MONGOLIA: TRENDS IN CORRUPTION ATTITUDES

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MONGOLIA: TRENDS IN CORRUPTION ATTITUDES Survey Methodology The study is a longitudinal survey using multilevel randomization. It is designed to measure both changes in public attitudes and country-specific indicators that are comparable across countries. Some of the survey components were modeled on the Transparency International Global Corruption Barometer (GCB), and measure personal experience with corruption, in addition to perceptions. This third survey was conducted in March 7 and comprised 6 respondents in Ulaanbaatar, Selenge, Sukhbaatar, Uvurkhangai and Uvs aimags. The second survey of September 6 comprised 61 respondents in Ulaanbaatar and four provinces: Arkhangai, Selenge, Uvs and Hentii. The first survey of March 6 was the largest, creating the baseline and comprising 13 randomly selected respondents from Ulaanbaatar, Dornod, Umnugobi, Hovd and Khuvsgul.

Awareness and Understanding The third survey results did not reveal any significant changes concerning public attitudes toward corruption. Contrasted with Mongolia s temperamental and volatile politics, corruption attitudes have remained remarkably stable. Through all three surveys, around 9% of the sample population considers corruption to be common practice in Mongolia (Chart 1). A large fraction of respondents continue to support the notion that the political system should be replaced if it is not capable of combating corruption the number dropped from 66.4% in September 6 to 61% in March 7. There was also a significant drop in the number of those who think that only government institutions are capable of fighting corruption - from 61.1% to 53.1%, which to say, the public views NGOs and themselves as having increasingly substantial roles to play. Chart 1 Corruption is common practice in our country 1 9 91 89.3 88.9 8 7 6 5 Mar 6 3 1 Mar 6. Despite the adoption of a new anti-corruption law, a large number of respondents believe that the law is not functioning (Chart 2). In the public eye, the Law on Mining remains a bonanza for corrupt officials and foreigners, and this could make signing a stability agreement risky-business for those politicians and parties who are facing 8 elections.

Chart 2 Anticorruption law is still not functioning 1 9 8 87.7 79.4 79.1 7 6 5 Mar 6 3 1 Mar 6 However, there is hope the number of those who think that the situation will improve as a result of introduction of the new law increased from 35% to % between September and March. Chart 3 Many think the Anti-Corruption Law will make a difference 5.5 1.5 3.8 9.2 35.4.7 48.6 Better Stay the same Worse DK/NA Better Stay the same Worse DK/NA

There is no change in the public belief that elite cannot be counted upon to fight corruption. Most continue to believe that politicians will not fight corruption because they benefit directly from it (Chart 4). This view resulted from or was bolstered by Parliament s decision to approve appropriation of 25 million tugrugs for each member of Parliament in the initial 7 budget. Consequently, the number of people reporting that politicians divert state funds to the own electorate, also rose from 54.2% in September to 57.7% in March. Chart 4 No hope for decision makers To have less corruption is the responcibility of citizen themselves Elite people do not care about corruption - only ordinary people are carrying the burden Politicians have no real will to fight corruption as many of them are benefitting from it 1 9 8 7 6 5 3 1 9 9 88.7 85 8.6 8.28.6 74.5 75.1 Mar 6 Time lines The assessment of corruption over the past 3 years did not change much from September. Increased a lot is the most popular view representing close to half of the sample.

Chart 5 The state of corruption: What s happened over the past 3 years? DK/NA Decreased a lot Decreased a little Is the same Increased a little Mar 6 Increased a lot 1 3 5 6 7 Increased a lot Increased a little Is the same Decreased a little Decreased a lot DK/NA Mar 6 58 16.7 13.9 3.1.2 8.1 45.3 21.3 18.8 3.8 1.8 47.8 18.3 2.3 11.5 Expectations for the next three years appears to have improved slightly, as a higher number believe that corruption will decrease when compared to September of last year. Chart 6 The expected level of corruption in the next 3 years DK/NA Decrease a lot Decrease a little Stay the same Increase a little Mar Sep Increase a lot 5 1 15 25 3 35 Increase a lot Increase a little Stay the same Decrease a little Decrease a lot DK/NA Mar 19.7 9.8 26.8 18.1 1.5 24.2 Sep 22.3 11.6.7 13.6 2.1 3.2 15.5 1.5 21.8 21.5 4 26.7

