Writer : Stanley Mujadi I Editor : Muhammad Fahrezi Syahputra
The word corruption originates from the Latin term corruptio or corruptus. Corruptio carries several meanings, including the act of damaging or destroying, as well as connotations of rottenness, depravity, dishonesty, bribery, immorality, and deviation from purity. It can also refer to slanderous or insulting language.
This term entered the English language as corruption, and the Dutch equivalent corruptie later influenced the Indonesian language, where it became known as korupsi. According to the Kamus Besar Bahasa Indonesia (KBBI), korupsi refers to the misappropriation or misuse of state funds (or those of a company, organization, or foundation) for personal gain or the benefit of others.
On the global stage, corruption is widely recognized and defined in various ways. The World Bank (2000) defines corruption as the abuse of public power for private gain. Meanwhile, the Asian Development Bank (ADB) describes it as improper and unlawful behavior by public or private sector employees to enrich themselves or those close to them, often by abusing their positions of power.
The United Nations Office on Drugs and Crime (UNODC) also outlines corruption in two key forms under Article 8 of the UN Convention Against Transnational Organized Crime:
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Offering, promising, or giving a public official—directly or indirectly—an undue advantage to influence their actions or decisions in the performance of official duties.
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Requesting or accepting such an advantage by a public official—directly or indirectly—either for personal benefit or for another party, to alter or avoid actions related to their official responsibilities.
Corruption in Laos: A Persistent and Costly Crisis
Corruption is a global issue, and Laos, a landlocked nation in Southeast Asia, is no exception. Since 2016, the Lao government has reportedly lost approximately USD 767 million due to corruption in state infrastructure projects and public investments, particularly in road and bridge construction. These figures come from the State Inspection Authority (SIA), which identifies these sectors as key sources of widespread corruption.
According to SIA reports, nearly 3,700 members of the ruling Lao People’s Revolutionary Party have faced disciplinary action, including 2,019 expulsions and 154 criminal charges. The SIA also revealed that 1,119 individuals—including 127 government employees—were involved in illegal logging and the timber trade. Since 2016, authorities have confiscated 300,000 cubic meters of illegally harvested timber worth approximately USD 127 million.
Despite pledges to tackle entrenched corruption, these revelations have cast doubt on the sincerity and effectiveness of government efforts. The issue is so severe that it discourages foreign investment, which is essential for infrastructure development and economic growth in this nation of 7.5 million people.
Khamphanh Phommathat, President of the State Inspection Authority, has acknowledged the problem, calling inspection efforts a top priority of the government and the Party. Yet, for many citizens, these promises ring hollow. A resident from Champassak Province commented that the widespread presence of luxury vehicles—owned by government officials despite modest salaries of around 3 million kip (USD 250)—speaks volumes about systemic corruption. “As a citizen, I can only watch and say nothing,” he said.
A volunteer teacher in Savannakhet Province shared that he and his peers had to pay bribes to secure government jobs, highlighting the normalization of corruption. An inspector from Luang Prabang expressed frustration with anti-corruption efforts, saying that suspects often receive warnings in advance, allowing them to evade investigation or consequences. Meanwhile, a civil servant in Saravan Province reported a case where an official who embezzled project funds in 2021 received minimal punishment.
Corruption and the Economic Downfall of Laos
In Transparency International’s 2021 Corruption Perceptions Index, Laos ranked 128th out of 180 countries, with a score of 30/100—where 0 signifies high corruption and 100 indicates a clean system.
The consequences of corruption in Laos are severe and far-reaching. The country teeters on the edge of bankruptcy, plagued by debt, economic inequality, and persistent governance failures. Foreign exchange reserves are insufficient to meet national obligations without external assistance.
China holds approximately 47% of Laos’ debt, much of which is tied to large-scale infrastructure projects. While global events such as the Covid-19 pandemic and the war in Ukraine have impacted many economies, the root cause of Laos’ financial crisis is internal—corruption.
Former Prime Minister Phankham Viphavanh openly admitted before the National Assembly that embezzlement, mismanagement, and nepotism were major causes of financial losses in 178 state-owned enterprises. Executive appointments, he noted, were often based on personal connections rather than merit.
Steps Toward Recovery and Reform
To stabilize the economy, the government has proposed issuing bonds worth USD 340 million with a six-month interest rate of 20%. However, financial tools alone are not enough. Tackling corruption requires bold structural reform.
Key priorities must include:
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Strengthening asset recovery mechanisms to retrieve funds acquired through illicit means.
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Implementing robust anti-money laundering frameworks.
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Investigating organized crime linkages that exacerbate corruption.
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Ensuring transparency in public procurement and project implementation.
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Enforcing meaningful legal consequences for corrupt officials at all levels.
Only with sincere political will, strong institutions, and public engagement can Laos move toward restoring trust, attracting investment, and securing a more equitable and prosperous future.
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