return requirements in
an environment of historically low interest rates." The
Bank of New York provides integrated solutions that add value
to public agencies and municipalities nationwide.
Services include municipal trustee,
currency overlay, investment and cash management, investment
risk management, master trust and custody, retirement plan
services, securities lending, and trade execution services,
the latter of which is provided by BNY Brokerage, a subsidiary
of The Bank of New York. The Bank of New York Company, Inc.
(NYSE: BK) is a global leader in securities servicing for
issuers, investors and financial intermediaries. The Company
plays an integral role in the infrastructure of the capital
markets, servicing securities in more than 100 markets worldwide.
The Company provides quality solutions through leading technology
for global corporations, financial institutions, asset managers,
governments, non-profit organizations, and individuals. Its
principal subsidiary, The Bank of New York, founded in 1784,
is the oldest bank in the United States and has a distinguished
history of serving clients around the world through its five
primary businesses: Securities Servicing and Global Payment
Services, Private Client Services and Asset Management, Corporate
Banking, Global Market Services, and Retail Banking. Additional
information on the Company is available at www.bankofny.com.
From Business Wire (press release), 24 October
2003
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What Mainstream Economic Models
Tell Us About Wealth Taxes and Changing Tax Policy
Prime Minister Jean-Pierre Raffarin
visited Brussels on Wednesday, August 27, accompanied by the
news that France's public sector deficit stood at four percent
of its gross domestic product. While the Prime Minister made
the best interpretation he could of this development, it is
certain that Mr. Raffarin did not welcome this news or the
prospect of cutting government spending. No government head
wants to make the trip to Brussels with a deficit reduction
plan in his or her pocket that is so ripe with political consequences
back home. The day before Raffarin's trip, President George
Bush received news, also unwelcome, that his government's
current deficit stood at four percent of U.S. gross domestic
product. While President Bush did not have to make the trip
to Brussels, he did have to endure the criticisms of an outraged
political opposition and the rising concerns over deficits
among his conservative supporters. He, too, responded to these
concerns with a deficit reduction plan. It is most interesting
to me that both men are responding to their deficits in a
generally similar way. Prime Minister Raffarin's approach
will rely principally on spending reduction and small tax
cuts. President Bush will continue to combine spending restraint
with tax cuts and tax reform. While I have no insight into
the reason the French government is pursuing this strategy,
the Bush Administration is using these two fiscal policy tools
to boost the level of economic activity while keeping the
dead-weight losses associated with government spending in
check.
I say "continue" because
George Bush came to the presidency in 2001 with substantial
tax cut legislation ready to go, and he has seen two additional
and major tax bills pass since then. What characterizes Bush's
approach is the recognition that tax policy and general economic
performance are tightly connected. Indeed, the entire tax
reform program is directed at two goals: change the tax code
to make it more equitable and simple, and change tax policy
in such a way as to support higher levels of economic growth.
Analyzing the Implications - Achieving these goals, however,
requires not only a major political push, but also an enormous
analytical effort. The Bush White House and many organizations
in the Washington think tank community have assembled a wide
array of policy databases and analytical models to assist
in achieving these goals. The databases contain information
on taxpayers, families, business organizations, and so forth;
and analysts use these data to test the degree to which a
proposed tax policy change would accomplish its equity and
simplicity goals. The analytical models are employed in assessments
of how proposed changes would affect economic performance.
This last test is particularly important to the Bush economic
and tax plan, since so much of the justification for cutting
taxes is higher economic growth.
When tax policy affects the level of
economic activity and the pace of economic growth, it likely
changes the pool of income and sales from which it draws its
own revenues. Tax policy changes that might strike some as
being too expensive for the government to undertake turn out
to be highly affordable if they stimulate higher economic
growth. For example, many Washington policymakers initially
opposed repeal of the national wealth tax on the grounds that
it would reduce federal revenues too much and would not benefit
any group in America except the wealthy. However, database
work showed that many who paid the national wealth tax are
farmers, ranchers, small-business people, and others who would
not consider themselves wealthy at all. Economic analysis
using sophisticated models of the U.S. economy showed that
repeal would generate higher economic growth and more income
tax revenue to the U.S. government. For example, our own econometric
work and similar studies published over the years by a wide
range of economists supports this interesting relationship
between estate taxes and general economic activity. The U.S.
taxes estates at tax rates from 17 to 50 percent. The U.S.
passed legislation in 2001 that will repeal this tax in 2010
after phasing it down over the intervening years. And, it
is a good thing we are repealing it.
I used a mainstream model of the U.S.
economy to estimate the estate tax's economic effects and
found that: o Total civilian employment would jump an average
of 142,000 to 215,000 jobs per year over the 10-year period,
2002 through 2011. o Inflation-adjusted GDP would increase
by an average of $15.1 billion per year, reaching $24.6 billion
in 2011. o Inflation-adjusted fixed investment would grow
by an average of $10.1 billion per year and increase to $18.1
billion in 2011. o The user cost of capital would fall by
120 basis points by 2011. o Inflation-adjusted disposable
income (what households have left over after paying taxes)
would grow by an average of $22 billion and reach $32.7 billion
by 2011. o Repeal would lower government revenues for about
four years before economic growth leads to more revenues than
before repeal. Preparing economic estimates such as these
requires a host of analytical tools, from models of the U.S.
economy to databases that allow the analyst to study the wealth
holdings of all Americans. Indeed, every major policy change
lends itself to just this type of analysis: extensive use
of data about individual groups or types of people and employing
a model of the general economy to estimate the policy change's
economic effects. Tax Analysis at The Heritage Foundation
- In U.S. policy circles, the state-of-the-art in policy analysis
now consists of a complex integration of database analysis
and specialized modeling, generally of the sort that produces
forecasts of policy effects.
Let me illustrate how we perform our
tax analysis at The Heritage Foundation's Center for Data
Analysis. (Much the same work is being done at the U.S. Treasury
Department's Office of Tax Analysis.) I will use the major
tax legislation that just became law on May 27 for my illustration.
President Bush set forth the basic elements of his tax proposal
in November of 2002. The initiative had many parts, but it
became known for two bold moves. First, President Bush proposed
that all of the tax law changes that had been enacted but
would not become effective until 2004 or 2006 would take effect
in 2003. The reduction in the tax rates paid by upper income
taxpayers was the major part of this move. Second, the President
urged Congress to end the taxation of dividends received by
individual taxpayers. He justified this policy change by arguing
that double-taxing income is bad tax policy, and dividend
income is taxed first at the corporate level and again at
the individual level. It may not surprise you that a presidential
proposal to cut taxes and end the double taxation of income
drew praise from The Heritage Foundation. The tax economists
at the Foundation jumped into action nearly as soon as the
President had finished describing his tax plan. Permit me
a small digression from my story. The Heritage Foundation
maintains a state-of-the-art Individual Income Tax Model.
