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corruption

#9 from 2015: A global movement against corruption: It is happening now!

Leonard McCarthy's picture
Our Top Ten blog posts by readership in 2015. This post was originally posted on October 26, 2015.


Also available in: Español | Français | العربية

Third Annual International Corruption Hunter AllianceTaking note of headline news in recent weeks, one cannot escape the reality that efforts to fighting corruption are succeeding. A decade ago, success was a privilege to societies who -by virtue of democratic gains- could claim rights to holding public officials accountable. Today, it is not easy to get away with corruption. Not even if you are a major multinational, a senior government official, or an institution with millions of followers across the world.

Within our network- the World Bank International Corruption Hunters Alliance- we feel optimistic about all that is happening to support our mission; that of ensuring every development dollar is spent with integrity. We go to work every day and the focus is how do we prevent bad things from happening. To achieve that at the World Bank Group, we are continually advancing our investigative techniques, our preventive advice, monitoring the compliance standards of debarred entities and engaging with partners across multilateral development banks, national enforcement agencies and CSOs to strengthen this young global movement against corruption. It is critical that this momentum continues to sustain change at a global scale.

Undoubtedly we face a few challenges along the way; some more complex than others, none that cannot be overcome. Last fiscal year, the World Bank prevented approximately $138 million across 20 contracts from being awarded to companies that had attempted to engage in misconduct. This is progress that could not have been achieved without years of investigative experience invested in gathering evidence, recognizing patterns of misconduct, and documenting lessons learnt.

How a professor started a campaign to fight everyday corruption in India

Alice Lloyd's picture
Also available in Spanish,  French and Arabic
Photo credit: 5th Pillar


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, "Eliminate corruption at all levels," and the pledge, "I promise to neither accept nor give bribe".

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. 

No Money, No Worry

Maya Brahmam's picture

Rafu, the chief of the fishing villageThe World Bank recently completed two surveys that confirm that large global banks are restricting or terminating relationships with other financial institutions and that banking services for money-transfer operators have become increasingly limited.

The risk is that a decline in correspondent banking services can lead to financial exclusion, particularly for remittance providers – poor people working in richer countries who send money home to their families in poorer countries. To a large extent, these restrictions have come about because of worries about money laundering or financing for terrorism and less appetite for risk.

However, there are alternatives. Mobile money is a fast-growing alternative to traditional banks. CBS’s Lesley Stahl recently reported on how MPesa has transformed financial inclusion in Kenya, where people- many of them poor- do most of their financial transactions via cellphone and outside of traditional banking systems.  She also pointed out that tech giants like Google, Facebook, PayPal and Apple are all exploring this new consumer market, where sending money can be as simple as sending a text message. Also, according to the Financial Times, mobile money is making serious inroads in Latin America, where 37 mobile money services are now operational across 19 countries. Unlike the experience of Africa, Latin Americans are using mobile money to support urban middle-class lifestyles.

Why those promoting growth need to take politics seriously, and vice versa

Duncan Green's picture

Nicholas Waddell, a DFID Governance Adviser working on ‘Governance for Economic Development’ (G4ED) explores the links between governance and economic growth. 

Should I play it safe and join a governance team or risk being a lone voice in a sea of economists and private sector staff? This was my dilemma as a DFID Governance Adviser returning to the UK after a stint in East Africa. I gambled and joined the growth specialists in DFID’s newly created Economic Development arm.  A year in, I now think differently about the relationship between growth and governance.

Man working inside a large reinforced steel tube, PhilippinesEradicating poverty will not be possible without high and sustained growth that generates productive jobs and brings benefits across society. Historically, this has included boosting productivity within existing sectors as well as rebalancing economies towards more productive sectors (e.g. from agriculture to manufacturing). Such structural change or economic transformation has lifted millions from poverty.

Economic transformation can have a strong disruptive effect on political governance – giving rise, for example, to interest groups that push for accountable leaders and effective institutions. As countries get richer, more effective institutions also become more affordable. Over time, economic transformation can therefore advance core governance objectives.

But this is easier said than done. Economic development is an inherently political process that challenges vested interests. Often the surest ways for elites to hold onto power and profit aren’t in step with measures to spur investment, create jobs and foster growth. Shrewd power politics can be bad economics.

A global movement against corruption: It is happening now!

