Are you deaf, blind and stupid

The perception that corruption is something that happens in banana republics, but not at home, is still being pushed by big media. That is true for countries like Russia, as well as the US et al.

Ernst & Young just released their report on commercial corruption. I haven’t seen it, but these two differing views are telling. First from Novosti and Reuters:

Western cos. say corruption main challenge on emerging markets *RIA Novosti, Russia

Firms expect fraud from emerging nations: E&Y study Reuters

*Half of Western firms say bribery and corruption are the main problems they face on emerging markets, a study released Friday by Ernst & Young said.

"The greatest risk identified in emerging markets is corruption and bribery; almost 50% of respondents identified this as the most threatening," the financial services company said in a press release for its "Global Fraud Survey: Fraud Risk in Emerging Markets."

Both developed (60%) and emerging market (86%) companies said the risk of fraud was prevalent primarily in emerging markets, the company said, adding that many organizations made an investment decision based on multiple criteria, including fraud risk.

"Our survey found that one in five organizations has made a decision not to invest in an emerging market as a result of fraud risk assessment," the company said

From South Africa, a reasonably developed economy:

'More fraud in developed economies' Cape Argus, South Africa

Emerging markets may still foster perceptions of loose business practices, but in reality more fraud takes place in developed economies, an Ernst & Young survey shows.

"Of the respondents that recently suffered a significant fraud, 75% experienced a fraud in their developed country operations, while 32% experienced a fraud in an emerging market," Ernst & Young's 9th Global Fraud Survey showed.

However, 42% of the respondents were without a formal anti-fraud policy, virtually unchanged from the prior 2003 survey, Ernst & Young said.

I’m starting to feel like a Basil Fawlty, when he remonstrates with a guest over the view from the room: “Are you deaf, blind and stupid?” Of course that is the infamous misquote, but it suits my purpose and mood.

How can we read, day in day out, headlines from the US, Britain, Australia, France and every other ‘developed’ economy, regaling us with news of corporate and political corruption, then still believe it doesn’t happen HERE?

"Our survey found that one in five organizations has made a decision not to invest in an emerging market as a result of fraud risk assessment," the company said.

I can only guess that means the assessment must give a positive to the potential for corrupt practices.

It is time everyone stopped deluding themselves about corruption. African leaders have just recently begged developed economies to reign in their own crooked dealings.

It goes like this, according to the ‘banana republics’: The big bribe money comes from the big countries, and the loot is usually stored in banks in those big countries. Or to put it in a simpler way – it takes two to tango!