This model contains equations representing e
very part of the U.S. tax code relating
to individual taxpayers. Because the U.S. tax code is a swamp
of complexity, the model is complex. However, it permits analysts
to calculate quickly how much a proposed tax law change would
affect an individual's tax bill. Of course, there are nearly
as many different tax bills as there are different taxpayers.
Thus, our Income Tax Model sits atop an enormous database
composed of data on hundreds of thousands of taxpayers in
order to capture this variety. We have about 300 variables
for each taxpayer in our model. These data come from public
use datasets provided (at cost) by the Department of the Treasury
and the Bureau of the Census. We take these two datasets that
are produced from two very different surveys by two unrelated
departments of the U.S. government and match variables in
both in order to come up with the 300 or so characteristics
of each taxpayer. We then create taxpaying families and households
from the individual records. All of our work is tested by
how close we come to matching the exact amount of taxes paid
in certain historical years. Now, back to the President's
plan. The Foundation's tax economists first introduced the
provisions of the President's proposal into this Individual
Income Tax model in order to calculate the tax effects on
the entire spectrum of taxpayers. Our model is able to estimate
these effects for each of the 10 future years that constitute
the budget projection period required by Congress's budget
rules.
When we subtract the annual amount
of total tax collections under the President's plan from the
annual amount without that plan and sum these differences
over 10 years, we come up with the 10-year "accounting"
or static cost of the proposal. We next calculated the effects
of the plan on the economy. These calculations are performed
using a model of the U.S. economy. The model of the U.S. economy
that we employ contains 850 equations and over a thousand
variables that are organized in a sequence of six blocks,
each block of which represents a major sector of the economy.
We introduced our "accounting" or static estimates
into this model, made a few assumptions about labor and capital
supplies, and let the model run. Economists call the resulting
set of estimates "dynamic" because they reflect
how consumers, producers, and other economic actors change
their economic behavior after a change in tax law. Our "dynamic"
analysis of the President's proposal showed: o Higher gross
domestic product. Gross domestic product (GDP) would increase
by an average of $69 billion in inflation-adjusted dollars
from FY 2004 through FY 2013, with roughly 73 percent of this
increase derived from the plan's dividend exclusion component.
o More job opportunities. The employment level would average
844,000 additional jobs from FY 2004 through FY 2013, with
projected increases of 997,000 in 2004 and 1,036,000 in 2005.
o Added disposable personal income.
Disposable personal income (after adjusting
for inflation) would be almost $179 billion higher in FY 2004
and would increase by an average of $121 billion from FY 2004
through FY 2013. o Higher economic growth lowering the Treasury's
static revenue effect by 57 percent. Static estimates suggest
the President's Economic Growth Package would reduce federal
revenue by about $638 billion from FY 2004 through FY 2013.
However, the CDA's "dynamic" estimates show that
the proposal would reduce federal revenue during the period
by only $274 billion. We are not done yet. After estimating
the effects on the U.S. economy, we produced tables that show
how the major economic indicators (employment, income, tax
payments, and so forth) change in each state and in each congressional
district. These tables translate national numbers into the
quantities that politicians and local news writers can use
in communicating the benefits or harms of policy change. Our
state and district tables proved highly valuable in the effort
to educate the public on the benefits of the President's plan.
These same steps - static estimates, economic analysis, and
translation of national results into state and congressional
district estimates - also were performed by analysts at the
Treasury Department and within the White House. Indeed, it
is so common now to see analysts trace these same three steps
in analyzing policy change, that those who do not are viewed
as performing well below professional standards.
Greater Role for Statistical Analysis
- What we do to analyze tax proposals we also do in analyzing
policy changes in national energy, welfare, crime, education,
and trade policy. A wide array of databases and specialized
models support our work in this diverse set of issue areas.
In fact, the Heritage Foundation's Center for Data Analysis
maintains over 70 major databases, ranging from ones that
follow large groups of children over long periods of time
to see how income and family structure affect their health
to others that have organized vast amounts of information
on entrepreneurs. Our specialized models range from one focused
exclusively on reforms to our publicly provided retirement
pensions to another that estimates the economic welfare effects
of changing tariffs on goods and services. Members of this
audience who rightly think of the United States as a country
that highly values individual liberty and privacy may be shocked
to hear about how much data are collected and how freely this
information is distributed to private research organizations,
like my think tank. Given the enormity of data collection
in the U.S., it is more surprising that so little political
abuse comes from it. Citizens are protected by datasets that
give researchers representative cases but not the actual data
on any particular citizen. Our privacy and data collection
laws also protect citizens from an overly prying government.
I suspect that post-industrial economies are more, not less,
sensitive to changes in tax policy.
Capital and labor move easily between
sectors, products, and countries; capital markets play an
enormously more important role in these economies than in
less developed ones; and, the relatively older age of the
population in post-industrial than in less developed economies
makes the after-tax return to labor and capital more important.
If I'm right, then all of these factors mean that even seemingly
small tax policy changes have large effects on the overall
economy. This greater sensitivity of the economy to tax policy
expands the role of sophisticated data analysis in the process
of policy formation. Indeed, policymakers are relying more
and more on data analysis to shape and guide their efforts.
If the future of policy work in the United States is clear
at all, it is that database analysis and analytical modeling
will occupy a greater place in policy debates than they do
today and that the results of statistical analysis will play
a greater part in determining how those debates are resolved.
William W. Beach is the John M. Olin Senior Fellow in Economics
and director of the Center for Data Analysis at The Heritage
Foundation. He spoke in Paris, France, at the conference "Mettre
l'ISF au service de l'emploi" ("Putting the Wealth
Tax to Work for Labor") sponsored by the Institut Français
de Recherche sur les Administrations Publiques (iFRAP or The
French Research Instiute on Public Services).
From Heritage.org, DC, 10 October 2003
UN Call to Beef Up
Forum on Global Tax Policy
The United Nations called yesterday
for the creation of a global commission to strengthen dialogue
between the developed and developing world on taxation policy.
"The growth of business conducted over the internet,
of multinational corporations and of cross-border trade in
services has had a host of ramifications regarding which national
authorities should collect taxes on which activities,"
the UN said at the start of a two-day ministerial meeting
in New York on aid, debt and international finance. "There
are limits to what individual governments can do about international
tax evasion and tax avoidance; governments need to co-operate
better to combat these problems." While initiatives existed
within the developed world, such as efforts by the Organisation
for Economic Co-operation and Development (OECD), to eliminate
harmful tax practices, Jose Antonio Ocampo, UN undersecretary-general
for economic and social affairs, said the UN was the only
forum for global dialogue on tax matters. The UN warned that
tax competition led to countries "neutralising each other's
incentives, and lowering each government's tax take",
and said moves to "close globalisation loopholes"
were in line with the fight against transnational crime and
international terrorism.
