Global Forum V On Fighting Corruption and Safeguarding Integrity

2 - 5 April 2007

Sandton Convention Center, Gauteng, South Africa

Sub-theme 2:

Taking stock through monitoring and evaluation

Workshop 3: Evaluating the impact of corruption

Marianne Camerer

Co-founder, International Director

http://www.globalintegrity.org

OutlineOutline

MONITORING AND EVALUATIONMONITORING AND EVALUATIONThe challengeThe challengeA common understanding of corruptionA common understanding of corruptionThe causes and consequences of corruption The causes and consequences of corruption Methods to measure corruptionMethods to measure corruptionMethods to monitor anti-corruptionMethods to monitor anti-corruptionThe 2006 Global Integrity Report and IndexThe 2006 Global Integrity Report and IndexEvaluating anti-corruption reformsEvaluating anti-corruption reformsQuestions to considerQuestions to consider

The ChallengeThe Challenge

Corruption is a universal problem with negative developmental Corruption is a universal problem with negative developmental consequencesconsequences

What do we know about controlling corruption?What do we know about controlling corruption? One of the most significant challenges facing policymakers and One of the most significant challenges facing policymakers and

advocates is how to diagnose and prioritize anti-corruption reforms advocates is how to diagnose and prioritize anti-corruption reforms and interventions and interventions

Difficult decisions must be made on how to spend limited financial Difficult decisions must be made on how to spend limited financial and political capital on reform effortsand political capital on reform efforts

Often, the process has been a “best guess” effort based on Often, the process has been a “best guess” effort based on perceptionsperceptions

A common understanding of A common understanding of CorruptionCorruption

Corruption is the (ab)use or (mis)use of entrusted Corruption is the (ab)use or (mis)use of entrusted public power and the public interest for private public power and the public interest for private gain or interests (World Bank, Transparency gain or interests (World Bank, Transparency International)International)

CCorruption = orruption = MMonopoly onopoly ++ DDiscretion iscretion -- AAccountability (Robert Klitgaard, Controlling ccountability (Robert Klitgaard, Controlling Corruption, 1998)Corruption, 1998)

The causes of corruptionThe causes of corruption

SocialSocial CulturalCultural PoliticalPolitical EconomicEconomic InstitutionalInstitutional IndividualIndividual IdeologicalIdeological

The consequences of corruptionThe consequences of corruption

Negatively impacts investment and growthNegatively impacts investment and growth Creates risk and uncertaintyCreates risk and uncertainty Distorts public expenditure and resource allocationDistorts public expenditure and resource allocation Negatively impacts industrial policies and business Negatively impacts industrial policies and business

developmentdevelopment Undermines democracyUndermines democracy Exacerbates poverty and inequalityExacerbates poverty and inequality Leads to a breakdown in political trustLeads to a breakdown in political trust

Methods to Measure CorruptionMethods to Measure Corruption(Kaufmann, Kraay, Mastruzzi 2006)(Kaufmann, Kraay, Mastruzzi 2006)

Gathering the Gathering the informed informed viewsviews of relevant stakeholders of relevant stakeholders (surveys of firms, public officials, individuals, NGOs, (surveys of firms, public officials, individuals, NGOs, donors, private sector)donors, private sector)

Tracking a countries’ Tracking a countries’ institutional featuresinstitutional features (information on (information on opportunities/incentives for corruption, such as opportunities/incentives for corruption, such as procurement practices, budget transparency etc) procurement practices, budget transparency etc)

Careful and specific Careful and specific audits of specific projectsaudits of specific projects

Methods to monitor anti-Methods to monitor anti-corruptioncorruption

What do we know about controlling corruption?What do we know about controlling corruption? Controlling corruption is about limiting abuses of powerControlling corruption is about limiting abuses of power Controlling corruption is linked to the practices and Controlling corruption is linked to the practices and

institutions that promote democratic governanceinstitutions that promote democratic governance Credible information gathered by local actors according to Credible information gathered by local actors according to

a transparent methodology can assista transparent methodology can assist Monitoring implies a time dimension that can track Monitoring implies a time dimension that can track

changes and adjust interventions accordinglychanges and adjust interventions accordingly

The 2006 The 2006 Global IntegrityGlobal Integrity Report Report Primarily an in-depth diagnostic tool for decision-Primarily an in-depth diagnostic tool for decision-

makersmakers

Country ReportsCountry Reports Country FactsCountry Facts Corruption TimelineCorruption Timeline Reporter’s Notebook Reporter’s Notebook Integrity Indicators (#292 questions)Integrity Indicators (#292 questions) Integrity ScorecardIntegrity Scorecard

Global Integrity IndexGlobal Integrity IndexTransparently quantifies anti-corruption and national integrity

systems by assigning scores to indicatorsPotentially able to benchmark and monitor trends in reform

efforts

An investigative report on anti-corruption mechanisms in 43 countries

2006 Countries (43)

Latin America

Argentina, Brazil, Guatemala, Mexico, Nicaragua

Europe

Bulgaria, Montenegro, Romania, Russia, Serbia

Southeast Asia

Cambodia*, Indonesia, The Philippines, Vietnam

Sub-Saharan Africa

Benin, DRC, Ethiopia, Ghana, Kenya, Liberia, Mozambique, Nigeria, Senegal, Sierra Leone, South Africa, Sudan, Tanzania, Uganda, Zimbabwe

