A Report by

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A Report by and for the people of Asia
Pacific
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Corruption A Critical Development Issue

• All political and economic systems are vulnerable
  to corruption
• Corruption goes beyond governments and crosses
  national borders
• Developing countries of Asia-Pacific do not have
  to wait for corruption to come down on its own in
  the course of development
• just as most do not wait for poverty to come down
  on its own
• citizens are increasingly signaling their
  preferences making it politically worthwhile
• there is much to be gained by acting now
• This Report draws upon intellectual expertise and
  experience from countries of the Asia-Pacific and
  aims to be strongly solution-oriented

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Structure
The Scourge of Corruption Justice for
Sale Keeping Public Services Honest Stopping
Leakages in Financial and Material Aid Cleaning
up Natural Resources Crushing Corruption from the
Top Citizens on Watch Driving out Corruption
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What is it?

• An age-old and complex phenomenon, some of its
  aspects not widely understood. Here are six
  prerequisites for a corrupt act

• Gap - between group and individual interest or
  between short- and long-term benefits
• 2. Two or more parties - one can hardly be
  corrupt with oneself
• 3. Consenting adults - with a common
  understanding
• 4. Benefit furtherance - private, sectional, or
  political party interest
• 5. Existence of power - grabbed, usurped,
  entrusted or otherwise available
• 6. Misuse of power - often drives a wedge between
  intended and stated positions, for unintended
  benefits

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The Scourge of Corruption A Typology

• Grand corruption involves large sums, (e.g. in
  massive contracts, and generally high-level
  politicians or officials)
• Petty corruption involves smaller sums, (e.g.,
  speed money to lower-level officials to issue
  licenses)
• Petty corruption is a misnomer. Dollar amounts
  may be small, but the demands are incessant, the
  number of people affected enormous and the share
  of incomes it eats up of the poor high
• State capture is less understood by the public
  or the media
• When companies pay public officials to shape
  laws, policies and regulations to their
  advantage, regardless of public good
• Not limited to governments commonly seen in
  the grey area of interactions between public and
  private sectors
• For every taker there is a giver

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Can corruption be measured?

• Corruption is largely unobservable and complex
• No single metric would work in uniquely measuring
  this phenomenon
• Popular measures are based on perceptions of
  corruption
• Three popular corruption measures
• Corruption perceptions index (CPI)
• Control of corruption index (CCI)
• ICRG corruption ratings
• While useful, there is considerable controversy
  over adequacy of these measures
• A complementary innovative approach is to use
  observable indicators to gauge the vulnerability
  of a country to corruption
• Analysis shows that countries with better control
  of corruption tend to have higher human
  development

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The Scourge of Corruption Why is it a human
development issue?

• Affects everyday lives of people and undermines
  national institutions
• Diverts valuable funds meant for development
  undermines economic efficiency, contributes to
  blatant injustice, worsens social services,
  accelerates environmental exploitation
• Every strata of society is vulnerable the poor
  the most
• Undermines MDG progress and human development
• Gains in human development can work as a
  vaccine for corruption

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Three Priorities From A Human Development Lens

• Three Priorities
• The Justice system
• Natural resources
• Social services

HERE TACKLING CORRUPTION CAN DIRECTLY DELIVER MDG
AND HUMAN DEVELOPMENT DIVIDENDS gt CITIZEN
SATISFACTION
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• The police and the judiciary are perceived to be
  highly corrupt
• Contributory factors - low salaries, inadequate
  resources, harsh working conditions, pressure
  from above
• Priority area - rooting out corruption in the
  police and judiciary paves the way for dealing
  with corruption elsewhere

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What makes the police and judiciary unique?

• The position of the police and the judiciary is
  unique they are in positions of power
• Unquestioned power of the judiciary can be a
  source of potential corruption, even as it
  protects its independence

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A Need for Clean Justice Systems

• The poor are the most vulnerable,
• lack voice and influence
• cannot rely on a legal system for protection

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Positive Experiences from Asia-Pacific

• Transparent procedures Philippines and
  Cambodia
• Investing in the police forces Pakistan, the
  Citizen Police Liaison Commission in Karachi
• Use of information technology India and Vietnam
• Peoples determination is crucial Hong Kong
  (SAR), China

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• Health, education, water-sanitation and
  electricity - wet sectors due to the potential
  for lucrative contracts, large staff and
  collusive corruption
• Of these education is unique it is also part
  of the solution to tackle corruption and
  accelerate human development

