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Public Sector Governance On This Page A Series Of Country Case Studies on What Works in Fighting Corruption And:
Also see International Surveys * * * A Question of Governance – Case Studies Explain the Roadblocks to Development in Oil Rich African CountriesA South African advocacy organization has produced case studies in four different oil rich African countries, all having different experiences with oil management, in order to identify alternative avenues to avoid the “resource curse.”The “resource curse” is a popular term used to describe the inverse relationship that often occurs between the discovery of oil in a country and the downward slope of development. Several factors could be attributed to this phenomenon, but a serious cause is the mismanagement of oil revenues, according to a recent report by the Institute for a Democratic Alternative in South Africa (IDASA). Once oil is discovered in a country, the government is forced to adopt very strict governance structures very quickly in order to hedge the interests of multiple stakeholders against the interests of its own people. This has often proven difficult in countries where democracy is highly unstable and governance structures are weak. The Institute for a Democratic Alternative in South Africa, commonly known as IDASA, is a public interest organization committed to promoting sustainable democracy. The Institute has produced a report with a series of case studies on four African countries in various stages of the oil management process. The focus of the studies is on the political context within each country in order to identify barriers to managing oil revenue, according to the report. The larger goal is to identify avenues through which there can be greater public participation and oversight and where more effective advocacy can be done. Each study contains an account of how multiple stakeholders function in the oil management system, including government, multinational companies, international funding agencies, donors, local and international NGOs and the citizens in the country. Four African countries were chosen – Angola, Chad, Gabon and Sao Tome e Principe – IDASA says, because of their diverse characteristics. Angola is the second largest sub-Saharan oil producer. Chad has tried, with varying success, to implement innovative laws to manage disbursement and use of oil revenues. Gabon is struggling under an oil dependent economy with limited oil reserves. Sao Tome e Principe (STP) has recently received reports that billions of barrels of oil are just off its shores and is in the beginning stages of negotiating exploration. All face significant challenges. Some countries have more difficulty in some areas than in others. The main points covered in the report are:
Each study contains a fairly detailed account of how these factors are affecting each country’s progress toward (or detraction from) effective oil management. A brief history of the political climate is provided in each situation with an outline of the latest legislative initiatives which aim to provide more oversight in the process. Sadly, none of the countries seem to be making any significant progress. A summary of the key points made in each case study is provided below. ANGOLA The government has been slow to adopt transparency in its financial dealings, despite protests from its people. Only since 2005 has there been a website which publishes what payments the state oil company receives and the payments it makes to the government. However, IDASA states there is still a serious lack of information on how revenues enter national budgets, leading to the suggestion that alternative budgets are set up which funnel the money into secret accounts. The country has been ravaged by decades of civil war and has not had an election since 1992. Civil society has only just started to become more active and in many cases, organizations do not yet fully understand the process or details involved in oil revenue management. There is also a real lack of funding for many organizations trying to get themselves off the ground. Because such secrecy surrounds the budget, access to information is mainly controlled by bribery. At the same time, the report states many government officials are not well-trained in oil management, so the multinational companies who come in to negotiate usually end up with the better end of the deal. According to national law in the country, these companies are now required to devote 15 percent of their budgets to “corporate social responsibility,” a trend which is starting to gain ground. However, the measure has not been well implemented and has not contributed much. CHAD The President of Chad has very extensive powers, making any real oversight a real challenge, IDASA states. A monitoring body was set up in 2000 which was called at the time a “model” piece of legislation. The outside body, called “The College,” was charged with making sure money was allocated appropriately and each Ministry had a plan for spending it. Civil society members are also represented. An annual report is produced every year. Despite the enthusiasm that accompanied the new department, IDASA research shows it has not been a smooth path. Under the President’s authorization, revenue has gone toward activities other than poverty alleviation leaving The College with little power to react. The positive side of The College’s creation is that civil society organizations have become more active in the industry and are further along in pushing for transparency. However, this is not so much the case for people living in the Southern part of the country. These people are more restricted in their movement and have a much weaker voice in government. The President, along with the people, has had strained relationships with the oil companies. In attempts to increase the government’s share in oil revenues, IDASA states he has alienated many company employees making the process more difficult. Similar to Angola, oil companies have significant leverage in Chad and act more like a “state within a state,” a situation many locals resent. A sign of progress is the higher level of engagement that oil companies are having with civil society which could eventually lead to greater transparency, the report states. GABON Gabon has the longest serving head of state in the world and the party’s political power is firmly entrenched. It is mainly an extractive economy, with a strong reliance on oil, and suffers a massive wealth gap. Along with a lack of diversity, varying oil prices contribute to economic instability and oil reserves are starting to run out. The country is also plagued by having to pay 50 percent of its oil revenues to pay off its debt. Civil society is beginning to become more active, but according to personal accounts in the report, many people simply lack motivation to promote change. IDASA says none of the government ministries are independent and corruption is endemic, a notion supported by Transparency International’s Corruption Perceptions Index. Although Gabon is described as a fairly closed society, there is a growing environmental activist movement which could filter down to other industries, the report says. There are currently no oversight mechanisms, but the government did recently sign on to the Extractive Industry Transparency Initiative (EITI), an international standard-setting organization encouraging governments to publish what they pay and the payments they receive. SAO TOME E PRINCIPE (STP) Unlike some of the other countries in this study, STP has three branches of government and freedom of speech is respected. However, the population is tiny. It is more difficult to avoid conflicts of interest in government, and oversight is perceived to be less necessary as everyone knows everybody else. Before oil was discovered, STP government officials were known to be very open with the people and crime was relatively low. When oil was discovered about 10 years ago, this dynamic began to change, according to IDASA. The rate of HIV/AIDS is higher, petty crime has increased, and prostitution now exists where it did not before. The report attributes these negative trends to the discovery of oil. Even after 10 years, STP has seen no new revenue. IDASA’s estimation is that, despite lessons from the past, STP is on no better path than its oil-rich predecessors. Ways Forward After a gloomy analysis of the oil management in each country, ISADA provides several “strategic imperatives” and “engagement imperatives” for governments, civil society, international actors and multinational corporations.
