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Bhutan’s Anti-Bribery and Corruption Regulations: A Model for South Asia

Despite its small size, Bhutan has made significant strides in combating corruption, earning it a reputation as one of the least corrupt nations in South Asia. The government has implemented effective anti-corruption measures, including the Anti-Corruption Act, which criminalizes various forms of corruption and ensures that both public and private sectors are held accountable.

Judicial System: Low Risk

The courts in Bhutan present businesses with a very low risk of corruption, with only 1% of companies perceiving the judiciary as a major constraint to business. Bribes and irregular payments are rarely exchanged for favorable court decisions, and the government has ensured that the judiciary is independent and impartial.

Public Procurement: Moderate Risk

While public procurement is considered a moderate-risk area, the government has implemented measures to prevent corruption. Although bribes and irregular payments sometimes occur in the procurement process, favoritism is not widespread, and companies do not often report being expected to give gifts to secure contracts.

Legislation and Enforcement

Bhutan’s anti-corruption framework is comprehensive and effective, with laws criminalizing:

  • Abuse of office
  • Money laundering
  • Embezzlement
  • Active and passive bribery
  • Bribery of foreign public officials

The Anti-Corruption Commission (ACC) has been praised for its efforts in promoting anti-corruption awareness and investigating corruption cases.

Civil Society

Bhutan’s civil society is relatively new and limited, with:

  • Freedoms of speech, press, assembly, and association protected under the law but restricted in practice
  • The government-run Bhutan Media Foundation providing funding to some NGOs, which limits their independence

However, there are no reports of intimidation or threats against journalists.

Sources

This article draws on data from various sources, including:

  • World Economic Forum’s Global Competitiveness Report 2015-2016
  • Bertelsmann Foundation’s Transformation Index - Bhutan 2016
  • Transparency International’s Anti-Corruption Agency Strengthening Initiative - Assessment of the Bhutan Anti-Corruption Commission 2015
  • US Department of State’s Human Rights Practices Report - Bhutan 2015
  • Freedom House’s Freedom in the World - Bhutan 2015 and 2014
  • World Bank Group’s Enterprise Surveys - Bhutan 2015