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Tackling Corruption in Social Services Asia-
Pacific Experiences

• In the Mekong sub-region, the pharmaceutical
  authorities are working across borders to notify
  circulation of fake drugs
• In India teachers register attendance with
  digital photos, records date and time, getting
  paid accordingly improvement in teacher
  performance
• In Cambodia the Phnom Penh Water Supply Authority
  pay staff based on performance the result has
  been that water coverage up from 25 to 90
  percent over the last decade

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• Corruption often occurs in special
  development
• situations due to
• Breakdown in institutions and accountability
  systems
• Urgent need to spend fast and deliver
• Influx of large amounts of aid being given
  without adequate local capacity to oversee it
• A culture of silence often sustains corruption
  in special development situations

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Corruption in Social Safety Nets

• Ongoing social safety net programmes -
  supplementary feeding for undernourished children
  to pensions for the old and disabled
• Corruption occurs because
• organizers are better connected and educated
• beneficiaries are relatively voiceless,
  powerless, unaware of their full entitlements
• subsidies beneficiaries, even when aware, do not
  always protest when some diversion takes place
  something is better than nothing at all
• big contracts

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Strategies Used for Combating Corruption

• In special development situations extending
  deadlines, paying for controls, active
  communications, long term procurement
• In social safety net schemes better targeting,
  community audits and participation in programmes

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• Why are natural resources particularly
  vulnerable to corruption?
• Enormous profit potential
• Remote locations
• Inadequate property rights, particularly for poor
  people
• Involvement of large multinational businesses
• Lax implementation of rules

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Natural Resources A Priority

• Loss of land and subjugation of indigenous
  peoples
• Over harvesting and mismanagement of resources
  impacts future generations
• Threats to health
• Loss of public revenue

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What can be done?

• Combination of national and international action
• Supporting citizen action, empower citizens to
  have control
• Restricting hidden power of corporations
• International cooperation
• New technology

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• At the international level
• Sign-up and implement the provisions of regional
  / international agreements
• At the National level
• Strengthening anti-corruption agencies
• Improving civil services
• Providing access to information and e-governance
  through laws and programmes

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A two-pronged approach a synergy of TOP-DOWN
and BOTTOM UP to bring about change

• People should be upright equally, systems should
  help in keeping them upright

Pressure from the top can give the right signals
and demonstrate political will
Pressure from the bottom from people can
help create and retain political will over time
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Bottom up

• Media is one of the principal watch groups with
  potential to monitor and expose corruption
• Civil society organizations can educate and
  build capacity
• Citizens can tap their power to participate
  and keep the pressure for reform
• However, they can also become corrupt or their
  effectiveness compromised

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How can Watch Groups be more effective?

• Media can report on corruption only if they are
  free to do so - from governments and business
  interests
• CSOs work best when they have material resources
  and the liberty to influence those in power

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Media and Civil Society in Action

• Some example of media and civil societys actions
  are
• Radio station 68H in Indonesia
• A hotline in Papua New Guinea
• Community media in Nepal
• New laws in Republic of Korea
• Social auditing in Pakistan

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In sum

• Poor bear the heaviest burden of corruption
• Curbing corruption can increase political
  stability and boost economic growth
• Success stories from the region that show it is
  possible for Asia-Pacific to reverse the scourge
• Global actors must share the responsibility while
  countries can strengthen international
  cooperation
• Within countries, institutional reform by
  governments can join with the independent
  monitoring power of media and civil society

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CREATING A TIPPING POINT

• Efforts to tackle corruption must be tailored to
  local contexts yet there are some common
  approaches which countries can adopt or
  strengthen to accelerate the process. This Report
  offers a 7 point agenda for change
• Join with international efforts
• 2. Establish benchmarks of quality
• 3. Strengthen civil services
• 4. Encourage codes of conduct
• in the private sector

• 5. Establish the right to
• information
• 6. Exploit new technology
• 7. Support citizen action

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Now Lets Put It Together

• Governments and citizens across the Asia-Pacific
  can tackle corruption together by focusing on
  areas which impact daily life such as health,
  education, water and electricity, the police and
  natural resources

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• The history of corruption does not have to be the
  regions destiny

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For further information and to download a copy of
the Report, please visit the UNDP Regional Centre
in Colombos website at http//www.undprcc.lk