Posted 4/7/08* * * One Local NGO’s Struggle – Encouraging More Female Candidates in Zimbabwe ElectionsAllowing women’s voices to be heard in public office is an important part of democratic society. Ensuring that women have an equal chance at participating in elections is a vital step toward safeguarding women’s rights. In more traditional societies, the burdens of poverty fall hardest on females who are often left at home and have little if any economic independence. They need representatives in government who will speak on their behalf. Including a proportionate number of women in public office is an important aspect of good governance, which a local Zimbabwean NGO has made its priority. In the last few months, the IPS News Service has followed Women's Trust, a local Zimbabwean women's rights group, which focused on increasing the number of women running for public office. Of the total population in Zimbabwe, 52 percent are women. The “50-50” campaign, was created by Women’s Trust to give women an equal chance to participate in government and to encourage that half the party funding provided by the government be reserved for women. Unfortunately, the campaign was not able to meet its goals in the upcoming March 26 elections. An IPS article on December 30, 2007 described the challenges laid out for the group, and a follow-up article on March 23, 2008 outlines in an interview with Women’s Trust's executive director what barriers stood in the way of success. Like many other countries, Women's Affairs Minister Oppah Muchinguri admitts Zimbabwe is a patriarchal society. The main barriers to getting women elected to public office that the December. 30 article mentions are empowering women to challenge their traditional roles and getting them access to much-needed funding. The same article does cite that Zimbabwe has a National Gender Policy, instituted in 2004, which gives 52 percent of decision-making posts to women, but most people believe this legislation carries no weight. The main challenge to the success of the campaign, posed at the end of the article, was how the NGO would gain broad support for its initiative despite numerous other pressing issues that plague Zimbabwe. In the end, it seems the “50-50” campaign could not overcome people’s overwhelming concern for soaring inflation rates, widespread poverty and dirty tactics on both sides to keep the opposition down. According to the March 23 article, only 13 percent of the candidates running for House of Assembly were women and 30 percent of those running for the Senate were women. Luta Shaba, executive director of Women’s Trust, explained some of the campaign’s setbacks. She observed that political parties in Zimbabwe have no mechanisms to which they can be held accountable to their national policies on protecting women’s rights. She also said there are serious male-biases in efforts to obtain funding for women candidates. Some women were used as pawns for political purposes, she said, by being placed in elections that were not winnable. In many cases, false information was distributed to women to discourage them from running. All of these barriers inhibit women from having any real chance at gaining more seats in government. Posted 3/24/08
* * * TANZANIA TESTED IN CORRUPTION SCANDALOn February 6, 2008 a Tanzanian Parliamentary Report directly implicated Prime Minister Edward Lowassa and other top Ministers in a corruption scandal.(U.S. company denies briebry - see final paragraphs of this story) A 165 page report alleged contracting and procurement violations in a major electric power deal between Tanzanian government controlled companies and a Texas company called Richmond Development Company LLC.Just a few days earlier President Jakaya Kikwete of Tanzania was elected to chair the African Union and in coming days he will play host in Tanzania to visiting U.S. President Bush. President Kikwete has previously declared a very strong anti-corruption policy and now it will be tested. If he can reconstitute a government, bar allegedly corrupt top officials and ensure all the facts are made public, then he will not only have enhanced his own reputation and that of governance in Tanzania, but set an important example for many countries. Associated Press reported on February 8 that Prime Minister Lowassa stated, “I have written to the president to relieve me of my duties after serving the government for two years." He added that he was wrongly implicated in the deal and was never given a chance to explain. He did not offer any further explanations in his resignation letter. DENIAL: In a fax to The Associated Press, Houston-based Richmond Development Company said officials had not seen the parliamentary committee report that blamed the prime minister and two other ministers for continuing to make payments to the company after it had failed to provide emergency power. But, it said, neither it "nor any of its employees have received a single penny from, or paid a penny to, the government of Tanzania or any of its officials." The company did confirm it had negotiated a contract worth US$83 million (€57.2 million) with the government, but did not specify whether it had supplied any services under the contract. It said it had been "plagued by false and misleading claims" since it won the contract in 2006. posted 2/11/08
TI Reports on Emerging Good Practices in Southern African CountriesTransparency International (TI) published a serious of case study reports in November 2007 in an attempt to identify trends and good practices within anti-corruption work in Southern Africa. Seven countries were analyzed – the Democratic Republic of Congo (DRC), Mauritius, Zambia, Zimbabwe, Botswana, Mozambique and South Africa. Since institutional structures were found to be very weak, TI said it was difficult to identify very many good practices. However, TI believes there is a growing awareness of the importance of good governance, and more countries are taking notice of governance challenges in neighboring nations. A full report analyzing trends across these countries can be downloaded from TI's website. The studies produced are very country-specific, taking into account each country’s unique social dynamics, history and political reality. The TI general report uses Swaziland as an example where there is a strong culture of nepotism, which contributes greatly to corruption; whereas in Zimbabwe and DRC, corruption is simply a survival strategy. In terms of the levels of corruption, most countries had a very poor rating on TI’s Corruption Perceptions Index. Four countries scored below a 3.0, where corruption is seen to be rampant; two scored between 3.0 and 5.0, where corruption is seen to be a “serious challenge;” and only Botswana and South Africa scored above a 5.0. Each country report can be individually downloaded on TI’s website. Trends Across Southern African Countries
Emerging Good PracticesClearly, there are still many institutional defects in southern African countries. However, TI believes there are some important, if limited, emerging good practices that can be built upon.
