NICARAGUANS TALK ABOUT CORRUPTION: A STUDY OF PUBLIC OPINION by Mitchell A. Seligson¹ March 1997 ¹Dr. Seligson is a Professor of Political Science at the University of Pittsburgh in Pennsylvania Mitchell A. Seligson is currently Centennial Professor of Political Science and Fellow of The Center for the Americas, Vanderbilt University. He is Founder and Director of the Latin American Public Opinion Project, LAPOP. Contact: [email protected], Department of Political Science Vanderbilt University, Box 1817 Station B, Nashville, TN 37325, voice: (615) 322-6328; fax (615) 343-6003. This document was prepared by Casals & Associates, Inc., Arlington, Virginia, under Contract No. 524-0330-C-00-5066-00 of the United States Agency for International Development, Managua, Nicaragua. The opinions expressed in this document are those of the author and do not reflect the position or opinion of the United States Agency for International Development or the United States Government. CONTENTS EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii NICARAGUANS TALK ABOUT CORRUPTION: A STUDY OF PUBLIC OPINION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Methodology and Sample Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Corruption: How Serious a Problem? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Definition of Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Corruption in Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Corruption by Individual Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Experience with Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 IMPACT OF EXPERIENCE WITH CORRUPTION ON POLITICAL OFFICIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 SUPPORT FOR ANTI-CORRUPTION MEASURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 PUBLIC AWARENESS OF THE PROGRAM TO IMPROVE GOVERNMENT FINANCIAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 CORRUPTION AND THE STABILITY OF DEMOCRACY: KEY LINKAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 PERCEPTION OF COMPARISONS WITH THE PAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 AN OVERALL LOOK AT THE FACTORS INFLUENCING PERCEPTION . . . . . . . . . . . . 45 APPENDIX I Survey Questionnaire iii Figures 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. iv Does corruption affect you? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Perception of being affected by corruption, by level of education . . . . . . . . . . . . . . . . . . 5 Perception of being affected by corruption among those who listened or not to the radio daily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Perception of being affected by corruption among those who read or not newspapers daily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Perception of being affected by corruption among those who watch or not television news daily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Percentage of rural and urban residents who claim to be affected by corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Perception of Nicaraguans regarding certain actions by government officials on the “Corrupt-Honest” scale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Perception of corruption when mayor lends tractor without the authorization of municipal council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Perceptions of Nicaraguans regarding certain actions by or on behalf of individuals on the “Corrupt-Honest” scale . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Perception of corruption when mother pays bribe to obtain birth certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Percentage of Nicaraguans who claim to have had personal experiences with corruption, by type of experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Percentage of respondents who indicated indirect knowledge of payment of bribes to public employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Percentage of Nicaraguans who claimed not to have knowledge of acts of corruption or to know of one or two experiences: Cumulative impact . . . . . . . 15 Based on your experience, the payment of bribes is: . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 How common is payment of bribes, by partisan vote and gender . . . . . . . . . . . . . . . . . . 18 Cumulative knowledge of acts of corruption according to income . . . . . . . . . . . . . . . . 19 Cumulative knowledge of corruption according to level of education . . . . . . . . . . . . . . 19 Relationship between knowledge of corruption and exposure to media coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Knowledge of acts of corruption, by place of residence in different types of urban areas and in rural areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Knowledge of corruption, by gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 How Nicaraguans perceive various categories of public officials and other social groups on the “Corrupt-Honest” scale . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Relationship between cumulative knowledge of corruption and the perceived honesty of legislators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Relationship between cumulative knowledge of corruption and the perceived honesty of public officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Support for anti-corruption measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Knowledge of efforts to improve the management of public funds . . . . . . . . . . . . . . . . Have you heard of efforts to improve the management of public funds?, by level of educational attainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Knowledge of measures to improve the management of public funds, by whether or not they listen to daily radio news programs . . . . . . . . . . . . . . . . . . . . . . Knowledge of measures to improve the management of public funds, by whether or not they watch daily television news broadcasts . . . . . . . . . . . . . . . . . . Knowledge of measures to improve the management of public funds, by whether or not they read a newspaper daily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Knowledge of measure taken to improve the management of public funds . . . . . . . . . . Do you know the functions of the Office of the Comptroller General of the Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Do you know the functions of the Ministry of Finance . . . . . . . . . . . . . . . . . . . . . . . . . Knowledge of the functions of the Ministry of Finance and the Office the Comptroller General of the Republic, by level of education . . . . . . . . . . . . . . . . . . . Perception of the frequency of bribes and support for the court system . . . . . . . . . . . . . Perception of the frequency of bribes and support for the political system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Perception of the frequency of bribes and support for the National Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Perception of the level of bribery during the presidency of Chamorro as compared to the Somoza era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Perception of the level of bribery during the presidency of Chamorro as compared to the Sandinista decade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Perceived occurrence of bribery during Chamorro’s administration as compared to the Somoza era and the Sandinista decade . . . . . . . . . . . . . . . . . . . . . . . . Perception of the incidence of bribery, by age of respondent . . . . . . . . . . . . . . . . . . . . . 26 27 28 28 29 29 31 31 32 of 33 37 37 38 39 39 40 46 v Tables 1. 2. 3. 4. 5. 6. 7. 8. Sample design and weighting scheme for 1996 sample . . . . . . . . . . . . . . . . . . . . . . . . . . 3 How do Nicaraguans evaluate various acts in terms of whether or not they are corrupt and whether or not they are justified . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Personal experience with corruption in Nicaragua . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Measures taken to control management of public funds . . . . . . . . . . . . . . . . . . . . . . . . 30 What is the main role of the Office of the Comptroller General . . . . . . . . . . . . . . . . . . . 32 Multiple regression coefficients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Age by department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Mean residual score of perception of prevalence of bribes, by department . . . . . . . . . . . 48 Maps 1. 2. 3. 4. vi Perception of the incidence with which bribes are paid, by department . . . . . . . . . . . . . Perception of the incidence of corruption during the Chamorro government in comparison to the Sandinista decade, by department . . . . . . . . . . . . . . . Perception of the incidence of corruption during the Chamorro government in comparison to the Somoza regime, by department . . . . . . . . . . . . . . . . . Mean residual score of perception of prevalence of bribes . . . . . . . . . . . . . . . . . . . . . . 17 42 43 50 EXECUTIVE SUMMARY Even though the public has given considerable attention to the issues of mismanagement of public funds and corruption in Nicaragua, a systematic effort has yet to be conducted to determine the causes and possible solutions of corrupt acts, their magnitude and impact on the perceptions of the public, and how these perceptions vary by gender, education, ideology, or geographic region. The purpose of this survey, whose results are summarized in this report, is to provide answers to some of these questions. The survey was conducted in the months of July and August 1996, and it is based on a national probability (i.e., random) sample of 2,400 members of the voting-age Nicaraguan public. Survey results can be generalized to 98.3% of the country’s population. Data for the survey were collected in each department of the country, with the exception of Rio San Juan. The study reflects the perceptions of survey respondents regarding several themes related to the management of public funds and corruption. The information gathered was the product of recollections of acts in which the respondents participated or about which they had indirect knowledge. As a result, the survey was not designed to measure or determine the extent of corruption. Measuring corruption is a difficult, if not impossible, task. Citizens acquire their own ideas about corruption through personal experiences, daily activities, what they hear from relatives and friends, and information from the media. The purpose of this study is to measure those perceptions by means of a public opinion survey. In democracies, citizens act on many issues on the basis of their perceptions, including how they vote, how they choose political affiliations, and how they select civil society activities in which to get involved. It is not an exaggeration to say, therefore, that the citizenry’s