Kofi Annan, UN secretary-general, suggested
that an existing 25-member UN ad hoc group of experts on international
tax matters could be upgraded to "an intergovernmental
body, in the form of either a committee of governmental experts
or a specialised new commission". The new body would
report to the UN's Economic and Social Council. The planned
conversion could be discussed at a meeting of UN experts in
Geneva this year. But tax experts said that while countries
might agree to such a move in principle, any global taxation
dialogue could face serious obstacles in practice. Developed
countries face difficulties among themselves agreeing tax
policy. Switzerland and Luxembourg, for example, have objected
to proposals for improved access to bank information within
the OECD, and offshore havens are wary of moves to bring them
into the fold. A recent meeting in Ottawa, with representatives
from 20 OECD members and 20 offshore financial centres, agreed
to press ahead, but revealed many divisions. A leading EU
tax lawyer said taxation, like defence, was seen as one of
the last bastions of national sovereignty. He also pointed
out that developing countries might resist any initiative
that confused the question of tax competition with the fight
against terrorism and crime.
From Financial Times (London,England),
by Mark Turner, 29October 2003
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ASEAN Can Help Public Buy Privatization
Denpasar, Bali - When ASEAN leaders
meet in Bali for their annual summit starting October 7, expect
the continuing tug-of-war with Myanmar's ruling junta over
opposition leader Aung San Suu Kyi to grab the headlines.
Also count on the Association of Southeast Asian Nations to
give a farewell kiss to Malaysian Prime Minister Mahathir
Mohamad, who made enemies mainly outside the region. The now
ritual denunciation of terrorism may have a new twist thanks
to the US invasion of Iraq, the collapse of the latest Israeli-Palestinian
peace initiative, and the pique of Indonesia, the Philippines,
and other member states that want a crack at alleged Jemaah
Islamiya mastermind Hambali, being held in United States custody
at an undisclosed location. ASEAN may have a useful role to
play (though only if it does more than talk) in these areas.
However, with nothing more than talk, the organization can
play a useful role for members and stake out a global leadership
position on privatization of government-owned enterprises.
Privatization has all the sex appeal of a summit group photo
in swimsuits, but the issue is becoming more important and
controversial in member states. Active involvement from ASEAN
can help governments overcome resistance to privatization
by stripping away the local political dimensions to cast the
issue in favorable terms.
Iron Lady and family silver - There
are a lot of things not to like about privatization. For one
thing, former British prime minister Margaret Thatcher is
the godmother of the phenomenon of selling state enterprises
to private investors for cash. To many citizens, it seems
that privatization is abandoning a function that is in government
hands for good reason and should not be subject to the pressures
of producing profits. (And there are some, such as police
services, that should remain state functions.) In cases where
state enterprises make money, it seems politicians are selling
the family silver for selfish, shortsighted reasons. ASEAN
governments tend to justify privatizations as means to narrow
budget gaps. Indonesia, for example, aims to raise Rp6.1 trillion
(US$720 million) this year and more than a $1 billion next
year when it leaves its International Monetary Fund program
and loses concessionary loan terms that come with it. This
year's goal, scaled back from Rp8 trillion, remains nearly
60 percent unfulfilled. Indonesia's attempted sale of its
largest cement company, Semen Gresik, to Mexico's Cemex has
been a case study in all that can, and too often does, go
wrong with privatization these days (see Indonesia gives up
privatizing another asset, September 16). Failure to close
the deal, five years in the making, cost the Indonesian government
$525 million. Competing interests - The Semen Gresik deal
failed because entrenched management, local politicians, and
the labor force combined to derail it.
Those groups fear, often rightly, that
they will lose from privatization. The case needs to be made
for those who have something to gain. Opponents of privatization
like to focus on investors as the beneficiaries. These villains,
preferably foreigners or multinational corporations, want
the business only for the profits they can disgorge, without
consideration of the costs to local citizens. What opponents
neglect is that continued state ownership routinely carries
considerable costs to local citizens. Taxpayers foot the bill
for money-losing state enterprises, their bloated management,
inefficient labor, and generosity to political patrons. State
ownership often entails monopoly; at the very least it creates
an unfriendly atmosphere for competition featuring conflicts
of interest between regulators and state enterprises that
ultimately have the same boss. The greatest costs to consumers
and national economies come from the usual poor levels of
service, innovation, efficiency and value that state companies
provide. That's because state companies are generally larded
with people owing their positions to whom they know in the
government, rather than what they know about the business.
Their political masters expect various indulgences in return.
These may be as benign as jumping to
the head of the line when boarding a state airline flight,
or less innocent kickbacks on jet fuel, perhaps from the state
oil company as well as the airline. Immunity and impunity
- Without restraints from investors, competitors or effective
government regulation, state companies can act with far greater
impunity than private enterprises (see WHO's caught with the
smoking gun? November 16, 2002). Those companies pose a real
danger to consumers because they can function as a hidden
and pernicious branch of the government, immune from controls,
an avenue for politicians to meddle deeply with your life,
liberty and pursuit of happiness. That's the real argument
for privatization, but it's not one that governments are generally
willing to make, since they turn out to be the villains in
the story. That's where ASEAN can help. ASEAN can make the
argument for privatization on behalf of governments, acting
as a non-partisan, honest broker.
It may choose to establish an expert
panel or academics, business people and bankers, to consider
each privatization on a case-by-case basis, and recommend
just enough changes in structures or even reject a few deals
to give itself credibility. Grounds for rejection could include
the involvement of an unreformed state enterprise, though
that might cause some family tension within ASEAN (see Singapore's
capitalist myth, November 7, 2002). A simpler alternative
would be to assemble a representative blue-ribbon panel to
produce a white paper on privatization. That paper could include
guidelines on valuation, strategic investors, performance
and other requirements that need to be met to ensure that
privatization serves the public interest. No matter what the
form, member governments should let ASEAN demonstrate the
real benefits of privatization and give them political cover
to overcome opposition. Otherwise, they can expect to keep
missing their privatization targets, leaving them and their
citizens stuck with increasingly tarnished state silver. (Copyright
2003 Asia Times Online Co, Ltd. All rights reserved. Please
contact content@atimes.com for information on our sales and
syndication policies.) .