Posted 1/4/08* * * Report Shows Voter Bribery Dominates Kenya's Political CampaignsA new report shows most Kenyan presidential campaigns are financed by corruption. The report, published by the Coalition for Accountable Political Finance (CAPF) in Kenya and the United National Development Programme, shows that voter buying and voter bribery is a political concern for respondents in 71 constituencies surveyed. In addition, findings show 60 to 80 thousand shillings (1 USD = 63 shillings) are spent per day on distribution of money and other benefits to voters.
The following are some of the key findings from the CAPF Election Monitoring Initiative:
Posted 12/17/07* * * GRECO Recommends Anti-Corruption Reforms in UkraineGroup says public administration is "inefficient, biased, and opaque"After Ukraine joined the Group of States Against Corruption (GRECO) on January 1, 2006, it was subject to an evaluation team made up of several European officials from various justice and legal departments. That evaluation team (GET), laid out specific principles on which Ukraine would be evaluated: Independence, specialization, and means available to national bodies engaged in the prevention of and fights against corruption
The Ukraine then adopted measures to comply with these principles and GET has recently evaluated their effectiveness. It has produced a report that describes current conditions in Ukraine with respect to corruption and rule of law, and gives recommendations as to how Ukraine can confront its challenges. According to Transparency International and many other more local organizations, Ukraine is one of the most corrupt countries in Europe. On Transparency International’s 2007 Corruption Perceptions Index, the Ukraine received a score of only 2.7, out of a total of 10 possible points. Past efforts to improve governance in Ukraine have remained largely unsuccessful. The Interagency Commission was established in 2005 as the main corruption fighting entity with officials representing the offices of the President, the Prime Minister, Parliament, the Security service, the Foreign Office, the Prosecution service, the ministries of the Interior and Justice. Due to the failures of this commission, the President of Ukraine released a Concept Paper in September 2006 that lays out the many problems with corruption. The Cabinet of Ministers were charged with the responsibility of creating an action plan based on the Concept Paper, which has continued to be a critical goal of the Council of Europe and the European Commission Project Against Corruption in Ukraine. The GET is also involved in helping Ukraine determine goals and priorities for establishing an effective action plan with a clear structure. Outlined by both the Concept Paper and reinforced by the GET’s findings, “Ukraine is considerably affected by corruption and the problem is widespread throughout the country and its public institutions, at central as well as local levels. Corruption appears to be a systemic, wide-scale problem. Public confidence in public institutions – including the judicial system and its representatives – is critically low and there are few signs that this is changing for the better.” The most important task, according to the GET, is consolidating democratic principles, the rule of law, and institutional reforms. The main challenge is how corruption problems should be addressed, because although there is a political will to do so, the political cooperation on the means for reform has proven difficult. In an effort to create the most effective action plan for combating corruption in Ukraine, the GET has recommended the following:
To read the report in full, please click here to view the .pdf version. GRECO was established in 1999 by the Council of Europe to monitor States’ compliance with the organization’s anti-corruption standards. Posted 10/31/07* * * Human Rights Watch in Nigeria: How Poverty and Corruption Reinforce Each OtherFollowing the April 2007 elections in Nigeria, widely seen to have involved exceptional levels of corruption and violence, Human Rights Watch (HRW) undertook field studies in various Nigerian states to learn how government funds were being used to foment violence and perpetuate graft on a massive scale. HRW cited estimates from the head of Nigeria’s Economic and Financial Crimes Commission that Nigeria lost some $380 billion to corruption between independence in 1960 and the end of military rule in 1999. During the last President’s administration, under Obasanjo in 2006, Western diplomats estimate between 4.25 percent and 9.5 percent of Nigeria’s GDP was lost to corruption. The HRW report mainly covers the situations in Rivers State, Nigeria’s largest oil producer and wealthiest state, Oyo State, Anambra State and Katsina State, where current President Umaru Yar-Adua was formerly the Governor. Widespread Poverty Due in Part to Corruption
HRW stated that in Rivers State, where revenues are high, per capita spending far exceeds many West African countries at the state level alone. Nevertheless, primary health and education are in shambles and during the previous administration, 50 to 90 million Nigerians live on less than on US dollar a day. To those who earn barely any money, accepting bribes in exchange for ratcheting up violence or participating in gangs is a particularly attractive option. Political Godfathers
One of the primary ways government funds are funneled through to criminal elements is the use of “political godfathers.” In order to get elected, candidates are actually dependent of wealthy thugs who can organize gangs and other violent groups to scare off opponents, all in exchange for a portion of stolen government resources. These activities, according to HRW, “help to reinforce the central role of violence and corruption in politics by making it even more difficult to win elected office without resorting to the illegal tactics they represent.” Youth Gangs
Preying on youth is another method of perpetuating the cycle of poverty and corruption. As one gang member was quoted as saying “The youth have no money – if you show them the bag of money or the bag of guns, they will work for you.” Instead of the government really financing the needs of its people, it entices the poor with money and guns as a way to serve to continually enrich its own elite members. HRW found one engineering graduate student in Anambra State who agreed to organize thugs on behalf of his sponsor candidate in exchange for $190. His reasoning: “I earn money through my civil engineering and through politics. I get more money in politics.” A similar situation is taking place in Katsina State, where the state government is directly paying youth gangs accused of carrying out widespread political violence. HRW cited that according to former state government officials, civil society activists and People’s Democratic Party (PDP) Youth members, current President Yar’Adua used state government money to regularly maintain PDP Youth with a monthly stipend when he was governor of the state. This initiative was euphemistically called “youth empowerment.” Government Spending
