~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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The issue that could undermine the government

The Vietnamese have never seen anything like it: more than 100 government officials arrested, some 50 police officers suspended from duty, and two members of the all-powerful Central Committee expelled from the ruling Communist Party. It is hard to find an official in Ho Chi Minh city, it seems, who was not in cahoots with Nam Cam, a local crime boss. Over the past eight months, a much-publicised investigation has implicated public prosecutors, prison wardens and journalists, among others, in the gangster's drug, prostitution and protection rackets. The arrests are proof, say Vietnam's rulers, that they are serious about fighting corruption, which has spread since the introduction of market reforms in the late 1980s. In fact, the government's attitude is not so clear-cut. But the scandal certainly is proof of how widespread corruption has become, and how hard it will be to uproot.

Transparency International, a global counter-corruption watchdog, ranks Vietnam as the second most corrupt country in South-East Asia (after Indonesia), based on a survey of international businessmen. The Vietnamese government itself recently estimated that light-fingered bureaucrats cream off at least 20% of infrastructure spending. At the National Assembly in July, the prime minister, the speaker, and the secretary-general of the Communist Party all identified corruption as one of the government's main challenges.

With good reason: ordinary Vietnamese gripe about corruption far more often than they do, say, about the regime's restriction of political freedoms. It is the chief rallying cry of dissidents, and the most frequent cause of popular protests. The party's chief ambition, now that it has abandoned Marxism, seems to be the maintenance of its own power. Public disenchantment brought on by corruption is one of the biggest threats to that cause.

Yet the regime's response so far, whatever its public stance, seems half-hearted. Suspicions persist that the Nam Cam affair might go even higher than the two Central Committee members--but the investigation will not. There is no reason to imagine that Ho Chi Minh is the only big city with greasy-palmed apparatchiks, but there is no sign of a crackdown elsewhere. A deputy prime minister, sacked for corruption in 1999, is back in an advisory role. Proposals for legal reform will take years to implement. The cautious government still allows only a summary of its budget to be published, and is even dragging its feet over a proposed survey, to be paid for by a Swedish government agency, to establish just how widespread corruption is.

The cynical explanation for all this holds that the government is simply doing the minimum to dispel public anger. More charitable observers insist that it is genuinely determined to tackle corruption, but in the same cautious, consensual manner with which it has approached every sensitive subject from the adoption of market reforms to the restoration of ties with the United States. Those two steps, however, pandered to the interests of senior officials--many of whom have businesses on the side-- by expanding the scope for private enterprise. This time around, the opposite is the case: the same officials who commit many of the abuses will now be charged with putting a stop to them. Appointing an independent anti-graft agency would be anathema to the party, which insists on preserving a parallel bureaucracy to enforce its will over the main one. On corruption as with all pressing issues, the party faces the same paradox: to preserve its power, it must relinquish some.

Economist Newspaper Ltd - September 14, 2002.