CORRUPTION: A DEVIANCE, OR CHANGE IN ECONOMIC NORMS OF PAKISTANI SOCIETY

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1 Sarhad J. Agrric. Vol.9, No., 3 CORRUPTION: A DEVIANCE, OR CHANGE IN ECONOMIC NORMS OF PAKISTANI SOCIETY ASAD ULLAH *, MUSSAWAR SHAH, ABBAS ULLAH JAN and GHAFFAR ALI Department of Rural Sociology, The University of Agriculture, Peshawar - Pakistan Department of Agricultural and Applied Economics, The University of Agriculture, Peshawar Pakistan * asadpsh@yahoo.com ABSTRACT The major objective of this research study was to assess the impact of corruption upon the prevalent social values in Peshawar city, Pakistan. A sample size of 5 respondents was selected through stratified random sampling to ascertain respondent s attitudes towards phenomena under investigation through Likert scale as measurement tool. Both uni-variate and bi-variate analyses were carried out to determine outcomes. The dependent variable s (corruption perception) effects were assessed on the independent variable (Social Values in Economic Institutions) by using Chi-square test. In addition, Gamma ( ) statistics were applied to determine the strength and direction of the relationship. The study found a significant and positive association of corruption perception with fair chances of employment (P=.), punishment of corrupt people (P=.), transparency in government departments (P=.), religious practices like Ushr and Zakat" (P=.) and promotion of religious teachings in economic institutions (P=.) as strongly associated with corruption perception. Some of the additional contributing factors included insufficient salaries of government servants (P=.), fair and just distribution of family resources (P=.47). It is concluded that the social values are deteriorating, being replaced by corruption which is getting the rank of a rising social value and is largely in practice amongst members of society, especially in various economic aspects of social life. Nevertheless, people still believed that prevalent social order is strong enough to combat this shifting dynamics, by generating a morality based environment. Keywords: Corruption, Social norms and values, socio-economic dynamics Citation: Ullah. A., M. Shah., A. U. Jan and G. Ali. 3. Corruption: A deviance, or change in economic norms of Pakistani Society. Sarhad J. Agric. 9(): 85-9 INTRODUCTION Corruption, the essence of definition prevails with the specific motive of preventing the integrity of an individual/organization to discharge formal functions in the capacity of public duties for the attainment of selfenrichment. It is assumed that a set of actions based on give and take, overly dependent on each other, which is mostly wrong and against the state laws and are often in practice both in local and at international scenarios which results in shape of loss of Trillion US $ as paid bribe. Any society with poor working conditions, corruption creeps in and up as an inevitable choice of the masses of these states. The social values around are not in harmony rather exposed to a detrimental situation which usually leads to the emergence of gap that is filled by corruption (World Bank, 4). It is often understood that corruption is working as a driving force behind the escaping regulatory mechanisms which strengthen the legal fabrics. Incumbent bureaucracy is no exception to this phenomenon, rather making it a complex whole leaving little room for honesty to operate. Thus making client to pay and get their desire done. Corruption is usually measured with the amount of money involved. Higher economic benefits usually turnout with higher cost to pay. It is often misunderstood as catalyst working towards speeding of the phenomenon (Awan, 4; World Bank, 4; Myint, ; & Merton, 968) The relationship worked out between salaries of government servants and level of corruption by Rijckeghem and Weder (997) who proved that employees with low profile are more prone to pay and get bribe however, persons enjoying personal benefits of higher ranks usually resist accepting corruption as of losing job. It could be emanated from these results, as highlighted by Besley and McLaren (993) that higher pay package could lead to lessening the chances of corruption and thus a transparent economic structure could emerge. A system transparent in nature with well defied service structure, containing in itself service security and promotion on performance basis along with motivational incentives with a strong system of check and balance based on periodic intervals, where penalty is also endorsed as a norm could result in the proper and smooth economic system (Rauch and Evans, ; Mookhaerjee and Peng, 995). Principal agent and client theory pioneered by Klitgaard (988), clearly draws a map based on recruitment promotion strategies with incentives in wage along with a strong monitoring system to improve efficacy at