The governance system faces many problems. According to HRW, an idea was brought to the Government House meeting in Katsina before 2003 to establish television viewing centers in al of the wards. Some members opposed the plan as “an unacceptable legacy to bequeath on the youth,” said a former state government official. The idea of computer training centers was brought forth. “The idea was accepted but [later] this things suddenly became ‘Let’s give them a N5000 allowance,’” said the official. The allowance is now funding youth gangs. One way of manipulating the government budgets is the use of the “security vote” fund. The purpose of the fund is to act as a source of discretionary spending that the executive arms of government can use to respond quickly and effectively to threats to peace and security in their jurisdictions. However, there are virtually no restrictions on how the money can be spent and has generally been used by state and local governments to foment violence and co-opt political opponents or has been lost to graft and patronage. HRW Recommendations
Despite the challenges of combating a system so entrenched by corruption, HRW does make some recommendations. To the government of Nigeria, there are many obstacles to overcome. Currently, there is no anticorruption watchdog that could keep the government in check, and Nigeria has a very low level of transparency. HRW suggests the creation of an independent body that would effectively investigate cases of corruption and consider the input of relevant stakeholders. Also, enacting and aggressively implementing the Freedom of Information Bill to enhance more transparency in government spending. Additionally, the current Electoral Reform Panel is virtually ineffective. HRW urges the government respect the panel’s independence and seriously consider the recommendations it puts forth. Sitting governors currently enjoy complete immunity from investigations, a policy HRW highly recommends the government rescind. To read a full description of HRW’s study and all of its recommendations, please click here. Posted 10/12/07
* * * Chinese Corruption Should Elicit Global Concern, Says Carnegie ScholarThe Carnegie Endowment for International Peace released a policy brief in early October 2007 called “Corruption Threatens China’s Future,” by Senior Associate Minxin Pei. The well-documented report reveals the staggering scope of corruption within many Chinese sectors and what the implications are for the future of China and the international community.Pei cited the direct economic loss of GDP per year to a tiny group of elites is at least three percent of GDP. The indirect costs to Chinese social services, public health, and environmental degradation are “incalculable,” he added. Corruption in China, according to many national polls, is the number one public concern. The author stressed that not only will China have to be concerned about its long-term economic stability, but also with mounting social unrest, which is already an important issue. Survey results Pei noted that almost one-quarter of the respondents to a 2006 survey of Chinese business executives said that their local officials were “bad,” and 12 percent said they were “very bad.” China’s National Audit Agency found that from 1996 to 2005, the government misused funds amounting to eight percent of on-budget spending. Based on Pei’s “conservative” estimates, the direct costs of corruption in 2003 could be three percent of China’s GDP, roughly $86 billion. This exceeds the entire amount the government spent on education in 2006. Extensive state involvement in the economy and the absence of a competitive political process and free press greatly contribute to the prevalence of corrupt activities in China. Half of the provincial transportation chiefs in China have been sentenced to jail terms, and some executed, Pei stated. The Ministry of Land Resources found in 2005 that half of the land used for development was acquired illegally. The financial sector is especially ripe for corruption. A 2003 survey of employees working at banks, state-owned enterprises, private firms, brokerage houses, and rural households showed that 82 percent said corruption was “pervasive or quite pervasive” in financial institutions. More recent developments within the past decade include the practice of buying and selling appointments in local government and collusion between local ruling elites. Another survey suggests 20-65 percent of all corruption cases in China could be classified as collusive. Causes and Consequences Heavy government regulation in the economy allows officials to easily abuse their power; a lack of enforcement, despite recent highly publicized punishments; and a failure on the part of the government to adopt meaningful political reforms seriously put into question China’s economic stability. So far, Pei argued, China has been able to offset the direct costs of corruption and maintain growth; however, corruption has lowered the quality of growth substantially. There are real systemic risks that the international community should be concerned about. What is happening inside China is putting global public health and safety at jeopardy. Corrupt activities are contributing to cross-border crimes such as drug-trafficking, human smuggling, and money laundering. The US and other countries may have little power to influence how corruption is fought within China, but information sharing between the US and its allies regarding Chinese corruption is helpful to international investors and policy makers. Increasing legal cooperation between the US and China on illegal immigration and money laundering can help combat cross-border criminal activities. Finally, insisting on reform of China’s police and legal system is essential to tracking down fugitives and recovering looted assets that rightfully belong to the Chinese public. Posted 10/12/07* * * TI Kenya Issues Sixth Annual National Corruption SurveyTransparency International - Kenya recently released its 2007 Bribery Index showing a 50 percent rise in bribery. The survey also found that of all institutions, the incidence of bribery in the police force is seen to be highest.The survey looks at broad trends, in both the public and private sectors, across the entire country. Within each category of corruption, the index has a value range from 0 to 100, where the higher the value, the worse the performance.
