TRANSPARENCY PARAGUAY 2005 CORRUPTION REPORT

UNCLAS ASUNCION 000753 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL SOCI ECON SUBJECT: TRANSPARENCY PARAGUAY 2005 CORRUPTION REPORT REF: ASUNCION 0558 ¶1. (U) SUMMARY: Transparency Paraguay's second annual National Survey on Corruption for the year 2005, which was presented to the press on 5/24, is an evaluation of Paraguayan citizen perceptions of corruption in their country. Overall public opinion indicated that a vast majority view Paraguay as a "corrupt" or "very corrupt" country. The report stated the GOP is not effective in disrupting corruption because the government institutions themselves are corrupt. Congress was cited as being the most corrupt government institution followed by the Judiciary. While there is a negative view of corruption and its impact on Paraguayan society, most of those polled showed resignation, citing three other problems as being more grave, including unemployment, delinquency and poverty. The majority of citizens do not have knowledge of where to report cases of corruption. The report noted that since the first year of the survey there has been an increase in citizen awareness of corruption, however this increase in awareness has caused an increase in pessimism and resignation. Transparency Paraguay stated that the only positive aspect of this report is that it provides a better understanding of how corruption (i.e. bribery) operates in Paraguay, which provides hope for a more effective fight against corruption. End Summary. -------------- Background -------------- ¶2. (U) In May 2006 Transparency Paraguay, the Paraguayan Chapter of Transparency International, presented the results of their second annual National Survey on Corruption for the year 2005. The survey was conducted in December of 2005 and January and February of 2006. The final report was written during March and April of 2006. Transparency Paraguay used the same survey as 2004 with a few adjustments. The survey contains both quantitative and qualitative questions, in multiple choice and open response form. A sample population was chosen from all departments of the country, both male and female above the age of 18, in different socioeconomic conditions to thoroughly represent the Paraguayan population. Paraguay has repeatedly been cited by Transparency International as the second most corrupt country in Latin America, only surpassed by Haiti, and one of the most corrupt countries in the world. Bribes are often seen as necessary to obtain public services, particularly pursuing justice or �A;obtaining documents of identification. (reftel) -------------- Findings -------------- ¶3. (U) The survey began on a broad note asking citizens what major problems Paraguay faces today. For the second year in a row, the most common answer was unemployment/lack of work which climbed from 69.1 percent in 2004 to 77.8 percent in ¶2005. Other problems that were reported at a higher rate in the second year of the survey include corruption/bribes, public health, and a lack of justice. Some key problems were reported at a lower percentage in the second year of the survey, including delinquency/lack of security, economic crisis/poverty/hunger, education, inflation/increase in prices, kidnappings, and agrarian crisis/problems with farmers. The perception of the political crisis/lack of democracy/lack of leaders was reported at virtually the same level. When asked which problem the government should fix first, 50.5 percent of those polled responded unemployment/lack of work, the most common answer for two years in a row. Corruption/bribes was listed fourth, after the economic crisis/poverty/hunger and public health. ¶4. (U) In a section focused on bribes, the survey asked if those polled had completed the process for certain public services, and if they had, did they pay a bribe and how much did they pay. For the second year in a row, the bribe that was paid the most frequently, in proportion to the number of people seeking a certain service, went towards fixing traffic fines/processing fines. Also for two years in a row, according to respondents, the more expensive bribes were paid in order to complete processes in court or in the pursuit of justice and to obtain retirement or pension for oneself or a family member. However, the survey reflected a significant decrease in the value of bribes to obtain penal or judicial proceedings. The survey also reflected a noticeable increase in the value of bribes paid to obtain passports and identification documents. Those polled indicated that most commonly the bribes are paid to public officials and secondly to police and military. In both years of the survey, the majority of those polled indicated that bribes are highly effective. ¶5. (U) The survey also studied public institutions in regard to the fight against corruption. The amount of those polled who believe that Paraguay is either corrupt or very corrupt rose from 90.9 percent in 2004 to 95.6 percent in 2005, while the number that believe Paraguay is slightly corrupt or not corrupt dropped from 8.4 percent in 2004 to 3.3 percent in ¶2005. The majority of those polled, 51.4 percent in 2005 compared to 49.7 percent in 2004, believe that corruption in Paraguay will increase over the next five years. Congress was cited by those polled as being the most corrupt government institution in 2005 at 54.8 percent, while the 2004 survey indicated the national police as being the most corrupt at 55.9 percent. For 2005 the Judicial Branch was seen as the second most corrupt at 46.7 percent, while in 2004, Congress was seen as second most corrupt at 38.4 percent. ¶6. (U) When asked how corruption effects the country in a negative way, the most common response was "a decrease in quality of life and an increase in poverty", cited by 38.9 percent of those polled. In both years of the survey, the government of President Duarte was ranked as the third most corrupt after that of President Wasmosy, cited as most corrupt both years, and that of President Gonzalez Macchi, cited as second most corrupt in both years. Those polled that believe the government of President Duarte is the most corrupt increased from 6.8 percent in 2004 to 12.0 percent in ¶2005. ¶7. (U) When those polled asked if they knew where to report a case of corruption, 62.6 percent said no, reflecting a slight increase from 57.3 percent in 2004. Asked whether reporting a case of corruption is effective, 52.9 percent said "not at all," while only 2.7 percent said "sufficiently effective". The survey asked if those polled had reported the last request for or offer of bribe, to which 98.7 percent responded "no", up from the 95.0 percent that responded "no" in 2004. The most common reason for not reporting a bribe was cited as "personal benefit" at 36.7 percent, and secondly, "it does not accomplish anything" at 22.4 percent. -------------- Breaking the Grip -------------- ¶8. (U) The conclusion of the report used the words &increase in consciousness8, &pessimism8 and &resignation8 to summarize the survey's findings in regards to citizen perception of corruption in Paraguay. The report reflected that there is rising awareness of the existence of corruption at high levels in Paraguay as well as awareness of the negative effects it has on society. The report demonstrates pessimism that the institutions charged with fighting corruption will do it effectively. The study also shows that Paraguayans are resigned to the premise that receiving a public service may only be possible by paying a bribe, and that it is impossible to break the impunity that surrounds corruption when the public institutions that are supposed to be combating corruption are themselves corrupt. The report's conclusion noted that there are positive indicators that in the 12 months between the surveys the level of awareness and the number of people committed to fighting corruption have both increased, along with citizens' understanding of the gravity of the corruption in Paraguay. However, an increase in pessimism and resignation accompanied the increase in awareness as more people began to understand the gravity and complexity of the situation and its negative impact on Paraguayan society. The report states that the final result is that while Paraguayans are aware of the corruption and the harm it does to society, they are willing to pay a bribe if it means successfully obtaining service from a public institution. Paraguayans also do not feel the need to denounce it because they do not believe the institutions will take any action, and do not believe that the attitude of citizens can make a difference. Transparency Paraguay stated that corruption in Paraguay is not the result of a lack of honesty but rather the consequence of public institutions that do not enforce the law, noting the one positive aspect is that Transparency Paraguay better understands how corruption functions in Paraguay, allowing for a more effective strategy to reduce it. ¶9. (U) COMMENT: This survey is a clear indication of the effects of corruption in Paraguay. The willingness of the population to continue "business as usual" despite their knowledge of the negative consequences is a testament to the difficulty of eradicating corruption in Paraguay. There are some components to the Millienium Challenge Account (MCA) Threshold Program that will seek to address public perceptions by conducting information campaigns here in Paraguay. Post believes the MCA components will address some of these corruption issues and empower citizens to report corruption, possibly changing some public perceptions. End Comment. CASON