2 Asad Ullah, et al. Corruption: A deviance, or change in economic norms of Pakistani society 86 institutional levels across the board. This model reveals a three pronged strategy to cope with the menace of corruption i.e. Principal, Agent and Client subsequently. A well thought out mechanism of refinement is essential to filter out dishonest through a meritorious mechanism devised for the selection of candidates, abridging with reward and punishment through a strict monitory system (Galtung, 998). Poor traditional societies, as pointed out by Tanzi () are mostly composed of a number of Principals operating in a system rather a single formal one, as indicated by Klitgaard (988) in his theory. This principal is supposed to be biased and inclination free. However, in traditional societies events could be taken up other way round where mostly it is family and relation oriented. In Pakistan corruption remained a priority problem since independence (National Accountability Bureau, 7), which has deep roots (Noman, 988) as has been ranked worst than average in the international surveys on corruption (Mauro, 995). Rose and Stone (996) has linked corruption with poor governance impeding economic growth and slowing down the development of a healthy private sector. In Pakistani society this phenomenon is also displaying harassment, hassle, red tapism and delays in accomplishing the legal tasks that provide few incentives for good performance (Murray et al, 994). Keeping into considerations the bleak picture of Pakistani society with reference to effects of corruption on its social order, this study is designed to explore the possible reasons through proceeding objective of associating the people s perception on corruption with deteriorated social values in economic institutions. MATERIALS AND METHODS The study was carried out in Peshawar City, Khyber Pakhtunkhwa, Pakistan. It was tried to find out the objectives of the study by preferring an approach which may be classified as realistic and diverse, by investigating from specialists with diverse academic and professional backgrounds. To have relevant, significant and creative information, the respondents comprised of the following characteristics were selected.. Officials of investigation cadre from Peshawar based anticorruption agencies like National Accountability Bureau (NAB) and Anti-Corruption departments were selected as representatives of Government servants.. Professors from Peshawar based public sector universities were selected as representatives of academicians. 3. Qualified Ulema teaching at major religious educational institutions like, Jamia Darwesh, and Darululoom Sarhad were selected as representatives of Ulema and religious leaders. Total population of potential respondents with said characteristics came out to be 35. Sekaran (3) simplified the sample size decision process, for multiple variables, by providing a table that greatly simplify the decision of sample size and ensure good decision model. For a population size of 35 a sample size of 5 respondents was selected through criterion devised by Sekaran (3). Respondents were further categorized as Academicians, Anti Corruption staff and Religious Scholars, being the custodians of dynamism and thereby predicting the transition in social value in the prevalent social environments. A conceptual framework was devised as shown in the Table and questions were asked accordingly from the respondents devised through Likert scale. The dependent variable (Corruption Perception) was indexed and cross tabulated with independent variable (economic aspects of social values) to measure the association. Chi-square test outlined by Tai (978) at bi-variate level was used through the formula as below ( ) = x = j k j j Table. Conceptual framework. Independent variable Economic aspects of social values (oij - e ij) eij Dependent variable Corruption perception The Fisher Exact Test which also is known as Exit Chi-square Test was used instead of a simple Chi-Square, to overcome the violation of Chi-Square assumptions. The relationship developed by Fisher to overcome such violation is given in equation devised by (Baily, 98) through equation shown below; (a+b)! (c+d)! (a+c)! (b+d)! Fisher Exit Test Probability = N! a! b! c! d!

