Just days before a much-awaited donor conference, influential International Crisis Group (ICG) recommended to place all funds pledged to Macedonia under oversight of a "corruption advisor" appointed by European Commission. The donors ignored this and other recommendations. To appease critics, affable Attorney General of Macedonia charged a former Minister of Defense with abuse of duty for allegedly having channeled millions of DM to his relatives during recent civil war. Macedonia has belatedly passed an anti-money laundering law recently - but failed, yet again, to adopt strict anti-corruption legislation.

In Albania, Chairman of Albanian Socialist Party, Fatos Nano, was accused by Albanian media of laundering $1 billion through Albanian government. Pavel Borodin, former chief of Kremlin Property, decided not appeal his money laundering conviction in a Swiss court. The Slovak daily "Sme" described in scathing detail newly acquired wealth and lavish lifestyles of formerly impoverished HZDS politicians. Some of them now reside in refurbished castles. Others have swimming pools replete with wine bars.

Pavlo Lazarenko, a former Ukrainian prime minister, is detained in San Francisco on money laundering charges. His defense team accuses US authorities of "selective prosecution".

They are quoted by Radio Free Europe as saying:

"The impetus for this prosecution comes from allegations made by Kuchma regime, which itself is corrupt and dedicated to using undemocratic and repressive methods to stifle political opposition ... (other Ukrainian officials) including Kuchma himself and his closest associates, have committed conduct similar to that with which Lazarenko is charged but have not been prosecuted by U.S. government".

The UNDP estimated, in 1997, that, even in rich, industrialized, countries, 15% of all firms had to pay bribes. The figure rises to 40% in Asia and 60% in Russia.

Corruption is rife and all pervasive, though many allegations are nothing but political mud-slinging. Luckily, in countries like Macedonia, it is confined to its rapacious elites: its politicians, managers, university professors, medical doctors, judges, journalists, and top bureaucrats. The police and customs are hopelessly compromised. Yet, one rarely comes across graft and venality in daily life. There are no false detentions (as in Russia), spurious traffic tickets (as in Latin America), or widespread stealthy payments for public goods and services (as in Africa).

It is widely accepted that corruption retards growth by deterring foreign investment and encouraging brain drain. It leads to misallocation of economic resources and distorts competition. It depletes affected country's endowments - both natural and acquired. It demolishes tenuous trust between citizen and state. It casts civil and government institutions in doubt, tarnishes entire political class, and, thus, endangers democratic system and rule of law, property rights included.

This is why both governments and business show a growing commitment to tackling it. According to Transparency International's "Global Corruption Report 2001", corruption has been successfully contained in private banking and diamond trade, for instance.

Hence also involvement of World Bank and IMF in fighting corruption. Both institutions are increasingly concerned with poverty reduction through economic growth and development. The World Bank estimates that corruption reduces growth rate of an affected country by 0.5 to 1 percent annually. Graft amounts to an increase in marginal tax rate and has pernicious effects on inward investment as well.

The World Bank has appointed last year a Director of Institutional Integrity - a new department that combines Anti-Corruption and Fraud Investigations Unit and Office of Business Ethics and Integrity. The Bank helps countries to fight corruption by providing them with technical assistance, educational programs, and lending.

Anti-corruption projects are an integral part of every Country Assistance Strategy (CAS). The Bank also supports international efforts to reduce corruption by sponsoring conferences and exchange of information. It collaborates closely with Transparency International, for instance.

Another interesting study was done. One that should really catch our attention. It reveals that employees who are happier and treated well, produce better results than those who are unhappy. And most frontline workers are unhappy and are looking elsewhere for work.

No, it shouldn’t surprise us. But somehow it does. It surprises us first, because we are stunned that a study had to be done to prove something that is so obvious. The outcome of study should not be as surprising as fact that it was done at all! When we recover from that, then it may surprise us because we aren’t aware that most frontline staffers aren’t happy and they don’t feel that they are treated well at work.

Ugh! This must make us look at ourselves if we are managers. But we have to give ourselves a break…we’re not bad guy! I think I know why and how this happens.

The position somehow changes us whether we know it or not! My own research, and my work with thousands of frontline supervisors, lead me to believe that there is a clear and simple answer: We become so consumed with position, we lose ‘person’ we think and know ourselves to be. This is too bad too, because it was probably that personable person who got us this higher position!