Stemming a stubborn strain of graft: A tough job

Transparency International’s 2021 Corruption Perceptions Index (CPI) has listed Nepal as one of the most corrupt countries in South Asia and among the top 15 most corrupt countries in Asia. Corruption is a well-documented issue in Nepal, and several government institutions as well as individuals have been implicated in corrupt practices. According to the CPI 2021, Nepal is at the 117th position among 180 countries and territories covered in the global index. Several reports suggest that the Nepalis perceive the government, the judiciary, security agencies, health care system, education sector, public transport and public procurement regimes to be corruption-plagued. Political interference in the appointment of judges and handling of high-profile cases; police force’s accepting bribes and engaging in other corrupt practices in relation to traffic violations and land disputes; public procurement process lacking transparency and accountability, absence of performance auditing and collusion of interests; financial mismanagement in the procurement of medical supplies and equipment, in the allocation of scholarships and the appointment of teachers and the lack of proper accounting of approved budgetary allocations authorized for disbursements toward the end of a fiscal (Beruzu account).These examples show corruption thriving under successive governments. Sources of major conflicts of interest seem to have emerged prominently and openly in public domain with Nepal’s switch to a federal democratic republic and the rise of political oligarchs in the name of a federal democratic system of governance. A certain level of conflict of interest could have been expected because of ages-old inequalities entrenched in a society with diverse ethnicities, cultures, and conflicting traditions. This is because these issues remain trapped within the confines of intergenerational poverty and feudal mindset for want of critical thinking and awareness of functional education and prefer political interference at all levels of governance.

Such a landscape can provide fertile ground for radicalization of population in the socio-political context, further weakening governance modules by giving rise to destructive forces. It can have an adverse impact on political, social, and economic development prescripts, fairness and good governance.

Mother of graft? Conflicts of interest occur when an individual or organization has competing interests that interfere with its ability to act impartially or in the best interest of others. This creates opportunities for corrupt behavior, such as when public officials use their positions for personal gain or when businesses use their influence to secure favorable treatment. Conflicts of interest are not always inherently corrupt, and many organizations have policies and procedures in place to manage them properly. Additionally, corrupt behavior can occur even in the absence of a conflict of interest, so it is important to address corruption through a range of measures, including transparency, accountability, and effective law enforcement. Issues of public concern Root causes There are some common causes that perpetuate competition over ‘incompatible desires’. They can morph into a conflict over varieties of issues like money, resources, time, power and authority to satisfy their own needs at all levels of social and economic spheres. They impact operating modules that can result in widespread corruption to malfunctioning of democratic norms of governance. A contextual comprehension of such situations requires deeper understanding and recognition of socioeconomic compact and political-environmental construct together with associated evolutionary trends in people’s psyche. Political power: Different political parties and factions within the government modules have conflicting interests in terms of gaining and maintaining power. Nepal has had a long history of political instability and conflict, with different political parties and groups competing for power through means like political violence, protests, and strikes. These forms of protest bring learning institutions, civil organizations and state-owned enterprises to a halt, throwing life out of gear. Checks and balances between the power centers are required in a functioning democracy for effective functioning of institutions and ensuring delivery of services for greater goods of the public. Sadly, political parties’ obsession for power at all costs for petty gains has severely undermined this principle. Ethnic and regional identities: Nepal is a country with diverse ethnic and regional identities, though it does not have a huge population like in countries like India and Nigeria. Conflicts flare up easily when diverse groups feel that the government is not safeguarding their interests. Sometimes, ethnic groups may have conflicts with each other on issues related to language, representation in government and allocation of resources. Apart from increasing awareness of ethnic identities and socioeconomic isolation, silent and unnoticed tensions arising from in-migration could result in conflicts in different parts of the country. Religious conflict: Though a predominantly Hindu country, Nepal is also home to sizable Buddhist and Muslim populations, and a growing number of Christians. Several media reports of the past have covered tensions between Hindus and Buddhists over issues like religious practices and festivals, class identity and ethnicity. Resource allocation and economic inequality: Conflicts may arise over sharing of natural resources like land, water, forests and minerals and state revenues. According to World Bank data, Nepal, one of the poorest countries in Asia, has the highest tax rate in terms of GDP per capita in the sub-continent. This points at the possibility of conflicts over resources, such as land and water and state subvention to support different tiers of governance structure. It is clear that government policies and development projects can also lead to conflicts of interest with local communities. Corruption in governance: In Nepal, financial and political corruption is a major obstacle in delivering good governance. In such a context, conflicts may escalate when individuals or groups seek to exploit government resources or their clout for personal gains. Successive governments are mired deep in scams and irregularities like the medical supplies procurement scam involving OMNI, mismanagement of the Melamchi Water Supply Project that has resulted in cost overruns and delayed the completion of the project, the graft case involving Lalita Niwas land acquisition and Nepal Airlines Corporation’s violation of Public Procurement Act while purchasing and/or leasing airplanes. These cases are enough to show the extent of corruption in Nepal, all at the expense of the taxpayer. Foreign relations and regional conflicts: Nepal's relationship with its powerful neighbors—India and China—is likely to remain as a constant cause of conflict, particularly in terms of trade and border disputes, despite repeated claims of friendly relations coming from successive governments. This fraught relationship has Nepali peoples themselves pitted against each other. With such a divided mindset, how can Nepal become a vital, dynamic bridge connecting the two major world powers? In fact, the country can become such a bridge without compromising its sovereignty. All it needs to do is to pursue its ties with the neighbors by safeguarding its national interests in diverse spheres by maintaining its strategic autonomy. These spheres include trade, education, tourism, transport, infrastructure, manufacturing, supply chain, information technology, water resources, climate adaptation and mitigation. Socio-economic issues: A high level of poverty, low wage and income, out-migration of productive age groups for education and job opportunities, a falling production of basic food commodities, lack of skills development and productivity, absence of affordable quality healthcare, transport and sustainable infrastructure development could lead to conflicts of interest within different tiers of governance, socioeconomic strata, and community due to competing interests and priorities over resources and funding. The author, a former staffer at the UNHCR, is a founding board member of Nepal Policy Institute, an independent, non-political international think tank. He can be reached at: [email protected]