3 Sarhad J. Agrric. Vol.9, No., 3 87 Moreover, Gamma statistics was used to measure the strength and direction of association (Nachmias & Nachmias, 99).. SN - SN Gamma ( ) = SN + SN NS = Same order pair ND = Different order pair Limitations of the Study Lower sample size is the limitation of this study. Due to limited number of respondents of mentioned characteristics it was the research was left with no option but to opt for a smaller sample size. Moreover, due to small sample size it was statistically insignificant to study the variations of responses across their sub-groups. RESULTS AND DISCUSSION Frequency and Percentage Distributions Regarding Economy Aspects of Corruption Certain statements attributing corruption with association to salaries, rewards, punishments, transparency, monitoring and ethics were asked as shown in Table-. Majority i.e. 85.4% respondents considered insufficient salaries of employees as cause of The result points to prevalence of disproportionate hike in prices as compared to low salaries that pushes the government servants to menace of Similarly, 95.4% assured encouragement and rewarding honest deed in economic institutions strengthen social values and discourage corruption, 9.7% assumed promotion of religious teachings in economic institution as a tool to reduce Moreover, 7.3% viewed fair distribution of inheritance at family level among its members reduces It could be deducted that inheritance exists but not actually executed as per Islamic injunctions. Likewise, 99.3% respondents considered fair chances of employment for deserved reduces corruption, 84.7% viewed religious economic system of "Ushar" and "Zakat" reduces It is anticipated that system of collection and distribution of Zakat by the government is vague. Religion promotes the idea of its collection and distribution at individual level. It needs a mechanism to be devised while keeping into consideration the divine thought and the current day modern economic practices. Likewise, 75.4% respondents emphasized on strict monitoring of financial transactions to reduce corruption, 97.3% advocated punishment of corrupt people to reduce corruption, 98% viewed transparency in government departments to reduce However, 47.3% emphasized circulation of money in market to reduce It is inferred from the above findings that strong societal assessment scales do exist in the existing culture for measuring the right and wrong ways of earnings. This system could further get boast from religious backing as envisaged in it about the circulation of money for doing business and a strong concept of Khairat and Zakat, i.e. specific portion of the total income of the wealthy for the poor class as offerings. All these facts once channelized under a proper mechanism based on reward and punishment could positively direct the societal change in a meaningful direction, conducive to the corruption free environment, rather a pious approach of earning and subsequent expenditure. The above results support the findings of Plateau (994) which involves the mechanisms to generate trust and honesty for replacing the cheating values in economic institutions. Similarly, Rauch and Evans () established that although high salary is an evidence of motivational factor for government officers but its effects on controlling corruption are not much obvious provided a merit based service structure, service security, and performance based salaries and promotions, are ignored. Thus a negative relationship exists between motivational supports and These findings support Klitgaard (988), Principal Agent Client Theory of corruption that emphasize on fair recruitment, promotion strategies and incentives in wage structures on one side and strict monitoring system on other side to improve the overall efficiency. The probability of detection of corruption which is directly related to the strength of monitoring system and size of the penalty which is linked to law enforcement and judicial system in support ot Klitgaard (988) by Mookherjee and Png (995). Furthermore, a strong relationship to curbing corruption and religious values intactness could be proved vital as reported by Tittle and Welch (983) that moral/religious values ensures compliance to morality and rule of law.

