Of the total US$15.4 billion pledged by the international community at the end of the first day of the meeting of the Consultative Group on Côte d’Ivoire held on May 17, 2016 in Paris, the World Bank Group (IDA, IFC, MIGA) will commit the sum of US$5 billion (CFAF 2500 billion) to finance Côte d’Ivoire’s Second National Development Plan (NDP) covering the period 2016-2020. This amount is double the sum allocated during the previous period (2012-2016), proof—if any were needed—that the World Bank is more than ever committed to helping Côte d’Ivoire achieve emerging country status. This new country partnership framework between the World Bank Group and Côte d’Ivoire is an important milestone.
Over at the Center for Global Development, Charles Kenny wants comments on the draft of his book on Aid and Corruption (deadline end of May). Let’s hope this becomes standard practice – it worked brilliantly for me on How Change Happens – more varied voices can chip in good new ideas, spot mistakes or contradictions, and it all helps get a buzz going ahead of publication.
But let me take it one step further. As a contribution to the corruption summit, hosted by David Cameron on 12 May 2016, I thought I would summarize/review the book. Charles gave the green light, provided I stress the ‘preliminary, drafty, subject-to-revisiony nature of the text’. Done.
The summit is about a lot more than aid – for example the rich countries putting their houses in order on tax havens. Which is just as well, because the book poses some real challenges to the whole ‘anti-corruption’ narrative on aid. What’s more, it is erudite, engagingly written and upbeat – as you’d expect given Charles’ optimistic previous takes like Getting Better. He’s got a great eye for telling research and ‘man bites dog’ surprise findings. Example: ‘Taking a cross section of countries and comparing current income (2010) to corruption perceptions in 2002 and income in 2002, results suggests more corrupt countries in 2002 have higher incomes in 2010.’
His core argument is pretty striking – when it comes to aid and corruption, corruption does indeed matter, but the cure is often worse than the disease: ‘an important and justified focus on corruption as a barrier to development progress has led to policy and institutional change in donor agencies that is damaging the potential for aid to deliver development.’ Ouch.
These are some of the views and reports relevant to our readers that caught our attention this week.
Curbing corruption and fostering accountability in fragile settings - why an imperilled media needs better support
BBC Media Action
An independent media is one of the most effective assets we have in efforts to curb corruption and foster accountability. Yet it is deeply imperilled, particularly in fragile states and often poorly understood by the international development sector. This policy working paper argues that unless development strategies begin to prioritise support to independent media, corruption may continue to go unchecked and the accountability of states will diminish.
Africa’s digital revolution: a look at the technologies, trends and people driving it
World Economic Forum
We are at the dawn of a technological revolution that will change almost every part of our lives – jobs, relationships, economies, industries and entire regions. It promises to be, as Professor Klaus Schwab has written, “a transformation unlike anything humankind has experienced before”. In no place is that more true than Africa, a continent that has yet to see all the benefits of previous industrial revolutions. Today, only 40% of Africans have a reliable energy supply, and just 20% of people on the continent have internet access.
Sitting in a large, rain pattered, tent in the grounds of Marlborough House in London last week, I had to admit to a mixture of frustration and admiration. Admirably hosted by the Commonwealth Secretariat, the conference was the civil society and business gathering prefacing the major Anti-Corruption Summit organised by UK Prime Minister, David Cameron.
First, the admiration. Both the outcomes of the Summit and the immense energy by civil society and other leaders in informing and influencing it, are impressive. Registries of beneficial ownership, fresh agreements on information sharing, new commitments requiring disclosure of property ownership, new signatories to the Open Government Partnership and open contracting Initiatives, the commitment from leaders of corruption affected countries and much else on display this week suggests real innovation, energy and optimism in advancing the anticorruption agenda.
The frustration stems from a concern that, while there is much that is new being agreed, one of the principal and most effective existing assets for checking corruption has barely featured in the discussion so far – and it is an asset which is increasingly imperilled.
It isn’t just people like myself who point to the critical role of an independent media. As I’ve argued in a new working paper, when any serious review of the evidence of what actually works in reducing corruption is undertaken, it is the presence of an independent media that features consistently. In contrast, only a few of the anti-corruption measures that have been supported by development agencies to date have been effective.
While countries around the world reap the benefits of an expanding digital environment, development challenges persist, adversely impacting low-income countries from achieving that same rate of growth.
The 2016 World Development Report (PDF) recently highlighted these findings in addition to three factors that contribute to a government’s responsiveness towards these digital changes.
