Governance and Anti-Corruption Diagnostic Study: Methodology and Findings
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1 Governance and Anti-Corruption Diagnostic Study: Methodology and Findings CMDA with the collaboration of the World Bank Institute October 28,
2 Objectives of Study To ascertain the performance of key public institutions and their effectiveness in service delivery from the perspective of households and business enterprises To determine the degree of interaction/inter-relationship between the public and service providers Determine the impact of corruption on the process and outcome of this interaction Investigate the dynamics of administrative procedures and decision making in the public sector Determine the implication for (or effect on) good governance/public sector performance of such procedures and other factors (including corrupt practices)
3 The study as part of a larger process Challenge: poor governance and corruption Experiential data from 3 sources on quality of governance WBI Technical Assistance 7. Monitoring and Evaluation of NAS 6. Implementation by Government 5. Revision of the NAS 4. Public dissemination + discussion 3. Draft of the NAS 2. Diagnostic surveys + analysis 1. Establishment of Steering Committee Country Implemented Key Partnership: Government + Civil Society
4 The power of diagnostic study 1. Unbundle corruption by type administrative, capture of the state, bidding, theft of goods and public resources, purchase of licenses and regulations 2. Identify both weak institutions (in need of reform) and strong institutions (example of good governance)
5 Diagnostic Study... Cont. 3. Assess the cost of each type of corruption on different groups of stakeholders 4. Identify key determinants of good governance 5. Develop policy recommendations
6 Data Source and Survey Instrument This report draws exclusively from primary data Data from a nation-wide field survey Data collected using Structured Questionnaires
7 Recruitment of Field Officers Advertised in Concord Times and Salone Times 10/7/2002 Recruitment criteria: Supervisors: graduate with several years of experience in field survey Enumerators: student enrolled in a tertiary institution for at least three years Short listed candidates interviewed for selection and training.
8 Training All field officers trained for Five days All trainees provided with training manuals Mock interviews and Role Playing exercises conducted at various stages of training
9 Pre-test/Pilot of Questionnaires Survey instrument pre-tested to determine: Appropriateness of instrument Timing of interviews Wording/phrasing of questions Level of cooperation from respondents Ability of Field Officers to carry out study Findings incorporated in final version of questionnaires and general design of the field work
10 Survey targeted three (3) categories of respondents: Households Business Enterprises Public Officials
11 Separate questionnaire designed for each category Almost every question in all three (3) questionnaires was Closed ended and pre-coded Household questionnaire translated into Mende, Themne, Krio and Limba Business questionnaire translated into Krio
12 Sample Allocation A total of 3000 respondents originally targeted 2990 actually interviewed Planned Actual Households = Businesses = Public Officials =
13 Household Module Household: In this study defined as a group of people eating from the same pot, sharing common facilities and looking up to one member as the head. Survey targeted heads of households 1800 interviewed
14 Household Module - Sampling 90 Enumeration Areas (EAs) were to selected, of which: 60% Rural Stratum 40% Urban Stratum (regional headquarter towns) In both cases, EAs allocated to districts based on sample proportion to size using May 2002 registered voters list to assign weights.
15 EAs randomly selected for each district using MICS II survey list from CSO (Now Statistics Sierra Leone) On the Field each EA divided into four using the cardinal points One segment randomly selected and town/villages in segment, again randomly selected In selected settlements, households subjected to lottery to select respondents
16 20 households targeted in each EA 90 EAs X 20 = 1800 respondents
17 Business Module Sample size of 600 interviewed Divided into three (3) segments: Large Scale Medium Scale Small Scale
18 Large Scale Business Companies, firms (banks, insurance, trading and industries) employing 20 or more 50 interviewed Sample systematically selected from a list of firms/companies.
19 Medium Scale Business Eg. Carpentries, garages, tailoring shops employing 5 or more 150 interviewed Sample systematically selected from a list of Enterprises.
20 Small Scale Business Mainly Petty Traders 400 interviewed Sample distributed district headquarters and Freetown, weighted by size. Same EAs as in Household survey used for sampling.
21 Public Officials Module Sample size of 600 originally targeted 590 actually interviewed Respondents in this module included top and middle level officials of Government and quasi-government institutions The Public Officials Survey limited to Freetown and district headquarter towns
22 Sampling Public Officials Sample from a list of public officials at the Establishment Secretary s Office & Accountant General s Dept. Following broad categories used: Civil Servants School Administrators Police Heads of Tertiary Institutions Parastatals Ministers Parliamentarians District Council Officials
23 Categories weighted by size Civil servants sub-divided into: Scale 1 Senior Civil servants (Directors, Professional Heads, Permanent Secretaries, Deputy Secretaries and Senior Assistant Secretaries) Scale 2 Middle Cadre Civil Servants including Admin Officers Scale 3 Lower Cadre Civil Servants
24 Data Processing and Analysis Data entry designed and captured in MS-Access. Data analysis done mainly in SPSS (Statistical Package for Social Scientists) Graphs and Charts done mainly in MS-Excel Preliminary analysis also done in Eviews STATA and GiveWin
25 Some Problems Field Work Businesses opposed to insistence on providing authentic documents. Public Officials reluctant to comment on certain segments described as being too probing Some Settlements unwilling to cooperate without consent to Local Leaders Few questions left unanswered in mostly Business and Public Officials Module.