vote is often more influenced by perceptions of facts than by facts themselves. It follows that those interested in promoting democracy in Nicaragua pay close attention to these perceptions. The survey questionnaire was designed to evaluate (1) the extent to which Nicaraguans feel affected by corruption; (2) how they define corruption; (3) the experience they have had with corruption (whether directly or indirectly) and how they perceive its incidence; (4) the impact these experiences have on how honest public officials and other social groups in Nicaragua are perceived to be; (5) to what extent Nicaraguans support measures to fight corruption (and of what type); and (6) their knowledge of the program currently being implemented in the country to improve government financial management. Findings from the survey are used also to establish certain links between perceptions of corruption and democratic stability, compare citizens’ perceptions regarding levels of corruption during various political periods, and analyze the factors influencing perceptions of corruption. Understanding these issues is a high priority for Nicaragua at this point in history, given that democratic rule is gradually taking hold after years of dictatorships, ideological conflicts, and civil wars. Notwithstanding this encouraging trend, Nicaragua still faces grave economic, social, and administrative problems. To address the latter, the government is implementing an ambitious reform effort whose objective is to improve the management of public funds and reduce the incidence of corruption. For the reform to be successful, it will be important to promote a national dialogue regarding its scope and the impact it will have in the management of the national patrimony. vii The vast majority of Nicaraguans believe that corruption affects them personally and that it is widespread in their country, with perceptions regarding its prevalence exceeding direct experiences by a wide margin. Perceptions regarding the incidence of corruption tend to be higher among the older, more educated, higher income, and better informed Nicaraguans, particularly among television news viewers. Perceptions of corruption are nearly identical in urban and rural areas. Partisanship is not a major determinant of perceptions of corruption, with voters of both major political factions in Nicaragua viewing it as equally prevalent. Nicaraguans are capable of differentiating between various types of questionable behaviors and are prone to condone many corrupt acts. Although tolerant of corruption when judged justifiable, they have generally harsher attitudes toward those who abuse the system for personal advantage. While on the whole distrustful of public officials, Nicaraguans hold elected officials, politicians, and judges in low esteem and broadly regard teachers, university professors, and clergy as more honest. Despite their overall tolerance of corruption, Nicaraguans appear to be fed up with dishonesty and indicate strong support for anticorruption initiatives. They favor more aggressive investigations and strong legal sanctions, applaud educational and public awareness efforts, and would like to see greater transparency in the use of public funds. Relatively few Nicaraguans, however, are aware of the measures being implemented by the government, with support from the international development community, to reform procedures to improve government financial management, increase economic efficiency, and help reduce the incidence of corruption. Those who tend to know more about these efforts are the wealthier, better educated, and more resourceful Nicaraguans. Three of every ten Nicaraguans claim to know the functions of the Office of the Comptroller General, and a slightly higher percentage state they are aware of the responsibilities of the Ministry of Finance. However, when asked specifically to describe these functions, many respondents are capable of providing only broad answers, suggesting a very limited understanding of what these governmental units actually do. The perceptions uncovered by this survey are troubling for the political legitimacy of Nicaragua’s fragile democratic political system. Relatively few Nicaraguans trust the public officials managing the country’s patrimony. They are mistrustful about most of the country’s major political institutions and skeptical about the political and economic leaders’ moral integrity. On the other hand, the perceptions captured by the survey seem to reflect a newly discovered ability to communicate ideas by the citizenry and a free press no longer muzzled by repression and intolerance. Future surveys will help assess how the average Nicaraguan evaluates the government financial management reform currently being implemented. Public awareness efforts designed to communicate the intent of the reform will sensitize the Nicaraguan public to the importance of complementing the financial management reform with citizen involvement. Only in this way can Nicaragua successfully attack the moral, political, economic, institutional, and managerial underpinnings of corruption. viii NICARAGUANS TALK ABOUT CORRUPTION: A STUDY OF PUBLIC OPINION1 It often has been said in Latin America that “corruption is like the weather, everyone talks about it but nobody can do anything about it.” Perhaps that was true in the past, but, throughout the region, efforts are being made to reduce governmental corruption. In Nicaragua, the focus of this study, one hears a lot of grumbling about corruption, but, until now, there has been no systematic attempt to understand public perception of corruption, its magnitude, impact, causes, and possible solutions. Furthermore, nothing is known about variation of these perceptions with the population based on gender, education, ideology, geographic region, etc. This study attempts to provide that empirical evidence so as to assist those in the government of Nicaragua who are attempting to deal with the problem of corruption. At this point in Nicaragua’s history, this is a high priority, given that democratic rule is gradually taking hold after years of dictatorships, ideological conflict, and civil wars. The election of President Violeta Chamorro marked a turning point for Nicaragua because, for the first time in many decades, the change in government was peaceful and resulted from free and fair elections. The election of President Arnoldo Alemán in October 1996 was a further step in the consolidation of democratic governance. Notwithstanding these encouraging events, Nicaragua still faces grave economic, social, and administrative problems. These problems will be solved only after years of implementing appropriate policies. The governmental financial management reform, in particular, will enable the Nicaraguan government to manage its resources more effectively and contribute to improving the quality of life of its citizens. A national dialogue and transparency in the use of public funds are essential tools in achieving this objective. This will require Nicaraguan citizens to develop a stronger sense of civic duty and the press to be objective and responsible. The role the media will play in civil society’s oversight of government financial management will be critical, given that Nicaragua today enjoys freedom of the press. This freedom, however, may lead to distorted perceptions of the national reality if present perceptions are shaped by an unlimited amount of information without taking into account that the public did not have access to information in the past. This is true regarding corruption, a problem that has afflicted Nicaragua for the last several decades. In this study, respondents’ perceptions reflect their past experiences, whether directly or indirectly, with acts of corruption. The survey was not designed to measure levels of corruption, something that is difficult to do. Citizens acquire their perceptions about corruption through daily personal experiences, information received from the media, and interactions with neighbors, relatives, and friends who have encountered corrupt acts. The purpose of this study is to measure, by means of a public opinion poll, the extent of those perceptions. In democratic regimes, citizens’ attitudes regarding many civic activities are more related to perceptions than to actual knowledge, including how they vote, their political affiliations, or their participation in civil society activities. Voting is 1 I would like to thank Dr. Sergio Diaz-Briquets for his extensive support in every phase of this project. I consulted with him on questionnaire design, sample design, and analysis strategies. He also read the report in draft form and made numerous helpful suggestions. more influenced by how facts are perceived than by the actual facts. Therefore, it is of upmost importance to those seeking democratization of Nicaragua to pay close attention to how citizens perceive political and socioeconomic developments. Methodology and Sample Design This study is based on a national probability (i.e., random) sample of 2,400 members of the voting-age Nicaraguan public. Respondents were interviewed by a team selected by Borge & Asociados and trained with the oversight of Professor Andrew Stein, Tennessee Technological University and former Fulbright Fellow in Nicaragua. The questionnaire was developed by the author of this study in consultation with the United States Agency for International Development (USAID,) the Office of the Comptroller General, and the Ministry of Finance. The draft instrument was pretested extensively by Professor Stein in both urban and rural Nicaragua. The study was conducted in each of the departments of the country, with the exception of Rio San Juan, which was excluded for cost considerations. Rio San Juan contains only 1.7% of the country’s population, so our findings refer to the remaining 98.3% of the population. Six voting precincts (juntas receptoras de votos) were selected at random in each department. Within each of those precincts, an average of 25 interviews were conducted, for a total target of approximately 150 interviews per department, with the exception of Managua, where 300 interviews were conducted because of its demographic and political importance. For the overall sample, we can speak about the results with considerable accuracy: 95% of the time, the results of our sample will be within no more than approximately 2% (higher or lower) of the views of the entire voting-age Nicaraguan population. As is well known, the precision of the data obtained in a survey depends on the number of interviews conducted, which is independent of the size of the population from which the sample is drawn as long as the size of the population is large. It is for this reason that the precision of the results declines when the departmental data are examined in comparison to the results of the national sample. At the departmental level, with a sample average of 150 interviews, the level of accuracy is much lower, about ±8%. Thus, we are confident in the accuracy of our results at the national level. At the departmental level, the possible range of error due to the size of the sample is wider, but, in our view, sufficiently narrow so as to be able to say meaningful things about the individual departments when we find wide variation among them. Smaller shadings of variation will not be detected by our survey at the departmental level, except for Managua, where our results are accurate at the ±5.6% level as a result of our larger sample. The Atlantic region of Nicaragua has always presented survey researchers with serious challenges. Zelaya was incorporated into Nicaragua in 1894, but in the mid-1980s was renamed RANN and RAAS. This is a vast region of more than half the territory of Nicaragua, yet it contains only 9.6% of the population. The costs of providing a random sample of this region are high, so we decided to represent it by concentrating our survey in three main population centers: Rama, Bluefields, and Puerto Cabezas. Within each of these areas, two voting precincts were selected. A total of 175 interviews were conducted in the Atlantic region. 