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Integrity

Broken Windows: Mending the Cracks

Leonard McCarthy's picture

When the World Bank investigates and sanctions a major corporation for corruption related to one of its project, the deterrent impact is readily apparent. However, not every case the World Bank investigates is a major corruption case. In the past year, the World Bank Integrity Vice Presidency (INT) received many complaints related to fraud, and it is important to demonstrate responsiveness to complainants who report credible allegations as well as fix the weaknesses identified. Sanctioning cases of fraud also sends a strong message about abiding by high integrity standards in World Bank-financed projects. 

Left unchecked, fraud erodes development effectiveness. It often coincides with poor project implementation, which can result in collapsing infrastructure or the distribution of counterfeit drugs. It causes costly delays and can lead to direct financial losses for countries which cannot afford it. Fraud also fosters a negative enabling environment, creating opportunities for more serious and systemic misconduct to occur.

Nurturing a Culture of Integrity?

Maya Brahmam's picture

At the World Bank Spring Meetings last week, there was a very interesting discussion, moderated by Femi Oke, on the topic of “Investment, Infrastructure, and Integrity,” On the panel were a few worthies from the private sector, Karan Bhatia, of General Electric, Peter Solmssen of Siemens AG, and Julio Rojas of Standard Chartered Bank, along with Rashad Kaldany and Janmitra Devan of the World Bank. They were joined by the Minister of Finance of Indonesia, Agus Martowardojo, and the Secretary of Finance of the Philippines, Cesar Purisima.

The issue is a prickly one: How to promote clean business in large infrastructure projects? It is unavoidable for the World Bank, the private sector and governments to be involved in infrastructure, so it is essential that the reputation of the infrastructure sector be tied to integrity. At the same time, the response to corruption has to be pragmatic. The challenge is to figure out the balance and respond appropriately and make “risk-based” decisions, versus “rules-based” decisions. The panelists alluded to the role of knowledge and the open dissemination of knowledge on private-sector business dealings and in government contracting and procurement to spur accountability and governance in this arena. There was agreement that the World Bank’s open agenda would be helpful in pushing this forward.

The panel was asked to share their individual “principles” to achieve integrity.

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.

Freedom House
Freedom in the World 2012: The Arab Uprisings and Their Global Repercussions

"The political uprisings that have swept the Arab world over the past year represent the most significant challenge to authoritarian rule since the collapse of Soviet communism, according to Freedom in the World 2012, the latest edition of Freedom House’s annual global survey of political rights and civil liberties. Yet even as the Arab Spring triggered unprecedented progress in some countries, it also provoked a harsh and sometimes murderous reaction, with many leaders scrambling to suppress real or potential threats to their rule. The repercussions of this backlash have been felt across the Middle East, as well as in China, Eurasia, and Africa.

A total of 26 countries registered net declines in 2011, and only 12 showed overall improvement, marking the sixth consecutive year in which countries with declines outnumbered those with improvements. While the Middle East and North Africa experienced the most significant gains—concentrated largely in Tunisia, Egypt, and Libya—it also suffered the most declines, with a list of worsening countries that includes Bahrain, Iran, Lebanon, Saudi Arabia, Syria, the United Arab Emirates, and Yemen. Syria and Saudi Arabia, two countries at the forefront of the violent reaction to the Arab Spring, fell from already low positions to the survey’s worst-possible ratings." READ MORE

Morocco: When Governance, Transparency, Integrity, Accountability, & Public Procurement Entered the Constitution

Laurence Folliot Lalliot's picture

This post originally appeared on Voices & Views: Middle East & North Africa

Although many events from the Middle East and North Africa region have enjoyed large press coverage and headlines, one has remained, to date, a rather well-kept secret: the inclusion of governance and a dedicated provision on Public Procurement in the new Moroccan Constitution, adopted by referendum on July 1, 2011. In doing so, Morocco has joined the very small list of countries (i.e., South Africa and the Philippines) to grant a constitutional status to this rather technical field, the impact of which will be progressively felt in the world (even outside the small world of procurement lawyers), as it affects how government money is converted into goods and works like roads, schools, vaccines, etc.