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/governancephil.matsheza@undp.orgTel:1-212-906-5043