DPI‐403

Corruption & Good GovernanceCorruption & Good Governance

StructureStructure

1. State reforms: building institutional capacityg p y

2. Transparency International

3 TI: corruption and good governance3. TI: corruption and good governance

Evaluating diagnostic tools:

TI’s Corruption Perceptions Index TI s Corruption Perceptions Index,

TI’s Global Corruption Barometer, &

The WB Diagnostic Tools.The WB Diagnostic Tools.

4. Brainstorming strategic options

Policy OptionsPolicy Options

Map ofMap of Program Options

Constitutions IDEA

Human rights, justice,

rule_lawAmnesty

Democratic governance

ElectionsACE/UNDP

Media freedom

Amnesty

governance UNDPIFES

Parlt, tiCivic

CPJ

parties, womenQuotas Project

PAR, decentralization, anti-corruption

TI

Civic society, soc

capCIVICUS

TI

1. STATE REFORMS1. STATE REFORMS

1. Building state capacity1. Building state capacity

Can democratic governance deliver? Can democratic governance deliver? Elections not sufficient for accountability Democratic states lack capacity to deliverDemocratic states lack capacity to deliver

basic public services & achieve MDGs Range of state reforms:

Public administration reform and training New public sector management, deregulation,

privatization private public partnershipsprivatization, private-public partnerships, contracting out, role of NGOs

Decentralizing regional and local government Transparency and anti-corruption initiatives

Corruption and good governanceCorruption and good governance

1960s some relativists (Nye, Leff) claimed corruption enhanced ffi i d i i t ti fl ibilitefficiency: administrative flexibility

The ‘corruption eruption’ in the mid-1990s End of Cold War: new priorities Globalization & expansion of international trade Link between development and good governance Growth of independent press as ‘watchdog’

Corruption was widely assumed to have negative consequences: damaging economic growth, g g g , distorting investment, weakening state capacity, reducing trust in leaders and political system, and

hurting the poorest groups hurting the poorest groups Corruption has become a central aspects of good governance

initiatives by TI, World Bank, UNDP etc Over 4000 books and journal articles published during 1990s alone

2. ROLE OF TRANSPARENCY2. ROLE OF TRANSPARENCY INTERNATIONAL

Role of Transparency InternationalRole of Transparency International

Transparency InternationalTransparency International

International NGO founded in 1993 by Peter International NGO founded in 1993 by Peter Eigen

Organization and structureg Board of Directors Advisory Councily International Secretariat in Berlin 90+ national chaptersp Funded by development aid, private donors,

international organizations

Source: TI Strategic Framework 2008-10 (Nov 2007)

Statement of valuesStatement of values

Transparency Transparency Accountability Integrity Integrity Solidarity Courage Courage Justice Democracy Democracy “We define corruption as the abuse of

entrusted power for private gain ”entrusted power for private gain.

ActivitiesActivities

Advocacy: monitor trends and highlight problemsy g g p Corruption Perception Index, 1995+ Global Corruption Barometer, 2003+ Bribe payers Index, 2006+

Advocate international conventions and norms UN Convention against Corruption (2003); African Union Anti-Corruption Convention (2003), Council of

Europe Conventions against Corruption (1999), OECD Anti-Bribery Convention (1997) and Inter-American Convention against Corruption (1996).

K l d d Knowledge products Handbooks Toolkits

A li d li h Applied policy research

Source: TI Strategic Framework 2008-10 (Nov 2007)

Strategic goals 2008‐10Strategic goals 2008 10

i. Increase knowledge productioni. Increase knowledge productionii. Promote anti-corruption norms and principlesiii Enhance dynamic communication andiii. Enhance dynamic communication and

knowledge sharingiv Cultivate strategic partnershipsiv. Cultivate strategic partnershipsv. Reach a broader base of citizensvi Monitor global trendsvi. Monitor global trends

Source: TI Strategic Framework 2008 10 (Nov 2007)Source: TI Strategic Framework 2008-10 (Nov 2007)

3. CORRUPTION AND GOOD3. CORRUPTION AND GOOD GOVERNANCE

Concept: How defined?Concept: How defined?

J S Nye 1967 in Heidenheimer Political Corruption J.S.Nye 1967 in Heidenheimer Political Corruption. “Corruption is behavior which deviates from the formal

duties of a public role because of private-regarding (personal, close family, private clique) pecuniary or status gains; or violates rules against the exercise of certain types of private regarding influence.”

Too limited? TI Definition:

“Th b f t t d f i t i ” “The abuse of entrusted power for private gain.” Too broad?

Measures?Measures?

1. Judicial records and court cases? Depends upon legal standards and prosecution by

the police and judiciary 2. Press reports and content analysis?

