With the support of the World Bank, the Government of Vietnam is making strides in addressing fraud and corruption risks in the management of development loans more broadly than before. Thanks to a new strategic action plan that cuts across the national, sectoral, and project levels.
The World Bank’s Governance Global Practice is working with the government of Vietnam to design and implement this new strategic action plan on how to make the management of Official Development Assistance (ODA) loans less liable to fraud and corruption. As a result, a healthy public policy debate around the risks surrounding ODA loans and how best to address them has arisen in Vietnam, as shown by the last session of its National Assembly in 2014.
Whenever aid and development money is involved, one question consistently emerges: How do you make sure it does not fall on the wrong hands, and be victims of fraud and corruption? This is a question that the World Bank country team in Vietnam and elsewhere has been grappling with. How do we ensure that financing for World Bank projects actually goes to its intended purposes and supports the ultimate goals of eliminating extreme poverty and boosting shared prosperity?
World Bank country staff in Vietnam realized that previous responses to fraud and corruption have focused too narrowly on individual projects. What are the factors that cause and perpetuate fraud and corruption in the first place? They needed to sufficiently address the root causes of the problem, and not just the symptoms. Despite greater awareness and more open debate about corruption in Vietnamese society, there's no evidence that allegations of fraud and corruption have decreased in the last several years.
To nip the canker in the bud, the Vietnam country team is developing a Strategic Action Plan to Address Fraud and Corruption Risks. The plan identifies broad areas of fraud and corruption concerns, categorizes them, and proposes measures and activities for mitigation. Teams across different World Bank units called “Global Practices” have come together to mainstream and implement the plan into core operations.