Affected areas There is a very little change in the ranking of the areas and institutions perceived to be the most corrupt among the 23 that were selected. Overall, Land Utilization, Customs and Mining occupy the first, second and third places in all three polls. The principle difference in March 7: the Registry and Permit office moved up from th th 8 position to 5, and Health services joined the top 1. Chart 7 1 most corruption-affected areas 3 4 5 3 4 5 Land utilization 4.16 Land utilization 4.11 Customs 4.1 Customs 4.8 Mining sector 3.79 Mining sector 3.93 Judges 3.78 Judges 3.81 Police 3.74 Registry and permit service 3.79 Prosecutors 3.69 Prosecutors 3.68 Political parties 3.66 Police 3.68 Registry and permit service 3.58 Political parties 3.58 Advocates 3.51 Advocates 3.51 Parliament / legislature 3.46 Health system 3.46 Corruption s impacts are largely unchanged in March 7 as compared to September 6 (Chart 8). In the opinion of the majority of respondents, politics and business remain highly effected. Chart 8 To what extent corruption affects (combined moderate and large extent) Politics 66 69.9 Business environment 63.4 66.3 Personal life 36.6 37.2 6 8

Corruption remains among the top-three problems facing the country (Chart 9), after unemployment and poverty, which are two sides of the same coin. However, the number reporting corruption as a problem dropped by more than 1%. This may be a sign of increasing public acceptance and cynicism, as is suggested by some of the data, or it may suggest increasing optimism regarding government efforts to combat corruption as is suggested in the tables above. Chart 9 Major problems from March 6 to March 7 5 3 1 Unemplo yment Poverty Corrupti on Alcoho lis m Environ ment Educatio n Low incom e Rural develop ment Stability Life level Mar 6 35.6 28.5 28.8 6.7 1.5 4.2.6.5 1.9 3.6 39 23.8 27.6 9.8 1.3 5.3 4.9.2.5 4.9 35.2.2 16.3 9.3 5.9 5.2 3.7 3.1 3.1 2.2 Cynics will point to the troubling number of Mongolians who continue to report that some level of corruption [is] acceptable. The total of those who agree and somehow agree with this point was 36.7% in September 6, and 37% in March 7. Personal interaction Over the past three surveys, close to one quarter of all respondents and their families continue to be report having paid a bribe over the prior three months. March 6 26% September 6 28% March 7 23% The frequency of bribe-paying had also remained nearly the same in March 7 as in September 6 (Chart 1).

Chart 1 Frequency of paying a bribe: was it once, two, three or more than 4 times? 7 7 6 6.7 6 58.4 5 5 3 23.8 3 24.1 1 7.7 7.7 1 9.5 8 Once Twice Three times Four and more Once Twice Three times Four and more And finally, the beneficiaries of bribe-paying largely comprise the same suspects from the prior three surveys, with the majority of bribes still paid for a service that citizens are entitled to (Chart 11). One fifth paid a bribe for peace of mind to avoid a problem, which is modestly higher than in the prior survey. Chart 11 Why did people pay bribes? Annual: why did people pay (multiple, ) 18.6 Annual: why did people pay (multiple, ) 21.9 25.8 26.3 69.5 66.4 A bribe was offered to receive a service entitled A bribe was offered to avoid a problem with the authorities A bribe was directly asked for A bribe was offered to receive a service entitled A bribe was offered to avoid a problem with the authorities A bribe was directly asked for The number of those who were seriously affected by paying bribes remains exactly the same as a year ago at 28.5% of the sample.