Overall, encounters of corruption remained largely unchanged since 2006, but the cost of bribery rose sharply by 50 percent. Law enforcement is still the most likely sector to elicit bribes, accounting for 36 percent of the reported number of bribes. However, bribery within employment rose sharply by 42 percent. TI analysts cite this is because of the continued scarcity of jobs, since more young people are entering into the labour force than jobs created. The trend may also reflect increased recruitment activity in the public sector. The third factor is the improvement in the economy - improved incomes translates to a willingness and ability to pay more to secure job opportunities. Bribes for business declined due to a decline in the bribery activity reported in state corporations. TI suggests that the corporate governance and procurement reforms undertaken in this sector are paying off. Law enforcement bribes and service related bribes also declined significantly, by 42 and 36 percent respectively, while bribes related to regulatory compliance increased marginally. This can be attributed to reforms in the service delivery arena, and regarding law enforcement, the elimination of road licenses in the latter half of the year is a very significant factor. More people’s perceptions of corruption are increasingly optimistic while willingness to report corrupt activity still remains low, but is growing. TI-Kenya also produces an Index ranking the most corrupt organizations. The Index is listed below:
To read the report in full, click here to view the .pdf version. Posted 8/22/07
* * * Bulgaria’s Progress Report Based on Established BenchmarksBulgaria has been widely criticized recently by the EU and other international organizations for its lack of progress on curbing corruption. In an effort to improve its status, Bulgaria established the Cooperation and Verification Mechanism, which laid out a number of benchmarks. The Sophia Echo posted an in-depth article on Bulgaria’s varying degrees of progress regarding these benchmarks. It is still clear the government has a long way to go in its fight against corruption and organized crime. The following is a short summary of the article. Benchmark 1: Adopt Constitutional amendments removing any ambiguity regarding the independence and accountability of the judicial system. Bulgaria has adopted a constitutional amendment providing for an independent judiciary, along with an independent inspectorate; however, it is too early at this time to measure the effectiveness of amendment until full implementation takes place. Benchmark 2: Ensure a more transparent and efficient judicial process by adopting and implementing a new judicial system act and the new civil procedure code. A new Judicial System Act was recently adopted. A monitoring system for the new penal procedure code and the new administrative procedure code has been set up to facilitate uniform application of law. However, there has been no systematic reporting on the findings of this monitoring mechanism. Benchmark 3: Continue the reform of the judiciary in order to enhance professionalism, accountability and efficiency. Evaluate the impact of this reform and publish the results annually. Only limited progress can be reported in this area. A judicial inspectorate has been established along with specific ethical codes and plans of disciplinary action against indicted prosecutors, but there are not yet measurements of success. Progress has been made by Bulgaria in terms of the recruitment procedure and performance evaluation of magistrates. Benchmark 4: Conduct and report on professional, non-partisan investigations into allegations of high-level corruption. Report on internal inspections of public institutions and on the publication of assets of high-level officials. An implementation program to fight corruption has been established, but the guidelines for coordination and responsibility are not clearly defined. This will make the program difficult to sustain. Benchmark 5: Take further measures to prevent and fight corruption, in particular at the borders and within local government. Bulgaria has successfully stepped up its efforts to curb corruption at some border stations with an increased number of preventive controls and sanctions. The establishment of electronic payment systems and a system of random shifts at some border stations have contributed to a decline of corruption opportunities and to increased revenue. This good practice should be extended to all border stations. In addition, training and awareness programs implemented at the local level are beginning to produce results. Those high-level officials who have not yet submitted their property declarations are also being investigated. Benchmark 6: Implement a strategy to fight organized crime, focusing on serious crime, money laundering as well as on the systematic confiscation of assets of criminals. Report on new and ongoing investigations, indictments and convictions in these areas. Bulgaria is implementing an updated action plan on organized crime which focuses on prevention measures. Overall, progress in this area is still insufficient. The article reports that the achievement of these benchmarks is a long-term process for Bulgaria. None of the benchmarks are independent of the others, and the progress toward one will most likely positively affect progress in the others. The article emphasizes Bulgaria can only be successful if there is a strong commitment to the strict separation of executive, legislative and judicial power. Posted 7/9/07 * * * 2007 Nigerian Corruption Index In the time leading up to the 2007 elections in Nigeria, the Independent Advocacy Project lead a comprehensive survey, released in June, to determine Nigerians’ perceptions on the Obasanjo regime and corruption that has racked the country for years. The 2007 Nigerian Corruption Index (NCI) was conducted just before the Nigerian election, against a backdrop of rampant misuse of power and economic mismanagement. As it happened, many observers – domestic and international – concluded that the 2007 election poll was severely flawed. There were widespread reports of violence, rigging, multiple voting, box snatching, illegal possession of ballot boxes, stuffing of ballot boxes; impersonation, ‘house voting’, unlawful possession of voting machines, vote buying, deliberate delay or refusal to supply election materials to certain areas, multiple thumb-printing of ballots, harassment or intimidation of candidates, agents, voters and monitors, and absence of valid voters register. In addition, despite large oil revenues, Nigeria entered the new millennium with real income per capita of around $260 (the same as it was during independence), and currently, it is believed that well over 70 per cent of Nigeria’s population survive on less than $1 a day. In the time running up to the 2007 elections, the report sought to elicit responses from prospective voters and others on bribery and corruption in addition to constructing a scorecard on the anti corruption programme of the Obasanjo regime and set an agenda for the new regime. Major Findings In addition to the likelihood of paying a bribe, the average amount of bribe paid in a year to various organizations increased by 50%. Most corrupt institutions: The Nigerian Police Force was again like in 2005 identified as the most corrupt institution by Nigerians, followed by Power Holding Company of Nigeria (PHCN), Education Ministry (particularly higher institutions and examination bodies) and Customs and Excise Department. Former President Obasanjo was largely at the forefront while these incidences of corruption were taking place. Local opinion regarding the effectiveness of the Obasanjo regime is mixed. While 47% believe Obasanjo’s anti-corruption programme has been a success, 45% regard it as a failure. Most of the critics of Obasanjo’s anti-corruption programme reside in the Federal Capital Territory, ironically the federal seat of power. The implication of this is that many Nigerians are not satisfied with the style of President Obasanjo’s anti-corruption crusade. Of the agencies involved in the fight against corruption, only the efforts of the EFCC (4.21 out of 5) and Transparency International (3.77 out of 5) were credited with an appreciable level of effectiveness. For enhanced performance, respondents advocate that the agencies should be: To combat corruption effectively, most respondents advocated stringent legislation against corruption and severe punishment and sanctions against anyone involved in corrupt practices. To read the public presentation of NCI 2007, given by IAP's non executive chairman Babatunde Olugboji, click here. Posted on 6/26/07
