STM‐103

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 IndexTI s Corruption Perceptions Index,

TI’s Global Corruption Barometer, &

The WB Diagnostic Tools.The WB Diagnostic Tools.

4. Recap previous speakers and plan assignments

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 accountabilityDemocratic states lack capacity to deliverDemocratic states lack capacity to deliver basic public services & achieve MDGsRange of state reforms:

Public administration reform and trainingNew public sector management, deregulation, privatization private public partnershipsprivatization, private-public partnerships, contracting out, role of NGOsDecentralizing regional and local governmentTransparency 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-1990sEnd of Cold War: new prioritiesGlobalization & expansion of international tradeLink between development and good governanceGrowth 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 groupshurting the poorest groups

Corruption has become a central aspects of good governance initiatives by TI, World Bank, UNDP etcOver 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 PeterInternational NGO founded in 1993 by Peter EigenOrganization and structureg

Board of DirectorsAdvisory CouncilyInternational Secretariat in Berlin90+ national chapterspFunded by development aid, private donors, international organizations

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

Statement of valuesStatement of values

TransparencyTransparency Accountability IntegrityIntegrity Solidarity CourageCourage Justice DemocracyDemocracy“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 pCorruption Perception Index, 1995+Global Corruption Barometer, 2003+Bribe payers Index, 2006+

Advocate international conventions and normsUN 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 dKnowledge productsHandbooksToolkitsA li d li hApplied 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 CorruptionJ.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 tiRelative standards within each nationPublic opinion surveys (TI’s eg TI’s Global Corruption Barometer)Focus groupsFocus groups

4. Polls of elitesLocals and expatriatesPrivate sector and public administratorsPrivate sector and public administrators

Transparency InternationalTransparency International

Annual TI Corruption Perceptions Index since 1995Definition: 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 expertsLocals may report high corruption due to highLocals may report high corruption due to high standardsExpatriates 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 TIConsistent annual benchmark highlights ‘worst cases’Correlates reasonably with public perceptionsCorrelates reasonably with public perceptions

ConsInconsistent standards used by data sourcesy

Questions used, sampling techniques, number of respondents

Subjective evaluations treated as ‘objective’ indicatorSubjective evaluations treated as objective indicatorNot 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 organizationKey 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 1995-6yRepresentative 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 itA few public officials are engaged in itMost public officials are engaged in itAlmost 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

S w itz e rla n dA u s t ra lia % Public who perceivesu s t a aS w e d e nS lo ve n iaU ru g u a y

C h ileW G e rm a n y

U S ATa iw a n

% Public who perceives ‘Most/all’ officials are corrupt

Ta iw a nE G e rm a n yM o n te n e g ro

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S p a inB a n g la d e s h

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M e x ic oC ro a t ia

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M ldM o ld o vaB ra z ilL a tvia

G e o rg iaN ig e ria

U k ra in eL ith u a n ia

B e la ru sR u s s ia

A rm e n iaD o m in ic a n

M o s t A ll

10099

0s

80SwitzerlandFinland

Norway

WV

S m

id-1

60

E GermanyTaiwanWGermanyUruguaySlovenia

Sweden

f cor

rupt

ion

40Philipines S KoreaTurkey

Bangladesh Spain

S Africa

rcep

tions

of

20NigeriaGeorgia Latvia

BrazilMoldova

Argentina PeruMexicoAzerbaijan Estonia

Polandp

100806040200

Pub

lic p

e

0 Rsq = 0.6821

Russia Belarusg

Expert perceptions of corruption TI 2002

100806040200

What reform strategies follow?What reform strategies follow?

Strengthen legislation & judicial redressg g jHotlines, whistle-blowing, ombudsmen, tribunals

Tighten audit & procurement systemsAccountability and performance indicators parliamentaryAccountability and performance indicators, parliamentary oversight, record keeping

Improve public service employmentTraining pay and rewardsTraining, pay, and rewards

Support ‘watchdog’ organizationsIndependent media, commissions, & NGOs

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

Conclusions for discussion:Conclusions for discussion:

1 Do we have reliable and valid indicators of1. Do we have reliable and valid indicators of corruption?

2. What are the general lessons about the gdiagnostic tools?

3. What are the most effective strategies for ginterventi0on?

4. ASSIGNMENTS4. ASSIGNMENTS

A i t #2Assignment #2Evaluating program effectiveness of development agencies (25%)Following the OECD/DAC Paris Declaration, one of the key concerns of the internationalof the key concerns of the international community has been aid effectiveness, in particular learning what works for development and demonstrating the positive impact ofand demonstrating the positive impact of interventions, to ‘scale up’ programs. In this context, how could we assess the range of , galternative program options used by different development agencies to strengthen democratic governance? g

Assignment #2Assignment #2

Focusing on the issue of democratic governance, you are asked to describe:

The agency’s overall mission, goals, and organizational resourcesorganizational resources,

Their strategies and activities for working on issues of democratic governance, and

Their programs, projects and budget on this area of work.

Overall, how effective is the organization in meeting its objectives and goals concerning democratic governance?

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?

Types of programmatic areasTypes of programmatic areas

Constitutional reform

Civil Society State capacity International i i lCivil Society

Elections

State capacity

PAR/

principles

Human rights

Media

Anti-corruption

Parliaments

Human rights

Gender equality

NGOs Justice

equality

Transparencyp y

Next classNext classPart III: Options: reform strategies and agencies

h10 Wed 5th Mar Strategies and options for strengthening democratic governance

#1

11 Mon 10th Mar Constitution-building: International IDEA: Dr Kirsti Samuels Speaker

12 Wed 12th Mar Elections: ACE and IFES: Linda Maguire, UNDP Speakerg , p

13 Mon 17th Mar Strengthening parliaments, parties, and women’s empowerment: the Inter-parliamentary Union: Prof. DrudeDahlerup

Speaker

14 Wed 19th Mar Building the state: public administration reform, local governance, and anti-corruption: Transparency International

15 Wed 2nd Apr Civil society social capital and NGOs: the Open Society Speaker15 Wed 2 Apr Civil society, social capital, and NGOs: the Open Society Institute and CIVICUS: Monjurul Kabir

Speaker

16 Mon 7th Apr Media Freedom: Committee to Protect Journalists

17 Wed 9th Apr Human rights, justice, and rule of law: Amnesty International # 2