When Prime Minister Yukio Hatoyama likened the Democrat Party of Japan's takeover to the Meiji Restoration in last week's policy speech, he failed to mention an issue that fueled discontent with the Tokugawa Shogunate as it ended in 1867 — corruption. Though corruption did not get a specific mention amid the historical allusions and hopeful rhetoric of the prime minister's speech, it is a grave problem that, if left unsolved, will continue to hamper development and shackle people's lives throughout Asia.

The United Nations Development Program's annual report on corruption identifies the problem as widespread and devastating. Japan may imagine itself as a developed country no longer suffering from the petty bribery that troubles the rest of Asia, but Japan still has many gray areas with questionable business-as-usual practices. The collusive relationship between government ministries and the private sector has resulted in amakudari, the hiring of retired bureaucrats by companies and other organizations that they used to oversee. Similar complex social relationships are entrenched in all Asian countries. The common acquiescence to them can lead to exploitation.

The UNDP defines corruption as: "the misuse of public power, office or authority for private benefit, through bribery, extortion, influence peddling, nepotism, fraud, speed money (form of bribery) or embezzlement." Corruption makes possible nearly every type of organized crime. Drug smuggling, human trafficking, money laundering, and illegal arms sales all depend on corruption. It occurs in the private sector just as often as in the public, and at all levels of society. In this age of internationalization, corruption does not stop at the border, but moves as swiftly and easily as a bank transfer.

For millions of Asians, corruption is a fact of daily life. To rent a market stall, get a license or enroll a child in school, a bribe is often needed. Those demands increase the cost of nearly every transaction, a burden falling disproportionately on the poor. In large part, the poor are kept poor through corruption. Conditions in Japan are generally better, but shopkeepers in Shinjuku, for example, are often forced to pay organized crime members "special fees" or "voluntary donations" for routine necessities like linen delivery or new year decorations. Their recent efforts to defend themselves should be strongly supported.

Outside the country, Japan has been generous with aid to many countries, but because of corruption, some of that aid ends up in the pockets of corrupt politicians. The accumulated amount of bribery has been estimated by the UNDP and other agencies at anywhere from 30 to 45 percent of the annual state budget in some Asian countries. This is money lost to hospital care, improved water facilities and education.

In Japan, the allocation of resources for large-scale construction projects often takes place in secret, benefiting a few well-connected people. Its large-scale effects can be just as pernicious. In these ways, the gray areas at the edges of corruption contribute to economic stagnation and distort the fair and free distribution of resources.

Japan has much to offer in the fight against Asian corruption. Japan maintains a degree of integrity in government and private business that many other Asian countries yearn for, but Japan is far from perfect. The power of monopolies and range of discretion by office holders is still high.

Whistle-blowers who help expose secrets should have anonymity and protection. Stronger checks and balances should be introduced into government bureaus. Public and private monetary decisions need much greater transparency. Like corruption, these positive values can spread across borders.

Japan's corporate presence and numerous investments put it on the front lines of the struggle for honest business practices in Asia. Japanese companies typically do not initiate corruption in other countries, but all too often they accede to it. Recently, many Fortune 500 Global Index companies have listed "best practices" against corruption. Japanese companies should do the same. In the long run, protecting businesses against corruption and helping to solidify international standards is good for business, especially as marketplaces globalize.

Japan has signed the U.N. Convention against Corruption, the world's only universal anti-corruption agreement, but has not yet ratified and officially accepted it. This should become a top priority of the Hatoyama administration. The third session of the conference on the U.N. Convention against Corruption will convene in Doha, Qatar, this month. The new government should strive to fully participate in that conference and then actively pursue the steps agreed on there.

All through Asia, governments often turn over because of a widespread distrust of politicians and power-holders who seem to have impunity for their actions. Discontent rises quickly in the face of recurring violations of human rights and the slowing of economic development that corruption causes. With enough political will, corruption can be reduced and even eliminated.