World Economic Forum Workshop

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World Economic Forum Workshop Session
Integrating Risk Mitigation and Capacity
Building Use of Information and Assessments The
Public Integrity Index Assessing the Rules of
the Game Marianne Camerer Director, Global
Integrity www.publicintegrity.org/ga mcamerer_at_publ
icintegrity.org
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Corruption as RiskCreates uncertainty by
Interfering with the rules of the game

• Undermines growth and development through
  hindering or deterring foreign and or local
  investment
• Affects the quality and composition of public
  expenditure projects
• Undermines the fiscus through non-optimal
  collection of taxes and revenues as the
  unofficial underground economy flourishes
• Distorts policy and resource allocations, thereby
  increasing inefficiency
• (From expert testimony in Lesotho and South
  Africa on the impact of corruption on developing
  economies)

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Corruption as RiskCreates uncertainty by
Interfering with the rules of the game

• Undermines trust and credibility in institutions
  and procedures
• Introduces unjust access to often limited social
  and political goods and services, potentially
  creating social and political unrest
• corruption takes its greatest toll on the poor
  and
• corruption bites into the moral fibre of society.
• (From expert testimony in Lesotho and South
  Africa on the impact of corruption on developing
  economies)

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Corruption in the news

• Brazil
• Investors take fright as Brazilian scandal flares
  up
• Financial Times, 16 June 2005 By RAYMOND
  COLITTInvestor sentiment in Brazil again turned
  sour yesterday as fresh testimony rekindled
  concern over corruption allegations against the
  ruling Workers' party (PT).In early trading the
  Sao Paulo stock exchange had fallen by as much as
  3 per cent, reversing its trend for the third
  time in less than 24 hours."Initially the
  market thought the scandal was fading but there
  are enough unanswered questions to keep this
  crisis bubbling for some time to come," said
  Marcelo Mesquita, chief strategist with UBS in
  Rio de Janeiro.
• South Africa
• Wolfowitz pays tribute to Mbeki
• He said the new leadership in South Africa, and
  leaders of other African countries, were intent
  on fighting corruption. We have recognized that
  in the past a lot of governments in Africa did
  not spend money well. There is a new leadership
  now that is taking responsibility to get rid of
  corruption. Africa is on the move.
  (www.iol.co.za, 20 June 2005)

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Global Integrity Report

• An investigative report tracking corruption,
  openness and accountability in 25 countries
• Released 29 April 2004, National Press Club,
• Washington DC

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The Global Integrity ReportComponents

• Public Integrity Index
• Generated by data collected in-country on the
  Integrity Indicators
• 25 Country Reports
• Country Facts
• Corruption Timeline
• Corruption Notebook (reader comments)
• Integrity Assessment (reader comments)
• Integrity Scorecard
• Integrity Indicators (score, comments, reference,
  reader comments)

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Global Integrity Countries 2004
25 COUNTRIES Argentina, Australia, Brazil,
Germany, Ghana, Guatemala, India, Indonesia,
Italy, Japan, Kenya, Mexico, Namibia, Nicaragua,
Nigeria, Panama, the Philippines, Portugal,
Russia, South Africa, Turkey, United States,
Ukraine, Venezuela, Zimbabwe
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Measuring (the other side of) Corruption
Assessing the rules of democratic governance

• By its nature, corruption is almost impossible to
  measure with any degree of accuracy.
• It is however possible to assess the laws,
  mechanisms, institutions that prevent abuses of
  power.
• I.e. the Public Integrity Index is a measure of
  the national anti-corruption architecture

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The Public Integrity Index measures

• Existence of institutional mechanisms that
  prevent abuses of power (i.e. corruption)
• Effectiveness of these anti-corruption mechanisms
  that promote public integrity
• Citizen access to public information to hold
  public officials accountable

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Constructing the Public Integrity Index 6
Governance Categories(based on anti-corruption
and governance literature)
IV. Administration and Civil Service Civil
Service Regulations Whistle-Blowing Measures
Procurement Privatization V. Oversight and
Regulatory Mechanisms National Ombudsman Supreme
Audit Institution Taxes and Customs Financial
Sector Regulation VI. Anti-Corruption Mechanisms
and Rule of Law Anti-Corruption Law
Anti-Corruption Agency Anti-Corruption Agency
Rule of Law and Access to Justice Law
Enforcement
I. Civil Society, Public Information and
Media Civil Society Organizations Access to
Information Freedom of the Media II. Electoral
and Political Processes National Elections
Election Monitoring Agency Political Party
Finances III. Branches of Government Executive
Legislature Judiciary
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Integrity ScorecardSouth Africa

• Overall, South Africa ranks 6th out of 25
  countries on the Public Integrity Index, falling
  into the strong category.

• Very strong tier Category 5
• Strong tier Categories 1, 3, and 6
• Weak tier Categories 2 and 4

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The Future Vision

• To refine, repeat and expand the study to include
  - 100 countries (eg. MCA/IDA)
• To create an independent non-profit entity to
  continue this work
• To analyze, communicate and publicize the data
  and findings more effectively
• To diagnose and encourage reforms based on the
  findings