Middle East and North Africa

Egypt, Israel, Lebanon, The West Bank*, Yemen

South and Central Asia

Armenia, Azerbaijan, Georgia, India, KyrgyzRepublic, Nepal, Pakistan, Tajikistan

North America

USA15 repeated from 2004

The Global Integrity Index:The Global Integrity Index:

The The existenceexistence of institutional mechanisms that prevent of institutional mechanisms that prevent abuses of power (i.e. corruption)abuses of power (i.e. corruption)

The The effectivenesseffectiveness of those anti-corruption mechanisms of those anti-corruption mechanisms

The The accessaccess that citizens have to those mechanisms to that citizens have to those mechanisms to hold public officials accountablehold public officials accountable

Institutions of Governance: Institutions of Governance: 6 key dimensions6 key dimensions23 sub-categories23 sub-categories

292 discrete indicators - clear codebook criteria292 discrete indicators - clear codebook criteria

I. I. Civil Society, Public Information Civil Society, Public Information and Mediaand MediaCivil Society Organizations; Media; Public Civil Society Organizations; Media; Public Access to Information Access to Information

II. II. ElectionsElectionsVoting and Citizen Participation; Election Voting and Citizen Participation; Election Integrity; Political FinancingIntegrity; Political Financing

III. III. Government AccountabilityGovernment AccountabilityExecutive Accountability; Legislative Executive Accountability; Legislative Accountability; Judicial Accountability; Accountability; Judicial Accountability; Budget ProcessBudget Process

IV. IV. Administration and Civil ServiceAdministration and Civil ServiceCivil Service Regulations; Whistle-Blowing Civil Service Regulations; Whistle-Blowing Measures; Procurement; PrivatizationMeasures; Procurement; Privatization

V. V. Oversight and RegulationOversight and RegulationNational Ombudsman; Supreme Audit Institution; National Ombudsman; Supreme Audit Institution; Taxes and Customs; Financial Sector Taxes and Customs; Financial Sector Regulation; Business Licensing and RegulationRegulation; Business Licensing and Regulation

VI. VI. Anti-Corruption and Rule of LawAnti-Corruption and Rule of LawAnti-Corruption Law; Anti-Corruption Agency; Anti-Corruption Law; Anti-Corruption Agency; Rule of Law; Law EnforcementRule of Law; Law Enforcement

Using the Integrity IndicatorsUsing the Integrity Indicators The Integrity Indicators offer a toolkit to policymakers, civil society The Integrity Indicators offer a toolkit to policymakers, civil society

advocates, and private sector actors by identifying strengths and advocates, and private sector actors by identifying strengths and weaknesses in a national governance structure.weaknesses in a national governance structure.

Armed with that insight, decision makers can make more informed Armed with that insight, decision makers can make more informed decisions and address the greatest weaknesses (while supporting decisions and address the greatest weaknesses (while supporting mechanisms that work well) in a system. mechanisms that work well) in a system.

All actors have a common frame of reference and can All actors have a common frame of reference and can track track progressprogress in real-time to gauge effectiveness and ensure reform in real-time to gauge effectiveness and ensure reform efforts remain on track. efforts remain on track.

A Powerful Diagnostic ToolA Powerful Diagnostic Tool

Evaluating anti-corruption reformsEvaluating anti-corruption reforms

A multi-dimensional national strategy that includes a long term, A multi-dimensional national strategy that includes a long term, structured and sequenced approach to entrench integrity reformsstructured and sequenced approach to entrench integrity reforms

Political commitment to combat corruption wherever it occurs Political commitment to combat corruption wherever it occurs including being subject to scrutinyincluding being subject to scrutiny

Enforcement of comprehensive anti-corruption legislation across Enforcement of comprehensive anti-corruption legislation across the public and private sectorthe public and private sector

Sufficient resources, skills, independence and powers to anti-Sufficient resources, skills, independence and powers to anti-corruption bodiescorruption bodies

Constant review, research and evaluation of areas most prone to Constant review, research and evaluation of areas most prone to corruptioncorruption

A partnership approach that includes all stakeholdersA partnership approach that includes all stakeholders

Questions to considerQuestions to consider How will we know when anti-corruption reforms have been effective How will we know when anti-corruption reforms have been effective

and successful? and successful? – What are the measures of success? What are the measures of success? – In what ways are countries rewarded by effectively addressing corruption?In what ways are countries rewarded by effectively addressing corruption?

Are certain anti-corruption controls more important than others?Are certain anti-corruption controls more important than others? What is the relationship between perception and reality when it What is the relationship between perception and reality when it

comes to monitoring and evaluating anti-corruption reforms?comes to monitoring and evaluating anti-corruption reforms? What about double standards, both internally and externally?What about double standards, both internally and externally?