Responsible youth entrepreneurship

Creating culture of anti-Creating culture of anti-corruption in the private sectorcorruption in the private sector

Skopje, 16-17/11/2010

Corruption is surrounding young business people

How to say NO?How to say NO?

Renata šeperić Petak

Background on Global Status

Youth between the age 15-24 amount to 1.1 billion and constitute 18% percent global population and together with the one below age 24 amount to 40 percent of global population

133 Million Youth remain illiterate in the world Youth constitute 41 percent of the world unemployed 238 million youth live on less than $1 per 7000 young become infected daily, girls and young women

most victims There are more than 300 000 child soldiers in World today

Defining Youth

Youth, as a concept, varies from culture to culture and from one society to another. For the purpose of this Conference, youth is a special phase of life between childhood and adulthood ranging from the age 15-35

Promoting Democracy and Good Governance

The notion of good governance and democracy is centre-stage for development. Good Governance has broad principles such as follows:

Transparency Accountability Inclusively Fiscal responsibility Good Leadership Respect for Human Rights and Rule of Law Democracy and Fair competition for public office On going stakeholder participation

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Political Accountability• Political competition, broad-based political parties• Transparency & regulation of party financing• Disclosure of parliamentary votes

Checks & Balances• Independent, effective

judiciary• Legislative oversight

(PACs, PECs)• Independent oversight

institutions (SAI)• Global initiatives: UN,

OECD Convention, anti-money laundering

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Decentralization and Local Participation• Decentralization with accountability• Community Driven Development (CDD)• Oversight by parent-teacher associations & user

groups• Beneficiary participation in projects

Civil Society & Media• Freedom of press, FOI• Civil society watchdogs• Report cards, client surveys

Private Sector Interface• Streamlined regulation• Public-private dialogue• Extractive Industry

Transparency• Corporate governance• Collective business

associations

Effective Public Sector Management

• Ethical leadership: asset declaration, conflict of interest rules

• Cross-cutting public management systems: meritocracy, public finance, procurement

• Service delivery and regulatory agencies in sectors

Dimensions of Good GovernanceDimensions of Good Governance

Corruption – key political economy agenda

TI ( Transparency International) “ Corruption most affects young

people as a result of their involvement in almost every aspect of society – as students, activist, citizens, workers, customers and voters”

The Report says: In 2009, TI's global corruption barometer, a

measurement of petty corruption, found that across 69 countries 16% of respondents under the age of 30 had paid a bribe in the previous year.

"In their interactions with government and businesses, young people are often put on the front line of corruption. They may be forced to 'bribe' to go to school, pass an exam or get a job.

"For example, petty corruption can become a prerequisite for getting a first job or the only means for young people to beat out ever-tighter competition for fewer openings," says TI.

Causes and cost of corruption Weak public institutions and inadequate framework

for government accountability Poverty creates perverse incentives for public officials,

businesses and households Lack of transparency- inadequate oversight weak

enforcement, ineffective electoral system Associated with absence of civil liberties Unprofessional civil service Uncompetitive private sector and concentration of

economic power in monopolies

Corruption has significant negative impact on economic growth especially impacting the poor – if a country improve its corruption score by 2.38% on a 10-point scale, its GDP would rise by more than 0.5 percentage point.

Corruption – a key challenge for development

Governance, state capacity, rule of law and democracy correlated to growth

Example: the cots of weak governance affects volume and quality of FDI flows

Corruption – destroys social capital

Trusting societies have less corruption and oppositely, high corruption destroys social capital and people are less likely to endorse high moral standards and legal behavior

Alternatively, people who believe that legal system is fair are impartial are more likely to trust their governments

SEE region has a considerably low level of mutual trust among its overall population – more than two tines lower that the EU average

Past surveys in some SEE countries found a relatively high level of opportunism especially among the youth – a real danger of maintaining the unfortunate current state of affairs over the long term.

Political will to fight corruption

Indicators of political will: Domestic origin of the initiative High degree of analysis High level of participation Inclusion of prevention, education and

sanctions Dedication of adequate resources Objective monitoring and evaluation

Recommendations

Understanding Good Governance Corruption: definition issues and cost Causes of corruption Responses to corruption the role of Media and

Parliaments The Role of the Youth on Good Governance Collective and individual Action Plans on Governance Learning Approach and Process

Thank you for your attention!