* * * Anti-Corruption and Institutional Integrity in East and South East Asia: On February 28, 2007, Transparency International (TI), a global corruption watchdog, released its Regional Overview Report on National Integrity Systems in East and Southeast Asia which assesses the health of institutions that most affect corruption levels in nine countries: Cambodia, China, Hong Kong, Japan, Korea, Philippines, Singapore, Thailand and Vietnam. Regional Trends
Key Country Findings Singapore and Hong Kong Vietnam China South Korea Japan Recommended Best Practice for the Region
For the full report - including more detailed country analyses - click here. Posted 3/2/07 * * * Global Integrity Index 2006 In January 2007, Global Integrity (GI), a US-based, not-for-profit organization, released its Global Integrity Index 2006. GI’s flagship study, which includes 43 country reports, measures the existence, implementation of, and effectiveness of anti-corruption approaches and institutions designed to promote public integrity. The 2006 Global Integrity Report includes several key findings:
Below is GI’s overall asessment of countries based on their accumulated indicator scores:
Posted 2/23/07 * * * China: National Integrity System Country Study Supported by Transparency International (TI) and using its "National Integrity System" methodology, a report was published in mid-December 2006 on governance in China. The author, who has worked with TI for some years, is Mr. Yong Guo, Assistant Professor, School of Public Policy and Management, Tsinghua University, Beijing, People’s Republic of China. Full Report & Press Release Key Excerpts: To download full report in .pdf Currently, anti-corruption activity in China is at a crucial juncture, with certain progress already made but facing a long road ahead. In particular, there is still much room for improvement with respect to institution building. In this sense, the introduction of the analytical framework of the TI National Integrity System and its application in China for evaluation will promote China’s anti-corruption efforts. China is in the process of unprecedented reform and transition in its economic, political and social systems and a proper legal anti-corruption framework is yet to develop, there are still huge opportunities for corruption. Priorities and Recommendations Strengthening of Roles and Positions of Departments - Strengthened NPC Oversight of the Government, Judicial and Law-enforcement Agencies - Increased Judicial Independence
The Organisation Laws of the People’s court and the Organisation Law of People’s procuratorate provide that China’s local judiciary must accept the dual leadership of the People’s congresses at the same level and the judiciary at the next higher level. But in reality, as the personnel and financial management systems are mainly tiered, the courts, appointment and removal of judges and judicial personnel and expenses are under the control of government at the same levels. This has led to localisation of judicial power. With respect to procedure, the judiciary has a requesting and reporting system that requires major cases to be reported to the judicial committees within the courts. Although the purpose of establishing such a system is to reduce the number of wrongfully determined cases, it does affect judges’ independent exercise of judicial power, thus making the appeal procedures less meaningful. All these have affected the independence of the judiciary. In order to promote integrity, it is imperative to ensure the independence of the judiciary and guarantee that judges have adequate and independent budget support and a group of specialised personnel with a high degree of integrity. - Enhanced Status of Audit Offices
Audit offices are important components of China’s national integrity system, as they are watchdogs of state assets and expenditures. They are also the institutional guarantee to minimise corruption and abuse of public funds by government departments. The audit offices officially came into being in September 1983, and their roles have not been brought into full play during a considerable period of time. Only at the end of the 1990s did Chinese audit offices begin to display their increasingly important roles. Audit reports began to be made public starting in 1998, exposing violations of financial rules and regulations by government agencies. Every year, the report stirs up a whirlwind, winning popular applause and exerting powerful social pressure on relevant government agencies. Over the past few years, the scope covered by auditing has been expanded and the degree of disclosure has been enhanced. But it is necessary to enhance its status further, giving it responsibility for the legislature, in order for its role to be fully realised. More investment should be made in the auditing institutions, including adequate and independent budgets and highly specialised auditors. Improvements in the Mechanisms of the National Integrity System - Increased Roles for the Private Sector and Civil Society
China is now living in the transition from centrally controlled planned economy to socialist market economy. Under the planned economy system, public departments possessed all resources in the society while the private sector and civil society were basically in a subordinate position. It was only after 1978, when the country started economic reform and the transition process, that the private sector developed rapidly and civil society also gained some ground. They are expected to play an increasingly important role in China’s public affairs management, as is occurring worldwide. The state should continue to retreat from over-regulating and over-intervening in the economy, giving more space to the private sector and civil society to play their roles. Meanwhile, China’s private sector and civil society have not given enough attention to corruption. If their roles are to be brought into full play, such attention would help promote public oversight but also enhance the restriction on power of the government. This will, in turn, facilitate internal integrity and self-discipline in the private sector and civil society and create a social culture with high probity and integrity. - Increased Disclosure and Transparency of Public Service Departments
Transparency is crucial to increase accountability and deter corruption. In the course of reform and opening up, the Chinese government has introduced a series of measures to open administrative affairs to good effect. But generally, transparency still remains relatively low, constituting a major barrier to oversight of power. Sunshine is the best steriliser. Disclosure and transparency is most important to ensure rational participation in policy decision making by citizens and to realise effective oversight. - Reform and Improvement of the Budget and Financial System
At the beginning of the economic reform, China relaxed control of the financial system, allowing local governments and government departments to create incomes so as to encourage local governments to develop their own economies and ease fund shortages. Although the policy played its due role in a given historical period, it has also caused distortions in the financial system and resulted in the existence of extra-budgetary funds, which provide more opportunities for corruption. At present, the Chinese government is establishing a public finance and public budget system. But due to the problems left over from the past, the reform has encountered great difficulty. This has, perhaps, become the institutional reason why many corrupt activities cannot be curtailed from their roots. Therefore, China should strengthen budget management and reduce off-budget financing. - Unified and Renewed Laws, Regulations and Rules Concerning the Integrity System
A large number of laws, rules, regulations and legal documents have been produced since 1978 by the NPC, the CCP, the government, the Supreme People’s Procuratorate and the Supreme People’s Court. These legal instruments have detailed provisions concerning the integrity of public service personnel. If viewed from this perspective, China is one of the countries in the world that has the greatest constraints on the behaviour of public service personnel. However, due to the fact that some regulations are too strict or have not been renewed in a timely way to respond to the changes in the corruption situation, or that different departments have issued documents with the same contents, some systems cannot, in reality, be implemented strictly. This has affected the authority of the whole integrity system. It is, therefore, necessary for China to sort out existing integrity instruments and make unified laws and regulations, such as an anti-corruption law, to specify the requirements and provisions for building a clean government. (See the full report at Transparency International's Asia/Pacific regional "National Integrity System" page.)