From Asia Times Online, Hong Kong, by Gary
LaMoshi, 30 September 2003
Focus of Privatization
Debate Shifts to Japan Post Finances
If it goes private, the Finance Ministry
may also lose a massive funding source. With the launch of
his new Cabinet, Prime Minister Junichiro Koizumi's crusade
to privatize Japan Post has entered a key phase. The question
now is how to bolster the postal corporation's capital base-and
how the government will cope once its longtime source of funds
is in private hands. Japan Post, which began operation in
April, manages 230 trillion yen in postal savings deposits
and 120 trillion yen in postal life insurance policies. This
huge pool of funds accounts for about 20 percent of Japan's
total individual assets. One of the reasons postal deposits,
in particular, have ballooned to such gargantuan proportions
is because the government has traditionally guaranteed the
principal. As a public corporation, Japan Post enjoys certain
perks. It does not have to contribute to the insurance system
that protects bank deposits, nor does it pay corporate taxes.
The Japanese Bankers Association estimates Japan Post's favored
status saved it 900 billion yen in fiscal 2002. If it goes
private, Japan Post would see those privileges disappear.
The silver lining is that it would
also be freed from regulations that cap individual deposits
at 10 million yen. A banking industry official said Japan
Post would be a financial colossus if it is privatized as
is. Analysts, however, point
to the fragility of the corporation's state-funded capital
base. The ratio of Japan Post's capital to assets stands at
a mere 0.3 percent, while the ratio for its postal savings
operations is 0.6 percent. These figures are roughly equivalent
to the capital adequacy ratio used to measure the financial
health of private sector firms, especially banks. If Japan
Post were a bank, however, it would fall far short of the
4 percent capital adequacy ratio required to operate domestically.
Clearly something must be done to improve Japan Post's finances-officials
just can't decide what. A Lower House committee on postal
issues was divided last week on whether the corporation should
bolster its capital or shrink its assets. Privatizing all
three of Japan Post's arms-savings, life insurance and delivery-into
a single entity would require an injection of public money,
said a senior Japan Post official.
But critics say pumping large amounts
of public capital into Japan Post defeats the purpose of streamlining
postal operations and weaning the corporation off government
reliance. One alternative has been proposed by Minshuto (Democratic
Party of Japan) in its policy manifesto. The nation's biggest
opposition party suggests lowering the cap on deposits and
cutting life insurance holdings while the corporation is still
a public entity-scaling back its assets, in effect, before
the shock of going private. But the Council on Economic and
Fiscal Policy, Koizumi's key policy panel, adopted five-point
guidelines last week that oppose Minshuto's proposal. The
panel advises Japan Post to leverage its nationwide network
of post offices to move toward privatization, and calls for
postal workers' jobs to be protected. Privatization also offers
another dilemma: Should Japan Post continue to support state
finances by buying huge swaths of government bonds?
According to Bank of Japan statistics,
postal savings and life insurance funds have been used to
buy 126 trillion yen in government bonds, representing one-fourth
of the outstanding 536 trillion yen issued. The Finance Ministry
used to manage postal deposit funds, but gave up that authority
after being criticized for lending money to money-losing public
corporations. The Postal Services Agency, the predecessor
of Japan Post, started managing the funds on its own in April
2001. Until fiscal 2008, Japan Post will continue to purchase
bonds from the ministry to provide funds for its fiscal investment
and loan program. After that, the corporation will finally
take control of all postal funds. Critics say a privatized
Japan Post may be compromised by pressure to channel money
to state coffers, since the government will have trouble finding
such a massive capital source elsewhere. The government could
retain control of Japan Post if the corporation is turned
into a joint-stock company owned by the state. But postal
minister Taro Aso has rejected such plans, saying the public
may see it as an attempt to maintain the status quo.(IHT/Asahi:
October 8,2003) (10/08)
From Asahi Shimbun, Japan, 9 October 2003
Success of Privatization
Measured by Corporate Governance
Successful privatization can be accomplished
with transparent corporate governance as has been found in
numerous cases in foreign countries. In the process of its
privatization, KT, Korea's largest telecommunications service
provider, has implemented progressive corporate governance
that complies with global standards. This was accomplished
through a specialized management system that separated management
from ownership. Supervisory Function of the Board - For the
decentralization of power and transparent corporate governance,
KT separates decision-making and execution by prohibiting
the chief executive officer from taking the role of chairman
of the board. Instead, a non-executive director will be elected
to the chairman of the board. To strengthen the supervisory
function of the board, KT hired more non-executive directors
versus executive directors, with a present ratio of 9:6 (from
a previous of 7:6). Not including financial institutions,
this is the highest ratio among big Korean companies.
KT also provides non-executive directors
with special rights such as the right to approve or veto CEO
nominations and dismissal of executive directors, the right
to impose a management target for the CEO, and the right to
evaluate and decide the CEO's compensation. Efficient Operation
of the Board - KT increased the proportion of non-executive
directors on the board's internal committees. The company
also introduced special committees to ensure the expertise
and efficiency of the board. Additionally, KT holds more than
40 board meetings per year. Such meetings support the board
in its function as a top decision-making organization. KT
also designates foreign directors and increases management
transparency to protect the interests of foreign investors.
Establishing Specialized Management - Through the agreement
reached between the CEO and CEO Nomination Committee, KT strengthens
specialized management by separating management from ownership.
There is also a change in management
contracts. Management objectives were given to improvements
in the EVA, share value and the CVA. As a result, the weight
of share value grew from 2 percent last year to 25 percent
in 2003. Based on these management objectives, the CEO is
required to contract with non-executive directors. Managers
are paid incentives on performance basis. To increase the
shareholders' value and to protect the interests of the minority,
KT abolished share ownership restrictions in the articles
of incorporation. What is more, KT introduced the cumulative
voting system, which ensures the right to select directors
based on the interest ratio of the minority. By introducing
stock incineration and the interim dividend system under the
consent of the board, the company strives to return management
results to the shareholders and to accomplish shareholder-oriented
management. KT was selected as the best company by the KSE
in July 2002 and by The Asset magazine in December 2002 for
such a display of transparent corporate governance.
From Korea Times, South Korea, 7 October
2003
India Seeks New Airport
Privatization Policy
New Delhi - Flying to India? New Delhi
or Mumbai? Whichever, passengers are likely to find Asia's
dirtiest airports with the poorest infrastructure - from the
shaky jetway tube from which they emerge to faded carpets,
poor air conditioning, unreliable escalators and chaotic baggage-handling
systems. India, struggling to meet an annual target of 3 million
tourists, is failing miserably. Its airports are part of the
problem. Despite the fact that the Airports Authority of India
(AAI) has US$219 million in fixed deposits and $288 million
in reserves - and annual profit of $55 million - renovation
of the airports it manages is at a standstill, even the busiest.
AAI officials acknowledge that investment for renovation and
upgrading airports has stalled in absence of any government
policy to move forward. A series of ad hoc policy decisions
nearly ruined India's two national flag carriers, India Airlines
and Air India (see India's airlines in a tailspin, October
9). For want of a comprehensive policy to modernize its airports,
India Inc is perpetuating a disastrous image. K Roy Paul,
secretary of the Civil Aviation Ministry, says privatization
of India's airports is a government priority but the government
is waiting for suitable private partners who will agree to
allow the government to continue to hold 26 percent of the
shares in this lucrative business.