According to the report, public services tend to be more amenable to improvements through digital technologies if the proposed system allows for fluid feedback, a replicable development process, and an outcome that can be easily measured and identified.
Corruption is a global threat to development and democratic rule. It diverts public resources to private interests, leaving fewer resources to build schools, hospitals, roads and other public facilities. When development money is diverted to private bank accounts, major infrastructure projects and badly needed human services come to a halt. Corruption also hinders democratic governance by destroying the rule of law, the integrity of institutions, and public trust in leaders. Sadly, the vulnerable suffer first and worst when corruption takes hold.
In fragile environments, however, the effects of corruption can be far more expensive. Corruption fuels extremism and undermines international efforts to build peace and security.
This was the theme of a panel discussion, entitled “Corruption in Fragile States: The Development Challenge,” which brought together Leonard McCarthy, the World Bank’s Vice President of Integrity; Jan Walliser, the World Bank Vice President of Equitable Growth, Finance and Institutions; Shanta Devarajan, World Bank Chief Economist of Middle East & North Africa; R. David Harden, USAID Mission Director for West Bank and Gaza; Daniel Kaufmann, President of Natural Resource Governance Institute; and Melissa Thomas, Political Scientist and author of “Govern Like Us.”
- Conflict and Fragility
- fragile states
- integrity risks
- cross debarment
- rule of law
- International Corruption Hunters Alliance
- Integrity Vice Presidency
- Law and Regulation
The Open Government Partnership (OGP) just concluded its third Global Summit. Government, civil society, and development partner representatives from over one hundred countries met in Mexico City to strengthen international cooperation around the open government agenda.
This year the summit emphasized connections between the OGP mission and the slate of newly adopted Sustainable Development Goals (SDGs) aimed at ending extreme poverty by 2030.
Delegates to the summit vowed to contribute to achievement of SDG Goal 16, and committed to mainstreaming open government principles such as including transparency, citizen participation, accountability and integrity, and technology and innovation into implementation of the entire 2030 Agenda for Sustainable Development.
Recognizing that collaborative, multi-sectoral approaches lead to better results, the World Bank intends to anchor its support for open government reforms and initiatives in OGP member countries’ national action plans. The result of extensive consultations with government and civil society stakeholders, OGP national action plans are country-developed strategy papers designed around the specific open government needs, demands, and goals of a given country.
As an example, the Bank’s Open Aid Partnership (OAP) has been working for four years to make information on aid-financed activities more transparent and accessible. This mission clearly fits within the umbrella of increasing government openness. Now, OAP is working to align its engagements with the OGP in joint pursuit of the Global Goals. It does this by offering specific expertise in open aid data as countries develop their national action plans and implement related transparency commitments within the OGP framework.
Do you know about anti-corruption?
This month we’ve blogged and tweeted about anti-corruption. In honor of international anti-corruption day, we thought that we’d do something a little different and test you on our most recent anti-corruption blogs.
Take the quiz and let us know how you did by sharing your score on twitter @wbg_gov!
The investigation, indictment, and arrest of several FIFA officials sends a simple and powerful message: No matter how untouchable an entity seems to be, in today’s world no organization, company, or government is immune from public scrutiny and law enforcement when it comes to allegations of fraud and corruption. Tolerating corruption as a “cost of doing business” is quickly going out of fashion.
The World Bank works hard to tilt the equation in favor of clean business in its fight against poverty. We investigate and hold perpetrators accountable when we receive allegations of wrongdoing in projects. Since we began this work, we have sanctioned more than 700 firms and individuals for misconduct in our projects. Most of these sanctions involve some form of debarment, rendering persons and firms ineligible to bid on future Bank-financed contracts. We recently released an updated review of our experience in investigating and adjudicating fraud and corruption cases, and it shows that it’s possible to tackle corruption in a way that is efficient, effective and fair.
An expatriate Indian physics professor, when traveling back home to India, found himself harassed by endless extortion demands. As a way to fight corruption by shaming the officials who ask for bribes, the professor created a fake currency bill: the zero-rupee note.
The notes are identical to Indian banknotes, but carry the slogan, and the pledge, .
Vijay Anand, president of the non-governmental organization 5th Pillar, thought the idea could work on a larger scale. Initially, the NGO printed 25,000 zero-rupee notes and distributed them to students in the southern state of Tamil Nadu. Since 2007, the NGO has distributed more than one million bills in five languages, covering 600-plus institutions. Volunteers hand them out near places where officials often solicit bribes, such as railway stations and government hospitals.