26 Some Problems &Limitations Field Work Modules very bulky over 450 questions each. Reportedly too rigid, highly structured and cumbersome. Questionnaires too time consuming to complete. Incidences of Missing values.
27 Few Key Results of Diagnostic Study in Sierra Leone
28 Sierra Leone compared to countries within the same income category
29 Governance in Sierra Leone compared to the regional average
30 Corruption: one of the most important challenges Key problems is Sierra Leone (% of respondents reporting that these are very serious problems) High cost of living Corruption Infrastructure / Quality of roads Safety concerns / delinquency 0% 20% 40% 60% 80% 100% household managers public official
31 Corruption in Sierra Leone percentage of users that were asked to pay a bribe while trying to obtain a public service % of managers that were asked to pay a bribe for requesting for licenses and permits percentage of cases in which bribes were necessary to obtain public contracts (as reported by public officials) public funds misappropriation (% of public officials reporting it is very frequent) purchasing of positions (% of public officials reporting it is a very frequent practice) 0% 20% 40% 60% 80% % of respondents who reported that type of corruption
32 Quality of Public Service across Regions Southern Province Water Supply Services Public Health Services Law Court/NA Court Officials Northern Province Eastern Province Western Area Southern Province Northern Province Eastern Province Western Area Southern Province Northern Province Eastern Province Western Area Municipal and District Courts Southern Province Northern Province Eastern Province Western Area 0% 20% 40% 60% 80% 100% Households Business % of respondents reporting very poor quality
33 Honesty and institutions Perceived level of honesty in public institutions (as reported by managers, public officials and households) Customs Department Traffic police Surveys and Lands Department Income Tax Department Law Officers Department Ministry of Gender Social Welfare & Children s Affairs University of Sierra Leone Sierra Leone Water Company (SALWACO) Sierra Leone Broadcasting Service (SLBS) Bank of Sierra Leone 0% 10% 20% 30% 40% % of respondents reporting the institution to be honest households public officials business
34 Public Officials Views on Decision Making Para-statals Min. of Social Welfare Others Min. of Local Govt. Nat. Commissions Min. of Information Min. of Health Min. of Finance Min. of Education S.L Police Min. of Development Min. of Defence Min. of Justice Min. of Agriculture % of Public Officials that report Public Administration as too centralized
35 Bribes are not exclusive for national enterprises Bribes for type of activity: Comparing domestic and foreign enterprises Update on fiscal situation Obtain contracts with state institutions Pursue legal proceedings in the judicial branch Public service procedures Request for licenses and permits 0% 5% 10% 15% 20% % of firms reporting that bribes are very frequent foreign domestic
36 Public funds are mismanaged Public officials' assessment of irregularities/misappropriation Min. of Health Min. of Agriculture S.L Police Min. of Justice Min. of Education Min. of Social Welfare Min. of Local Govt. Min. of Finance Para-statals Others Nat. Commissions Min. of Information Min. of Development Min. of Defence % of Public Officials that said irregularities/(misappropriations) are frequent
37 High amounts are spent on bribes Amount Spent on Bribes to Obtain Services by Size of Firm (as reported by managers) Amount Spent on Bribes to Obtain Services by Household Income (as reported by households) Surveys & Lands Surveys & Lands District & Municipal Councils District & Municipal Councils Income Tax Department Income Tax Department Registrar General s Department Registrar General s Department small scale medium scale large scale low income middle income high income
38 Corruption increases inequality Percentage of household income spent on bribes to obtain services, by income status (as reported by households) Surveys and Lands Municipal/Dist. Councils Judges/Courts officials Income Tax Department Public education services Public health services high income middle income low income 0% 5% 10% 15% 20% percentage of household income spent on bribes The thin lines represent margins of error (or 95% confidence intervals) for each
39 Bribery payments do not translate in higher quality of Public Services for users and firms average bribe paid to obtain the service (in leones) corr = average quality of service Each point in the graph represents the combination quality/bribe for a public service
40 Corruption imposes barriers to households to access basic social services Cost of Corruption: discouraged users by service Sierra Leone Housing Corporation Sierra Leone Housing Corporation (SALHOC) Sierra Leone Roads Transport Authority (RTA) Public health services 0% 5% 10% 15% 20% 25% low income middle income high income Sierra Leone Roads Transport Authority Public education services Municipal and District Councils 0% 5% 10% 15% 20% 25% Proportion of head of households reporting that they decide to not conduct procedures with these institutions because they couldn't pay the unofficial costs 0% 5% 10% 15% 20% 25% 30% low income middle income high income