Depends upon role of journalists as ‘watchdogs’ and ability to discover incidents

3. Surveys of the general publicR l ti t d d ithi h ti Relative standards within each nation

Public opinion surveys (TI’s eg TI’s Global Corruption Barometer)

Focus groups Focus groups4. Polls of elites

Locals and expatriatesPrivate sector and public administrators Private sector and public administrators

Transparency InternationalTransparency International

Annual TI Corruption Perceptions Index since 1995 Definition: Public corruption only

“The abuse of entrusted power for private gain.”

Combines 15 data sources ranking nations Eg World Economic Forum, Institute for Management

Development, Economist Intelligence Unit, Gallup, Freedom House State Capacity Survey World BankFreedom House, State Capacity Survey, World Bank etc.

Local residents and/or expatriate experts Locals may report high corruption due to high Locals may report high corruption due to high

standards Expatriates may be biased (Western businessmen)

Includes 145 nationsIncludes 145 nations

Similar standards used?Similar standards used?

Institute for Management Developmentg p “Assess whether bribery and corruption prevail

or do not prevail in the economy.” Gallup International

“How common are bribes to politicians, senior civil servants and judges and how significantcivil servants, and judges and how significant of an obstacle are the costs associated with such payments for doing business.”

Similar standards used?Similar standards used?

Political and Economic Risk Consultancy(PERC) “How do you rate corruption in terms of its

lit t ib ti t th llquality or contribution to the overall living/working environment?”

PricewaterhouseCoopers (PCW) PricewaterhouseCoopers (PCW) What is the frequency of corruption in

obtaining import/export permits, subsidies, or i t ?paying taxes?

Evaluating the TI CPI indexEvaluating the TI CPI index

Pros? Transparent methodology by TI Consistent annual benchmark highlights ‘worst cases’ Correlates reasonably with public perceptions Correlates reasonably with public perceptions

Cons Inconsistent standards used by data sourcesy

Questions used, sampling techniques, number of respondents

Subjective evaluations treated as ‘objective’ indicator Subjective evaluations treated as objective indicator Not clear what causes corruption or what practical

reforms should follow from the analysis – need diagnostic case-studiesdiagnostic case studies

TI’s Global Corruption BarometerTI s Global Corruption Barometer

60 nations – representative surveys adult pop. by p y p p ythe Gallup organization

Key results 2007• The poor are the most penalised by corruption. They are also more pessimistic about the

prospects for less corruption in the future.• About 1 in 10 people around the world had to pay a bribe in the past year; reported

bribery has increased in some regions, such as Asia-Pacific and South East Europe. • Bribery is particularly widespread in interactions with the police, the judiciary and registry

and permit services.• The general public believe political parties, parliament, the police and the judicial/legal

system are the most corrupt institutions in their societies.• Half of those interviewed – and significantly more than four years ago – expect corruption

in their country to increase in the next three years.• Half of those interviewed also think that their government’s efforts to fight corruption are

ineffective.

CPI & GCB, 2002CPI & GCB, 2002

Public perceptions of corruption i th i tin their own country

World Values Survey 1995-6y Representative sample of the public “How widespread do you think bribe taking and

corruption is in this country? Almost no public officials are engaged in it? A few public officials are engaged in it A few public officials are engaged in it Most public officials are engaged in it Almost all public officials are engaged in it.”

0 2 0 4 0 6 0 8 0 1 0 0

N o rw a yF in la n d

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BrazilMoldova

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Polandp

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Expert perceptions of corruption TI 2002

100806040200

4. BRAINSTORMING: WHAT4. BRAINSTORMING: WHAT STRATEGIES WORK?

What reform strategies follow?What reform strategies follow?

Strengthen legislation & judicial redress Hotlines, whistle-blowing, ombudsmen, tribunals

Monitoring Tighten audit & procurement systems Accountability and performance indicators, parliamentary

oversight, record keeping & procurement Transparent decision-making and budgets

Improve public service employment Improve public service employment Public sector training, pay, and benefits

Support ‘watchdog’ organizations Independent media commissions & NGOs Independent media, commissions, & NGOs Public campaigns ‘whistleblowers’ International conventions

Shrink the role of the state and open markets?p Controversial evidence

Strategic options

Types of strategiesTypes of strategies

Capacity development Monitoring Brokerage Legal

conventionsAid

ConditionalityFinancial Military

With civil society Elections Dialogue International Negative Trade

sanctionsPeacekeeping

Force

With government Human rights

C ti

Diplomacy Regional Positive Debt relief External intervention

Corruption

Pros and cons of each?

How would you organize these options? Order priorities? Order priorities? Categories, organization, and structure? Pros and cons of each? Pros and cons of each? Identify best practice cases?