Leonard McCarthy's picture

Also available in: Español | Français | العربية

Third Annual International Corruption Hunter AllianceTaking note of headline news in recent weeks, one cannot escape the reality that efforts to fighting corruption are succeeding. A decade ago, success was a privilege to societies who -by virtue of democratic gains- could claim rights to holding public officials accountable. Today, it is not easy to get away with corruption. Not even if you are a major multinational, a senior government official, or an institution with millions of followers across the world.

Within our network- the World Bank International Corruption Hunters Alliance- we feel optimistic about all that is happening to support our mission; that of ensuring every development dollar is spent with integrity. We go to work every day and the focus is how do we prevent bad things from happening. To achieve that at the World Bank Group, we are continually advancing our investigative techniques, our preventive advice, monitoring the compliance standards of debarred entities and engaging with partners across multilateral development banks, national enforcement agencies and CSOs to strengthen this young global movement against corruption. It is critical that this momentum continues to sustain change at a global scale.

Undoubtedly we face a few challenges along the way; some more complex than others, none that cannot be overcome. Last fiscal year, the World Bank prevented approximately $138 million across 20 contracts from being awarded to companies that had attempted to engage in misconduct. This is progress that could not have been achieved without years of investigative experience invested in gathering evidence, recognizing patterns of misconduct, and documenting lessons learnt.

Today, we are able to support project teams to make smarter risk-based interventions. Whether at  project design, supervision and/or evaluation; our diverse team of investigators and forensic/preventive specialists offer a solid interpretation of red flags, unusual/awkward behavior by contractors, in addition to an effective response to allegations of misconduct impacting World Bank-financed projects.

Weekly wire: The global forum

Roxanne Bauer's picture

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

What Future For Emerging Markets?
Foreign Policy
Long before the current market debacle, I was confronted with a fundamental question about emerging markets. As I was finishing off my course at the Yale School of Management on “The Future of Global Finance” this past May, a student came up to me. “You have gone to great lengths to emphasize the role of emerging markets in a changing monetary system, “ he said, “ but everything I have been reading says that the era of the Brazils, the Indias, the Turkeys, the Indonesias as up-and-comers is history. Even China seems to have lost its luster. Have you been looking backwards and not forward?”

How Africa can benefit from the data revolution
The Guardian
The UN has estimated that across the world more people have access to mobile phones than to toilets. It is of course distressing to imagine what this means for many people’s exposure to disease and access to clean water, but the choice of mobile phone for the comparative statistic actually offers a great deal of hope. The mobile phone is part of a phenomenon where a new infrastructure is emerging, one that could bring the economic changes that enable those toilets to be built.  Our modern infrastructure is based on information. Since the 1950s, investment in data storage and distribution by companies and countries has been massive. Historically, data was centralised a single database. Perhaps one for representing the health of a nation, and another database for monitoring social security. However, the advent of the internet is showing that many of our existing data systems are no longer fit for purpose.
 

Weekly wire: The global forum

Roxanne Bauer's picture

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

Why democracy can’t be democratic all the way down – and why it matters
Washington Post
Recent debates over the meaning of “one person, one vote” and the lessons of ancient Greek democracy for the modern world highlight an important truth about democracy: it can’t be democratic all the way down. Lincoln famously said that democracy is “government of the people, by the people, for the people.” But before “the people” can govern anything, someone has to decide who counts as a member of the people, what powers they have, and what rules they will vote under. And that someone usually turns out to be a small group of elites. Just as the world can’t be held up by “turtles all the way down,” so a political system can’t be democratic all the way down.
 
U.N. Marks Humanitarian Day Battling Its Worst Refugee Crisis
Inter Press Service
The United Nations is commemorating World Humanitarian Day with “inspiring” human interest stories of survival – even as the world body describes the current refugee crisis as the worst for almost a quarter of a century.  The campaign, mostly on Facebook, Twitter and Instagram, is expected to flood social media feeds with stories of both resilience and hope from around the world, along with a musical concert in New York.  “It’s true we live in a moment in history where there’s never been a greater need for humanitarian aid since the United Nations was founded,” says U.N. spokesperson Stephane Dujarric.  “And every day, I talk about people and I use numbers, and the numbers are numbing, right — 10,000, 50,000,” he laments.  But as U.N. statistics go, the numbers are even more alarming than meets the eye: more than 4.0 million Syrians are now refugees in neighbouring countries, including Turkey, Iraq and Lebanon (not including the hundreds who are dying in mid-ocean every week as they try to reach Europe and escape the horrors of war at home).
 