4 Asad Ullah, et al. Corruption: A deviance, or change in economic norms of Pakistani society 88 Table. Frequency and Percentage Distributions of Responses Regarding Economy Values and Corruption. Statements Regarding Economy Values and Corruption Strongly disagree Disagree Uncertain Agree Strongly Agree Insufficient salaries of government employees cause (7.3) (7.3) 94 (6.7) 34 (.7) Encouragement and rewarding honest deed in economic institutions strengthen social values and discourage 6 (4) (.7) 73 (48.7) 7 (46.7) Promoting religious teachings in economic institution can reduce (.3) 9 (6) 84 (56) 55 (36.7) Fair distribution of inheritance i.e. family economic assets among its members reduces (.3) (8) 9 (9.3) 9 (6.3) 5 () Circulation of money in market reduces (3.3) 59 (39.3) 63 (4) 8 (5.3) Fair chances of employment for deserved reduces (.7) 68 (45.3) 8 (54) The religious system of "Ushar" and "Zakat" reduces (.3) 3 () 8 () 58 (38.7) 69 (46) Ensuring strict monitoring of financial 35 9 transactions can reduce corruption (.3) (3.3) (6.7) (4.7) Ensuring punishment of corrupt people can reduce corruption (.7) 3 () 45 (3) (67.3) Transparency in government departments reduces (.3) (.7) (3.7) (65.3) * Number in table represent frequencies and number in parenthesis represent percentage proportion of respondents. Association between Economic Values and Corruption This section emanates the relationship between the economic values and corruption as shown in Table- 3. A highly significant (P=.) and Positive ( = +.) relationship was found between fair chances of employment for able persons and corruption perception. It is inferred from this relationship that fair employments opportunities strengthen beliefs in a sound dynamic employment structure, which reduces events of corruption as only merit prevails. Similar relationship is observed between punishment of corrupt people and corruption perception (P=..5, = +.89). The result suggests that the idea of punishment associated with corruption works as a repulsive force against corruption hence reducing the chances for corrupt practices. Similarly, the relationship between transparency in government departments and corruption perception was found positive and significant (P=.; and = +.37). It could be due to the prevalence of transparency in government departments, which has a subsequent effect in the shape of reducing corrupt practices. The role of religious teachings and practices were found highly significant in bringing clarity in corruption as relationship of religious practices like Ushr and Zakat" and corruption perception, was found positive and significant (P=.; and = +.3), thus signifies the importance of such like religion based economic practices for reducing corruption and improving corruption perception. Relationship of promotion of religious teachings in economic institutions and corruption perception was also positive and significant (P=.; and = +.63). A weak but positive relationship strengthens the idea that low priority is given to religious teachings in economic institutions. Thus punishment for dishonest and reward for honest could prove essential in curbing the corrupt practices as delineated by Plateau (994). The relationship of insufficient salaries of government servants and corruption perception was found significant (P=.) but negative ( = -.5). The poor honesty performance due to low salaries on part of government officers, because undesirably committing to corruption for meeting their certain basic needs, as not supposed to be met through their salaries are the probable outcomes. Salaries do affect the level of corruption by the government officials, as the officials with low paid salaries are more prone to corrupt practices for satisfying their needs (Rijckeghem and Weder, 997). However, there was not any relationship between increase in efficiency and honesty with increase in salaries (Rauch and Evans, ; Besley and McLaren, 993). Relationship of fair distribution of family resources and corruption perception, was also negative and significant (P=.47, = -.8). The importance of such distribution is essential at family level to bring harmony and consistency in relationship amongst the co-sharing members. However, denial to any one of this right, may lead him in committing corruption for striving to be at par with other family members, as the negative effects of unfair distribution of family resources and corruption perception.

5 Asad Ullah, et al. Corruption: A deviance, or change in economic norms of Pakistani society 89 Table 3. Association between economic values and Economic Aspects of Social Values Attitude Corruption Perception Total Statistics Strongly disagree Disagree Uncertain Agree Strongly Agree (P Value) Disagree (.7) 6 (4) 4 (.7) (7.3) = 36. Uncertain (.7) (6.7) (7.3) Agree (.7) (8) 7 (48) 9 (6) 94 (6.7) = -.5 Insufficient salaries of government employees cause Encouragement and rewarding honest deed in economic institutions strengthen social values and discourage Promoting religious teachings in economic institution can reduce Fair distribution of inheritance i.e. family economic assets among its members reduces Circulation of money in market reduces Fair chances of employment for deserved reduces The religious system of "Ushar" and "Zakat" reduces Ensuring strict monitoring of financial transactions can reduce corruption Ensuring punishment of corrupt people can reduce corruption Transparency in government departments reduces Strongly Agree (.7) 4 (.7) (4) 8 (5.3) 34 (.7) Disagree (.7) 5 (3.3) 6 (4) = 49. Uncertain (.7) (.7) Agree 9 (.7) 5 (34.7) (.3) 73 (48.7) = -.7 Strongly Agree (.3) 4 (.7) 49 (3.7) 5 () 7 (46.7) Disagree (.7) (.7) (.3) = 86.4 Uncertain 3 (.) 