AGENDA & BACKGROUND DOCUMENT PLANET INTEGRITY: BUILDING A FAIRER SOCIETY 27-28 March 2018 - Paris, France 1
Tuesday 27 March 08:00 Registration and Welcome Coffee 09:30-10:00 Opening Remarks 10:00-11:30 Leaders Panel: Integrity for Fairer Globalisation: Challenges & Trends 11:30-12:00 Networking Break 12:00-13:30 Settling Foreign Bribery Cases with Non-Trial Resolutions Integrity & Trade: No Need to Grease the Wheels Integrity in Local Governance New Perspectives on Integrity [1/2] Room 2 Room 4 Room 7 Auditorium 13:30-14:30 Lunch Break & Youth ResearchEdge Poster Market 14:30-16:00 Integrity in Public Procurement: Data Analytics & Supplier Exclusion Open Government & Open Data for Integrity Combating Corruption: The Importance of Investigate Journalism Ethical Superhumans? Behavioural Insights for Integrity Room 2 Room 4 Room 7 16:00-16:30 Networking Break 16:30-18:00 Public Infrastructure: Building the Foundations for Integrity Young ResearchEdge Pitch [1/2] Room 2 18:00-20:00 Cocktail - Buffet du Parc Full agenda with speakers available on the Forum website oe.cd/if2018 and via Swapcard app event code: OECDACI2018 1
Wednesday 28 March 08:00 Welcome Coffee 09:15-09:30 Special Session: Intergovernmental Organisations Role & Vision in the Fight against Corruption 09:30-11:00 Enhancing Co-operation between Tax & Anti-Corruption Authorities Young ResearchEdge Pitch [2/2] Room 2 11:00-11:30 Networking Break 11:30-13:00 Integrity in Sports Towards Anti- Corruption & Integrity Guidelines for State- Owned Enterprises Asymmetric Influences on Policy-Making Room 2 Room 4 Room 7 13:00-14:00 Lunch Break & Youth ResearchEdge Poster Market 14:00-15:30 Shedding Light on a Dark Matter: Governance Gaps, Corruption & Illicit Trade Room 2 The Kids are Alright: Educating for Public Integrity Room 4 Managing Corruption Risks in Contexts of Fragility Room 7 New Perspectives on Integrity [2/2] Auditorium 15:30-16:00 Networking Break 16:00-17:30 Leaders Panel: Integrity for Fairer Globalisation: Strategy, Action, Impact 17:30-17:45 Concluding Remarks Full agenda with speakers available on the Forum website oe.cd/if2018 and via Swapcard app event code: OECDACI2018 2
Youth ResearchEdge Poster Pitch & Market The Youth ResearchEdge bridges the gap between academic research and policy making. The OECD held a competition for young researchers to submit their proposals that would provide new insights and evidence on anti-corruption & integrity. Poster Pitch: Room 2 Tuesday 16:30-18:00 Wednesday 09:30-11:00 The winners are presenting their findings in individual 5 min. research pitches, TED-talk style, during the ResearchEdge Pitch in Room 2. Poster Market: Middle of the Conference Centre Tuesday 13:30-14:30 Wednesday 13:00-14:00 They will also present in front of their posters at the Poster Market in the middle of the Conference Centre during lunch breaks ready for your questions! New Perspectives on Integrity (Auditorium) 27/03 12:00-13:30 Centre for Public Impact Finding a More Human Government Alina Mungiu-Pippidi Transitions to Good Governance. Creating Virtuous Circles of Anticorruption Transnational Alliance to Combat Illicit Trade (TRACIT) The Economist s Global Illicit Trade Environment Index 28/03 14:00-15:30 Andrew B. Spalding An Olympic Anti-Corruption Legacy Fredrik Eriksson U4 Trial Facilitating Innovative Approaches to Anti-Corruption in Development 34
OECD Integrity Week side events 27/03 14:30-16:00 Youth and integrity in the public sector: What works in OECD and MENA countries? 6 08:00-09:15 Breakfast Roundtable Open Government Partnership (OGP) 6 28/03 13:30-15:30 OECD Latin America and the Caribbean Regional Programme Side Event Room 9 09:00-18:00 European Symposium on Business Ethics and Governance (University of Cergy-Pontoise) Room 4 09:00-18:00 Meeting of the MENA-OECD Business Integrity Network Room 9 29/03 10:00-12:00 Side event on the High Level Reporting Mechanism Château - Room C upon invitation Workshop of the Network for Integrity (HATVP) 09:00-17:15 European Symposium on Business Ethics and Governance (University of Cergy-Pontoise) Room 4 30/03 upon invitation Workshop of the Network for Integrity (HATVP) Have your say on the OECD Anti-Corruption & Integrity Hub Join us at the Conference Centre outside and sign up in one of our workshops to exchange how the Hub can support the global anti-corruption & integrity community. Your Forum with Swapcard Make the most out of the 2018 OECD Global Anti- Corruption & Integrity Forum: Download our event app, personalise your schedule and make valuable connections. Download Swapcard - event code OECDACI2018 Lunch Options A coffee bar in the heart of the Conference Centre is open all day from 08:30 to 17:00 for coffee and sandwiches. Exki café is open from 08:00 to 17:00 offers breakfast, lunch, salads, sandwiches and snacks throughout the day. A self-service cafeteria, is open from 11:45 until 14:15 on the entrance level floor. A restaurant with waiter service offering simple and refined dishes is open from 12:00 until 14:00. For reservations or questions, please email: restaurantdesnations@elior.com. A variety of restaurants and bakeries outside the OECD around the metro station La Muette (5-10 minute walk). 4