2 While the sample design had a target of 150 interviews per department, we need to reweigh the sample for our overall results so that each department is represented by a sample size proportional to its population. Thus, the results presented in this report reflect the weighted sample, accurately portraying a picture of Nicaragua. Sample weights are given in Table 1 below, and the questionnaire is contained in Appendix I. Table 1 Sample design and weighting scheme for 1996 sample 1. 2. Department 1995 Population (census data) 4. 3 5. Fraction of national populatio n #3/100 6. 7. 8. Desired N: (#5 * 2,400) Weight factor (#6/#4) Weighted sample as delivered by Borge Percent of Population Survey N 1,056,702 25.53 306 0.255 612 2.00 612 Matagalpa 364,790 8.81 150 0.088 211 1.41 211 Chinandega 348,971 8.43 147 0.084 202 1.37 202 Leon 330,168 7.98 175 0.080 192 1.10 191 Masaya 236,107 5.70 150 0.057 137 0.91 136 Atlanticoa 469,780 11.35 175 0.113 271 1.55 276 Jinotega 214,070 5.17 148 0.052 125 0.84 124 Esteli 168,936 4.08 125 0.041 98 0.79 97 Granada 153,183 3.70 142 0.037 89 0.63 88 Nueva Segovia 151,324 3.66 150 0.037 89 0.59 87 Carazo 141,831 3.43 132 0.034 82 0.62 84 Rivas 141,792 3.43 150 0.034 82 0.54 84 Chontales 137,477 3.32 150 0.033 79 0.53 79 Boaco 124,513 3.01 151 0.030 72 0.48 72 Madriz 99,842 2.41 149 0.024 58 0.39 57 4,139,486 100.00 2,400 1.000 2,399 Managua Total 2,400 Source: Instituto Nacional de Estadísticas y Censos, INEC, Censos nacionales 1995, 25 de abril de 1995. Cifras Oficiales Preliminares, Recuento Manual, Nicaragua, September 1995. a The tabulations for the 1995 census utilize RANN and RAAS instead of the older departmental name “Zelaya.” Atantico here includes Zelaya and Rio San Juan. These have been summed here into one area to match the sample. 3 Note that Table 1 shows the method by which the weighting scheme was calculated to insure the sample obtained for each department accurately reflects the proportion of the population residing in that department according to the 1995 census.The region called “Atlantico” in this table includes both RAAN and RAAS, as well as Rio San Juan, even though the only sampling points in that area were Rama, Bluefields, and Puerto Cabezas. Hence, no interviews were conducted in Rio San Juan. Furthermore, the sample weights delivered by Borge & Asociados varied slightly from those calculated in the above table, producing a slight difference in the weighted number of interviews for some of the departments. Both calculations are presented here, but the sample as weighted by Borge & Asociados was utilized for all statistical analysis. Corruption: How Serious a Problem? Nobody knows how much corruption there is in Nicaragua, nor for that matter does anyone know how much corruption there is in the United States or Norway. By its very nature, corruption is a sub-rosa activity for which it is virtually impossible to gather accurate statistics. Notwithstanding this lack of objective data, citizens universally have opinions about corruption, and those views often are held very firmly. As shown in Figure 1, three of four Nicaraguan citizens responded affirmatively to the question, “Does corruption affect you, yes or no?” Although males are more likely to feel affected by corruption, there is no statistically significant difference between males and females, nor does age influence this variable. On the other hand, better-educated Nicaraguans are significantly (sig. < .01) more likely to feel affected by corruption than are the lesser educated, as shown in Figure 2. The reader should contrast those with no education, 64% of whom feel affected by corruption, with those with university education, 85% of whom feel affected. This is a troubling finding since it implies that those in society with the greatest degree of personal resources to evaluate the actions of government are the ones who perceive corruption as affecting them the most. Does corruption affect you? 75% 80 Percent 60 40 25% 20 0 No Yes Figure 1 4 Perception of being affected by corruption, by level of education Percent 90 80 70 60 None Elementary Middle Secondary University/ Professional Level of education Figure 2 Not only does educational level significantly increase the perception of corruption, but so does attentiveness to the media (primarily written and electronic media). Figures 3, 4, and 5 show the relationship between Nicaraguans’ sense that corruption affects them and whether or not they regularly listen to radio news programs, watch TV news programs, or read a daily newspaper. In each case, there is a statistically significant higher perception of corruption among those who listen, watch (sig < .001), and read (sig. = .035) the news than those who do not. It is also of note that the greatest difference was made by TV, as opposed to radio, while newspaper readership made the least difference. These results are significant and consistent with findings from a study conducted by Harvard University. In that study it was found that listening to TV news and public affairs programs had a significant positive effect on many forms of civil society participation, although in the U.S., newspaper readership was even more strongly correlated.2 These findings also should be considered by those in the mass media. What the findings show is that the more attention Nicaraguan citizens pay the media, the more likely they are to feel affected by corruption. Thus, those in the mass media need to know they are impacting on individuals’ perceptions, especially TV viewers; therefore, they must think carefully about balance in reporting. 2 See Pippa Norris, “Does Television Erode Social Capital? A Reply to Putnam,” PS: Political Science and Politics, Vol. 29,. No. 3, September 1996, pp. 474-80. 5 Perception of being affected by corruption among those who listen or not to the radio daily 80 77% 78 Percent 76 74 72 71% 70 68 66 64 No Yes Figure 3 Perception of being affected by corruption among those who read or not newspapers daily 80 Percent 76 78% 74% 72 68 64 No Yes Figure 4 6 Perception of being affected by corruption among those who watch or not television news daily 80 78% Percent 76 72 68% 68 64 No Yes Figure 5 Based on the above findings, it is not surprising that urban citizens find themselves significantly (sig. = .01) more affected by corruption than rural citizens. In part this is a result of urbanites’ greater exposure to education and the media, but it also may be a product of the greater presence of government institutions in urban areas. Figure 6 below shows the data. Percentage of rural and urban residents who claim to be affected by corruption 80 77% Percent 76 72% 72 68 64 Urban areas Rural areas Figure 6 7 Perception of corruption in Nicaragua, as shown in the preceding analysis, has a close connection to socioeconomic status. More educated, wealthier, media-attentive, and urban Nicaraguans are more likely to say they have been affected by corruption than are other Nicaraguans. Obviously, these variables tend to go together, since those who are more educated are also more likely to be wealthier and to have easier access to the media, and are more likely to live in urban areas. Statistically, this means there is “multicolinearity” among the variables. In the concluding section of this report, an analysis will be performed to determine which of these variables seem to be the most important and what effect they have on the overall picture of the perception of corruption. At this point, it is only important to note that these same higher socioeconomic status individuals are the ones most likely to have contact with government officials and to be perceived by the latter as more promising targets of bribes because of their greater financial resources. Definition of Corruption We now know that 75% of Nicaraguans believe corruption affects them personally, but we do not know how they define corruption. Specifically, what kinds of actions taken in public and private spheres are considered by Nicaraguans to be corrupt and what are not? To ascertain how Nicaraguans define corruption, we posed a series of questions about various questionable acts; in each case, we asked if the act was corrupt and worthy of punishment, corrupt but justifiable, or not corrupt. For simplification of presentation purposes, we created a corruption scale ranging from 0 to 100, with those who said the act was corrupt and worthy of punishment receiving a 100, those who found it justifiable corruption receiving a 50, and those who felt the act was not corrupt receiving a zero. Furthermore, we divided the various acts into three spheres: corruption in government, corruption by individual citizens, and corruption by private enterprises. We concentrate our attention on the first two, since the current anticorruption effort in Nicaragua is directed there. Corruption in Government We posed a series of six hypothetical situations to our respondents in the area of corruption in government. These were common situations involving bribery of public officials and personal use of public property. The results are presented in Figure 7 below. The strongest criticism is leveled against legislators (diputados) who accept bribes from a private company. Almost without exception (91%), Nicaraguans believe that such behavior is corrupt and should be punished. Other forms of corruption, involving bribery of teachers, police officers, and public employees who use government property for personal purposes, are all viewed as corrupt to approximately the same degree, namely 77-79 on the 100-point scale. Only in the case of the unauthorized (by the Municipal Council) use by a local mayor of a municipal tractor to construct a public baseball field is the public quite tolerant of this form of behavior. Apparently, because the tractor was being used for public good rather than private gain, most Nicaraguans did not find this kind of behavior objectionable. As shown in Figure 8, in which the original question coding scheme is displayed, only a minority of Nicaraguans believe that this action is corrupt and worthy of punishment. In sum, when corruption is for personal gain, it is not supported by the Nicaraguan public. 