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?