I stood outside the Legislature\u2019s building on St. Thomas for 1 \u00bd hours protesting against the proposed \u201csin tax\u201d bill on February 15 and then I went in and testified against it before the Committee on Finance.\u00a0 Most of my testimony centered on the extremely negative effect corruption has on an area\u2019s economy and how fighting corruption actually brings significant improvement to an economy.\u00a0 I also made other recommendations.\u00a0\u00a0 After I completed my testimony, one of the senators asked me what my testimony about corruption had to do with the \u201csin tax\u201d bill.\u00a0 It has become obvious to me that I should write more about corruption and our economy so that Virgin Islanders can better understand the connection as well as the importance of fighting corruption on all fronts and making our government transparent.<\/p>\n
Just what does transparency in government mean?\u00a0 It generally requires an open sharing of information by the government with its citizens.\u00a0 It promotes accountability and honesty.\u00a0 According to Transparency International, a global organization aimed at promoting transparency and combating corruption in countries throughout the world, transparency builds the people\u2019s trust in government officials and protects the people against corruption.<\/p>\n
Corruption in government has many forms and has drastic effects.\u00a0 Transparency International succinctly describes the tremendous negative impact that corruption can have on an area\u2019s economy as follows:<\/p>\n
\u201cEconomically, corruption depletes national wealth. Corrupt politicians invest scarce public resources in projects that will line their pockets rather than benefit communities, and prioritize high-profile projects such as dams, power plants, pipelines and refineries over less spectacular but more urgent infrastructure projects such as schools, hospitals and roads. Corruption also hinders the development of fair market structures and distorts competition, which in turn deters investment.\u201d<\/p>\n
Corruption affects the basic services that people need.\u00a0 According to Transparency International, \u201cthe services people depend on \u2013 from drinking water to health clinics \u2013 suffer. They are often of a low quality or not sufficient to meet society\u2019s most basic needs. Corruption siphons off monies needed to improve them while also distorting policy decisions, such as where roads and schools are built.\u201d<\/p>\n
What about the effect of corruption on a government entering into contracts for services, often referred to as public procurement? Our government spends huge amounts of monies each year on this.\u00a0 Transparency International describes the results: \u201cContracts to suppliers can be awarded without fair competition. This allows companies with political connections to triumph over their rivals. Or companies within the same industry can rig their bids, so each gets a piece of the pie. This increases the cost of services to the public. We\u2019ve found that corruption can add as much as 50 per cent to a project\u2019s costs. But corruption in public procurement isn\u2019t just about money. It also reduces the quality of work or services. And it can cost lives.\u201d<\/p>\n
In his online article at forbes.com dated January, 24, 2014 entitled Government Corruption and Economic Growth: The 21 Least Corrupt Nations<\/em>, contributing writer Mike Patton states that multinational companies looking to expand will avoid areas that are corrupt as they find them \u201cunattractive\u201d and not even \u201cconducive to local business development\u201d.\u00a0 In fact, he further states that \u201cwhen corruption is low and government acts ethically, there is a perception, hence a reality, that it is safe to do business there. If you compare the most and least corrupt nations, you’ll find the least corrupt nations, in general, have larger economies.\u201d<\/p>\n When I testified before the Senate, I gave Singapore as an example of a country that succeeded in turning its economy around by taking a tough stand against corruption. \u00a0\u00a0Singapore was infamous for corruption throughout most of its history.\u00a0 Because corruption was having a dramatic negative affect on foreign investments and economic growth, its legislature passed the Prevention of Corruption Act and created a commission dedicated to investigating corruption and preparing cases for prosecution.\u00a0 As a result of years of commitment to creating an environment that would be conducive to economic growth, Singapore is now ranked among the top ten most \u201ccleanest\u201d or least corrupt \u00a0countries in the world, according to Transparency International.<\/p>\n As stated in the 2017 Index of Economic Freedom<\/em>, \u201cprudent macroeconomic policy and a stable political and legal environment have been the keys to Singapore\u2019s continuing success in maintaining a strong and dynamic economy.\u201d\u00a0 In fact, its \u201cminimum tolerance for corruption\u201d and \u201ctransparent and efficient regulatory environment\u201d are touted as the foundation for a flourishing private business sector and growing investments by global companies.<\/p>\n One of the senators commented that Singapore has a high \u201csin tax\u201d of 25% on alcohol and other items, as a way to justify the proposed \u201csin tax\u201d bill.\u00a0 However, and importantly, Singapore actually pledged that the money raised would be used for the healthcare of its growing senior citizen population.\u00a0 The monies that will be generated by the proposed \u201csin tax\u201d bill here are not pledged to any public health concern but to the general fund, where the monies can be used by the Governor and the senators for any reason.<\/p>\n During the protest, I saw a sign that said \u201cCorruption is a sin\u201d.\u00a0 In my opinion, that is very true, but I also agree with those who describe corruption as \u201ca disease\u201d because it can infiltrate all areas of government silently, and when finally detected, significant strength and determination must be used to fight it. \u00a0A vibrant economy in the Virgin Islands requires a government that is transparent and committed to eliminating corruption at all levels.<\/p>\n <\/p>\n Submitted by Soraya Diase Coffelt<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" I stood outside the Legislature\u2019s building on St. Thomas for 1 \u00bd hours protesting against the proposed \u201csin tax\u201d bill on February 15 and then I went in and testified against it before the Committee on Finance.\u00a0 Most of my testimony centered on the extremely negative effect corruption has on an area\u2019s economy and how […]<\/p>\n","protected":false},"author":3,"featured_media":48493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,147],"tags":[2893],"yoast_head":"\n