8 Corrupt Perceptions of Nicaraguans regarding certain actions by government officials on the “Corrupt-Honest” scale 100 94 90 79 80 78 78 77 Scale 70 50 37 40 Mayor lends tractor Personal use of official vehicle Employee accepts money Police requests bribe Teacher accepts gift 30 Legislator accepts bribe Honest 60 Figure 7 Perception of corruption when mayor lends tractor without the authorization of municipal council 9 Corruption by Individual Citizens Individuals generally become involved in corruption through either active participation or passive acquiescence. Active participation involves citizens taking the initiative to bribe a public official, for example. Passive acquiescence involves not reporting acts of corruption when they occur or acquiescing to demands for a bribe made by a public official. Figure 9 shows how Nicaraguans react to both forms of citizen corruption. There is a clear split in the responses. On the one hand, there is an overwhelming belief that private businesses that pay bribes or students who give gifts to teachers are corrupt and should be punished. On the other hand, each of the other forms of corruption was justified by many respondents. Consideration of each one reveals a clear pattern. We asked our respondents about the following situation: “An unemployed person is a relative of an important politician, and the latter uses his influence to obtain a public sector job for him.” Many Nicaraguans considered this form of behavior by the politician justifiable. Similarly, automobile drivers who pay bribes requested by corrupt policemen are excused by many Nicaraguans. Even less criticized were Nicaraguans who do not inform the police about their observation of the illegal use of a public vehicle. Finally, we asked the respondents: “A mother with several children has to obtain a birth certificate for one of them. In order not to lose time waiting, she pays a 5 córdoba bribe to a municipal official.” This form of citizen corruption was the least criticized. But an examination of the individual responses for this item, as shown in Figure 10, reveals that even in this most highly tolerated form of corruption, only one-quarter of Nicaraguans do not consider it to be corrupt behavior; nearly half consider it corrupt but justifiable; while only one-quarter believe it is corrupt and punishable behavior. In sum, Nicaraguans distinguish clearly between some forms of questionable behavior and others. They are more likely to be tolerant of the behavior when the circumstances under which it occurs seem to have some reasonable justification, such as when a poor person needs a job. Even then, majorities recognize the behavior as corrupt but do not want to punish the offender. Corrupt Perceptions of Nicaraguans regarding certain actions by or on behalf of individuals on the “Corrupt-Honest” scale 100 91 90 81 Scale 80 Driver pays bribe Uses influence to obtain job Student gives gift 40 Company pays bribe Honest 53 52 50 Figure 9 10 57 Mother pays bribe 59 60 Personal use of official car not reported 70 Perception of corruption when mother pays bribe to obtain a birth certificate These findings present a difficult challenge to those who wish to stem corruption. Most Nicaraguans agree that corruption, even petty corruption (e.g., giving a gift to a school teacher), is not to be condoned. At the same time, a disturbingly large proportion find such behaviors justifiable and therefore unworthy of punishment. Clearly, in the cases presented, many Nicaraguans justified corruption for the poor and defenseless because they easily could see themselves in a similar situation. But this also implies a great deal of elasticity in drawing the line between corrupt and legitimate behavior; corruption can be justified by many Nicaraguans when the circumstances seem to merit it. It is, perhaps, the ability to rationalize and justify illegal behavior that creates an atmosphere in which such behaviors are tolerated. Thus, while most Nicaraguans consider corrupt a private business that bribes a legislator, the private business owner might well develop a rationalization for the act along these lines: “If this bribe works, my business will prosper and I will be able to provide employment for my workers, a new house for my children, etc.” The definition of corrupt versus honest behavior presented above did not vary within the Nicaraguan population based on age, gender, education, or rural-urban residence. There was a significant tendency in a few cases to associate higher income with lower level of tolerance for corruption, but the pattern was not strong or uniform. Overall, then, these perceptions are widely shared among Nicaraguans of all walks of life. In order to provide the interested reader with the full set of questions and responses analyzed in this section, Table 2 is presented below. Of particular interest might be the percentage of Nicaraguans who do not perceive the actions described as being corrupt. 11 Table 2 How do Nicaraguans evaluate various acts in terms of whether or not they are corrupt and whether or not they are justified Corrupt and Should Be Punished N % Corrupt but Justified N % Not Corrupt N % Total N % DC1 Legislator accepts bribe 2140 91.1 123 5.2 87 3.7 2350 100 DC2 Company pays bribe 2012 85.6 233 9.9 105 4.5 2350 100 DC3 Police requests bribe 1444 61.2 801 33.9 116 4.9 2361 100 DC4 Driver pays bribe 910 38.6 878 37.3 567 24.1 2355 100 DC5 Student gives teacher a gift 1690 71.5 453 19.2 219 9.3 2362 100 DC6 Teacher accepts gift 1662 70.2 424 17.9 280 11.8 2366 100 DC7 Personal use of official vehicle 1477 63.3 638 27.4 217 9.3 2333 100 DC8 Use of official vehicle not reported 889 38.3 672 29.0 759 32.7 2320 100 465 684 19.6 28.9 830 1085 35.0 45.9 1074 596 45.3 25.2 2369 2365 100 100 DC11 Muni. employee accepts money 1565 66.0 566 23.8 242 10.2 2373 100 DC12 Increase on prices 1681 71.5 416 17.7 254 10.8 2351 100 925 39.5 936 40.0 482 20.6 2343 100 DC9 Mayor lends tractor DC10 Mother pays bribe DC 13 Employment through connection Also of note in Table 2 is the item on corruption in the private sector (DC12), which asked, “During Easter week, a small shop increases the price of candy. Do you think the owner is corrupt and should be punished, is corrupt but is justified, or is not corrupt?” As shown in Table 2, most Nicaraguans believe this form of behavior is corrupt and worthy of punishment. The results are similar to the question asked about teachers accepting gifts from students. Experience with Corruption It was noted at the outset of this report that three-quarters of Nicaraguans felt affected by corruption. The implication is that corruption experienced by the average citizen is widespread. How does that overall perception match up with actual everyday experiences? We can determine that by describing some instances of corrupt behavior and asking if the respondents’ have suffered from it. We focus on bribery by police officers, a behavior that is considered corrupt by over 95% of the Nicaraguan public, as shown in Table 2 above. In addition, we examine other common forms of corruption, including requests for payment of bribes to public officials in general, to bank officials, to employers, and to officials in the legal system (judges, clerks, etc.). These activities cover the wide range of illicit activities that might touch the lives of Nicaraguans. We begin the analysis by comparing the percentage of our respondents who have personally experienced these various forms of corruption. Figure 11 shows the rather surprising results. Although 75% of the public feel affected by corruption, at most only 12% have personally experienced 12 its major forms. Bribes to any public official in the two years prior to the survey were experienced by 12% of the public. This may be a high rate in comparison with other countries, but a search of archived data sources has produced no direct comparative data on personal experience with corruption to make this determination. But in Nicaragua, while 12% is an incidence of perceived corruption that ought to be reduced, there is a strong discrepancy between this rate and the 75% who say they feel affected by corruption at the same time they say they have not experienced it. It should be noted that some respondents could well take the point of view that even though they have no personal experience with corruption, they believe they are affected by it because, in reality, corruption does affect all citizens. Since corruption, for example, absorbs taxes and deprives the public of their possible benefit, everyone in that sense suffers from corruption. Our survey did not determine if individuals were thinking in these terms when they responded to these questions. Perhaps further focus group work would reveal the answer. Percentage of Nicaraguans who claim to have had personal experiences with corruption, by type of experience 20 18 16 Percent 14 12% 12 10 8% 7% 8 6% 6 4 2 0 Public Employee Bank Police Work Figure 11 While it is impossible to spend more than a day in Managua without hearing stories of police bribery, only 7% of our sample reported personally experiencing that form of corruption. We hasten to add, however, that the fact that only 7% of the Nicaraguan public have been asked to pay bribes by the police (in connection with a hypothetical trumped-up traffic violation) is in part a function of the relatively small percentage of the public who own a car. In our survey, we found that only 11.1% of the respondents reported owning a truck or a car. Yet, in other, more common activities that do not depend upon car ownership, like making a transaction in a bank or dealing with superiors in the workplace, direct personal experience with corruption is confined to considerably less than one in ten citizens, as is shown in the figure below. 