Presented by:

1
Our Difficult Climb Initial Progress and the Asc
ent Ahead
Transparency InternationalWorld Bank Combating
Corruption Workshop Washington, DC Marc
h 21, 2003
Presented by The Public Sector Group The World
Bank
2
Overview
3
The initial ascent getting to base camp
O.P. Mainstreaming AC in CAS (99)
Governance Strategy (00)
State in a Changing World (97)
Strategic Compact (97)
Governance Pillar - CDF (98)

• Public Expenditure, Financial Mgt. Procurement
  Reforms
  
• Diagnostic/Data/ Monitoring Tools
• Administrative Civil Service Reform
• Civil Society Voice, Accountability, Media
  Transparency Mechanisms
  
• State Capture/Corporate Governance
• Legal/Judicial Reform

JDW Cancer of Corruption Speech (10/96)
WDR on Institutions 1982
Anti-corruption Strategy (97)
Gov/A-C Diagnostics start (98)
TI CPI (5/95)
Broadening Mainstreaming
The Prohibition Era
1st set of firms Debarred from WB (99)
Internal AC unit created in WB (98)
Formalization of INT (01)
1970
1980
1990
1995
1996
1997
1998
1999
2000
2001
2002
2003
4
Good governance has many dimensions entry
points

• Institutional Checks Balances
• Independent, effective judiciary
• Legislative oversight
• Decentralization with accountability
• Global initiatives OECD Convention, anti-money
  laundering, WCO

• Political Accountability
• Political competition, credible political
  parties
  
• Transparency in party financing
• Disclosure of parliamentary votes
• Asset declaration, conflict-of-interest rules

• Civil Society Voice Participation
• Freedom of information
• Public hearings on draft laws
• Media/NGOs
• Community empowerment
• Report cards, client surveys

• Competitive Private Sector
• Economic policies
• Restructuring of monopolies
• Effective, streamlined regulation
• Robust financial systems
• Corporate governance
• Collective business associations

• Public Sector Management
• Meritocratic civil service with adequate pay
• Public expenditure, financial management,
  procurement
  
• Tax and customs
• Frontline service delivery (health, education,
  infrastructure)

5
Explosion of activities Examples of major
programs launched across countries
Latvia (anticorruption)
Russia (customs/treasury)
Ukraine (tax admin)
Albania (public admin.)
Kyrgyz Republic (governance reform)
Jordan (civil society)
Cambodia (PE forestry)
Ghana (PE accountability)
Philippines (transport)
Guatemala (diagnostic to action program)
Indonesia (local governance)
Gabon (water/electricity)
Colombia (diagnostics civil society)
Bangladesh (civil society)
Uganda (PRSC education)
Pakistan (devolution)
India Andra Pradesh (power e-gov) Karnataka

(right to info)
Bolivia (public admin.)
Tanzania (PSR)
Ethiopia (decentralization)
6
Some approaches that appear to be working
Latvia (Anticorruption)
Ghana (Public Expenditure Accountability)
Indonesia (Community Empowerment)
Gabon (Water/Electricity)
Uganda (Education, Capacity Building-Action Lea
rning/Core AC Course)
India Andhra Pradesh (Power E-governance)
7
But on average, no evidence of significant
improvement on control of corruption
Source ICRG, 1994-2002. Subject to margins of
error, as it is based on only one source.
Good
Poor
8
Some signs of initial progress in some regions
Business Environment Enterprise Survey (BEEPS)
in ECA
9
Some programs that have stalled and why

• The challenge of politics
• No political buy-in despite plethora of
  diagnostics and pressure from civil society
  Bangladesh
  
• Difficulties in sustainability when there is no
  political traction Georgia judiciary
  
• The need to anticipate political obstacles
  Action Oriented Learning Program in AFR Malawi
  vs. Uganda
  
• Opposition from powerful vested interests in
  Cabinet bureaucracy India, Karnataka right
  to information

10
Lessons learnt, broader implications a long
way to go

• Enhance demand pressures for reform
• Overcome vested interests against reform
• Reverse the culture of corruption in the public
  sector
  
• Tackle political drivers of corruption (e.g.,
  party financing)
  
• Within WB, mainstream across sectors and countries

But, struggling to address deeper underlying
issues
11
7. The way forward shortening the journey
World Bank

• Lending
• AAA

Strengthening the demand for reform
Partnerships
Improving the supply of reform
Partners (e.g. TI, bilaterals)

25?
Years
12
The Way Forward Strengthening the demand for
reform
CORRUPTION
13
The way forward Enhancing the supply of reform
14
The way forward
Internal incentives
World Bank
Deepen and enhance leadership and ownership of
anticorruption agenda across sectors
beyond PREM/ WBI/ OPCS/ LEG
Strengthen staff fortitude and incentives to say
no when warranted
15
QA and Discussion