US embassy cable - 03KATHMANDU80

UNCLAS KATHMANDU 000080 
 
SIPDIS 
 
SA/INS FOR EKPUK 
LONDON FOR POL - REIDEL 
 
E.O. 12958: N/A 
TAGS: PGOV, SOCI, NP 
SUBJECT: NEPAL COMPARES FAVORABLY IN CORRUPTION SURVEY 
 
REF: 2002 KATHMANDU 2467 
 
1. In December 2002, Transparency International-Bangladesh 
(TIB) completed a citizen survey of five South Asian 
countries on the incidence of corruption in accessing and 
using government services in education, health, power, land 
administration, taxation, police, and the judiciary.  In 
almost all categories, Nepalis reported relatively low levels 
of corruption compared with those of their neighbors.  In 
fact, reports in most categories rate corruption in 
government services one-third to one-half of Nepal's South 
Asian neighbors. 
 
2. The survey reported the incidence of corruption for: 
-- Education at 25 percent (the lowest in the region); 
-- Health Services at 18 percent (the second lowest, behind 
India); 
-- Power at 12 percent (the lowest in the region); 
-- Land Administration at 17 percent (the lowest in the 
region); 
-- Tax Administration at 25 percent (the second lowest in the 
region, behind India); 
-- Police Services at 48 percent (the lowest in the region); 
and 
-- Judiciary at 42 percent (the lowest in the region). 
 
3. The survey does not give Nepal a clean slate and, in fact, 
finds that requested bribes are exceptionally high--USD 180 
for health services and USD 160 for tax administration--when 
compared with Nepal's per capita GDP of USD 220.  The survey 
also asked respondents to rank the the government's services 
according to their perception of corrupt practices.  Nepalis 
rated the police as the most corrupt, followed by the 
judiciary, with education and tax administration tying for 
third. 
 
4. Comment. Virtually all analyses of the Maoist insurgency 
in Nepal rank governmental corruption high as a root cause. 
If the survey results summarized above are valid, corruption 
in public administration may be a less salient cause of 
general discontent than other factors, such as the virtual 
absence of in many remote areas of any effective government 
services.  Perhaps the survey could have been more insightful 
if it had assessed the incidence of political corruption. 
End Comment. 
 
5. TIB's report, Corruption in South Asia: Insights and 
Benchmarks from Citizen Feedback Surveys in Five Countries, 
can be found at http://www.ti-bangladesh.org/.  The study 
acknowledges a grant from USAID in making the effort possible. 
MALINOWSKI