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anti-corruption

Expect no lines in front of the digital counters

Gina Martinez's picture
See high resolution here.

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.
 
Here are five public services improved through digital technologies in five countries:

Corruption in fragile states: A panel discussion on the intersections of development, conflict and exploitation

Roxanne Bauer's picture

Just say NO to corruptionCorruption 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.”

Lining up to support the Open Government Partnership

Daniel Nogueira-Budny's picture
Daily life in Monrovia, Liberia on December 2, 2014.
Photo © Dominic Chavez/World Bank


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? Take our quiz!

Alice Lloyd's picture


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

From football to fighting poverty: A shout-out for good governance

Sri Mulyani Indrawati's picture
Children playing football in Timor-Leste. © Alex Baluyut/World Bank


​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. 

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. 

Media (R)evolutions: Internet freedom in decline across the world

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In its 2015 annual “Freedom on the Net” reportFreedom House, a US-based organization, analyzed 65 countries to assess the degree to which individuals enjoy rights and freedoms online within each country.

Unfortunately, the report finds internet freedom around the world has declined for a fifth consecutive year as more governments censored information of public interest while they also expanded surveillance activity and cracked down on privacy tools. Authorities in 42 of the countries analyzed required internet users or private customers to restrict or delete online content related to political, religious, or social issues, while authorities in 40 of 65 countries went a step further to imprison people for sharing information concerning politics, religion or society through digital networks.  Additionally, governments in 14 of 65 countries passed new laws to increase surveillance since June 2014, and others upgraded their surveillance tools.  Globally, democracies and authoritarian regimes alike stigmatized encryption as an instrument of terrorism, and many tried to ban or limit tools that protect privacy.

However, it is not all bad news. Nearly one-third of Internet users worldwide are in countries that are considered "Free". Internet freedom has also increased in eight countries over the past few years, including Cuba, Iran, Malawi, Sri Lanka, Tunisia, and Zambia. All of these fall into the "Partly Free" or "Not Free" categories. This occurred while many other poor performers showed further declines in freedom.

This chart, created by Niall McCarthy at Statista, shows the state of internet freedom around the world in 2015, as compiled by Freedom House.

Internet Freedom Across The World Visualized | Statista
Infographic: Internet Freedom Across The World Visualized | Statista

Building trust in the government one text at a time

Jana Kunicova's picture
English translation of the text message.
English translation of the text message that the government sends to citizens to in an attempt to prevent corruption.

Albanian citizens who recently received treatment at a state-run hospital are likely to receive a text message that reads something like this: “Hi, I am Bledi Cuci, Minister of State responsible for anti-corruption. Our records indicate that you recently received care in a state hospital.

Could you kindly tell me if you were asked to pay a bribe? Reply is free. Thank you for your time.


The SMS campaign, supported by The World Bank and implemented by the Ministry of State for Local Issues and Anti-Corruption, was launched on March 9, 2015.

As of early June, it has reached more than 33,500 citizens in a country of three million. About 20 percent have responded, reporting many service delivery problems.

The doctors are always late and the corruption continues as always. Without giving away money, no one takes care of you,” read one response. Others complain of lack of cleanliness or the absence of medicines: “No, they didn't ask for bribe, but we had to buy the drugs outside of the hospital because they didn't have any.” 

Halting the 'race to the bottom’ in corporate conduct: Governance reform, focus on ethics must repair the damage

Christopher Colford's picture

When terms like “criminal conspiracy” and “felony” appear in confessions and plea bargains, the criminal-justice system sits up and takes notice. And when the confessed felons are some of the world’s largest corporations, the private sector ought to be jolted into action, too.

The continuing shame of confessed corporate misconduct – in this case, lawbreaking conducted with such a degree of guile that the U.S. Attorney General called it “breathtaking flagrancy” and that the FBI labeled it criminality “on a massive scale” – reached a new intensity this month: Four of the world’s largest banks confessed to taking part in a five-year-long conspiracy to manipulate the world’s foreign-exchange markets.

This latest in a series of stern legal judgments has damaged the corporate reputations of some of the world’s most pivotal financial institutions – with guilty pleas, to felony charges no less, entered by Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland PLC. A separate guilty plea by UBS – along with earlier fines against Bank of America and HSBC in separate settlements in related cases – has brought the total of fines against those once-trusted, now-tarnished firms to about $6 billion.

The corporate confessions of deliberate lawbreaking, pursued with systematic and sinister stealth – at the very center of the international financial system – vividly validate the recent exhortation of Christine Lagarde of the International Monetary Fund: that corporate governance must be strengthened and that a higher standard of individual ethics must prevail, especially in the financial sector.