Privatization of India's two major
airports - Indira Gandhi International in Delhi and Santa
Cruz in Mumbai - may not be affected by the country's September
15 Supreme Court decision to stop the privatization of the
two government-owned oil behemoths, Hindustan Petroleum and
Bharat Petroleum, but the lack of a policy decision would.
Roy Paul has the answer. He asserts that government will privatize
nine other airports as well, besides upgrading the Delhi and
Mumbai airports. The government placed a number of private
airports under the AAI after running them itself in the same
lackadaisical manner in which Indian Airlines and Air India
were being managed. The difference is that while the airlines
are cash-starved, AAI is flush with funds but not spending
any. A change of heart by the Civil Aviation Ministry would
mean shelling out $119.64 million annually for the upkeep
of the airports and $986.84 million (Rs45 trillion) to upgrade
Delhi airport alone. The AAI has allocated only $438.59 million.
The rest has to come from private partners. The same amount
has been allocated for the Santa Cruz airport modernization
in Mumbai. The government's recent decision to privatize the
airports runs counter to the decision made by its civil aviation
minister, C M Ibrahim, who blocked a TATA-Singapore Airlines
proposal to build a modern alternative airport for Bangalore,
a sought-after destination because of its information-technology
(IT) industry.
Not only was permission refused but
the whole project was trashed. All these provide critics with
ammunition to demonstrate that the Civil Aviation Ministry
has never been beyond reproach. Earlier, another civil aviation
minister was accused of taking kickbacks when Airbus Industrie
and Boeing were seeking contracts to sell aircraft to Indian
Airlines. Although Boeing was able to sell some of its smaller
aircraft, it lost to Airbus on longer routes. Now it appears
that Prime Minister Atal Bihari Vajpayee has had enough and
has told the Civil Aviation Ministry that if India's 2020
vision targets are to be met, the ministry has to change its
ways. A comprehensive aviation policy is to be announced by
the end of this month or in early November spelling out all
aspects from airport modernization and privatization to the
privatization of the two national air carriers. Paul said,
"The new policy will be the blueprint for major issues
in the aviation sector such as foreign direct investment,
the role of government-owned airlines, impact of the state
policy on airlines, the scope of the operations by the private
airlines operating under an ad hoc open-sky policy, and the
need and the type of regulators required for the airports
and airlines."
In an effort to make competition fair,
the old rules of not permitting airports within 150 kilometers
of another airport are also to come under review. One of the
problems relates to airport design and the entry of foreign
construction and design companies. The AAI, which built Dubai
Airport more than 20 years ago, may claim its stake to modernize
both the Delhi and Mumbai strips. However, inside sources
say the government wants designs ready within a few months
of the announcement of the new aviation policy. Many in the
Ministry of Civil Aviation feel that the AAI may not able
to come up with the kind of quick funds flow required to modernize
and upgrade the Delhi airport. There is also the question
of legal and other governmental and non-governmental roadblocks
that could be thrown in the way of the airport modernization.
There are considerable bureaucratic forces militating for
the status quo ante, no matter how frustrating it is to tourism,
just as there was considerable resistance to the privatization
of Hindustan Petroleum and Bharat Petroleum. Despite the government's
highest-priority program to privatize the oil companies, privatization
is stalled. It remains to be seen whether this one will stall
too. Things have a way of going wrong in India's stifling
bureaucracy.
From Asia Times Online, Hong Kong, by Arun
Bhattacharjee, 10 October 2003
Health Workers Campaign
Against Privatization
Newcastle - NSW Health and Research
Employees Association (HREA) branches throughout the Hunter
region have unanimously condemned the NSW Labor government's
decision to privatise new facilities to be built at the Newcastle
Mater Misericordia Hospital. Four-hour strikes have taken
place at the James Fletcher Hospital, the Mater hospital and
the John Hunter Hospital. Meetings are taking place between
the union and government and 24-hour rolling strikes, on an
area-by-area basis, have been proposed by the union if the
government's response is inadequate. On October 8, 40,000
hospital staff across NSW stopped work for four hours. On
August 29, the NSW health minister stated: "Under the
public-private partnership approach we will be calling for
expressions of interest for the private-sector construction,
financing and operation of selected non-clinical services
for the new facilities."
The HREA was informed of the plans
only the day before the public announcement. HREA secretary
Michael Williamson declared that "the manner and timing
of this announcement has been absolutely atrocious... This
is more than just a public-private financing initiative, it
is a blatant attempt to privatise public sector jobs in the
NSW health system and our members will not stand for it".
The HREA represents staff involved
in maintenance, cleaning and domestic services, waste management
and utility supply, secretarial staff and allied health staff,
such as psychologists, occupational therapists and social
workers. The government is proposing that the private sector
build and maintain new facilities on the Mater hospital site
for the next 25 years. The government will pay the costs of
the new facilities over those 25 years and provide a profit
to the private consortium. The private company would employ
the non-clinical hospital staff. Existing Mater staff have
no way of knowing if they will be employed by the consortium
or lose their jobs - or, if employed, whether they would lose
their existing conditions.
The HREA has information that security
services will also be contracted out. The HREA is also concerned
about the implications of the Independent Pricing and Regulatory
Tribunal's "Focusing on Patient Care" report, which
was requested by the NSW health department. The
report proposes that "a new body, the Health Shared Services
Corporation, be established to ensure corporate and other
services currently provided by the area health services and
statutory corporations are managed in the most cost effective
manner. The current restrictions limiting contracting out
or market testing for clinical services should be removed".
It calls for a task force to be established to determine how
this is to be done. The HREA believes this is, in effect,
a proposal to privatise ambulance services. The NSW government
has also entered into a similar private-public partnership
for a correctional health facility at Little Bay in Sydney.
Instead of selling off public assets to private corporations,
governments should be reviewing taxation and revenue raising
in order to expand and improve public health, ensuring high
standards and optimal working conditions.