13 If personal experiences with corruption are limited, what, then, can account for the widespread perception of corruption in Nicaragua? Perhaps vicarious experiences, victimization of relatives, friends, and neighbors can account for it. We asked two questions to tap this dimension of the problem. First, we asked if the respondent knew of anyone who had paid a public official a bribe for any type of favor. Second, we asked if our respondents knew of anyone who had paid a bribe in the court system. The results are presented in Figure 12. As can be seen, about one-fourth or less of the Nicaraguan public know someone who has experienced corruption. While these figures are twice as high as personal experience with corruption, they are still far below the 75% perceived incidence of corruption. Percentage of respondents who indicated indirect knowledge of payment of bribes to public employees 30 27% 25 21% Percent 20 15 10 5 0 Public employees Judiciary system Figure 12 We explored these puzzling findings further to see if our data were hiding some aspect of experience with corruption. Perhaps the citizens who have vicariously experienced one form of corruption have not experienced the other. If that were the case, then it would be appropriate to add the two categories shown in Figure 12, for a total of 48%, much closer to the 75% figure who report feeling affected by corruption. In Figure 13 we show that this is not, in fact, the case; 65% of the public have had no vicarious experience with corruption, 22% have knowledge of one act, and an additional 13% have knowledge of two acts. 14 Percentage of Nicaraguans who claimed not to have knowledge of acts of corruption or to know of one or two experiences: cumulative impact 70 65% 60 Percent 50 40 30 22% 20 13% 10 0 No experience One experience Two experiences Figure 13 The gap between perception and experience is perhaps best highlighted by examining Figure 14. After discussing personal and other experiences of bribery by police and public officials, we asked the respondents the following question: “Considering your experience with what has just been discussed (i.e., bribery), the payment of bribes to public officials is: very widespread, widespread, not too widespread, or not at all widespread?” As can be seen, an overwhelming number (a total of 78%) believe that bribery is widespread. Thus, while 88% of the public have no direct experience with corruption, and 65% not even indirect experience, 78% nonetheless believe corruption is widespread. Based on your experience, the payment of bribes is: 15 We can examine the responses to this question geographically by examining Map 1. There each department’s average (i.e., mean) response to the question analyzed in Figure 14 is shown. As can be seen, Managua and Masaya stand out as being the departments in which corruption is seen as being the most widespread. At the other extreme, Nueva Segovia and Esteli have the most favorable views on the prevalence of corruption. For the interested reader, we provide in Table 3 a more detailed summary of experience with each of the acts of corruption under study. It should be noted that the data are presented so that they total 100% in each case, even though for some of the variables (e.g., EXC2, EXC3), the responses given are only for those who answered the question. That is, for those Nicaraguans who did not report having been stopped by a police officer and being falsely accused of a traffic violation, we did not ask if a bribe was requested or paid. Thus, the high percentages in these two items refer only to the 15.5% of the respondents who report having been “shaken down” by the police. Table 3 Personal experience with corruption in Nicaragua No Yes Total N % N % N % EXC1 Stopped by police 2005 84.5 367 15.5 2372 100 EXC2 Police asks for bribe 213 55.3 172 44.7 386 100 EXC3 Paid a bribe 120 48.4 126 51.2 246 100 EXC4 Witnessed a bribe payment 1533 64.8 834 35.2 2367 100 EXC5 Knows of a bribe payment to a public employee 1689 72.4 645 27.6 2334 100 EXC6 Bribe requested by a public employee 2081 87.8 289 12.2 2370 100 EXC12 Payment of bribe at a bank 2164 91.7 195 8.3 2359 100 EXC13 Payment of bribe at work 2215 93.8 145 6.2 2360 100 EXC14 Payment of bribe in the judiciary system 1879 79.1 495 20.9 2374 100 16 17 Readers might jump to the conclusion that perception of the prevalence of bribery (EXC7) is linked to the political position of the respondent. Is perception of corruption a partisan issue? In fact, it is not, as shown in Figure 15 below. Male and female supporters of the two main contenders in the 1990 election, the FSLN and UNO, have very similar perceptions of the widespread prevalence of bribery of public officials. Indeed, the perception is virtually the same among those who would not disclose their vote to the interviewers. Very common How common is the payment of bribes, by partisan vote and gender 100 90 80 75% 73% 77% 77% 76% 78% 70 Percent 60 50 Not common 40 30 Male 20 Female 10 0 Did not respond FSLN UNO Vote in 1990 Figure 15 Which segments of the Nicaraguan population have had greater experience with corruption than others? To answer this question, we rely on the cumulative knowledge of corruption used above. That is, this is the combined measure of those who have heard of the payment of a bribe to a public official (EXC5) and payment of a bribe in the courts (EXC14). Other measures could be used, but they demonstrate a similar pattern. First, and most strikingly, knowledge of bribery is directly and positively associated with income: the wealthier the respondent, the more likely s/he will have heard of an act of bribery. These results are presented in Figure 16. 18 Cumulative knowledge of acts of corruption according to income Corruption scale 0.8 0.7 0.6 0.5 4000> 30014000 20013000 15012000 10011500 700-1000 <700 0.4 Income in Córdobas Corruption scale varies between 0 and 2 Sig. < .001 Figure 16 A similar pattern is shown when education is examined. As demonstrated in Figure 17, those with higher levels of education are more likely to have knowledge of corruption than those with lower levels of education. Cumulative knowledge of corruption according to level of education 0.8 Corruption scale 0.7 0.6 0.5 0.4 0.3 0.2 None Elementary Middle Level of education Corruption scale varies between 0 and 2 Sig. < .001 Secondary University/ Professional Figure 17 19 The results presented in Figure 18 show that those who are more attentive to the media are more likely to have heard of acts of corruption. Percent who pays attention to the media Relationship between knowledge of corruption and exposure to media coverage 90 76% 71% 72% 80 70 82% 65% 62% 60 49% 50 35% 40 28% Listen to the radio Watch TV 30 20 Read paper 10 0 None One Two Number of experiences with acts of corruption Sig. < .001 for each type of media Figure 18 Patterns of residence also influence exposure to corruption. As shown in Figure 19, residents of Managua are more likely to have heard of corrupt acts than Nicaraguans who live in less urban areas. Exposure to corruption is quite low in rural areas. Knowledge of acts of corruption, by place of residence in different types of urban areas and in rural areas 0.9 Corruption scale 0.8 0.7 0.7 0.6 0.5 0.5 0.5 0.4 0.4 0.3 City of Managua Corruption scale varies between 0 and 2 Sig. < .001 20 Departmental capital Municipal capital Figure 19 Rural areas Finally, exposure to corruption varies by gender, with males significantly (sig. = .03) more likely than females to have had the experience. The results are displayed in Figure 20. Knowledge of corruption, by gender 0.54 Corruption scale 0.52 0.51 0.5 0.48 0.46 0.44 0.44 0.42 Male Female Corruption scale of varies between 0 and 2 Sig. = .03 Figure 20 We can summarize this presentation of data by saying first, there is a wide gap between experience and perception; much higher levels of corruption are perceived than experienced. Second, experience with corruption is a direct function of factors of socioeconomic status, such as income, education, area of residence, as well as gender. 21 IMPACT OF EXPERIENCE WITH CORRUPTION ON POLITICAL OFFICIALS Is there any spillover between experience with corruption and the opinion Nicaraguans hold of their political officials? In order to answer that question, we need to proceed in a two-step fashion. First, we need to examine the degree to which Nicaraguans believe in the integrity of their public officials. Second, we need to associate experience with corruption with the integrity data. The survey contained a battery of 16 items in which the respondents were asked to rank, on a scale of 1-10, the degree to which various public officials were “honorable” or “corrupt.”3 As seen in Figure 21, the average scores vary dramatically. On the one hand, teachers, university professors, and the clergy are viewed quite favorably, averaging over 7 on the 1-10 scale. If we take 5 as the dividing line between honorable and corrupt, only one other group—store keepers—is, on average, considered to be honorable. All remaining groups are on the negative end of the continuum, with party leaders, mayors, legislators, and ministers trailing the list, and employees of the customs authority at the very bottom with an average score of 3.6. At the same time it is important to note that among those on the negative end of the continuum, the police, often the target of much discussion because of alleged propensity to ask for bribes, are more highly regarded than many other groups. Finally, mayors are less well regarded than are council members (consejales), although the difference is not large. How Nicaraguans perceive various categories of public officials and other social groups on the “Corrupt-Honest” scale Honest 10 9 7 7 Clergy University professors 8 8 7 5.5 4 4 4 4 4.2 4.3 4.5 Party leaders Judges Business leaders Councilmember Policemen Union leaders 3.6 4 Mayors 4 4 Legislators 5 Ministers Scale 6 Corrupt 3 Teachers Customs employees 1 Store owners 2 Figure 21 3 The scale was coded so that number 1 coincided with the “very honorable” end of the continuum, while number 10 coincided with the “very corrupt” end. In order to present the findings in terms of the degree to which the individuals are perceived as being honest rather than dishonest, the coding has been reversed in this report. That is, 1 is coded as very corrupt and 10 as very honorable. 