Direct Contact: Dr. Guo Yong, Tsinghua University Posted 12/22/06 Back to Top South Korea: Transparency and Accountability Update On October 25, 2006 Transparency International released its National Integrity System Country Study Report on South Korea. TI and its chapters regularly conducts assessments of the National Integrity Systems of countries around the world (National Integrity System is a term used to encompass the key institutions, sectors or specific activities that contribute to integrity, transparency and accountability in a society) in order to provide provide benchmarks for measuring further developments and a basis for comparison among a range of countries; a starting point for signalling areas requiring priority action; and where the emphasis should be placed on improving the system and what factors are required to support the overall development of the NIS. Executive Summary Legal provisions in Korea concerning the governance and integrity of public institutions are meant
to ensure an integrated architecture from both inside and outside. Internally, of particular
importance is the Anti-Corruption Act, which requires all public institutions to set up codes of conduct for maintaining the integrity of public officials, allows any public official to report acts of
corruption conducted by other public officials and enables the public to request audits and
inspections of public institutions. The Korea Independent Commission Against Corruption (KICAC), established under the Anti-Corruption Act, handles whistleblowing reports, recommends policies and legislation for combating corruption and also examines the integrity of public institutions. Externally, four key laws prevail and act as check-and-balance mechanisms. The Budget and
Accounts Act regulates the procedures of the budget and final accounts of public institutions.The
Board of Audit and Inspection Act allows the Board of Audit and Inspection (BAI) to inspect the
final accounts of public agencies and job performance of public institutions, while the Act on the
Inspection and Investigation of State Administration allows the National Assembly to carry out
inspections and examinations of state administration. Lastly, the Act on the Disclosure of
Information by Public Agencies requests public institutions to provide information on their job
performance. In addition, there are several acts that provide for civil society to participate in public Generally speaking, central public institutions have improved their governance and integrity systems. As a top priority in the current reform agenda, the president has shown eagerness to address corruption during his term of office on the one hand and promote the governance and integrity of public officials on the other. Central government agencies have largely complied both with the president’s request for action and with provisions for increasing public consciousness. However, constitutionally independent institutions such as the legislative and the judicial branches have not shown the same level of enthusiasm in addressing corruption, although they too have a mandate to establish plans and programs to guarantee the integrity of their organisations. Meanwhile, on the regional level, local autonomous institutions reveal serious problems in their governance and integrity, with significant increases in corruption. While the introduction of the Anti-Corruption Act was long regarded as a cornerstone in the anti- corruption movement in Korea, increasing concern remains over the lack of investigative authority of the KICAC, its limited authority and the ineffective nature of whistleblowing mechanisms, raising doubt over the applicability and efficacy of the Act. As for the Public Service Ethics Act, the provisions regarding assets registration and post-employment fail to provide clear guidelines, rules and standards that would discourage and ultimately prohibit officials from enjoying unfair financial gains. In addition, high-ranking public officials continue to be reluctant to comply fully with asset registration and post-employment restrictions. Public-official ethics committees, in charge of overseeing and examining the various provisions of the Public Service Ethics Act, also remain too lenient in fulfilling their duties. Corruption in Korea has long sparked intense debates in both political and social spheres. For the political leadership, proclaiming engagement in the fight against corruption, especially in the public sector, has become a norm rather than an exception. Current legislation regarding anti-corruption mechanisms remains focused on the public sector, while legislative and voluntary efforts are increasingly concentrating on the non-public sector as well. Korea’s NIS continues to undergo rapid transition. Over a relatively short period of time, it has achieved significant improvement in governance and integrity through political leadership and public demand. What remains at this juncture is the need to address apparent shortcomings. Recommendations: The government must carry out the following: · Enhance monitoring mechanisms to proactively prevent wrongdoing and reactively follow up to sanction the same. This will ensuring the highest degree of accountability and integrity from a holistic point of view, resulting in an active interplay between all stakeholders of society. · Strengthen enforcement and obedience of the regulatory framework that surrounds the country’s NIS. · Empower anti-corruption institutions with more investigative powers, enabling the government to oversee and act on corrupt practices within the system as a whole.· Introduce a special bureau of investigation of high-ranking public officials. Priorities and Recommendations · Enhancing Monitoring Mechanisms · Strengthening Law Enforcement · Empowering Anti-Corruption Institutions The mere existence of such an anti-corruption body is not enough. To carry out substantive duties for the benefit of the Korean NIS, the KICAC should be equipped with more authoritative and/or investigative powers. The introduction of an investigative authority for the Act constituted one of the major items that civil society requested when the Act was finally passed in 2001; yet, the current Act does not include such a provision. To effectuate the whistleblowing system, the KICAC needs to come up with practical plans to protect whistleblowers from tangible and intangible retaliation. In addition, the Act should be expanded to cover constitutionally independent institutions and non-public sectors as well. Only then will it be possible to oversee and act on corrupt practices within the overall national integrity system. · Introduction of a Special Bureau of Investigation of Corruption by High-Ranking In addition, promoting professional ethics and raising public awareness are further areas that need to be actively tended to as the foundation of a solid NIS. More fundamentally, the NIS is based on the rationale that people serving both public and non-public organisations must abide by professional codes of ethics, recognizing that authority must be accompanied by conduct accountable to the public and society’s stakeholders. For now, however, the main challenge for Korea’s anti-corruption efforts and reforms will be the dependence on and sustainability of political commitment towards a coherent and sound anti- corruption framework. Addressing the aforementioned issues would significantly enhance and contribute to a strengthened NIS, which, in turn, would add credibility to and confidence in the country’s social, political and economic standing and future prospects. Posted 10/30/06 * * * Tools for Measuring Corruption and Governance in Latin American Countries