From Green Left Weekly, by Jane Beckman,
22 October 2003
Koizumi Defends Posts
Privatization in LDP Manifesto
Tokyo - Prime Minister Junichiro Koizumi
on Tuesday released a set of pledges in a campaign manifesto
for the ruling Liberal Democratic Party (LDP) ahead of the
Nov 9 general election, again defending commitments including
his plan to privatize postal services in 2007. "The postal
privatization has become a pledge of the party. It's not Koizumi's
personal opinion any more," the premier told reporters
in releasing the tract, which was finalized following disputes
between him and heavyweights in his party. (Kyodo News)
From Japan Today, Japan, 14 October 2003
Public-Private Partnership
Islamabad - It was riveting to watch
how parliamentarians negotiated the thin line between public
policy and private self-interest. The coming cotton crop has
been hit hard by a virus attack, compounded by man-made mismanagement
which is conveniently being palmed off as 'natural calamity'
by the government representatives. Spurred by APTMA's meetings
with the Finance Ministry to secure subsidy in view of high
cotton price and the likely loss in their profits due to bad
crop, the treasury backbenchers from the cotton growing areas
raised the gravity of the cotton crisis creditably in the
House. It was actually quite a relief to hear a cogent argument
in the assembly that was not forced to fizzle out after the
first few minutes. At the start of the session it did look
as if Tuesday would be a repeat of Monday, with the chair
trying to better its own record of going through the agenda
in record time. The Speaker did manage a first of sorts though,
when a treasury backbencher tried to walk-out in protest against
the way he was refused an opportunity to get a satisfactory
answer from the parliamentary secretary for interior. "I
am satisfied," the Speaker told him, adding the answer
is important, not your satisfaction. It was, therefore, just
as well that Chaudhry Ameer Hussain decided to retire to his
chamber, giving the chair to Mr. Zahid Hamid, to conduct the
business, who did a good job.
The subject, cotton crisis, was a serious
one and needed uninterrupted attention of the chair and the
House. Given to frequent interruptions that he is, Ch Ameer
Hussain might not have helped the debate along. As it is MNA
Makhdoom Alam Anwar, who discussed the cotton crisis during
an adjournment motion, was "astonished and surprised"
at his fellow parliamentarians who were "constantly disturbing"
him. It was almost comic the way parliamentarians would keep
raising trivial issues, making him lose his train of thought.
There was one MNA from Karachi who interrupted him belligerently,
for having "talked for more than fifteen minutes"
when there were other important issues such as the status
of women to be discussed. A free-for-all was averted by the
acting Speaker who reminded the House that two hours had been
allocated for the debate on cotton. In any case, Alam Anwar
was a determined man. Since he had done his homework and the
matter was close to his heart and coffers, he made sense despite
the disruptions. He spoke eloquently on the plight of the
farmers hit by the cotton virus and stressed on the need to
develop a dynamic agri policy that controls the current damage,
institutes strict integrated pest management, and increases
yield per acre by improving research in this crop.
He was supported by young Khusro Bakhtiar
and Hina Rabbani Khar, both of whom spoke well. Bakhtiar had
a some strong figures which would have sounded just as effective
had he lowered his pitch by an octave or two. The interplay
of vested interests and lobbies in the Tuesday session was
an educative on. It was clear though that parliamentarians
from rural constituencies were wary of the government-APTMA
meetings, fearing that they would lose against the textile
lobby if they did not make a strong case now. Also now that
the crop is hit - although the overall loss may be restricted
to around 5 lac bales, as reported by this paper - and government
negligence quite evident, decisions such as Taskforce on Cotton
could be obtained as also some extra sympathies. These could
be, as they suggested, in the form of deferred loan payments
with no interest. They were lucky that Finance Minister Shaukat
Aziz was present in the House, for their clear words that
any subsidy to the APTMA would be treated as a tax on the
public and hence can only be allowed if the house permits
it were heard by the relevant pair of ears.
Effective words, for the Finance Minister
made it a point to meet all the cotton-belt MPs and spent
quite some time sitting next to Makhdoom Alam Anwar; such
being his charms when he got up the Makhdoom had a big smile
on his face. So either the APTMA gets a regret letter, or
both cotton farmers and textile owners get relief. In the
past the governments have been playing lobbies such as APTMA
and cotton growers against each other. The decision of course
should be in the interest of the larger population, but even
that is not without its dangers because in the last few years
all unpopular actions - such as every increase in utilities
- have been taken in the name of public interest. By the by,
one wonders if small farmers had taken any credit lines from
banks that the big cotton growers want to be deferred. TAILPIECE:
Even in the US there is government intervention in agriculture
for optimal design of institutions. We of course leave everything
to the market. The government has reduced its role in the
agri market such as pesticides, seeds, insecticides, fertilisers,
tools, etc. The crop failure shocks clearly show that either
the new systems are not in place or aren't efficient enough.
If the Jamali-government has some fiscal space then it should
be used to come up with a strong agriculture growth strategy.
Rural poverty alleviation was once big on General Musharraf's
agenda.
From Hi Pakistan, Pakistan, 22 October 2003
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France Interested in Privatization
of Bulgarian Electricity Distribution Companies
Sofia - French Ambassador Jean-Loup
Kuhn-Delforge said Wednesday his country is interested in
the privatization of Bulgaria's electricity distribution companies.
"France is interested in the opportunity to invest in
the electricity distribution companies of Bulgaria,"
the private BGNES news agency quoted Delforge as saying during
a visit to the Black Sea port of Varna. Delforge said that
the energy ministers of the two countries have recently discussed
the issue. The government has put for sale 67% stakes in each
of its seven electricity distribution companies earlier this
year in a move to deregulate the country's energy sector.
From Bulgarian News Network, Bulgaria, 1
October 2003
Privatization of Power
Producer Resumes
The privatisation of a 49-percent stake
in Slovak power utility Slovenské Elektrárne (SE) will be
announced in print media next week. PricewaterhouseCoopers
(PWC) is the official privatisation advisor to the government
on this sale, news wire TASR reported. Nine companies have
already expressed interest in bidding for what will be a controlling
stake, and a shortlist of the initial offers should be known
by the end of the year. The announcements will appear in British
daily The Financial Times, Germany's Handelsblatt, and Slovakia's
Hospodárske noviny. The Economy Ministry decided on the date
of publication earlier this week, with the approval of new
Economy Minister and ANO party leader Pavol Rusko. It remains
unclear whether SE, Slovakia's largest company, will be sold
as a whole or without its nuclear arm. Whereas Czech CEZ company
is ready to acquire the entire company, its eight rivals are
looking to buy a restructured company with only non-nuclear
operations. Shortlisted bidders will be invited to perform
due diligence, before submitting final offers. Among the potential
bidders are Germany's E.ON, Electricite de France, British
Energy, International Power (UK), Enel (Italy) and Electrabel
(Belgium). Compiled by Beata Balogová from press reports.
The Slovak Spectator cannot vouch for the accuracy of the
information presented in its Flash News postings.
From Slovak Spectator, Slovakia, 3 October
2003
Belarus May Compromise
Over Beltransgaz Privatization
Minsk - Belarus may reach a compromise
during the next round of talks with Gazprom on the privatization
of Beltransgaz, the republic's Energy Minister Pyotr Zhabko
said. He said that active work is being carried out in this
direction. In particular, he said that it is highly likely
that the market value of Beltransgaz will be reduced. He also
did not rule out that Belarus would not continue to insist
on the Russian side including the Belarussian section of the
Yamal-Europe gas pipeline in the charter capital of the gas
transportation company being set up. As reported earlier,
in line with agreements a joint gas transportation company
based on Beltransgaz with Gazprom participation should have
been set up by July 1, 2003. The Belarussian government proposed
to Gazprom to set up a joint venture under the following conditions.
