PRESS RELEASE Prague, June 30th, 2004

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PRESS RELEASE Prague, June 30th, 2004 TIC presents the results of the V4 INDEX which compares the effectiveness of anti-corruption tools in the public administration in the capitals of the Visegrad Four The V4 INDEX results show that anti-corruption tools work best in Budapest. In this comparative study, Prague has finished last of the Visegrad Four capitals. Transparency International Czech Republic (TIC), a non-governmental non-profit organisation, has conducted this spring a comparative V4 INDEX survey in cooperation with GfK Praha. The objective of the research, conducted in Prague, Bratislava, Budapest, and Warsaw, has been to find out which of the selected anticorruption tools are used in the public administration of the capital cities of the Visegrad Four countries, while also aiming at comparing to what extent these tools are functional i.e. how efficient they are in preventing corruption. Michal Štička, a TIC Project Manager, says: Our goal has been to develop an innovative methodology for measuring the institutional tendency towards corruption, and to use this new methodology to study the public administration of the Visegrad Four capitals. TIC have a hope that publishing the results will bring about an increase in anti-corruption activities of the representatives of these cities. The survey was conducted in two stages: in the first one, the aim was to gather hard data capturing the existing anti-corruption tools and mechanisms in the Visegrad Four capitals public administration. The data were gathered by means of content analysis of documents and interviews with the representatives of the municipal councils of each capital. The second stage of the survey studied the perceptions of anti-corruption tools efficiency, as seen by the public. Personal interviews were conducted among employees and elected members of the municipal councils of the V4 capitals, journalists, businessmen, and NGO representatives. In each of the cities, 100 respondents were interviewed (and 107 in Prague). The research focused on anti-corruption mechanisms in five areas: public procurement tenders, internal audit and control mechanisms, codes of ethical behavior, conflicts of interest, and public administration information policies / public accessibility of information.

For more detailed information about the results of the survey, go to the following websites: www.transparency.cz, www.gfk.cz. TIC would like to express its thanks to the Open Society Institute, Partnership for Transparency Fund and to the UK Foreign and Commonwealth Office - Global Opportunities Fund for their financial support of the project. GfK ČR GfK Praha, INCOMA Research and INCOMA Consult constitute a major provider of complex services in market research and public opinion polling, including consultancy services. The GfK ČR Group is a part of GfK Group, the fifth biggest company in its field, globally. Transparency International Czech Republic is one of the 80+ national branches of the international network comprising Transparency International. Its mission is to monitor the level of corruption in the Czech Republic and actively contribute to its reduction. For more information, please, contact: Michal Štička Michaela Šindelářová Transparency International ČR GfK Praha Františka Křížka 4 Geologická 2 170 00 Praha 7 150 00 Praha 5 tel.: +420 606 142 321 tel.: +420 296 555 613 fax: +420 233 378 900 fax: +420 251 815 744 e-mail: sticka@transparency.cz e-mail: sindelarova@gfk.cz www.transparency.cz www.gfk.cz

Press Release Appendix: V4 INDEX Results A) The existence of a selection of anti-corruption tools in the public administration of the Visegrad Four capitals (V4 INDEX objective part) According to the results of this objective part of V4 INDEX 1, designed to map the existing anti-corruption tools in the five public administration areas mentioned above, the institutional environment is best regulated in Budapest (INDEX V4 HU =0.865). The second place in this ranking was occupied by Warsaw whose total INDEX V4 PL =0.642. Prague finished third with V 4CZ =0.598. Prague is relatively strong in the field of codes of ethical conduct. Prague achieved above-average results also in the internal audit area. In contrast, conflicts of interest are covered insufficiently by existing regulations, and it is precisely this area where Prague s standing is the worst compared to the other capitals. Bratislava was last and its overall index value is V 4SK =0.553. OBJECTIVE PART INDEX READINGS Prague Bratislava Warsaw Budapest Overall Index 0.598 0.553 0.642 0.865 Public Procurement Tenders 0.607 0.356 0.904 0.963 Internal Audit and Control Mechanisms 0.728 0.933 0.617 0.761 Codes of Ethical Conduct 0.800 0.222 0.000 0.928 Conflicts of Interest 0.357 0.643 0.857 0.786 Open Information Policies 0.500 0.611 0.833 0.889 The index ranges between 0 and 1. Overall Index - Results all tools no tools 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 0,865 0,642 0,598 0,553 Bratislava Praha Varšava Budapešť 1 The values of the Objective V4 Index range from 0 to 1 where a 0 indicates the absence of anticorruption measures in the public administration and a 1 means that all of the studied measures are in operation.

