corruption survey of enterprises 2009

March 23rd, 2010Yerevan

Mobilizing Action Against Corruption

CORRUPTION SURVEY OF ENTERPRISES 2009

General overview of the two surveys

Household 2009• 1515 respondents (18 and above,

individuals)

• Sampling Method: multistage cluster sampling, stratified by region and urban/rural

• Sampling Frame: HH lists provided by Electric Network of Armenia CJSC

• Margin of Error: ± 2.6% (95% confidence level)

• Coverage: all marzes

Enterprise 2009• 400 respondents (business

leaders)

• Sampling Method: random

• Sampling Frame: list of taxpayers compiled from various sources (Spyur, governmental websites)

• Margin of Error: ± 4.9% (95% confidence level)

• Coverage: all marzes

Composition of surveyed businesses by size (number of employees)

Q75 - Composition of sample by sector

Composition of respondents by position and gender

What keeps businesses back?

Q 81 - Company development expectations

Q2 - Perception of the current economic situation

Q5 - Obstacles for business development (average score, from “1”-not an obstacle to “7” - very serious

obstacle)

Q4 - The most serious problems facing Armenia(multiple frequencies, up to 3 answers possible)

Q 35 - How serious of a problem is corruption in Armenia?

Public Candor, Private Caution

Q62 - How often do you think companies make donations as political contributions to a

party or movement during an electoral campaign?

Q17 - In the contracts between your company and government during the last 24 months how

often have there been:

Q18 - Reasons for decision not to participate in the public bids and tenders

Q25 - Public officials often request or make you feel obligated to pay contributions. Has this

ever happened to you while filing paperwork?

Q 59 - How often are companies obligated to make unofficial payments to public officials in the

following business operations?(average score from 1 – “never” to 7 – “always”)

Q 38 - Corruption level by institutions: top & bottom 5 (average rank, from 1 – “not corrupt at all” to 7 –

“completely corrupt”)

Q28 - The judicial system…

(average score from 1 – “strongly disagree” to 7 – “completely agree”)

Q33 - During the past 12 months, have you heard of anyone paying bribes to obtain a public

service?

Interviewers’ impression

W3. How often did you feel the respondent was reluctant to answer the questions?

Never.56,6

Less than 20% of questions27,8

Less than 40% of questions8,5

Less than half of questions.3,3

More than half questions3,8

Public Consensus

Q34 - For each of these actions, do you think this action represents corruption?

  Yes, PE Yes, HH

Paying a judge to achieve favorable treatment 97% 94%

Giving cash to a police officer to avoid revoking your driving license 89% 88%

Using connections to exempt someone close to you from military service 79% 74%

Abuse of official position for private business purposes 79% 78%

A student or a student’s parent giving a professor a gift on the day of exams

78% 81%

A public official helping a relative get accepted into a university 75% 67%

Making small unofficial payments for delivery of pensions 71% 63%

A public official recommending a relative for a position in a ministry 69% 59%

Using an office car by a government employee for private purposes 52% 49%

Giving a gift to a doctor to grant you special care of you 45% 47%

Picking flowers or fruit from a neighbor’s garden without permission 8% 10%

Q 40 - Where is corruption most severe?

Q41B - Over the past year, how did the frequency with which public officials requested bribes

change?

Q42 - Certainty of obtaining service after paying a bribe

Q44, Q47 - How would you react if you were asked to accept or give a bribe ?

Q48 - Why would you give it?

Reasons PE HHBecause there's no other way I can obtain the service 84% 80%Because everyone gives 7% 10%I will try to negotiate the price 6% 4%Other 3% 7%

Q49 - Why would you not give it?

Reasons PE HHBecause it is unacceptable for me 67% 66%Because I will try to resolve the issue through legal means 18% 10%Other 10% 17%Because there is a high risk to be punished 2% 8%I don't have money/means to give it 2% N/AIt is pointless 1% N/A

Reasons PE HHsBecause I need money 35% 52%

Because everybody takes it 32% 34%

Because I have to "share" it with my supervisor(s) 21% 6%As a "payment" for my good will/efforts 7% N/AOther 4% 9%

Q45 - Why would you take it?

Q46 - Why would you not take it?

Reasons PE HHsBecause it is unacceptable for me 81% 75%

Because there is a high risk to be punished 10% 11%

Because I will try to resolve the issue through legal means 4% 5%

Other 4% 8%

Q 43 - The main motives behind corrupt practices

Motives PE HE

There is no other way to get things done 29% 32%

To speed up the processes/procedures 27% 24%

To avoid punishment/sanctions 13% 11%

To avoid higher official payments 9% 9%

To get preferential treatment/privileges 7% 6%

To have alternative source of income 6% 7%

To be treated (served) appropriately 5% 7%

Practice of obligatory (illegal) "payments" to supervisor

4% 3%

Other 1% 2%

Change

Q54 - To what extent do you think corruption can be reduced in Armenia?

Q72 - Concrete actions you can personally undertake to help combat corruption

Q70 - Are you aware of any anti-corruption measures being taken by the Government of

Armenia?

Q71 - How effective is the Government's fight against corruption in Armenia?

Q66 - Mention three entities which you believe could head strategies in the fight against

corruption? (open ended question, up to 3 answers possible)

Q69 - Do you agree that NGOs are capable to combat corruption in Armenia?

Q65 - If it is up to you, what would you do to reduce corruption? (open-ended question, up to 3 answers possible)

Q55 - What percentage of your company's monthly income would you be willing to pay so that

corruption in the private sector were eliminated in Armenia?