22 If the Nicaraguan government or nongovernmental organizations (NGOs) wanted to increase public awareness about the need to fight corruption, there are lessons to be learned from these data. In Nicaragua, teachers, university professors, and the clergy stand out as groups in whom Nicaraguans have more confidence than any other group. Moreover, it is precisely the nation’s educators who are in the best position to “get the message out” as part of their regular pedagogical duties. Clearly, then, teachers and professors could be more helpful than legislators and ministers in attempting to influence public opinion. In short, if the government and/or NGOs want to encourage Nicaraguans to behave in an honest fashion and to believe that serious efforts are being made to clean up government corruption, teachers, professors, and, perhaps, the clergy would be the only ones who could bring home a believable message. Now, to return to the question of the linkage between experience with corruption and the degree to which public officials are perceived as being honorable or corrupt, we bring together this new data with the material examined earlier. Is there a linkage? The answer, quite clearly, is yes. Examine, for example, Figure 22, which shows the relationship between vicarious experience with corruption and the degree to which legislators (i.e., diputados) are perceived as being honest or corrupt (on a tenpoint scale). The greater the experience with corruption, the less honorable the diputado is perceived, with the difference being statistically significant (sig. < .001). Corrupt - Honest scale More corrupt More honest Relationship between cumulative knowledge of corruption and the perceived honesty of legislators 4 3.9 3.8 3.7 3.6 3.5 3.4 3.3 None One Knowledge of acts of corruption Two Sig. < .001 Figure 22 23 The pattern presented above is repeated for the entire series of honesty/corruption measures, with minor deviations. Rather than present the same pattern repeatedly, Figure 23 presents an overall scale4 of honesty of nine public officials (legislators, ministers, mayors, council members, police, judges, the military, political party leaders, and customs employees), recalibrated to a range of 1-10 following the original scale.5 As can be seen, the pattern is identical, with greater vicarious experience with corruption being linked to a lower estimate of the honorableness of the various public officials. This pattern does not vary by gender or rural/urban residence. Relationship between cumulative knowledge of corruption and the perceived honesty of public officials Corrupt - Honest scale More corrupt More honest 4.2 4.1 4 3.9 3.8 3.7 3.6 None One Knowledge of acts of corruption Honesty = sum of the nine variables/9 Sig. < .001 Figure 23 4 The items form a very reliable scale, with an Alpha coefficient of .85. 5 This was accomplished by dividing the sum of the nine items by nine. 24 Two SUPPORT FOR ANTICORRUPTION MEASURES We now know a great deal about perception of corruption in Nicaragua. We know that a relatively small proportion of the population experiences it directly or indirectly, but most Nicaraguans believe it is very widespread. We also know that greater exposure to the media increases the perception that corruption is widespread and that better educated, more well-off, urban Nicaraguans are more likely to perceive corruption than lower socioeconomic status rural Nicaraguans. Finally, we know that exposure to corruption has a direct, negative impact on the perception of the honesty of public officials. So now we come to the question: What can be done about reducing incidence and perception of corruption? We asked our 2,400 Nicaraguan voting-age individuals about a number of measures that have been discussed to see the degree to which they would be supported and which ones would be viewed as more popular than others. We focused on eight distinct measures that could be taken: 1. 2. 3. 4. 5. 6. 7. 8. Greater media exposure of corruption Longer prison sentences for those convicted of corruption Greater emphasis by teachers on moral values in the schools Greater investigative efforts by the Comptroller General Increasing the salaries of the police and public employees More extensive reporting of expenditures by central and municipal governments Having the private sector denounce acts of corruption Greater punishment of the private sector for corruption Figure 24 shows the degree of support for these eight anticorruption measures. In this figure we combined those who were either strongly or mildly in favor of the measure. As a practical matter, nearly all respondents selected the “strong” approval, so the aggregation of the responses has no real effect on the results. As is obvious from the figure, support for each of these measures is overwhelming, with no significant variation among them. While investigation of corruption is more highly supported than any other measure, and greater punishment for corrupt acts by private enterprise obtains the lowest level of support, the difference between the highest and lowest is only about one percent, a trivial difference.6 What these results mean is that Nicaraguans overwhelmingly support any and all reasonable measures to stem corruption. This presents an unusually permissive consensus for government action. Rarely are policymakers confronted with public opinion that is as universally supportive as is the case today in Nicaragua. 6 The reader should be aware that even though the vast majority of respondents indicated the Comptroller General of the Republic should conduct more investigations, many of them are not aware of the specific functions of this government agency. 25 Scale 26 30 20 10 0 96.0 95.0 Punish private business 40 95.7 More denunciations by the private sector 50 95.5 More information on expenditures 60 95.4 Higher salaries 70 96.7 More investigations by the Comptroller 80 95.6 Teach moral values 90 96.8 Longer sentences 100 More press coverage Support for anti-corruption measures Measures Figure 24 PUBLIC AWARENESS OF THE PROGRAM TO IMPROVE GOVERNMENT FINANCIAL MANAGEMENT Nicaragua has embarked upon a program to manage government finances more effectively and reduce corruption in the public sector. How aware were citizens of that campaign as of July 1996? Figure 25 shows that only one-quarter of the population were aware of such efforts. Knowledge of efforts to improve the management of public funds Not surprisingly, awareness of such efforts is closely linked to education. As shown in Figure 26, those with higher levels of education are significantly (sig < .001) more likely to have heard of the efforts to improve management of public funds. For example, among those with no formal education, only about 10% of the sample has heard of the efforts, but among those with university education, the proportion rises to about 45%. 27 Have you heard of efforts to improve the management of public funds?, by level of educational attainment 50 Percent 40 30 20 10 0 None Elementary Middle Secondary University/ Professional Level of education Sig. < .001 Figure 26 Media attention also increases awareness of efforts to improve government financial management. While females are less aware than males, as shown in Figures 27, 28, and 29, media use increases awareness for both sexes. Highest awareness is among male newspaper readers, but even there the awareness extends to only 38% of the public. Knowledge of measures to improve the management of public funds, by whether or not they listen to daily radio news programs Percent who have knowledge of some measure 40 30% 30 24% 23% Gender Male 20 16% Female 10 No Yes Figure 27 28 Knowledge of measures to improve the management of public funds, by whether or not they watch daily television news broadcasts Percent who have knowledge of some measure 40 33% 30 20 26% 16% Gender 10% 10 Male Female 0 No Yes Figure 28 Knowledge of measures to improve the management of public funds, by whether or not they read a newspaper daily 38% Percent who have knowledge of some measure 40 34% 30 23% Gender 20 15% Male Female 10 No Yes Figure 29 29 We asked the respondents to tell our interviewers which measures were being used to improve the management of public funds. Recall that only about one-quarter of the respondents said they had some knowledge that measures were being taken. Of those who did, most were able to mention one of those measures. The distribution of their responses, in order of increasing frequency of mention, is contained in Table 4, and graphed in Figure 30. The most common response, given by 92 respondents (in the weighted sample), was “careful control of public funds,” followed by “investing funds in public works.” A question was also asked (TR8) if the details concerning public contracts should be made public. There was near universal agreement on this item (94%), and, for that reason, no further analysis is presented. However, the general nature of the responses lead to the conclusion that the knowledge possessed is not very precise. Table 4 Measures taken to control management of public funds Frequency Valid 4 Control over bank loans 7 Fire public functionaries for Percent Valid Percent Cumulative Percent 1 .1 .3 3 mismanagement of funds 14 .6 3.1 3.4 1 Improve roads 15 .6 3.2 6.6 2 Avoid unnecessary expenditures 28 1.2 6.1 12.7 3 Investment in public property 30 1.3 6.7 19.4 8 Avoid government corruption 33 1.4 7.4 26.9 13 Accountability of public funds 34 1.4 7.6 34.5 10 New methods to improve fiscal 41 1.7 9.2 43.7 11 Municipal development 48 2.0 10.8 54.4 5 Watch public funds 49 2.0 10.8 65.2 6 Invest collected funds in social 65 2.7 14.4 79.6 92 3.8 20.4 100.0 Total 450 18.8 100.0 88 NS/NR 129 5.4 99 N/A 1820 75.8 1950 81.2 2400 100.0 policy works 9 Missing Accurate control of public funds Total Total 30 Knowledge of measures taken to improve the management of public funds 92 80 15 30 33 34 41 48 49 Watch public funds 14 28 Invest in property 20 Improve roads 40 Unnecessary expenditures 60 Municipal development 65 Fire public officials Frequency mentioned 100 1 Figure 30 Careful control of public funds Invest public funds in social works Improve fiscal policy funds Account for public Avoid govt. corruption Control bank loans 0 Since the Office of the Comptroller General and the Ministry of Finance play a key role in the anticorruption campaign, we wanted to know the extent to which the public is familiar with these government units. We first asked: “Do you know what are the functions of the Comptroller General of the Republic?” Figure 31 shows the results. As can be seen, only about a little more than onequarter of the Nicaraguan public knows the functions of the Office of the Comptroller General. Do you know the functions of the Office of the Comptroller General of the Republic? 31 We then sought to determine the specific ideas that Nicaraguans had of the Comptroller’s Office, so we asked, “What is the principal function of the Comptroller’s Office?” In Table 5 we see that among the one-quarter of the public that could answer this question, the overwhelming (80%) response was: “inform about what happens in public administration.” The other responses were chosen by a very small number of Nicaraguans. Table 5 What is the main role of the Office of the Comptroller General? Valid 6 5 1 3 2 4 Missing 8 9 Total Auditing Oversee government investment Send people to jail Engage in political activities Engage in technical activities Inform about public administration Total NS/NR N/A Total Frequency Percent 1 11 26 45 52 542 677 9 1714 1723 .1 .4 1.1 1.9 2.2 22.6 28.3 .4 71.4 71.8 2400 100.0 Valid percent .2 1.6 3.9 6.7 7.6 80.1 100.0 Cumulativ e percent .2 1.8 5.6 12.3 19.9 100.0 139.8 Turning now to the Ministry of Finance, we also find that a minority of Nicaraguans are familiar with its functions. In this case, however, more than one-third say they are familiar with this ministry, a level higher than for the Office of the Comptroller General. Do you know the functions of the Ministry of Finance? 