B) The functionality of a selection of anti-corruption tools in the public of the Visegrad Four capitals (V4 INDEX subjective part) According to the results of the second stage of the research, based on subjective perceptions of the respondents, it is clear that the operation and functionality of anticorruption tools used in the public administration of individual capitals is assessed less positively than might be implied by the data gathered in the objective survey. This difference however is in full agreement with expectations as indicated by similar comparative research results comparing reality with its perception, the public is usually more pessimistic. Budapest retained its position from the previous part of the survey, and finished first (INDEX V4 HU =0.489). Despite the positive assessment by the public, the functionality of anti-corruption mechanisms surveyed is still perceived negatively. From among the areas under scrutiny, the ones to receive a relatively best rating by respondents were the areas of Public Procurement Tenders and information accessibility (Open Information Policies of municipal authorities). These results fully correlate with the data generated by the objective part of the survey, which determined that these were also the areas which in Budapest were regulated best. The differences in the perceptions of the functionality of anti-corruption tools in Bratislava and Warsaw are negligible both cities achieved practically the same index (0.438), and the differential between the second and third place was only in the order of ten thousandth. Despite having the worst anti-corruption regulations in the five areas studied, Bratislava was rated second best according to respondents opinions with an index figure of V4 SK =0.43782, ahead of Warsaw. Strikingly, Bratislava achieved above-average results in the area of codes of ethical conduct most of the individuals interviewed consider the environment in Bratislava s public administration to be ethical, despite the fact that the city s executive authority has not yet implemented any code of ethical conduct. The biggest room for improvement in Bratislava, as perceived by the respondents, lies in the area of conflicts of interest, whose functionality they consider the least efficient. The third position was attained by Warsaw (V 4PL =0.43778). Despite not having practically any regulations handling the area of codes of ethical conduct (Warsaw does not have any code of ethical conduct implemented yet), the Poles rate this area the highest (they are even less critical than respondents in Budapest and Prague, where there are codes of ethical conduct in operation already in contrast to Bratislava and Warsaw). Compared to the other countries, Warsaw respondents perceive quite positively also the area of public procurement tenders. In turn, internal audit and the operation of control mechanisms are considered rather dysfunctional. Prague s achieved V 4CZ =0.403, thus placing it fourth of the countries studied. If we compare the partial indices between the different capitals, Prague did not exceed the average in any of the areas under consideration. The respondents who have dealings with public administration do not believe that anti-corruption tools are

implemented with much efficiency, their expectations are higher and exceed the current state of affairs. The best results were achieved in the area of codes of ethical conduct where more than a half of respondents consider the environment in the Czech capital s public administration as ethical and they assess positively the activities of the municipal administration as well. The public administration s information policies (public s access to information) are rated as the second best. Identically as in the case of Bratislava, Prague residents are the most critical against the way conflict-of-interest regulations are implemented, they consider their enforcement as insufficient. SUBJECTIVE PART INDEX READINGS Prague Bratislava Warsaw Budapest Overall Index 0.403 0.43782 0.43778 0.489 Public Procurement Tenders 0.400 0.455 0.471 0.547 Internal Audit and Control Mechanisms 0.383 0.401 0.388 0.461 Codes of Ethical Conduct 0.473 0.509 0.505 0.495 Conflicts of Interest 0.294 0.317 0.400 0.423 Open Information Policies 0.463 0.508 0.425 0.515 The index ranges between 0 and 1. 0 = very bad, 0.33 = somewhat bad, 0.66 = somewhat good, 1 = very good. Overall Index Readings (range is 0 to 1) ++ very well 0,6 0,5 0,4 0,403 0,438 0,438 0,489 0,3 0,2 0,1 -- very badly 0 Praha Varšava Bratislava Budapešť