Chart 12 How much the bribe paid in three months affected your family budget? March 6 March 7 2.6 5.6 2.2 5.8 28.5 28.5 23.4 43.3.1 Not at all A little Somehow Seriously DK/NA Not at all A little Somehow Seriously DK/NA On the other side, the pattern to whom the bribe was paid has varied somewhat in the ranking, but doctors, teachers and local level clerks continue to compete for the top position on the bribery list. Chart 13 To whom bribe was paid March 6 Doctor 38.4 March 7 Clerk in state administration Teacher 29.1 35.3 Policeman Custom officer 1.9 21.7 Clerk in state administration 39.7 Tax officer 9.3 Judge 5.8 Doctor 32.1 Advocate/Lawyer Prosecutor 4.3 3.1 Policeman 25.2 The Press 1.2 Teacher 22.1 Teacher 39.3 Custom officer Tax officer 6.1 1.7 Doctor Clerk in state administration 34.1 37.6 Advocate/Lawyer 3.8 Policeman Custom officer 9.6 22.7 Judge 3.1 Tax officer Judge 7 8.3 Prosecutor.8 Advocate/Lawyer 3.1 Prosecutor 1.7 The Press The Press.9

The percentage of those resistant to bribe paying is lower than in 6, and the willingness to pay bribes if confronted with a demand is on the rise. This data would also tend to indicate increasing acceptance or corruption. I will not pay I shall pay if I have the money Mar 6 46.5 34.2 Sep 6 38.6 41.8 Mar 7 34.1 45.7 Anti-corruption Environment There are more people in March than in September who know about the introduction of the new Anti-Corruption Law. Their number increased from 58.7% to 66.8% in March 7, which is indicative of growing awareness. Reciprocally, the number of those who want further fine-tuning of the legislation dropped from 38.8% in March 6 to 3.1% in March 7. In all three polls, the Special Investigation Unit topped the list of public institutions that was necessary to lead the fight against corruption. This Special Investigation unit is now also known as the Anti-corruption Agency (ACA) for which expectations rose to 51.5% of the population. Respondents distinguish, however, between the ACA and government, when opining on those who will lead the fight against corruption, with the prognosis for government dimming substantially (Chart 14). One potential inference is that public support for the ACA is relatively high, and thus the Agency must capitalize on this honeymoon and continue to build confidence through demonstrated action. Chart 14 Anticorruption Agency rising expectations, Government going down Who should lead the fight against corruption? 55 5 45 35 3 25 51.5 46.6 46.4.7 42.4 3.2 26.4 27 22.9 March 6 March 7 Anticorruption agency Government Citizen, movements

However, the honeymoon will not be long-lived if there is no action. 35.7% of respondents reported that they are rather not confident or totally not confident in the ACA, against 41.3% who had confidence. This sizeable margin indicates, for the time being, public support. But 29% of respondents rated the ACA s performance as bad or rather bad, with only 9% reporting that it was good or rather good. In March 7, roughly one third of the respondents subscribed to each of five important tactics to combat corruption. The only major change from the prior period, is a substantial decline in calls for stronger punitive measures. Chart 15 Punitive measures in less demand Strengthening state control over public administration.7 23.3 29.5 Transparency in administrative decisionmaking 28.6 24.7 23.3 Perfecting legislation 3.1 28.4 38.8 Mar 6 Increasing public employees salaries 34.3 29.2 33.8 Strong punitive measures 32.3 33 5.1 1 3 5 6 Conclusions Corruption is potentially becoming more accepted as an increasing fraction of the population expressed a greater willingness to pay a bribe in order to overcome problems. Public expectations and confidence for the ACA remain high, but without action, confidence could erode rapidly. The public has little confidence in the general government s ability to combat corruption, and are more inclined towards the belief that politicians use their office for self-interested purposes. The public has also moderated its stance regarding the measures that it believes are necessary to combat corruption, which may be correlated with the view that anti-corruption efforts will only hit low and mid-level civil servants, with elites and senior officials escaping punishment.