Lagarde wisely linked skewed incentives and a short-term profit-maximization mindset to the risk of financial instability, in an eloquent recent address to the Institute for New Economic Thinking’s conference on “Finance and Society”: “There is still work to be done to address distorted incentives in the financial system. Indeed, actions that precipitated the [global financial] crisis were – mostly – not so much fraudulent as driven by short-term profit motivation. This suggests to me that we need to build a financial system that is both more ethical and oriented more to the needs of the real economy – a financial system that serves society, and not the other way round.”

Those who champion the creative potential of the private sector (including, I imagine, the regular readers of this blog) have a particular reason – one might even say, a special responsibility – to voice their anger about the foreign-exchange-rigging scandal and other acts of lawlessness.

Idealists who esteem the private sector’s ingenuity in delivering growth and jobs sans frontières know that business' creativity will be indispensable in achieving the vital development goals of eliminating extreme poverty and promoting shared prosperity. Society thus rightly expects that the full measure of corporate energies should be focused on companies’ central mission of generating wealth that benefits all of society. Whenever any of those energies are diverted – especially toward criminal schemes that put short-term personal plunder ahead of long-term economic growth – the lawbreakers undermine public confidence (or what little remains of it, in the wake of the global financial crisis) in the fairness of the economic system.

Moreover, lawbreakers provide ammunition to critics who allege that today’s economic system is irredeemably corrupt, through-and-through – thus making it even more difficult for law-abiding companies, holding true to the values of honest business behavior, to make the case for policies that liberate private-sector dynamism.

Structured dialogue, value chain and competitiveness: A journey through implementation, from Copenhagen to Kabul

Steve Utterwulghe's picture



Afghanistan. Photo by Steve Utterwulghe.

This latest blog post should start with a mea culpa. Indeed, my 2015 work plan for public-private dialogue (PPD) did start in Dushanbe, Tajikistan, not Copenhagen. However, who can swear that he never tweaked a title a tiny bit to make it catchier?
 
While Dushanbe hosted the very productive First Regional PPD Forum in the “stans,” the 8th Global PPD Workshop took place in March in the Danish capital. There, “more than 300 representatives from governments, private enterprises, PPD coordination units, investors’ councils, competitiveness partnerships, civil society, business organizations, and various development partners participated in the event. They represented 54 countries and a total of 40 PPD initiatives who joined the event to share their experiences and discuss lessons learned.”
 
High-powered individuals kick-started the Copenhagen event, including HRH Crown Princess Mary of Denmark, who reiterated that, to make a difference in the world, “it will take partnerships across countries, governments, and between public and private sectors.”
 
Once the keynote speeches had been delivered, the real work began among the delegates and with the PPD experts. I jumped from impromptu coffee break to coffee break and strategized with the Côte d’Ivoire delegation on how to prepare for the National Day of Partnership/Dialogue in Abidjan; discussed ways to better involve the private sector in Morocco; debriefed with the Guinea Minister of Industry, SMEs and Private Sector Promotion on how the PPD structure that we helped put in place is strengthening the local value chain for extractive industries (see below); and moderated an engaging session on public-private dialogue in fragile states and conflict-affected countries (FCS), which provided great insights as I prepared to fly out on PPD missions to Somalia and Afghanistan.
 
Aside from the buzz of international gatherings, what really matters for the delegates, from both governments and the private sector, is to get inspired and bring back home ideas that can be adapted locally and successfully implemented. Public-private dialogue is an art defined by some fundamental core principles that can be adjusted according to specific needs and environments.
 
As a reminder, PPD refers to the structured interaction between the public and private sectors to promote the right conditions for private sector development. Its ultimate function is to contribute to a prosperous economy by expanding market opportunities and enabling private initiative. This is also very much the mission of the new World Bank Group Global Practice on Trade & Competitiveness (T&C). Its Senior Director, Anabel Gonzales, wrote in one of her blog posts on Trade and Development in Africa that fostering competitiveness and strengthening supply chains is a key to development and an integral part of T&C’s offering.
 
As I reflected on the links between structured multi-stakeholder dialogue, competitiveness and supply chains, I remembered a Harvard Business Review article written by Michael Porter and Mark Kramer, entitled Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility.
 
What particularly caught my attention at the time was the theory on interdependence between companies and society that the Harvard professors put forward. They argued that this interdependence takes two forms: the social impact that a company’s activities has on society, or “inside-out linkages,” and the social influences on the company’s competitiveness, or “outside-in linkages.”
 


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