Workshop on Programming in Support of Anti-Corruption Agencies
Bratislava,30 june-1July , 2009
United Nations Development Programmewww.undp.org/governance
Corruption & Development
Objectives of this Session
To provide an overview of AC interventions in the context of preventive measures in UNCAC
Identify linkages between corruption and development
Finally, to assist in designing anti-corruption prevention interventions from a developmental perspective
Defining CorruptionMisuse of entrusted power, office or authority for private benefit – through bribery, extortion, influence peddling, nepotism, fraud, speed money or embezzlement
Robert Klitgaard’s Formula: C (Corruption) = M (Monopoly) + D (Discretion) – A (Accountability)
Corruption = Monopoly + Discretion – Accountability - (Integrity + Transparency)
[Relevant to prevention]
Historical dev. of Conceptualization
As old as civilizationMoral PlaneCriminal angleInternal codificationLinkages to Development- UNCAC
Definition of Corruption (Contd.)
UNCAC doesn’t define corruption, but components of corruption such as bribery.
Most national statutes do not define Corruption
UNCAC does not have an article dedicated to corruption & Dev
Dev. aspect captured in preamble paragraphs:
Extends to private sector (e.g., the Article 12)
For UNDP, UNCAC as a Governance and Development Framework (contd.)
Governance: the process of making and implementing decisions. A set of values, policies, processes and institutions through which a social group manages its economic, political and social affairs including interactions between the state, civil society and the private sector.
“Democratic Governance” elements: participation, transparency, effectiveness and efficiency, responsiveness, accountability, consensus, equity and inclusiveness, and the rule of law.
Aspects of all of these elements are covered by numerous provisions contained in the UNCAC
UNDP entry points
Mandates to reduce poverty
Promote realization of MDGs
Promote sustainable and Human development
Promote full realization of human security and human rights
Corruption is a threat to these mandates
How big is the problem?1. A global concern: found in both rich and poor
countries (Enron’s scandal– tens of billions of dollars, global financial crisis, Medoff Scandal – 65b)
2. Corruption goes beyond governments and crosses national boundaries
3. Corruption a critical development issue (a governance deficit)
4. Corruption particularly tragic in the case of the poor
5. Corruption costs African countries an estimated 25% of its combined national income - some $148bn a year (AU 2002 estimate)
6. Money extorted and stolen each year from developing countries is over 10 times the approximately $100 billion in ODA (WBI)
How big is the problem?
Corruption: ConsequencesExacerbates poverty; negatively affects economic growth (less investment; higher transaction cost)
A disproportionate impact on women (and other vulnerable and marginalized groups)
A debilitating effect on development in countries rich in natural resources
Encourages conflict and is an obstacle to consolidating peace (Iraq, Afghanistan)
Undermines the delivery of humanitarian and reconstruction assistance
A nexus with organized crime (LACexperience)
Violates human rights and fosters an anti-democratic environment
Prevention in UNCAC vs. PracticeNo working group on prevention under the CoSPWhat constitute the prevention??? [Teach morality, target the youth, awareness raising, public education]No methodologies for prevention (mainstreaming)System audits lagging behindGood practices rare [AC agencies with prevention mandates: what it means in Practice]
UNCAC Prevention Articles: At What Is There Prevention?
UNCAC Articles Demand for Programming
Article 5: Anti-corruption policies
Policy framework, legal framework, strategies, coordination, and consultation processes
Article 6: Independence of AC bodies
Technical assistance to establish and strengthen oversight institutions
Article 7: Civil service capacity-building
Public sector reform
Article 8: Code of conduct Promotion of integrity, honesty and responsibility
Article 9: Public procurement and management of public finance
Promote the introduction of a transparent effective system of public procurement and public finance management.
Article 10: Public reporting Civil society empowerment; access to information, inclusive participation, awareness raising,
Article 12: Private sector Role of private sector in delivering of social services
Article 13: Civil society Social audit, citizen’s audit, and budget tracking
Principles for Mainstreaming
Accountability
Transparency Participation
Non-discrimination
Responsiveness
Governance
Conclusion: Making Prevention Work?
Strong political backing at the highest level of government (soft spot vs. system overhaul)
Coordination (many players in both horizontal and vertical levels with sufficient competency and capacity)
Need clarity of mandates
AC body/agency Work where other institutions are functional
Availability of information (e.g., surveys to quantify and quality corruption)
Conclusion: Making Prevention Work?Realistic costing exercise; sufficient resources (financial, human
and technical) over the long run (address issue of resources upfront)
Poor institutional capacity preparations
Created for political expediency
Need for sound performance indicators of ACCs (monitoring methodology and indicators of success: How to measure success of prevention)
Systemic, long-term, coherent and holistic strategy for combating corruption (prevention, investigation and awareness raising)
Thank You!Further informationwww.undp.org/[email protected]:1-212-906-5043