BACKGROUND DOCUMENT 2018 OECD GLOBAL ANTI-CORRUPTION & INTEGRITY FORUM PLANET INTEGRITY: BUILDING A FAIRER SOCIETY The question we must ask ourselves today is what kind of globalisation we want. 1 - Angel Gurría Globalisation - the increasing integration of economies in terms of flows of goods, services, capital, people and ideas - has transformed the world. 2 While it has brought immense benefits, lifting hundreds of millions out of poverty, creating economic growth and increasing the range and affordability of goods and services worldwide, it has not benefited everyone equally and certain countries and individuals remain vulnerable. The 2018 OECD Anti-Corruption & Integrity Forum will debate how integrity creates a level playing field for business, reduces socio-economic inequalities, and makes public policies more effective - enhancing the benefits of globalisation for all. This is our challenge for the future: Planet Integrity. Ahead of the 2018 Ministerial Council Meeting, the debates will focus on the governance of globalisation and will reflect on the importance of international cooperation and multilateralism to curb corruption and unethical practices in areas such as trade, competition, infrastructure, development cooperation, and revenue collection. 1 OECD (2017) Globalisation calls for radical change, by Angel Gurría, www.efe.com 2 OECD (2017) Making Globalisation Work for All: An OECD Perspective, Remarks by Angel Gurría, http://www.oecd.org/trade/ making-globalisation-work-for-all-an-oecd-perspective.htm 3 OECD (2017) Foreign direct investment, corruption and the OECD Anti-Bribery Convention, http://dx.doi.org/10.1787/9cb3690c-en 4 OECD (2014) The rationale for fighting corruption, https://www. oecd.org/cleangovbiz/49693613.pdf 5
Corruption reduces the benefits of globalisation The benefits of globalisation are at stake, as corruption distorts markets and creates unfair competition, discourages foreign direct investment (FDI), 3 and undermines public policies. Companies may pay bribes or rig bids to win public procurement contracts, penalizing companies that act clean. Similarly, foreign investors may face competitive disadvantages when corruption or regulatory burdens hinder access to markets or government contracts. At the same time, cartels that artificially raise prices for goods and services destroy the integrity of market competition. Corruption, bribery and undue influence can also affect the effectiveness of regulators, as some companies or private interest groups seek to influence decision-making and capture public policy. Investment is undermined when corruption affects the granting of business licenses or environmental permits, the passing of goods through customs or the protection of intellectual property. Investment in corrupt countries is almost 5% less than in countries that are relatively corruption-free, and it is estimated that corruption increases the cost of doing business by up to 10% on average. 4 Corruption has an impact on the composition of capital inflows, diverting them from more stable FDI and towards less stable bank borrowing. FDIs not only enhance integration of the world economy, they are also a channel for transferring technology and managerial skills, stimulating domestic private sector development, including SMEs, and creating jobs. Thus corruption also undermines innovation and the worldwide diffusion of new technologies. Corruption affects citizens well-being and the distribution of income, undermining their ability to participate equally in social, economic and political life. Evidence from Trustlab - the OECD platform measuring trust - shows that a majority of people believe that it is likely that politicians in their country could engage in high-level corruption (figure 1); and that reducing such a share could significantly raise people s trust in public institutions (figure 2). Figure 1: % of people who believe politicians are «likely» to engage in high-level corruption Figure 2: Potential increase in trust if all people believe politicians «unlikely» to behave in high-level corruption 90% 6.0 80% 70% 5.0 % of people 60% 50% 40% 30% Trust in government 4.0 3.0 2.0 20% 10% 1.0 0% Germany 0.0 United States Slovenia Italy Germany United States Slovenia Italy Source: OECD Trustlab Current level of trust in government With low perceived corruption Source: OECD Trustlab 6
Moreover, according to the 2017 Eurobarometer 5, a quarter of Europeans (25%) say that they are personally affected by corruption in their daily lives. Corruption has contributed to the sharp rise in income and wealth inequality observed in recent decades 6, and corruption also undermines sustainable development goals in many areas, from health to environment, education, and human rights. Public policy is affected, too. Governments lose substantial corporate tax revenue because of international tax planning designed to shift profits to locations where they are taxed at lower rates, a practice widely recognised as legal but unethical. 7 In addition, illegal tax evasion results not only in less government revenue, but also distorts competition since it puts taxcompliant companies at a disadvantage. Furthermore, domestic corruption, for example in public procurement or service delivery, reduces the effectiveness of public spending and resource allocation, perpetuating inequality and poverty. One particular risk area is infrastructure. Quality infrastructure - roads, railroads, airports, maritime ports and digital infrastructure - helps attract international trade and investment. Yet, infrastructure projects are notoriously vulnerable to corruption, collusion and mismanagement. The large sums of money involved, the complexity of the projects in terms of stages and stakeholders, and the amount of discretion politicians and public officials have over investment decisions make these projects susceptible to undue influence. Pressure by vested interests may result in negative productivity or excessive infrastructure. 