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Weekly Wire:the Global Forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week.
 

World Press Freedom Index 2014
Reporters Without Borders
The 2014 World Press Freedom Index spotlights the negative impact of conflicts on freedom of information and its protagonists. The ranking of some countries has also been affected by a tendency to interpret national security needs in an overly broad and abusive manner to the detriment of the right to inform and be informed. This trend constitutes a growing threat worldwide and is even endangering freedom of information in countries regarded as democracies. Finland tops the index for the fourth year running, closely followed by Netherlands and Norway, like last year. At the other end of the index, the last three positions are again held by Turkmenistan, North Korea and Eritrea, three countries where freedom of information is non-existent. READ MORE

Throwing the transparency baby out with the development bathwater
Global Integrity
In recent weeks, a number of leading voices within the international development movement – including the billionaire philanthropist Bill Gates as well as development economist Chris Blattman and tech-for-development expert Charles Kenny - have come out arguing that corruption and governance efforts in developing countries should be de-prioritized relative to other challenges in health, education, or infrastructure. Their basic argument is that while yes, corruption is ugly, it’s simply another tax in an economic sense and while annoying and inefficient, can be tolerated while we work to improve service delivery to the poor. The reality is more complicated and the policy implications precisely the opposite: corruption’s “long tail” in fact undermines the very same development objectives that Gates, Blattman, and Kenny are advocating for. READ MORE

What are the Sources of Corruption?

Augusto Lopez-Claros's picture

In a previous blog we discussed the factors that have pushed issues of corruption to the centre of policy debates about sound economic management. A related question deals with the sources of corruption: where does it come from, what are the factors that have nourished it and turned it into such a powerful impediment to sustainable economic development? Economists seem to agree that an important source of corruption stems from the distributional attributes of the state. For better or for worse, the role of the state in the economy has expanded in a major way over the past century. In 1913 the 13 largest economies in the world, accounting for the bulk of global economic output, had an average expenditure ratio in relation to GDP of around 12%. This ratio had risen to 43% by 1990, with many countries’ ratios well in excess of 50%.  This rise was associated with the proliferation of benefits under state control and also in the various ways in which the state imposes costs on society. While a larger state need not necessarily be associated with higher levels of corruption—the Nordic countries illustrate this—it is the case that the larger the number of interactions between officials and private citizens, the larger the number of opportunities in which the latter may wish to illegally pay for benefits to which they are not entitled, or avoid responsibilities or costs for which they bear an obligation.

Why is Corruption Today Less of a Taboo than a Quarter Century Ago?

Augusto Lopez-Claros's picture

For those of us who have had an interest in corruption for much of our careers, there is little doubt that sometime in the late 1980s and early 1990s there was a shift in thinking within the development community about the role of corruption in the development process. The shift was tentative at first; continued reluctance to touch upon a subject that was seen to have a large political dimension coexisted for a while with increasing references to the importance of “good governance” in encouraging successful development. What were the factors that contributed to this shift? One that quickly comes to mind is linked to the falling of the Berlin Wall and the associated collapse of central planning as a supposedly viable alternative to the free market. It was obvious that it was not inappropriate monetary policies that led to the collapse of central planning but rather widespread institutional failings, including a lethal mix of authoritarianism (i.e., lack of accountability) and corruption.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Big data: 4 predictions for 2014
The Guardian
"One could look back at 2013 and consider it the breakthrough year for big data, not in terms of innovation but rather in awareness. The increasing interest in big data meant it received more mainstream attention than ever before. Indeed, the likes of Google, IBM, Facebook and Twitter all acquired companies in the big data space. Documents leaked by Edward Snowden also revealed that intelligence agencies have been collecting big data in the form of metadata and, amongst other things, information from social media profiles for a decade." READ MORE


The rise of civil society groups in Africa
Africa Renewal
"Under the glaring sun of a recent Monday, an unusual group of protesters marched on the streets of Kampala, Uganda’s capital, all dressed in black “to mourn the loss of Uganda’s public money through corruption,” as some of them pointedly explained to reporters. “Return our money and resign,” read one of the slogans they brandished. Since November 2012, on the first Monday of each month, the Black Monday Movement—a coalition of local NGOs and civil society groups—has taken to the streets to highlight the effects of corruption in Uganda and to press public officials to act."  READ MORE
 

Campaign Art: Measuring Corruption

Johanna Martinsson's picture
People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire. 

A government's ability to prevent, detect, and deal with corruption depends on how well key institutions like the government, police and media can coordinate and work together.  Transparency International assess these institutions and maps out plans for reform in the following video.
 
Measuring Corruption


Source: Transparency International
 

#10 from 2013: Citizens Against Corruption: What Works? Findings from 200 Projects in 53 Countries

Duncan Green's picture

In the next few weeks, we will be running our Top Ten Blog Posts by readership in 2013

Originally published on May 22, 2013

I attended a panel + booklaunch on the theme of ‘Citizens Against Corruption’ at the ODI last week. After all the recent agonizing and self-doubt of the results debate (‘really, do we know anything about the impact of our work? How can we be sure?’), it was refreshing to be carried away on a wave of conviction and passion. The author of the book, Pierre Landell-Mills is in no doubt – citizen action can have a massive impact in countering corruption and improving the lives of poor people, almost irrespective of the political context.