41 Justice is particularly afflicted by mis-governance Bribes to Pursue Legal Proceedings public officials business households 0% 5% 10% 15% 20% % of respondents reporting that most times/always bribes are paid to pursue legal proceedings
42 Inaccessibility of the Justice system Utilization of Court System (as reported by households and managers) 36% 34% 32% 30% 28% 26% Households Business % of households / firms that felt the need to use the court system but decided not to
43 Undue Influence on the Judiciary % of households reporting that Judiciary is... Manipulated by Economic Interests southern province northern province eastern province western area Dependent on Government southern province northern province eastern province western area 0% 20% 40% 60% 80%
44 Quality of education 100 Households' opinion: obstacles to good education % that rate as important obstacle Cost involved Educational system not updated Teachers' professional capacity Inadequate infrastrusture and equipment Western Area Eastern Region Northern Region Southern Region c
45 Corruption has a negative impact on business environment 47% 46% 45% 44% 43% 42% 41% 40% 39% 38% 37% 36% % of managers reporting that there is a significant negative effect of these forms of corruption on the country's business environment Bribes to Parliament Bribes to Executive Officials Bribes to Local Authorities Bribes to Judiciary Bribes to Central Bank Bribes to Regulatory Officials (as reported by managers)
46 Shared responsibility at the roots of such poor governance system Institution where firms spent more time dealing with bureaucracy 35% 30% 25% 20% 15% 10% 5% 0% parliament law officers customs income tax % firms reporting that the greatest amount of time was spent in this institution
47 Willingness to pay to eliminate corruption 12% 10% 8% 6% 4% 2% Percentage of business monthly income that firms are willing to pay to completely eliminate... 0% first obstacle that affect the operational growth of business all corruption in Sierra Leone s public sector all corruption in public sector, by size of firm large medium small
48 Governance and corruption indicators by province South Prov. North Prov. East Prov. West Area WHOLE COUNTRY Corruption in budget Overall corruption Corruption in public contracts Corruption in personnel (2) Accessibility for poor Audit Mechanisms Enforcement of rules Politicization Quality of rules Resources Transparency Citizen voice Meritocracy
49 Governance and Corruption Indicators by Institution Presidential Affairs Ministry of Finance Quasi-independent institutions Ministry of Trade and Industry Ministry of Internal Affairs Ministry of Energy and Power and NPA Ministry of Foreign Affairs & International Cooperation Ministry of Development & Economic Planning Ministry of Social Welfare, Gender & Children's Affairs Ministry of Health & Sanitation Ministry of Information and Broadcasting Ministry of Education, Science and Technology Ministry of Youth and Sports Ministry of Labor and Industrial Relations Ministry of Agriculture and Food Security Ministry of Local Government & Municipal and district councils Ministry of Transport & Communications Ministry of Works and Public Maintenance Ministry of Lands, Housing & Country Planning Ministry of Mineral Resources House of Parliament Office of the Attorney General, Minister of Justice and Director of Public Prosecutions Traffic Police and Sierra Leone Road Transport Authority Supreme Courts Local Courts SALWACO/GVWC and SIERRATEL SALPOST Sierra Leone Ports Authority SL National Tourist Board and SL Standards Bureau Police and Prisons Post-conflict institutions WHOLE COUNTRY Audit Enforcement of rules Resources Transparency Citizen Voice Wage Satisfaction
50 Quality of Rules is associated with lower Corruption 70 (based on responses of 31 government agencies) Overall corruption r = Quality of rules
51 Links between Corruption and Governance (2) Citizen Voice and Corruption in Budget (based on responses of public officials of 31 government agencies) 100 Corruption in budget r = Citizen voice
52 Public Officials Support to Public Sector Reforms Strengthen the operational management Simplifying administrative procedures A public servant statute regulating the application of penalties and rewards according to job completion A law that ensures that economic resources used by political parties will have their origin and final use clearly identified Establishing objectives and norms for fulfilment of services Regular declaration of assets of public officials Establish effective mechanisms for allowing citizens free access to all information held by the state Decrease in the number of public officials if salary and benefits are increased Greater control given to the public and civil society over public sector activities Privatisation of public sector services Decentralization of state administration Establish a public service career structure based on defined job performance criteria 0% 25% 50% 75% 100%
Frederick H. Konteh Team Leader. Acknowledgements
Acknowledgements This study was made possible through the generous financial support of the Department for International Development (DFID) as part of its continued assistance to the Government and people
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