6 (4) 9 (6) Agree (.3) 4 (9.3) 6 (4.7) 7 (4.7) 84 (56) = +.63 Strongly Agree 5 (3.3) 4 (6.7) (6.7) 55 (36.7) Strongly disagree (.3) (.3) = 6.5 (.47) = -.8 Disagree (.7) (.7) 3 (.) 7 (4.7) (8) Uncertain 3 (.) (4.7) 4 (.7) 9 (9.3) Agree (.7) 3 (8.7) 69 (46) 9 (6) 9 (6.3) Strongly Agree 4 (.7) 7 (4.7) 4 (.7) 5 () Disagree (.7) 5 (3.3) 4 (9.3) (3.3) =.86 Uncertain (.7) 6 (4) 46 (3.7) 6 (4) 59 (39.3) (.39) Agree (.7) 9 (6) 45 (3) 8 (5.3) 63 (4) = -. Strongly Agree 3 (.) (.3) 3 (.) 8 (5.3) Disagree (.7) (.7) = 89.7 Uncertain (.7) 3 (5.3) 43 (8.7) (.7) 68 (45.3) Agree (.7) 64 (4.7) 6 (.7) 8 (54) = +. Strongly disagree (.3) (.3) = = +.3 Disagree (.7) (.3) 3 (.) Uncertain 6 (.7) (.3) 8 () Agree (.7) (3.3) 7 (8) (6.7) 58 (38.7) Strongly Agree (.7) 3 (.) 6 (4) 5 (3.3) 69 (46) Disagree (.7) (.7) (.3) = 8.56 Uncertain 7 (4.7) 7 (8) (.7) 35 (3.3) Agree (.7) 4 (9.3) 64 (4.7) (8) 9 (6.7) = -.36 Strongly Agree (.7) (.3) 5 () 4 (.7) (4.7) Disagree (.7) (.7) = 6.56 Uncertain (.3) (.7) 3 (.) Agree (6.7) 9 (9.3) 6 (4) 45 (3) = +.89 Strongly Agree (.3) (7.3) 77 (5.3) (7.3) (67) Disagree (.7) (.7) (.3) = = +.37 Uncertain (.7) (.7) Agree (.3) (8) 35 (3.3) 49 (3.7) Strongly Agree (6.7) 7 (47.3) 7.3) 98 (65.3) * Values in table represent frequencies and values in parenthesis represent percentage proportion of respondents

6 Asad Ullah, et al. Corruption: A deviance, or change in economic norms of Pakistani society 9 CONCLUSIONS AND RECOMMENDATIONS Economics as an institution revolve around the production, distribution and consumption of goods and services in a society. The study concluded that people in the study area had a clear vision about corruption, being lethal and deteriorating to social order with special reference to economic institution. Low government servants were least motivated to their cause i.e. duty, as merit was found to be least effective, devoid of strong appraisal mechanisms based on reward and punishment. Monopolistic trend was observed in the market economy, thus making it little viable for the investors to invest, and leading to squeezing the chances of free and transparent economic activities, which result in low paid jobs in the market. A strong merit based transparent system in economy is recommended for making the system more viable though religious endorsements in the shape of activating the Zakat and Ushar pillars, designed for economy. REFERENCES Awan, K. B. 4. Anti Corruption Strategies in Pakistan. Lahore. Bookbiz. Baily, K. D. 98. Methods of Social Research. nd Ed. New York. Macmillan Publishing Co., Inc. P. 48. Besley, T. and J. McLaren Taxes and bribery: The role of wage incentives. Econ. J. 3:9 4. Galtung, F Criteria for sustainable corruption control. Eur J. Dev. Res. ): 5-8. Klitgaard, Robert 988. Controlling Corruption. Berkeley: Univ. of California Press. Mauro, P Corruption and Growth. Q. J. Econ. : Merton, R.K Social Theory and Social Structure. New York: Free Press. Mookherjee, D. and I.P.L. Png Corruptible supervisors and law enforcers: How should they be compensated? Econ. J. 5: Murray, R., D. Hammond, and Edward J. Vander Velde Changes in Hydraulic Performance and Comparative Costs of Lining and Desilting of Secondary Canals in Punjab, Pakistan. Irrigation and Drainage Systems 8: Myint U.. Corruption: Causes, Consequences and cures. Asia Pacific Dev. J. 7: World Bank 4. NAB annual report. 7. National Accountability Bureau, Pakistan. Nachmias. C. Frankfort and D. Nachmias 99. Research Methods in Social Sciences. 4th Ed. St Martin s Press Inco. New York. USA. Noman, O The Political Economy of Pakistan London: KDI. Plateau, J. P Behind the market stage where real societies exist Part II: The role of moral norms. The J.Dev.Studies Rauch, J. E. and P. B. Evans.. Bureaucratic structure and bureaucratic performance in less developed countries. J.Public Econ.75: Rijckeghem, C. Van and B. Weder Corruption and the rate of temptation: Do low wages in the civil service cause corruption? Working Paper WP 97/73, International Monetary Fund, Washington D.C. Rose, A., S., and A. Stone The Costs of Corruption for Private Business: Evidence from World Bank Surveys. Washington, D.C. World Bank, Private Sector Development, Sekaran, U. 3. Research Methods for Business. USA, Hermitage Publishing Services. Tai, Simon. W Social Science Statistics, it Elements and Applications. California, Goodyear Publishing Company. Tanzi, V.. Corruption, governmental activities, and markets, chapter 6 (pp. 88-6) in Vito Tanzi () Policies, Institutions and the Dark Side of Economics. Cheltenham: Edward Elgar. Tittle, C.R. and M. R. Welch, 983. Religiosity and deviances: toward a contingency theory of constraining effects. Social Forces. 6: