Quality of Public Administration A Toolbox for Practitioners

Quality of Public Administration “A Toolbox for Practitioners” “Embedding ethical and anticorruption practices” Nick THIJS, Senior lecturer, EIPA

Context Linking "Policy" to Funding 20 countries country specific recommendations from European Semester; EUR 5 Billion+ for 18 countries under ESF/ERDF 2014 -20; ex-ante conditionalities; demand for guidance Learning & Managing Knowledge 12 commission directorates general involved; many (existing) initiatives (public sector innovation, Small Business Act, Digital Agenda, etc. ); comprehensive overview; complement with intl. good practice (e. g. HR); break down silos No new policy! Guidance (non prescriptive); basis for discussion with practitioners and stakeholders; Commission as a facilitator 2

Themes Ø Introduction Ø Principles & values of good governance Ø Seven thematic chapters: 1. Better policy-making 2. Embedding ethical & anti-corruption practices 3. Professional and well-performing institutions 4. Improving service delivery 5. Enhancing the business environment 6. Strengthening the judicial system 7. Managing public funds effectively (including PP and ESIF, TO 11) 3

Process ü Commission Inter-service Group – agree structure and develop content on basis of CSR and TO 11 relevance ü Presentation & discussion of drafts (EUPAN, ESF committee, TO 11 practitioners, academia) ü Verification of case studies (170; mainly member states) May 2014 – Feb 2015 4

Content & Style Compendium style (many sources, underlying messages, lessons, not a roadmap – context may limit transferability) + Blue Boxes Commission policy and initiatives Orange Boxes Key studies and speeches Green Boxes Lighter Green Darker Green Case studies "Cited" from existing studies and guides Checked with "original sources" 5

Publication Hard copy Abridged Version (140 pages) E-version Ø Abridged version Ø Full publication 7 chapters Ø Links/Cross-references http: //ec. europa. eu/esf/tool box 6

Outline theme 2 Ø Introduction Ø Key questions for ethical and anti-corruption practices 1. Establishing the policy framework (Ethical values and standards, Risk-based strategies, Laws and regulations, Coordinators and agencies) 2. Building public trust through transparency and accountability (Open government, External scrutiny) 3. Promoting integrity and reducing the scope for corruption (Human resources management and training, Disclosure by public officials, Simplification, controls and automation) 4. Detecting and acting on corruption (Whistle-blowing mechanisms, Investigation, prosecution and sanctions) Ø Key messages – call for future action

Introduction – Context: – Anti-corruption measures as part of economic adjustment programmes, the European Semester (CSRs) and Europe 2020. – Corruption is toxic for long-term economic prosperity and sound public finances. – Definition of the key terms: – Ethics: set of values that guide the performance of public duties. – Integrity of the whole system of administration: serving the public interest. – Corruption: the misuse of public position or power for personal or private gain. – Grand petty corruption – Systemic and sporadic corruption – When does corruption arise? Opportunity (discretionar y power + public 'resources') Constraints (legal + normative) One in 12 Europeans surveyed in 2013 had experienced or witnessed a case of corruption in the past 12 months, one in four felt personally affected by corruption in their daily lives. Over four in ten companies felt corruption, patronage and nepotism to be a problem for doing business. Analysis by the EU-financed ANTICORRP programme shows a strong correlation between corruption and government over-spending, under-collection of taxes, fiscal deficits, and underabsorption of ESI Funds. It is also strongly associated with ‘brain-drain’ from the economy to more meritocratic environments. Risk of corruption

Key questions for ethical and anti-corruption practices ① How to set the framework for integrity and combatting corruption? ② What role for transparency and accountability play in (re)building public trust? ③ What preventative measures to strengthen ethical performance and reduce the scope for corruption? ④ How to detect and act on corruption? 9

1. Establishing the policy framework Introduction – Ethical behaviour in public life should be the norm. – Systemic corruction represents the absence of public service ethos and a failure to identify or take corrective action. – The challenge for public administrations is to: – incentivise integrity – deter corrupt activities – dismantel systemic corruption This demands leadership. 10

1. Establishing the policy framework 1. 1. Ethical values and standards – Ethical behaviour starts with attitudes and values at the top of the administration. – Integrity policies can be codified as standards for behaviour. – Codes of ethics – Codes of conduct Inspiring examples: UK’s Seven Principles of Public Life; Ireland’s Standards in Public Office Commission Inspiring example: Finland’s “Values in the Daily Job – Civil Servants’ Ethics” 11

1. Establishing the policy framework 2. Risk-based strategies – Anti-corruption strategies: – Necessary when corruption is systemic – and requires a clear, comprehensive and centrally coordinated package of measures – Key ingredient: sound evidence base – Risk assessment: – Identify the highest risk of corruption and capacity for change – Risk-mapping as a tool: likelihood and impact of corruption (risk matrix and ‘heat map’) Inspiring example: Lithuania’s Anti-Corruption Strategy & Programmes Inspiring examples: Slovenia’s sample integrity plan & methodology; Lithuania’s corruption risk analysis The Commission supports national authorities through OLAF’s HERCULES III programme, and the risk-scoring tool for ESI Funds, ARACHNE. 12