These tools include public opinion surveys, public sector diagnostics, private sector surveys, combined surveys, and multi-country tools such as the World Bank’s World Business Environment Survey/Investment Climate Assessment. In the “Key Findings" section, the report analyses the uses, value, and impact of each type of tool (public opinion surveys, institutional diagnostics, and multi-country tools). It also comes to several conclusions about the impact of corruption on the poor and across gender, which are reproduced below: Findings on Poverty and Gender - A similar pattern can be found for micro-enterprises: They spend a larger share of their revenue - Poor households are not meeting essential requirements such as food, health, and education partly because of the direct cost of corruption. Thus for the poor, the marginal utility of a currency unit paid as a bribe is greater than for the non-poor. - The kinds of services in which bribes are common are more important to the poor - In the provision of many services, public officials are more likely to disadvantage low-resource - Some studies give additional information on income-specific aspects for example, bribery is - Concerning the impact of corruption on gender, the studies show that men are more likely to be victims of corruption than women. A possible explanation could be that it is males, especially in Latin America, who are more often involved in official transactions than females. One should underline that similar conclusions have been drawn in other regions. - Results are inconsistent when it comes to the perception of corruption across gender. While some studies indicate that women perceive their country to be less corrupt than their male counterparts, other studies suggest that males and females have very similar perceptions of the prevalence of corruption; or even that women are more preoccupied by the phenomenon of corruption than men. - These findings are important but one should still draw attention to the fact that only a limited number of tools and initiatives (about 20%) are addressing gender and poverty dimensions. There may be an explanation, which can be related to the type of tools. In order to disaggregate per gender and per income, you need a large sample size, which is not the case for most of the tools. - There may nevertheless be a need to encourage the development of more specific tools addressing those issues with the ultimate aim to better equip policy makers. This could be done by the inclusion of more specific questions targeting the poor or women for instance. If some surveys with very large sample size like the survey on living conditions of Peruvian households (3.1.19) carried out among 18598 households offer the possibility to cross the information collected on corruption to other socioeconomic dimensions and highlight the connection between poverty and incidence of corruption, others, such as the corruption survey conducted by TI Mexico among 16000 household, had still very limited sub-analysis on income or gender. Conclusion For the full report and mapping of tools visit Transparency International’s website, www.transparency.org or click here. Posted 8/16/2006 * * *
. Fighting Corruption: What Approaches Work? Experiences with Anti-corruption Action Plans at the National Level. Case studies from: Case studies highlighting best practices and lessons learned relating to diverse issues concerned with corruption, including developing a pragmatic toolkit, raising public awareness, the media, public procurement, privatization, election monitoring. Over the past four years the Partnership for Transparency Fund (PTF) has provided small grants (maximum amount $25,000) to NGOs across the developing world to assist in the development of specific anti-corruption initiatives. Full details of the projects and PTF’s work can be found on its website. Below are a series of cases, highlighted in summary form, which provide insights into what works. The experiences gained by the NGOs that have pursued these initiatives can assist other organizations around the world as they prepare their own specific anti-corruption projects. UNDP Evaluation Praises PTF "PTF is an extremely effective instrument for support of small but important anti-corruption projects" says Alex Shakow, a former World Bank senior executive in an evaluation report to UNDP. "PTF’s track record is very impressive. The vast majority of its projects have been designed and implemented well and achieved valuable results. Given the difficulties of working in this highly sensitive area, the PTF success rate is a great tribute to the many courageous people implementing these programs across the globe, and to the PTF leadership for its commitment, professionalism and good sense. There are lessons to be learned but, by and large, this volunteer operation sets very high standards and meets them.” POLAND A project by TI Poland (TIP) assisted by PTF (www.transparency.pl) The project established a Citizens’ Anti-Corruption Toolkit as a means of strengthening the implementation of TIP’s citizens’ legal aid Intervention Program. The program arose in reaction to requests for legal support submitted to TIP from all around the country. Individuals, citizen groups, associations and councilors’ groups were asking for support in solving cases involving corruption or suspicion of corrupt practices. Most of the requests came from small towns where counteracting corruption is particularly difficult. The proposed toolkit was to serve three purposes: (i) to support TI Poland’s legal Intervention Program; (ii) to be used by individuals and groups in their own cases; (iii) to enable groups and organizations to start their own legal intervention programs. The toolkit was to have six different components:
The project team reviewed the existing anti-corruption legal guide-books. This revealed an absence of such guidebooks and therefore this particular subject became the focal point for subsequent work. In addition, the team noted a lack of awareness of access to public information. A set of manuals was prepared, and a new dedicated website established. This included printing and distributing 1000 copies of a practical toolkit for a citizen in court, with tips for a citizen on how to perform in a court, mostly based on observations from the Legal Aid Program cases and court proceedings. Also, counseling by phone was successfully tested. The “first contact” instruction has been prepared for volunteers’ contacts of with people looking for legal help. TIP’s review revealed an absence of guidebooks on access to public information. Moreover, their other work indicated a general lack of awareness on access to public information. In result a manual on access to public information was prepared and 2000 copies printed and distributed. Copies of all manuals can be found on TIP’s website; the demand for these products has been considerable. In addition, some 100 CD copies of TIP’s Anti-Corruption Toolkit have been ‘burned’ and distributed. *** GHANARaising Public Awareness of CorruptionA project of the Ghana Integrity Initiative (GII) assisted by PTFThe project involved a survey of corruption in four major cities as a tool for raising public awareness and to provide a robust basis for civil society to engage with the government on ways to reduce corruption. The key objectives were:
A “voice of the people” survey – an urban household corruption perception survey was conducted in Kumasi, Sekondi-Takoradi and Accra-Tema areas (Southern Ghana) from 10th to 26th March 2005. The survey, using face-to-face interviews and a structured questionnaire, captured the views of 900 residents of households on their perceptions of corruption, personal involvement as well as other people’s involvement in bribery and corruption, underlying reasons for corruption, institutions and officials perceived to be affected by corruption and suggestions on how to deal with the problem of corruption. GII prepared and disseminated a report summarizing the findings of the survey with a view to strengthening civil society’s advocacy of specific measures to fight corruption. GII believes that the findings of the survey, with all its limitations, provide the public and policy makers with useful information on the perceived state of corruption in the country, and th | ||||||||||||