Weekly wire: The global forum

Roxanne Bauer's picture

 

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

Democracy, voting and public opinion in the Arab world: New research evidence
Shorenstein Center on Media, Politics and Public Policy, Harvard University
In 2002 the United Nations issued a much-discussed report highlighting the lack of progress in Arab countries relative to other developing regions, and there has continued to be scrutiny of various social, political and economic indicators there. But a combination of closed regimes, highly nuanced cultural norms and burgeoning areas of conflict often make it difficult to interpret complex political trends and events. The available data relating to perceived changes in public attitudes must be read carefully, with the conflicting results of the 2011 Arab Spring standing as a stark reminder of this complexity. Still, a variety of studies published in 2015 help shed light on emerging trends relating to elections and public opinion in the Arab world, which continues to go through a state of upheaval and transition. Interpreting voter intentions, attitudes and outcomes is particularly difficult in regimes that are neither fully democratic nor totalitarian: Where citizens are not necessarily forced to participate, and yet many turn out to vote despite the fact that the process is highly unlikely to influence the ultimate outcome of the election. A 2015 study published in the journal Comparative Political Studies, “Elections in the Arab World: Why Do Citizens Turn Out?” seeks to explain voter turnout in such situations under authoritarian regimes in Arab countries.
 
Open data ‘not enough to improve lives’
SciDevNet
Governments in developing countries must ensure the statistics they publish can be used to improve citizens’ lives, practitioners told SciDev.Net following an open data meeting. Liz Carolan, the international development manager at host organisation the Open Data Institute (ODI), said countries should instead start with real-world problems and then work out how data can be part of the solution. “A government might say: ‘We put the data on the web, that’s enough’ — but it’s not,” she said. “You could not get away with that”, especially in countries where internet connectivity and literacy are low and it is difficult for people to access the data in the first place.  Ivy Ong, outreach lead at government data provider Open Data Philippines, added: “Do not be blinded by the bright and shiny milestone of developing and launching an open data portal.”
 

The C Word: How should the aid business think and act about Corruption?

Duncan Green's picture

Corruption is perceived by many to be an impediment to development. But, it can be difficult to tackle since it is often a systemic problem. Duncan Green recently attended a seminar on corruption and development and provides some impressions.

Went to a seminar on corruption and development on Monday – notable in itself as corruption is something of a taboo topic in aid circles. Aid supporters often cite framing – George Lakoff’s ‘Don’t Think of an Elephant’ or Richard Nixon’s ‘I am not a crook’ (below)- as justification for avoiding the topic; even if you raise it to dismiss it, the connection between aid and corruption will be established in the public mind.
 
VIDEO: Richard Nixon- "I'm not a crook"


Unfortunately ignoring it/leaving it to the Daily Mail hasn’t worked too well – David Hudson’s research (still unpublished, but previewed here) shows that the % of the UK public agreeing with the decidedly clunky (DFID-drafted) statement ‘corruption in poor country governments makes it pointless donating money to help reduce poverty’ has risen rapidly from 44% to 61% since 2008. He also found that talking to members of the public about how aid is trying to tackle corruption can undo the damage of raising the issue in the first place (and help immunise people against the barrage of press reports).

Weekly wire: The global forum

Roxanne Bauer's picture

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

Does talking about corruption make it seem worse?
The Guardian
What do most people immediately think of when you ask them why poor countries are poor? We’re pretty confident that it will be corruption. Whether you ask thousands of people in a nationally representative survey, or small focus groups, corruption tops people’s explanations for the persistence of poverty. Indeed, 10 years of research into public perceptions of poverty suggests that corruption “is the only topic related to global poverty which the mass public seem happy to talk about”.  Which is odd, because it’s the absolute last thing that people actually working in development want to talk about.
 
Africa’s moment to lead on climate
Washington Post
Climate change is the greatest threat facing humanity today. To avoid catastrophe, we must dramatically reduce the carbon intensity of our modern energy systems, which have set us on a collision course with our planetary boundaries. This is the challenge leading up to three key international events this year: a July summit on financing for new global development goals, another in September to settle on those goals and — crucially — a global meeting in December to frame an agreement, and set meaningful targets, on climate change. But focusing on ambitious global climate goals can mask the existence of real impacts on the ground. Nowhere is this truer than in sub-Saharan Africa.   No region has done less to cause climate change, yet sub-Saharan Africa is experiencing some of the earliest, most severe and most damaging effects. As a result, Africa’s leaders have every reason to support international efforts to address climate change. But these leaders also have to deal urgently with the disturbing reality behind Africa’s tiny carbon footprint: a crushing lack of modern energy.
 


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