CUSTOMS: A CASE STUDY IN COMBATING
 CORRUPTION IN ARMENIA

Corruption is preventing the emergence of a democracy in Armenia. One of the primary points of entry for highlighting the problem of widespread corruption and inadequate enforcement of laws in a way which also clearly demonstrates the incentives which exist for increased transparency and fundamental reform, is in the customs area as relates to trade and investment. Trade and investment are the propelling forces for economic reforms and a more stable democracy in Armenia today. Trade and investment rules enhance transparency because they force countries to describe in detail their regime. Taking into consideration this issue of vital importance, in 2001-2002 AFIC implemented a project aimed at studying and identifying mechanisms and solutions of modernizing the customs procedures, including procedures combating corruption and increasing transparency in customs area. The project was supported by the Center for International Private Enterprise, an affiliate of the U.S. Chamber of Commerce, in Washington D.C.

Customs Study:
AFIC conducted a case study on combating corruption in the area of customs regulation. The study is based on both reviewed written documents and meetings conducted by AFIC. A survey was done on existing anti-corruption and customs related studies and materials, both in national and global arena. A significant quantity of documents and research data, obtained from different sources (articles, library searches, Internet sources, conferences, etc.), was reviewed and analysed. The primary focus of analysis was concentrated on aspects describing the problem and identifying practical solutions on international arena. The key elements of an effective integrity strategy relevant to the operating environment and needs of customs administration, assessing the usefulness of current strategies and identifying areas of future improvement were studied and where appropriate, practical measures which may assist in the development of a comprehensive integrity strategy were outlined. During the data reviewing process a number of working meetings and discussions were held with the representatives of different business associations and NGOs, business community, policymakers, and customs or anti-corruption related specialists and experts, representatives of different International organizations and Projects in Armenia (World Bank, IFC, USAID Tax, Fiscal and Customs Reform Project, UK Department for International Development, OSCE, Transparency International, European Parliament. etc.). The meetings were aimed at sharing information about the Project and getting the opinions and views of different focus groups on a wide range of subject related issues.

Advocacy Initiative:
AFIC is one of the founding members of the National Anti-Corruption Coalition of Non-Governmental Organizations in Armenia. The establishment of Anti-Corruption Coalition was aimed at joining the efforts of civil society organizations involved in the anti-corruption movement and to ensure the effectiveness of the ongoing and future anti-corruption programs through better coordination and cooperation of appropriate activities. Since its establishment the Coalition has actively collaborated with different local and international organizations and institutions, dealing with anti-corruption issues and has provided excellent networking opportunities for Coalition member organizations. Today there are 21 member organizations in the Coalition. The activity of the Anti-Corruption Coalition allows assessing the results and the impact of the implementation of such a partnership in fighting corruption and making an inventory of best practices to encourage further cooperation among non-governmental organizations in the country. The Coalition will further the exchange of information and joint sponsorship of programs, where appropriate, between member organizations and integrity groups in order to achieve effective utilization of resources.

Round-Table Discussions:
A series of round-table discussions were organized by AFIC to introduce the participants with the project results and to discuss the findings of the study and the final publication. The participants mentioned about the common understanding on main pressure points in the analysis, highlighting the interaction between corruption and economic performance and recommendations suggesting appropriate forms and methods for improving the situation and performance in customs system. The roundtables in general touched the issues of concrete harm that corruption in customs system can bring to the development of foreign trade and investment initiatives. Participants identified and prioritized the customs issues and discussed alternative strategies by which civil society can contribute to combating corruption. Issues of interaction between entrepreneurs and customs bodies, and law enforcement was also brought up and examined during the round table sessions. The Round-tables were organized in a way to provoke a healthy and wide-ranging debate in democratic traditions and afforded an important forum for advocacy of the results of analytical work. Various viewpoints and recommendations expressed at the round-tables by the participants on the raised issues can serve as a basis for the further development of anti-corruption initiatives. The round-tables attracted policymakers, international experts, business community and civil society representatives. The representatives of the media invited to the round-tables to stimulate public awareness on debate of issues provided the media coverage of the events.