32 Knowledge of both the Office of the Comptroller General and the Ministry of Finance is directly linked to the respondents’ level of education. As shown in Figure 33, those with higher education are more likely to be familiar with both offices. Knowledge of the functions of the Ministry of Finance and the Office of the Comptroller General of the Republic, by level of education 80 Percent 60 40 Role of the Office of the Comptroller General 20 0 None Role of the Ministry of Finance Elementary Middle Secondary University/ Professional Level of education Sig. < .001 Figure 33 33 CORRUPTION AND THE STABILITY OF DEMOCRACY: KEY LINKAGES Most of the attention now being placed on anticorruption campaigns in Latin America and elsewhere is justified on the basis of economic efficiency. If, for example, 20% or 30% of government expenditures are lost to corruption in the form of bribes and kickbacks, that is 20-30% of taxpayers dollars that are lost. Development is slowed, and public problems go unattended. But there is a potentially far more important consequence of corruption—it might weaken the very fabric of the democratic system in which it takes place and leave that system vulnerable to political instability. There is only limited political science theory on which we can base this argument, but, as shall be shown in a moment, perception of corruption, in Nicaragua at least, is linked to perception of the very legitimacy of the political system. Legitimacy is a key concept in political science, and political systems that are thought to be illegitimate are ones that are not likely to remain stable. First, it is necessary to discuss the importance of political legitimacy.7 A country’s stability has long been thought to be directly linked to popular perceptions of the legitimacy of the system. Illegitimate systems, ones that do not have the support of the populace, can only endure over the long haul through the use of repression. When repression no longer can be used effectively, or if opposition elements are willing to risk even extremely grave sanctions, illegitimate regimes will eventually fall. Hence, the failure of the Tienanmen Square protestors to bring about changes in the Chinese system can be attributed to either of two causes: (1) the level of coercion that the state was willing to apply exceeded the willingness of the protestors and their supporters to bear it; or (2) system legitimacy was greater among the mass public than it appeared from observing the protestors alone. In contrast, the rapid demise of the communist governments of Eastern Europe suggests rather strongly that once repressive forces are weakened (in this case by the removal of the threat of Soviet intervention on behalf of those governments), illegitimate regimes quickly crumble. But what of democratic systems? Since almost all of Latin America today is democratic (in structure at least), we want to know what forces have, in the past, been responsible for the prior breakdowns of democracy. In most cases, military coups have been the main factors responsible. Certainly this has been the case in the vast majority of democratic breakdowns in Latin America. Democratic systems, in contrast, provide a wide variety of mechanisms for the popular expression of discontent and obstacles to the widespread use of official repression. In democracies, therefore, when citizens are discontent with government performance, they tend to wait until the next election to seek a change in incumbents. There are, however, some instances in which popular sentiment seems to have been at least partly responsible for democratic breakdowns. The best known case is the demise of the Weimar Republic, where the voters made their choice. In Latin America, the Fujimori “auto-golpe,” which extinguished democratic rule in Peru in 1992, emerged out of a popular revulsion over the inability of the extant democratic system to deal effectively with Sendero Luminoso terrorism. According to several reports, despite the use of undemocratic means, President Alberto K. Fujimori was among the 7 This discussion in the next few paragraphs draws on a prior work by Seligson for the USAID mission. Mitchell A. Seligson, Political Culture in Nicaragua: Transitions, 1991-1995, USAID, January 1996. 35 most popular heads of state in all of Latin America and was reelected when he ran for office.8 Similarly, the repeated attempts to overthrow the elected government of Venezuela have been supported, according to the polls, by many of its citizens. In the main, however, while authoritarian regimes survive based on some combination of legitimacy and repression, democracies tend to rely primarily on legitimacy.9 According to Lipset’s classical work, legitimate systems survive even in the face of difficult times. In Central America, by the mid-1980s, all six countries were regularly holding free and fair elections.10 The survival of these democracies, each of which is facing very difficult economic times, depends upon continued popular support. One need only think of the ballot box ouster in 1990 of the Sandinistas in Nicaragua, to see how critical such support can be. In that case, the inability of the system to cope effectively with the severe economic crisis and the protracted Contra war, caused voters to turn against the system.11 Does a belief that the government is riddled with corruption serve to reduce the populations’ political support for it? We can test this notion with the data from Nicaragua. Examine Figure 34 where the relationship between the perceived prevalence of bribes is related to support for the court system. As the perception of bribery increases, support for the court declines significantly. Similarly, as shown in Figure 35, support for the political system declines with increased perception of corruption. Figure 36 shows the same linkage to support for the legislature. This research has uncovered a general pattern that suggests corruption is linked to perceptions of the legitimacy of the political system. It is not surprising, therefore, that in prior comparative work on the legitimacy of the Nicaraguan system of government, it has been shown that support for that system is low and falling.12 Thus, corruption not only causes inefficiency, it helps to erode the political stability of the country. 8 James Brooke, “Fujimori Sees a Peaceful and Prosperous Peru,”New York Times, April 6, 1993, A3. According to the article, Fujimori’s approval ratings were between 62 and 67 percent. 9 This is not to say that democracies do not use coercion, but that its use is limited. 10 Participation by leftist parties was highly restricted in El Salvador up until the peace accords implemented in 1992-93. In Guatemala such participation still remains restricted. For details see Mitchell A Seligson and John A. Booth, Elections and Democracy in Central America, Revisited. Chapel Hill, North Carolina: University of North Carolina Press, 1995. 11 See Vanessa Castro and Gary Prevost, The 1990 Elections in Nicaragua and Their Aftermath. Lanham, Maryland: Rowman and Littlefield Publishers, Inc., 1992. Since the ouster of the Sandinistas involved a dramatic shift in the entire system of government, from socialist to capitalist, from Soviet/Cuban alignment to realignment with the U.S., it is appropriate to think of this election as having changed the system rather than merely the personnel of government. 12 36 See preceding footnote for citation. Support for the court system Perception of the frequency of bribes and support for the court system 3.8 3.6 3.6 3.5 3.2 3.2 3.1 2.9 None Not common Common Very common Frequency of bribes Sig. < .001 Figure 34 Perception of the frequency of bribes and support for the political system 4.7 Support for the political system 4.6 4.6 4.5 4.4 4.4 4.3 4.3 4.2 4.1 4.1 4 None Not common Common Very common Frequency of bribes Figure 35 37 Support for the National Assembly Perception of the frequency of bribes and support for the National Assembly 3.8 3.7 3.7 3.6 3.6 3.5 3.4 3.4 3.3 3.3 3.2 None Not common Common Frequency of bribes Sig. < .05 Figure 36 38 Very common PERCEPTION OF COMPARISONS WITH THE PAST This section of the report presents a comparison of perceptions of corruption in 1996 with that of the past. Specifically, we wanted to know if our respondents believed that corruption at the time this survey was conducted (July/August 1996 during President Chamorro’s administration) was getting better, worse, or remained the same when compared with two distinct historical periods: the Somoza era and the Sandinista decade. Figure 37 shows how the Chamorro period compares with the Somoza era, while Figure 38 shows how it compares with the Sandinista period. Perception of the level of bribery during the presidency of Chamorro as compared to the: Somoza era 65% 70 60 60 50 50 40 30 22% 20 13% Percent Percent 70 Sandinista decade 53% 40 27% 30 20% 20 10 10 0 More Less Figure 37 The same 0 More Less The same Figure 38 Two conclusions stand out from Figures 37 and 38. First, significant majorities of Nicaraguans believe that bribery is worse today than it was in either of the two major historical periods being considered. Second, more Nicaraguans believe that bribery is worse today than it was under Somoza as compared to the period under the Sandinistas. This suggests that if we attempt to rank the three periods under consideration, while the present is considered the worst of the three, the Somoza era is seen as somewhat better than the Sandinistas decade. This conclusion is drawn because present-day comparisons with the Sandinistas find that 20% of those asked believe that bribery was lower under Chamorro than under the Sandinistas, whereas only 13% of the respondents believe that bribery was lower under Chamorro than under Somoza. Another, perhaps clearer, way of looking at this same data is to create an overall index, by coding “more bribery under Chamorro than in the past” as +100, “less bribery under Chamorro than in the past” as 0, and the “equal” response as 50. The higher the overall 39 index, the better the past looks in comparison with the present period. Figure 39 shows the results. As can be seen, the Somoza comparison averaged nearly 76 on the 0-100 scale, whereas the Sandinista comparison averaged 66. Thus, under both Somoza and the Sandinistas, bribery is thought to have been less common than it was during the Chamorro presidency, with the Somoza era being somewhat better than the Sandinista