The book captures the experience of the Partnership for Transparency Fund, set up by Pierre in 2000. It summarizes experiences from 200 case studies in 53 countries. This has included everything from using boy scouts to stop the ‘disappearance’ of textbooks in the Philippines to introducing a new code of ethics for Mongolia’s judiciary. The PTF’s model of change is really interesting. In terms of the project itself:

  • Entirely demand led: it waits for civil society organizations (CSOs) to come up with proposals, and funds about one in five
  • $25k + an expert: the typical project consists of a small grant, and a volunteer expert, usually a retiree from aid agencies or governments, North and South. According to Pierre ‘the clue to PTF’s success has been marrying high quality expertise with the energy and guts of young activists’. (I’ve now added ‘Grey Wonks’ to my ‘Grey Panthers’ rant on why the aid world is so bad at making the most of older people).
  • The PTF is tapping into a zeitgeist of shifting global norms on corruption, epitomised by the UN Convention Against Corruption (2003). The idea that ‘they work for us’ seems to be gaining ground.
  • The PTF prefers cooperation to conflict – better to work with champions within the state (and there nearly always are some, if you can find them), than just to lob rocks from the sidelines (although some rock-lobbing may also be required).
  • It also prefers action and avoids funding ‘awareness-raising’, ‘capacity building’ and other ‘conference-building measures.’

So what works? On the basis of the case studies (chapters on India, Mongolia, Uganda and the Philippines), and his vast experience of governance and corruption work, Pierre sets out a ‘stylized programme’ for the kinds of CSO-led initiatives that deliver the goods:

Poor Countries are Losing $1 Trillion a Year to Illicit Capital Flows - 7 Times the Volume of Aid

Duncan Green's picture

I was surprised not to see more coverage of last week’s hard-hitting report from the Global Financial Integrity watchdog. Illicit Financial Flows from Developing Countries: 2002-2011 has a whole bunch of killer facts about the escalating haemorrhage of wealth from poor countries. Here are some highlights. My additions in square brackets/italics:

“We estimate that illicit financial outflows from the developing world totalled a staggering US$946.7 billion in 2011, with cumulative illicit financial outflows over the decade between 2002 and 2011 of US$5.9 trillion. [By way of comparison, total global aid in 2011 was $134bn (not mn as first printed -thanks to all of you who pointed this out) – 14% of illicit flows - and has fallen since, even as illicit flows keep booming. Want that as a soundbite? ‘For every dollar of aid, the South loses $7 in illicit outflows; developing countries are losing $2.6 bn a day/$108m per hour/$2m per minute/$30,000 per second’.]

This gives further evidence to the notion that illicit financial flows are the most devastating economic issue impacting the global South.  Large as these numbers are, perhaps the most distressing take-away from the study is just how fast illicit financial flows are growing. Adjusted for inflation, illicit financial flows out of developing countries increased by an average of more than 10 percent per year over the decade. Left unabated, one can only expect these numbers to continue an upward trend.

Weekly Wire: The Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Twitter Angling For More International Users
Tech President

“Twitter is following Facebook and Google's lead in creating an avenue for feature or "dumb" phone users to access their service, even without an Internet connection. They have partnered with the Singapore-based company U2opia Mobile, Reuters reports. Chief executive and co-founder of U2opia Mobile, Sumesh Menon, told Reuters that they will launch the Twitter service next year. U2opia Mobile already helps more than 11 million people access Facebook and Google Talk through their Fonetwish service without using data.”   READ MORE


Open government data emerging, trust in government declining
Internet Policy Review

“The use of open government data has declined since last year, a new study by the Initiative D21 and the Institute for Public Information Management (ipima) reported at a press conference in Berlin today. According to the fourth edition of the eGovernment Monitor, the number of users of eGovernment services in Sweden in 2013 was 53 percent, compared to 70 percent in 2012. On average, the decline was as high as 8 percent in those countries that were monitored. Numerous data breach scandals and the revelations about pervasive surveillance were obvious reasons for the heightened caution, the researchers wrote in their summary.”   READ MORE
 

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Financing progress independently: taxation and illicit flows
Development Progress

“With less than two years to go before the deadline for the achievement of the Millennium Development Goals (MDGs), it is time to take stock of what the goals have achieved and, just as importantly, what the goals have overlooked – including finance.

The debate on what follows the MDGs – the post-2015 framework – is a chance to focus on two major finance themes that are not reflected in the goals themselves. First, that taxation is the central source of development finance; and second, that illicit financial flows undermine effective taxation and require international action. If this chance is not to be wasted, we need a consensus – and soon – on targets in these interlinked areas.” READ MORE
 

Africa’s Tax Systems: Progress, but What Is the Next Generation of Reforms?

Duncan Green's picture

Taxation is zipping up the development agenda, but the discussion is often focussed on international aspects such as tax havens or the Robin Hood Tax. Both very important, but arguably, even more important is what happens domestically – are developing country tax systems regressive or progressive? Are they raising enough cash to fund state services? Are they efficient and free of corruption? This absolutely magisterial overview of the state of tax systems in Africa comes from Mick Moore (right), who runs the International Centre for Tax and Development (ICTD). It was first published by the Africa Research Institute.

Anglophone countries have led the way in reforming tax administration in Africa, considerably more so than their francophone peers. The reasons for this are numerous. Networks of international tax specialists are based mainly in English-speaking countries. Many of the modern systems that promote best practice within tax authorities were developed in anglophone countries, especially Australia. International donors, and particularly the UK’s Department for International Development (DFID), have directly and indirectly promoted a lot of reform of national tax authorities. In fact, this has been one of the success stories of British aid.

A package of reforms has been pursued in anglophone Africa. The most profound change is the amalgamation of revenue collection under a single agency, often referred to as a semi-autonomous revenue authority (SARA). Previously, it was common for tax collection to be dispersed among a number of departments within the Ministry of Finance. For example, different people would be in charge of collecting income tax, VAT and excise taxes. Multiple lines of tax collectors existed, usually not co-operating with one another and each trying to strike private deals with taxpayers. This structure – and practice – still occurs in much of francophone Africa.


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