Gazprom should increase supplies of Russian gas to Belarus
at Russian domestic prices, Belarus should own controlling
shares in the venture, the Gazprom shares are to be sold at
a price set by the Belarussian government (Belarus estimated
100% of Beltransgaz shares at $5 billion). In addition, the
venture should invest $1.7 billion of its own funds in the
Belarussian gas transportation system. Gazprom should transfer
the Belarussian section of the Yamal-Europe pipeline as a
contribution to the payment for the shares.
In turn, Gazprom is insisting that
the Russian side own not less than 50% of the charter capital
of the venture, and that it acquire this at market price.
Gazprom calculated that this is close to the nominal share
price (100% of shares - $600 million). Gazprom has also said
that it is necessary to give the joint company the right to
sell 50% of its gas to large consumers under direct contracts.
Payment for the Gazprom share in the joint venture should
be made in cash and by the payment of debt for gas supplies.
Gazprom does not foresee the inclusion of the Belarussian
section of the Yamal-Europe pipeline in the deal and subsidized
gas supplies to Belarus are planned at current levels. In
mid-September the Russian government cancelled its recommendation
to Gazprom to set, from May 1, 2002, gas prices for supplies
to Belarus at the level of wholesale prices for the fifth
price range in Russia. During recent talks between Gazprom
and Beltransgaz, the Belarussian side proposed to Gazprom
to increase supplies of gas to Belarus in 2004 from 10.2 bcm
at present to 18.5 bcm. The Russian side proposed to increase
the price of gas for Belarus from $30 per 1,000 cubic meters
at the moment to $80 per 1,000 cubic meters in 2004.
From Interfax, Belarus, 6 October 2003
Unified Energy Systems
of Russia Heading for Privatization
The long process of privatizing Unified
Energy System (UES), one of the world's largest electricity
utilities, and one of the last of the former Soviet Union's
socialist economy enterprises, is under way. In order to meet
future demand, the Russian power sector is in urgent need
of modernization, which in turn requires huge foreign investment.
UES produces 70% of Russia's power. The utility has a generating
capacity of 156,000MW-almost as large as that of Germany and
Britain combined. The Russian government plans to break it
up and sell the restructured components, although the transmission
grid will remain in state hands. At present, 38 federal power
plants and the national transmission grid fall under the UES
umbrella. The state-owned enterprise also has an average 49%
stake in 73 regional power utilities. The government has a
52% holding in UES, while foreign portfolio investors hold
around 20%. Russian companies have also made strategic investments
in UES regional utilities.
In the past four years, we have turned
UES round," says Anatoly Chubais, Chairman and Chief
Executive. "We have introduced corporate governance in
the company. We used to receive 80% of our payments through
barter, now we are properly paid 100%. We had huge wage problems,
but these no longer exist. We are paying our wages and taxes,
and we have no unregulated debt to Gazprom (the Russian gas
company) or nuclear power plants at all."Mr. Chubais
adds, "We want to create competition within the generating
sector of the market, because as long as you keep a monopoly,
the only way to set prices is on a cost-plus basis."
He says it is inevitable that price rises will occur over
the next few years. "We will use this time to prepare
the whole system for real restructuring and liberalization,
which will not happen before 2005." Once there is competition
in the market, prices will drop, he believes. "Unfortunately,
it is very difficult to convince people that prices will fall
in 2006, when they are paying more now." Mr. Chubais
has been in talks with his energy counterparts in the United
States. "It has been agreed that U.S.-Russian cooperation
in energy, particularly in the electricity sector, ought to
become one of the chief factors contributing to the strengthening
of cooperation between the two countries," he points
out.
From SRiMedia, UK, 7 October 2003
Polish State Savings
Bank PKO BP's Privatization on Track for Q2-Q3 2004 Public
Float
Warsaw. - Polish state retail banking
giant PKO BP's privatization via the sale of a minority stake
on the Warsaw bourse is now expected to take place in the
second or third quarters of 2004, bank president Andrzej Podsiadlo
said Thursday of the oft-delayed process. "I hope this
attempt to privatize our bank will be a successful one. Although
the privatization method will depend on the suggestions made
by the to-be-selected privatization adviser, we are now considering
the flotation of a minority stake in the second or third quarters
of 2004," Podsiadlo said. The sale would be aimed at
chosen small financial investors instead of at a strategic
investor, Podsiadlo said. On October 10, Poland began another
crack at finding a privatization adviser, putting the deadline
for bids at November 24. A previous tender was cancelled after
the exclusion of a common offer from PKO BP's own brokerage
house and CSFB left only one other eligible bidder, Citigroup
Global Markets Polska with the Bank Handlowy brokerage house.
PKO BP is Poland's biggest bank on assets of PLN 86.4 bln
at end-September and runs by far the country's largest retail
chain. The bank's net profit was flat year on year at PLN
994 mln in the first nine months of 2003 against a year earlier.
PKO BP has held onto guidance that it will surpass its record-high
PLN 1.06 bln profit in 2002.
From Interfax, Poland, 24 October 2003
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Hospital Privatization Plan Draws
Ire
The Knesset Labor, Social Affairs,
and Health Committee fiercely attacked the government on Wednesday
for its plans to close or privatize state-owned geriatric
hospitals and to shut down the Abarbanel psychiatric hospital.
Committee chairman MK Shaul Yahalom called on the Treasury
to drop the plans, saying that impartial experts had called
the budget-cutting measures "dangerous and irresponsible."
MK Ilana Cohen, a nurse by profession, initiated the committee's
discussions. Of the government's intention to close the Flieman
geriatric hospital in Haifa and privatize two others, she
said, "For the Treasury, a dead patient is a profitable
patient." Health Ministry director-general Dr. Boaz Lev
said the proposed moves would harm the country's geriatric
nursing infrastructure. Flieman, he added, did not lose money
until recently, when Clalit Health Services stopped purchasing
services from the hospital. A Netanya geriatric center, which
the Treasury wants to privatize, continues to cover its expenses
even today, Lev said. Flieman director-general Prof. Amos
Gilhar said the decision to close the center was made even
before members of a state-appointed committee visited it.
Patients who were moved out of the
hospital suffered serious harm, according to a quality of
life study at the hospital: only one out of 20 patients has
received rehabilitation worthy of the name. Dr. Aharon Cohen,
head of the Health Ministry's geriatric services, added that
since 28% of all the elderly in Israel live in Haifa and the
north, closing Flieman would have devastating effects. There
will be 1 million elderly in Israel by 2020, said Dr. Shai
Brill, chairman of the Geriatricians Association. "The
Treasury wants to save money, but that means less treatment.