period. Less bribery More bribery during the presidency of Chamorro Perceived occurrence of bribery during Chamorro’s administration as compared to the Somoza era and the Sandinista decade 78 75.7 76 74 72 70 68 66.2 66 64 Somoza Sandinistas Figure 39 It is also instructive to examine the geographic distribution of these questions on the perceived relative honesty of the three regimes. Maps 2 and 3 show the patterns. Chinandega is the department in which there is the strongest perception of increased perception of corruption during the Chamorro govrnment as compared to the Somoza era, whereas Carazo holds that distinction for the Sandinista comparison. Chontales, Esteli, Madriz, and Granada are the departments in which the Chamorro government compares most favorably to the Somoza period, whereas Managua and Matagalpa fare best in comparison with the Sandinista period. When interpreting these results, the reader must take into account that individual perceptions are profoundly influenced by the press and that the degree of freedom the media has enjoyed in disseminating information has varied considerably during the three time periods being considered. Under President Chamorro’s administration, Nicaragua enjoyed freedom of the press through which any allegation—whether justified or not, and many times motivated by partisan interests—was widely disseminated. This was not the case under the Somoza regime when political repression and media censorship prevented the free exchange of information. During the Sandinista regime, there were periods of media censorship. Therefore, it is not surprising that during a period when freedom of the 40 press was unhindered, there was a more generalized perception of rampant corruption, notwithstanding its actual degree. We remind the reader, as noted at the beginning of this report, that the true extent of corruption now or in the past will never be known with certainty. We would like to emphasize that one of the “costs” of democracy is that the acts of public officials are subject to scrutiny by the media, whereas in authoritarian governments public officials can implement measures to protect themselves from such scrutiny. Therefore, it is not possible to determine what would have been the level of perceived corruption during political periods in which repression was used had the media not been censured. 41 42 43 AN OVERALL LOOK AT THE FACTORS INFLUENCING PERCEPTION In this study we have examined a number of factors—socioeconomic, demographic, and geographic—that influence the perception of corruption in Nicaragua. It is now important to examine the relative significance of those factors to see which are the most essential when controlling for the effects of the others. This can be accomplished readily through the use of the statistical technique of multiple regression. While the results are difficult to comprehend for the non expert in multivariate analysis, this report will summarize the findings for the layman, but still present the details for the expert. As noted above, one overall measure of corruption is the question, “Taking into account your experience or what you have heard, the payment of bribes to public officials is: very widespread, somewhat widespread, little widespread, not at all widespread?” This is item EXC7 in the questionnaire. In order to make the results easily interpretable, the responses have been recorded so that the highest level of corruption is given the highest score (4) and the lowest level the lowest score (1). The analysis attempts to determine which, if any, of the following factors are related to corruption when the others are held constant: education, sex, age, income, exposure to the mass media (radio, TV, newspapers), and religiosity. The multiple regression analysis appears in Table 6. The results show that only five of these variables are significant predictors of the perception of corruption. Age is by far the most important: the older the respondent, the greater the perception of corruption.13 Income is the second most important factor; greater wealth is associated with greater perception of corruption. The higher the level of education, the greater the perception of corruption. Watching TV news makes Nicaraguans more likely to perceive greater prevalence of bribery, but the other media, radio and newspapers, no longer have an impact when the effect of TV is considered. Finally, the less that religion is an important aspect of one’s life, the greater the perception of corruption.14 It is important, however, to keep this last factor in perspective since the variable used to measure the importance of religion in the life of the respondents (RF6) has, first, the least weight among the statistically significant variables that explain the factors that influence perceptions regarding the incidence of corruption. Second, the vast majority of Nicaraguans (82%) consider religion to be important in their lives. This means we are referring here only to the small minority who stated religion was not important in their lives, at the same time they were claiming that corruption was very widespread. Although the other factors, such as gender, can have an impact on corruption when viewed in isolation, these relationships drop to insignificance once the impact of age, income, education, TV news exposure, and religiosity is controlled. 13 This finding is in contrast with that related to whether or not the respondents perceived themselves to be affected by corruption (see the first section of the report), since survey results show that Nicaraguans of all ages claim to be affected by corruption. 14 This relationship is the opposite from the expected, since greater religiosity would seem to relate to a stricter moral code. Further analysis of the relationship between religion and perception of corruption needs to be undertaken. 45 Table 6 Multiple regression coefficientsa Unstandarized Coefficients Model -.442 .658 .045 .064 2.701 .007 -1.671E-02 .042 -.009 -.396 .692 EDUC Years of schooling 1.325E-02 .005 .067 2.613 .009 AGE 6.885E-03 .001 .113 4.889 .000 GENDER 1.458E-02 .037 .008 .389 .697 Household monthly 4.288E-02 .012 .081 3.463 .001 Q4 Church attendance -2.989E-04 .001 -.007 -.299 .765 Q5 Praying frequency 2.362E-02 .021 .053 1.145 .252 -7.390E-02 .035 2.142 .032 A2 Watch TV news? A3 Read the newspaper? RF6 Importance of religion . R square= 0.034 -18.23E-02 .041 .120 Sig. -.010 Listen to the radio? .108 t .000 A1 2.631 Beta 24.342 Q10 income a Std. Error B 1 (Constant) Standarized Coefficients Since age turns out to be the most powerful predictor of the perception of the prevalence of bribery, it is useful to present a picture of the relationship. That picture is exhibited in Figure 40. More corruption Perception of the incidence of bribery, by age of respondent 3.5 3.4 Less corruption Scale 3.3 3.2 3.1 3 16-25 26-35 36-55 Age Figure 40 46 56-65 66-81 Now that the major influences on perceptions of corruption have been determined, it is possible to reexamine the geographic distribution of these perceptions shown in the maps presented earlier. As is well known, income and education are not randomly distributed in Nicaragua; the cities, especially Managua, have the highest concentration of people with relatively high incomes and education. There is less variation by department based on age, but, as Table 7 shows, there are some differences. For example, Carazo has the oldest average age population, while the population average for Matagalpa, Boaco and Esteli is the youngest. Table 7 Age by department Weighted Sample Average 1 Managua 34.77 2 Leon 34.48 3 Chinandega 34.70 4 Granada 36.05 5 Masaya 33.97 6 Carazo 37.09 7 Rivas 36.79 8 Matagalpa 33.33 9 Jinotega 33.69 10 Nueva Segovia 35.15 11 Madriz 35.81 12 Esteli 33.54 13 Boaco 33.37 14 Chontales 35.19 18 Atlantico 33.71 Total Average 34.55 In order to examine the influence of geography on the perception of corruption after the impact of age, income, education, exposure to TV, and religiosity have been removed from consideration, it is necessary to calculate what are known as “residuals.” Residuals are coefficients that enable us to see what is left over in the relationship between our dependent variable—perception of the prevalence of bribery—and our independent variable—namely departmental location, after the impact of age, income, education, exposure to TV, and religiosity have been removed from the analysis. These 47 residuals are then plotted on the maps developed for this project.15 Map 4 shows the results. The listing of departments and the precise mean standardized residual score by department is contained in Table 8. Table 8 Mean residual score of perception of prevalence of bribes, by department Department Mean residual score of perception of prevalence of bribes (when controlled for age, income, education, TV news watching, and religiosity) Nueva Segovia -.38 Rivas -.32 Esteli -.26 Boaco -.16 Jinotega -.14 Madriz -.14 Chontales -.10 Carazo -.05 Zelaya and Rio San Juan -.04 Leon .00 Granada .04 Chinandega .07 Matagalpa .07 Managua .08 Masaya .14 Note: A higher score means higher perception of corruption. The patterns found in Map 4 show that one cluster of departments has residents who, on average, believe that bribery is more common than in other departments. This contiguous cluster consists of Managua, Masaya, Granada, and Matagalpa. Added to this is another department, Chinandega, which, while not contiguous to the others, also shows a higher perception of corruption. Located between this region of high perception of corruption is Leon, which is also higher than average but not as extreme as the other five. The areas of low perception of corruption also comprise a contiguous cluster, consisting of Nueva Segovia, Madriz, Esteli, and Jinotega, to which is added Boaco and Rivas. 15 The residuals are standardized to have a mean of zero (0) and a standard deviation of 1. Thus, we are looking at variation around the mean, either above it or below it. 48 Map 4 shows us that the perception of corruption in Nicaragua varies even when major socioeconomic, demographic, and religious characteristics are taken into account. The central region in and around Masaya and Managua could be considered a “corruption hot spot” in which residents, on average, are more likely to perceive widespread bribery than in other regions of the country. Similarly, the cluster in the north (especially Nueva Segovia), along with Boaco and Rivas, are regions where citizens do not believe there is as much corruption. The reader should be cautioned, however, that these findings are relative and that the global finding, as reported earlier in this study, was that most Nicaraguans believe there is a great deal of corruption in the country. 49 50 APPENDIX I Survey Questionnaire
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