8 State-owned enterprises (SOEs) are particularly exposed to integrity risks, due to their proximity to the centres of political power. Many SOEs also operate in industries with particularly large infrastructure investments and thus a high corruption risk, such as hydrocarbons, electricity, transportation and telecommunications. Corruption in infrastructure can cause environmental, safety and health risks related to flawed or ill-placed infrastructure. Moreover, corruption has a significant opportunity cost: at a global level, a country with high levels of corruption tends to invest less in education and health systems and more in prestigious infrastructure projects that do not always have obvious benefits for society. 9 Another risk area in the intersection between globalisation and integrity is modern slavery, which includes human trafficking and the exploitation of forced labour. These malpractices could not exist on its current scale without corruption. Addressing corruption as a facilitator of human trafficking, forced labour and household exploitation therefore contributes to the achievement of Target 8.7 of the Sustainable Development Goals on the eradication of modern slavery. 7
Integrity driver for fairer globalisation To ensure that all of society reaps the benefits of globalisation, it is crucial to create an environment that fosters integrity in transactions among government, businesses and citizens. Since corruption is increasingly globalised, complex, and multi-dimensional, international co-operation is essential for its prevention, investigation and prosecution. Given the interdependency of policies undertaken at the subnational, national and international levels, tackling corruption requires integrated approaches that take into account spill-over effects and potential synergies. The erosion of trust in our institutions is often a response to the inability of different levels of governance to work together and to recognise that common challenges can be addressed more effectively through co-operation. The OECD Anti-Bribery Convention illustrates the critical role played by multilateralism and cooperation in the global fight against corruption. Since its entry into force nearly twenty years ago, 443 individuals and 158 entities have been sanctioned under criminal proceedings for foreign bribery 10. However, bringing wrongdoers to justice remains the number one challenge and demands that cooperation between domestic jurisdictions, and horizontally between authorities of a same country, be taken to the next level. As we set the course for Planet Integrity, what are the values that will underpin the governance of globalisation? The call for more ethical action, social responsibility and accountability is louder than ever, and many initiatives to promote integrity in government action, business transactions and in society are spreading around the world. Creating the conditions for fairer globalisation requires commitment, co-operation and action across all sectors of society. Given the international dimension of corruption, it also needs stronger international cooperation to confront global integrity challenges in an integrated and co-ordinated way. The 2018 Global Anti-Corruption & Integrity Forum will debate the role of integrity in shaping globalisation and will reflect on the importance of international cooperation and multilateralism to curb corruption and mainstream integrity. Achieving fair globalisation also requires addressing market failures and promoting public policies that uphold fair competition. Moreover, credible corporate governance arrangements, including for internationally active SOEs, are necessary for inclusive growth. Good corporate governance helps create market confidence and business integrity, which, in turn, is essential for companies that need access to equity capital for longterm investment. 11 Tax policy and administration also need to be fair to prevent tax evasion and negative impacts on trade and investment. International efforts to promote fair taxation are also crucial for fairer globalisation. 12 5 European Commission (2017) Special Eurobarometer 470 Corruption, http://ec.europa.eu/commfrontoffice/publicopinion/ index.cfm/survey/getsurveydetail/instruments/special/ surveyky/2176 6 OECD (2016) Putting an end to Corruption, https://www.oecd.org/ corruption/putting-an-end-to-corruption.pdf 7 OECD (2013) MCM Update: Base Erosion and Profit Shifting, https://www.oecd.org/mcm/c-min(2013)7-eng.pdf 8 OECD (2016), Integrity Framework for Public Investment, OECD Public Governance Reviews, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264251762-en 9 Vargas and Sommer (2014) Corruption and the Losses on Government Bonds, Risk Management Edition 3.3 10 OECD (2016) Data on Enforcement of the Anti-Bribery Convention: http://www.oecd.org/daf/anti-bribery/anti-bribery-convention- Enforcement-Data-2016.pdf 11 OECD (2015) G20/OECD Principles of Corporate Governance https://www.oecd.org/daf/ca/corporate-governance-principles- ENG.pdf 12 OECD (2013) Joint Action for Efficient and Fair Taxation, Remarks by Angel Gurría, http://www.oecd.org/about/secretary-general/ joint-action-efficient-fair-taxation.htm 8
Many thanks to Knowledge Partners oe.cd/if2018 IntegrityForum@oecd.org #OECDintegrity