Capacity Enhancement Program on Controlling Corruption and

Improving Governance for Thailand

World Bank InstituteMaría González de Asís

September 2008

Points for discussion1. Why should we care about information, transparency and

accountability? What is the impact of corruption on service delivery?

2. Key concepts: governance, information, transparency accountability, coordination, patronage, nepotism

3. Why you should measure corruption?

4. You can have impact but the solution is in all of us: government, communities, private sector, international organizations.

5. What is this program about?

6. Tools to improve information, transparency and accountability

1. Why should we care about information, transparency and accountability?

Public institutions are vulnerable to C when they: Have direct interactions with citizens/private sector Manage discretionary power Manage public budget for large projects Do not have any complaining mechanism in place Have a bureaucratic culture and practice built on

personalistic ties Do not have any information system in place

1. Why should we care about information, transparency and accountability (continued)?

According to research in different regions it is estimated that as a result of corruption : In Asia…. In Latin America… In Africa…

Conclusion: Corruption distorts the allocation of social resources: the

diverted funds could be used for schools, roads, security, social services, certainly corruption has a direct impact on

investment, economic growth, efficiency, and equity.

Why should we care? Corruption is not just a developing country problem

Source: “Are Foreign Investors and Multinationals Engaging in Corrupt Practices in Transition Economies?” by Kaufmann, Hellman, Jones, in Transition, May-June 2000. Note: Survey Question was “How often nowadays do firms like yours need to make extra, unofficial payments to public officials to gain government contracts?” Firms responding “sometimes” or “more frequently” were classified as paying kickbacks. These figures are subject to significant margins of error and thus should be regarded as approximate.

Percentage of firms that pay public procurement kickbacks by country

Organizations

Corruption poses three risksCorruption poses three risks

Reputational RiskDevelopment

Effectiveness Risk

Fiduciary Risk

Why should we care? Why should we care? Good Governance matters for investment and growthGood Governance matters for investment and growth

10%

15%

20%

High Medium Low

% Investment share in GDP

High Medium Low

-1.5%

0%

1%

2%

1.5%

-0.5%

-1.0%

0.5%

Income per capita Growth Rate

Governance QualityGovernance QualityGovernance Quality measured by perception of 4000 firms in 67 countries on: (i) protection of property rights; (ii) judicial reliability; (iii) predictability of rules; (iv) control of corruption. World Development Report Survey 1997

What is the WB doing to fight corruption?What is the WB doing to fight corruption?

At the country levelIn projects

In partnerships

2. Key Concepts

GovernanceInformation

TransparencyAccountability

Corruption

Governance and Corruption Not the same thing!

“The manner in which public officials and institutions acquire and exercise the authority to shape public policy and provide public goods and services,” Refers not only to the functioning of central government administration, but also to the way services are delivered and public resources management

Abusing publicpublic office for privateprivate gain

GovernanceGovernance

CorruptionCorruption

What do we understand by corruption?

Administrative Corruption

Nepotism & Patronage

State Capture

9.64.3

81.2394.25

74.1979.33

38.88

16.07

77.5484.04

3213

020406080100

Falta deInformación

Efectividad Eficiencia CorrupciónAccesibilidadComplejidadAdministrativa

11

3. Why should you measure corruption? (Percentage of users of administrative procedures -

Permits and Licenses)

Fuente: González, María (2000). Reducing Corruption at the Local Level

Significant changes in voice and accountability (1998-2007)

-2

0

2

IVO

RY

CO

AST

ZIM

BA

BW

E

HA

ITI

NEP

AL

C. A

FR. R

EP.

KYR

GYZ

REP

.

ERIT

REA

RU

SSIA

VEN

EZU

ELA

BEL

AR

US

CU

BA

MYA

NM

AR

UZB

EKIS

TAN

PHIL

IPPI

NES

BO

LIVI

A

YEM

EN

JAM

AIC

A

MA

UR

ITIU

S

BU

RU

ND

I

BR

AZI

L

AZE

RB

AIJ

AN

ALB

AN

IA

RO

MA

NIA

TAN

ZAN

IA

ESTO

NIA

EL S

ALV

AD

OR

BU

LGA

RIA

LATV

IA

GA

MB

IA

MEX

ICO

PER

U

IND

ON

ESIA

GH

AN

A

BO

SNIA

NIG

ERIA

SLO

VAK

REP

.

CR

OA

TIA

SER

BIA

Significant reduction

(selected countries)

Significant improvements

(selected countries)

Little change

Political Accountability

Formal Oversight

Institutions

Citizens/Firm

s

Citizens/Firms

Citi

zens

/Fir

ms

Citizens/Firms

Decentralization and Local Participation

Civil Society & Media

Private Sector Interface

Effective Public Sector

Management

4. The solution is in all of us: Where to start? # Entry Points

Good Governance has many entry points

5. 5. What is this program about?

Session 7Designing a

strategy/action plan

Session 2 Tools for diagnostic

analysis

Session 1The importance of good

governance and the impact of corruption

Session 6Tools to improve inter-

agency coordination

Session 4Tools to improve information

and civil society participationg

Action plan

How to control corruption and improve governance in Thailand

Capacity Enhancement Program

Session 5Tool to improve

transparency and accountability

Session 3Public sector reform

experiences

How to design an action plan

Identifying gaps

and challenges

Selection of Governance tools

Finalization (timeline, roles, indicators)

A step by step process

Diagnostic analysis

What tools can be used to improve information,

transparency and accountability?

Tools

Participatory Budgeting,

Puerto Alegre(Brazil)

Civil Society Oversight; transparent, competitive

procurement(Slovakia)

Strengthening Supreme Audit Institutions

(Hungary)

Public Expenditure Tracking & Information Campaigns (Ghana, Madagascar, Mozambique, Peru, Senegal, Tanzania, Zambia)

Procurement oversight by

CSOs (Philippines)

Strengthening Public Accounts Committees

(India)

Transparent, competitive e-procurement

(LAC) Strengthening Public Accounts Committees(Kenya, Ghana, Zambia --

AFR)

Accountability, Transparency & Integrity

Project(Tanzania)

Key Issue: Instruments to Support Demand-side Interventions

Program Objectives

1. Develop a common understanding of AC and Governance

2. Learn diagnostic, monitoring and evaluation tools

3. Identify concrete tools for improving information flow, transparency, accountability and coordination.

4. Share initiatives 5. Design an AC to improve Information,

Transparency, accountability and coordination

Program Outputs

1. One action plan (matrix) from each WORKING GROUP to improve governance in the Civil Service

2. Recommendation for one tool/strategy to improve information, transparency and/or accountability by AGENCY

3. Proposal for improving the current governance challenges that Thailand is facing

Governance websitesWorld Bank Institute - Governance

http://www.worldbank.org/wbi/governance/esp/

Specific data

http://www.worldbank.org/wbi/governance/datasets.htm

GAP Program website

http://www.ruv.itesm.mx/portal/promocion/ds/dtbg/