View
858
Download
1
Category
Preview:
DESCRIPTION
Presentation by Manoj Nadkarni, Transparency International, Corruption in the Forestry Sector: why regional initiatives are needed, The 14th International Anti-Corruption Conference, Thursday, 11 November 2010, Queen Sirikit National Convention Center, Bangkok, Thailand
Citation preview
Corruption in the Forestry Sector: why
regional initiatives are needed
Manoj Nadkarni
Forests and forestry trade
Of vital importance to the Asia Pacific Region
– Contributes about 10% to the GDP of Indonesia according to the World Bank
– >Over 15 % to the GDP of Lao PDR ( FAO)
– Developing countries, so this is vital for meeting the MDGs
Some forestry trade figures
Tropical Primary Product Exports by Producing Regions, 2004-2007 (1000 m3 rwe*)
* rwe = round wood equivalent
The Timber Trade in Indonesia
Source: inWent, 2003
Is this a coincidence?
There is an Illegal trade ready and
waiting to to deal with corrupt timber
Illegal trade needs corruption to
survive
Logs are bulky and can only be sold with connivance of host of institutions (transport, customs, environmental protection agencies, police, port authorities)
Source: inWent 2005
What is corruption?
TI Definition:
The misuse of entrusted power for private gain
Why is corruption worthwhile?
Look at forestry….
Illegal Logger Indonesia………….Gets $2.2/m3
Broker illegal log Indonesia………Gets $20/m3
Broker legal log Malaysia………..Gets $160/m3
Source: The World Bank, 2006
The costs of corruption
1) Waste of resources – corruption serves to diminish the total amount of resources available for public purposes.
– Money leaves the investment cycle and enters private domain, goes abroad or results in ‘black money’
– Corruption results in a substantial loss in productive effort and labour force inefficiencies
– The prospect of payoffs can lead officials to create artificial scarcity and red tape
– Money transfers – corruption represents a rise in the price of administration and inefficient public expenditures
– Inappropriate technology acquisition
The costs of corruption 2
Corruption distorts allocation
Corruption causes decisions to be weighed in terms of money, not human need. e.g.: Forests used for sustenance by the poor families, can be turned over to loggers or private industry for agriculture
A corrupt act is a failure to achieve public sector objectives
Reduced competition
The costs of corruption 3
Failure to lead by example
If the elite politicians and senior civil servants are widely believed to be corrupt, the public will see little reason why they, too, should not take bribes
Rule of law breaks down
Corruption in government lowers respect for constituted authority and hence leads to....
...Reduced governmental legitimacy
How is corruption to be fought?
Transparency International
– Is a global civil society organisation leading the fight against corruption
– Brings people together in a powerful worldwide coalition
– Transparency International is a global network of more than 90 local national chapters
TI has put corruption on the international agenda
S O C I E T Y’ S V A L U E S
P U B L I C A W A R E N E S SM
ED
IA
CIV
IL S
OC
IET
Y
PR
IVA
TE
SE
CT
OR
INT
ER
NA
TIO
NA
L A
CT
OR
S
The National Integrity System
SUSTAIN-ABLE DEVELOP-MENT
QUALITY OF LIFE
RULE OF LAW
AU
DIT
OR
GE
NE
RA
L
OM
BU
DS
MA
N
WA
TC
HD
OG
AG
EN
CIE
S
PU
BL
IC S
ER
VIC
E
LE
GIS
LA
TU
RE
EX
EC
UT
IVE
JUD
ICIA
RY
N A T I O N A L I N T E G R I N A T I O N A L I N T E G R I T YT Y
NIS and NIS pillars
Target Countries
Areas of Intervention
foreign bribery and political influence
land and forest concessions
timber laundering
financial transactions
unsustainable demand for forest products
Licensing and Concessions
Improved transparency, accountability and anti-corruption in…
Public institutions and private enterprises responsible for the issuance and ownership of forest and land licenses and concessions,
and the reduction of corrupt practices related to such issuance and ownership
Political Corruption & Foreign Bribery
Improved transparency & accountability in:
Public Foreign forest sector companies in their overseas operations and in their transactions with foreign public officials, and to the reduction of foreign bribery in supply countries
Institutions and political parties in the exercise of their functions in relations to the forest sector, and to the reduction of political corruption
Timber Laundering
Improved transparency, accountability and anticorruption of…
Public institutions and private enterprises that enable and hold responsibility for the transnational movement and certifications of timber and to reducing incidences of timber laundering.
Financial Institutions
•Improved due diligence practices of financial institutions which service forest sector clients
•Decreased incidences of loans to illegal or unsustainable forest enterprises and money laundering.
Unsustainable Demand for Wood
Improved customs and procurement regulations
National/Regional Governance
More effective development and implementation of national and regional forest governance initiatives such as East Asia FLEG, FLEGT and bilateral agreements.
Global Governance
Increased transparency, accountability and effective implementation of global mechanisms aimed at offsetting climate change and avoiding deforestation, such as Reducing Emission from Deforestation and Degradation (REDD) and the Clean Development Mechanism (CDM).
Thank You
Recommended