1. Establishing the policy framework 1. 3. Laws and regulations Ethical principles are embedded in the legal base : Art. 83 (1) TFEU – International conventions and principles (e. g. Council of Europe, UN and OECD) – National laws, traditions and structures – Inspiring example: UK Bribery Act 2010 – to regulate conflicts of interest – to protect whistle-blowers 13

1. Establishing the policy framework 1. 4. Coordinators and agencies – – Integrity coordinators: some Member States have allocated resources at the center of Government to manage their ethics policies. Inspiring example: Integrity coordination in the Flemish Government, Belgium Anti-corruption agencies (ACAs): – education and awareness-rising on corruption – monitoring and coordination – prevention, investigation and prosecution 14

2. Building public trust through transparency & accountability Introduction Corruption: – undermines public trust in public administration – results from a failure of individuals to be accountable for their behaviour – relies on secrecy Antidote: transparency and accountability 15

2. Building public trust through transparency & accountability 2. 1. Open government The increasing importance of modern communication and social networks encourages the public sector to be more open. The public monitors if PA meet their obligations on transparency. All Member States are signatories to the 2009 Malmö – Public Sector Information Directive Ministerial Declaration on e-Government, includes the objective to strengthen transparency of administrative processes, followed up in the e-Government Action Plan 2011 -2015. Inspiring examples: Italy’s Open. Coesione open government strategy; UK’s Local Government Transparency Code 16

2. Building public trust through transparency & accountability 2. 2. External scrutiny Transparency is an effective tool when matched by external scrutiny and public’s active participation. This requires: – Strong institutions from outside the executive and judiciary: – – – Supreme Audit Institutions Information Commissioners Ombudsmen Media Healthy NGOs – Civil society organisations – Lobbying The EU Transparency Register provides citizens with access to information about who is engaged in activities aiming at influencing the EU decision making process. Registration is voluntary, but incentivised by controlled access to European Parliament & automatic alerts to consultations of interest. 17

3. Promoting integrity and reducing the scope for corruption Introduction Officials acting in the best interests of their organisations are the foundation of well-functioning institutions. - Public authorities should promote integrity in the workplace. - Prevention is the highest priority within anti-corruption measures. - Balanced approach: accentuating the positive benefits of ethical behaviour + being aware of the potential for corrupt activities. 18

3. Promoting integrity and reducing the scope for corruption 3. 1. Human resources management and training – Human resources management should integrate ethical values into personnel policies – and provide clear rules in the ‘grey areas’ of integrity (e. g. meritocratic appointments, preventing conflicts of interest) – Identification of sources and risks of corruption – Ethics and dilemma training Inspiring examples: Slovene police’s ethics code and training; dilemma training in the Flemish Government 19

3. Promoting integrity and reducing the scope for corruption 3. 2. Disclosure by public officials As a preventive measure, many PA oblige public officials to submit a signed declaration of their income, assets and business interest: – The key to success is verification – The downside of disclosure is the danger of unintended consequences – Targeted approach: disclosure is best targeted in areas where it can be most effective. 20

3. Promoting integrity and reducing the scope for corruption 3. 3. Simplification, controls and automation ‘Rule-changing’ approaches aim to take the scope to misuse entrusted power out of the equation through: –Administrative simplification to reduce red tape and lower corruption. –Internal controls: ‘four eyes’ principle, clear and published procedures and internal audit. Inspiring example: Detecting health corruption through fraud audit in Calabria, Italy –Automation: positive impact of online services to reduce corruption. 21

4. Detecting and acting on corruption Introduction – Reallistically, corruption will never be wholly eradicated. – A regulatory and reporting framework must be in place (systems for detection and prosecution). – Whistle-blowing is the most effective way of exposing wrongdoing. 22

4. Detecting and acting on corruption 4. 1. Whistle-blowing mechanisms – Whistle-blower: someone who reports or discloses information on a threat or harm to public interest. – But often, nothing is done about the wrongdoing and the whistle-blower suffers repercussions. Protection of whistle-blowers – Research shows that external whistle-blowing is more effective that internal whistle-blowing. – Inspiring example: UK’s PIDA & the role of PCa. W Inspiring example: Ireland’s Protected Disclosures Act An integrity policy encourages staff to discuss matters openly. 23

4. Detecting and acting on corruption 4. 2. Investigation, prosecution and sanctions – Transition from regular to rare corruption: chances of detection and probablity of being penalised are high. – Anti-corruption agencies: law enforcement and responsible for detection, investigation and prosecution. – For maximum deterrence, detection should be matched by punitive sanctions (effective disciplinary policies, penalties and possibly restitutions). 24

Key messages- call for future action Ø Agree and adopt a set of values to guide behaviour and actions Ø Prepare and implement policies and strategies around the equation corruption risk = opportunity – constraints Ø Make sure these policies and strategies are comprehensive Ø Take a balanced approach that builds trusts Ø Ultimate point? Values are internalised, rules are implicit and recourse to enforcement is the last resort. Good governance = ethical administration. 25

Thank you! Contact: Nick Thijs n. thijs@eipa. eu