There are no magic solutions. The push to save money has caused
the health funds to move patients from public to cheaper private
institutions, and that move has caused deficits in the public
hospitals." Meanwhile, Yahalom declared that Abarbanel
Hospital was "not ripe" for closure because there
are no alternate arrangements for the psychiatric patients
there.
Hospital director Dr. Motto Mark, who
previously headed the Health Ministry's psychiatric services,
said that the district geriatric office didn't find a single
elderly patient who could be moved to a non-psychiatric ward.
The psychiatric field is the most neglected in the health
system, charged Prof. Eli Shamir, chairman of Otzma, the national
forum of families of psychiatric patients. The health funds
were told by the government to take over care of mental patients,
who were the responsibility of the Health Ministry, starting
June 1 of this year, but nothing was carried out because the
insurers did not receive extra state funds. Meanwhile, the
Knesset committee approved regulations that would require
Israel Defense Forces career soldiers to pay health taxes
to the National Insurance Institute totalling 3.1% of their
income up to half of the average wage in the economy. Soldiers
in the standing army are exempt from the taxes, but the professional
army's exemption was cancelled. The payment rate is significantly
below that paid by civilians (4.8%) because the health services
provided by the IDF are less generous than those available
outside the IDF.
From Jerusalem Post, Israel, by Judy Siegel-Itzkovich,
1 October 2003
Jordan's e-Government
Program Dialogues with the Private Sector Share Successes
and Challenges with Local Firms
Intaj hosted a 'Jordan e-Government
Program' workshop today with the aim of facilitating dialogue
between local IT firms and the Jordan e-Government Program.
This workshop comes as part of the Jordan e-Government Program's
efforts to communicate program objectives and goals, and share
with the industry the challenges being faced in implementing
e-Government across government. The Jordan e-Government Program
aims at contributing to Jordan's economic and social development
by providing access to Government electronic services and
information for all citizens in the Kingdom, irrespective
of location, economic status, IT literacy, and educational
background. 'Jordan's e-Government model is not replicated
from other national programs. It is a truly unique Jordanian
model that builds on best practices from around the world'
stated Mahmoud Khasawneh, Chief Information Officer and Head
of e-Government. 'Our emphasis has been on equipping qualified
subject matter experts in the area of program management,
technology, and change management, with the goal of developing
and supporting e-Government operations and management'. Team
members from the e-Government Program Management Office updated
the local ICT industry on the role of the Program Management
Office, which provides support and capability to Government
departments for the coordination of management, implementation
and interoperability of e-services.
Nadia Naber, Quality Assurance Director
of the PMO highlighted that the Program Management Office
'aims to support other ministries and communicate the standards
and methodology to support consistency in operations across
government'. Emphasizing the program's objective of successfully
delivering e-Government initiatives and projects through dedicated
project managers, Mr. Khasawneh highlighted the progress of
select e-services in the Kingdom. Ms. Fatima Abdel-Rahim,
e-Services Manager added that 'we are now in the process of
development and implementation of key citizen services, including
income tax, drivers and vehicle licensing, land and surveys,
and borders and residency service'. Updating other developments,
Khasawneh added that 'We have created operations at the National
Information Technology Center, and it is a great source of
pride that this center is being run by a local company, and
not a global entity with a call center that is introducing
the concept of customer services to government'. The PMO team
shared the strategy towards the development of the e-Government
portal, emphasizing that 100 government agencies have been
scanned with content gathered, developed the look and feel
of the site, and that content managers across government have
been assigned.
Fadi Mari, Government Portal Project
Manager, highlighted that the various private sector companies
working with the PMO on the implementation of the portal 'have
been working together as one team', and that the aim of the
portal was to 'facilitate citizen access to e-services'. The
PMO team also updated the sector on the various projects including
e-procurement and e-accounting, the secure government network
currently connecting six ministries, as well as other shared
services. Not neglecting to mention the real challenges in
implementing e-Government in Jordan, Mr. Khasawneh also shared
with the local IT industry the challenge of implementing e-Government
in Jordan, including staffing, technology, program management,
change management, communications, and readiness and acceptance
challenges. Following the presentation, an interactive discussion
came about during the Q&A part of the workshop. Members
of the IT community addressed thoughts regarding the accomplishments
of the program since the adoption of the e-Government initiative
in 2000. In response, e-Government Team Members informed the
IT Community that the e-Government program has progressed
immensely, in terms of building the infrastructure for a secure
government network; ICT training for government employees;
building awareness and changing processes, all of which have
been accomplished in accordance with the proposed work plan
of the program. In closing, Mr. Khasawneh highlighted the
future business model for identifying the next wave of e-services
and the growing maturity of government operation services
that will be offered through subscription models and/or driven
by e-services.
From AME Info, United Arab Emirates, 7 October
2003
Lebanon Launches Tender
for the Privatization of Mobile Telephone Sector
HSBC said that Lebanon has launched
an auction and tender process for the privatization of the
mobile telephone sector in the country aimed at helping deal
with a more than $30 billion public debt, Reuters reported.
HSBC added that a short list of participants were invited
to start a 60-day review period and a selection of finalist
bidders is expected by the end of the year. According to HSBC,
telecoms are potentially Lebanon's most valuable state asset,
indicating that it wants $3 billion from privatizing mobile
phones, possibly through the sale of two 20-year mobile licenses.
From MENAFN, Africa 17 October 2003
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No Privatization of Any Part of
New Health Center
Parry Sound - The Chief Executive Officer
of the West Parry Sound Health Centre is assuring the community
that no part of the new West Parry Sound Health Centre will
be privatized. The issue came up at a provincial all candidates
meeting here on September 24. A supporter of Green Party candidate
Glen Hodgson alleged that the long-term care component of
the new health centre was going to be operated privately,
and said that none fund raising for the facility should be
going to a private company. "There is no private, for-profit
component in the construction of the new West Parry Sound
Health Centre," said Norman Maciver in a news release.
"The West Parry Sound Health Centre and Lakeland Long-Term
Care are publicly owned corporations. While co-located, they
are separately funded through the Ministry of Health. They
are required to have separate public boards. "The West
Parry Sound Health Centre is deeply appreciative of the widespread
community support for the new West Parry Sound Health Centre.
The health centre remains committed to publicly owned, not-for-profit,
health care for West Parry Sound." The three founding
members of the volunteer Lakeland Long-Term Care Board, Barbara
Cardy, Reverend Larry Freeman and Len Yauk, remain committed
to a co-located, separately managed long term care facility,
the news release said. "The new hospital will have a
publicly funded and accessible CT Scanner owned by the health
centre. All funds raised by the hospital foundation are use | | |