The Normalisation of Corruption: Why it occurs and What can be done to minimise it? Author: Prof Jon Quah Presenter: Prof David Jones

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1 The Normalisation of Corruption: Why it occurs and What can be done to minimise it? Author: Prof Jon Quah Presenter: Prof David Jones 1

2 Corruption is defined as the misuse of public or private power, office or authority for private benefit. Corruption is normalised when it is a way of life rather than a fact of life. It includes: a. petty or survival corruption by poorly paid low-ranking civil servants. b. grand corruption involving huge gains of money & assets by political leaders, senior bureaucrats, business persons & community leaders. 2

3 Major Anti-Corruption Approaches and their Limitations: 1. Compliance approach relies on on laws and regulations, codes of ethics, & sanctions enforced through anticorruption agencies (ACAs) or equivalent, public prosecutors, & the courts. 2. Integrity approach relies on internal control measures such as training and education focusing on the integrity of the individual official to curb unethical behaviour. 3

4 3. Community-based approach Such as citizen feedback on public services, monitoring & exposure of corruption by NGOs, and community outreach on corruption issues. 4

5 Common Causes of Corruption a. Low salaries of civil servants b. Red tape increases corruption opportunities c. Low risk of detection and punishment d. Cultural values and practices e. Difficult governance environment 5

6 Three patterns of corruption control: 1. 1st pattern - rely not on an ACA but on effective monitoring and watchdog bodies such as the Ombudsman, Public Accounts Committee, Auditor-General s Office, and the Serious Fraud Office to combat corruption effectively nd pattern - rely on a single ACA to enforce the anti-corruption laws, which must be independent and well-resourced. 6

7 3. 3 rd pattern - rely on multiple ACAs e.g., China, India, Philippines, and Vietnam to curb corruption. However, this is the least effective in minimising corruption since the many ACAs compete for limited resources, personnel and recognition, instead of cooperating with each other. 7

8 Four success stories in combatting corruption Singapore CPI score 2015: 85/100, ranked 8 th among 168 countries Hong Kong SAR score 75, ranked 18 th (Both among the least corrupt countries in Asia) Botswana score 63, ranked 28 th (The least corrupt country in Africa) Georgia score 52, ranked 48 th (Among the least corrupt countries in Eastern Europe) 8

9 ACAs in three of the countries: Singapore - Corrupt Practices Investigation Bureau (CPIB), October Hong Kong - Independent Commission against Corruption (ICAC), February Botswana - Directorate on Corruption and Economic Crime (DCEC), September

10 Key factor explaining the success of these countries is the strong political will of the political leaders to stamp out corruption: reflected in Singapore, Hong Kong and Botswana in single, well-funded and adequately staffed ACAs; reflected in Georgia in comprehensive anticorruption reforms which have been effectively implemented. 10

11 Failure of anti-corruption strategies CPI Index 2015: 2 out of 3 countries score below 50 out of 100 (< 50 = serious problem of corruption) Average CPI scores out of 100 EU & Western Europe 67 Asia Pacific 43 Americas 40 Middel East & North Africa 39 Eastern Europe & Central Asia 33 Sub-Saharan Africa 33 11

12 Failure of anti-corruption strategies: Key cause - Lack of political will 1. Tendency to focus on symptoms rather than causes of corruption. 2. Failure to effectively and impartially administer anti-corruption laws. 3. Failure to provide sufficient capacity for ACAs and watchdog agencies. 12

13 Five suggestions for enhancing anticorruption measures: 1. Policy makers must demonstrate their political will to combat corruption and address the causes of corruption in their countries. 2. Policy makers should not rely on ineffective multiple ACAs, which compete instead of cooperating with each other, and establish instead a single ACA. 13

14 3. Policy makers can identify islands of development or pockets of effectiveness i.e., public agencies which have succeeded in minimising corruption and can be used as an example or template for other agencies. 4. Policy makers should adopt the sectoral approach focusing limited resources & efforts on the most corrupt sectors. 14

15 5. UNDP, WB, TI and other bodies should develop a strategic partnership with countries where there is normalised corruption to identify the best practices in corruption control & facilitate their transfer and adaptation by organising regular training workshops for the personnel of their ACAs. 15

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