UNDP The Largest Global Organisation on Anti-Corruption and Governance Presentation by Mr. Magdy Martínez-Solimán Director, Bureau for Development Policy, UNDP
Outline: I. Introducing the United Nations Development Programme II. Anti-corruption Strategies
UNDP was born in 1966 The early development work done by UNDP helped create institutions and infrastructure fundamental to transforming economies, governments and societies. In the 60’s UNDP funded a study of the hydroelectric potential of Brazil helping create billions of dollars’ worth of investment opportunities. It convinced Singapore that they would be third financial hub of the world, after New York and London/Geneva. Today, UNDP is present in 177 countries and territories and plays a coordinating role for the UN system in the countries where we work. In all our activities, we encourage the protection of human rights and the empowerment of women.
“Development is about creating an environment in which people can develop their full potential and lead productive, creative lives in accord with their needs and interests. ” Human Development Report 1990
UNDP’s Areas of Work We work with countries around the world to help them find solutions to their development challenges - according to their own needs and interests - in 4 main areas:
Poverty Reduction and MDG Achievement UNDP invests nearly US$1 billion every year in fighting poverty and advancing progress towards the MDGs. Highlights: • UNDP helped form Ethiopia’s first commodities exchange, benefiting over 2. 3 million small holder farmers belonging to more than 230 cooperatives. • More than 200, 000 sugarcane farmers in Bangladesh are now able to access wider markets via an SMS alert service connecting them to sugar mills as a result of a UNDP programme there. • Over 6, 500 small business owners in Argentina have received microcredit and training in management and ecofriendly production techniques.
Democratic Governance • UNDP supports 1 in 3 parliaments in the developing world an election every 2 weeks. • In 2010, UNDP assisted 103 countries on national anticorruption efforts. Highlights : • With UNDP support, Tunisia mobilized more than 3 million people to vote in the country’s first democratic election through traditional and social media campaigns. • UNDP supported Burundi in the training of more than 1, 400 judges, clerks and administrative staff as part of an ongoing judicial reform process.
Crisis Prevention and Recovery During 2012, UNDP was active in 97 countries in assisting households, communities, and governments to prevent, confront, and respond to conflicts and disasters. Highlights: • In 2012, UNDP supported 23 countries affected by landmines and explosive remnants of war through mine risk education, clearance and victim assistance programmes. • In Ethiopia, which is still recovering from the drought in the Horn of Africa, around 14, 000 beneficiaries, 39 percent of whom were women, employed under UNDP schemes to rehabilitate infrastructure.
Environment and Energy UNDP provides support to more than 140 countries on environment and sustainable development. UNDP helped avert the emission of 2. 7 billion tonnes of CO 2 and ozone-depleting substances. Highlights: • Over 10 million people, globally, have gained access to energy through UNDP supported projects in the last decade. • Through the UN-REDD Programme, UNDP assists governments in designing national strategies to reduce deforestation and forest degradation, mobilizing over $67 million for 16 counties.
UNDP’s top donors in 2012 (Regular and other resources)
II. Anti-Corruption Strategies • What do we mean by corruption? • Why should we fight corruption? • Anti-corruption strategies: what works, what doesn’t and why?
Interpretations of corruption Definitions of corruption can be based on: 1. Moral and ethical discussions on corrupt behaviours 2. A strict legal definition anchored on criminalised activities 3. A “government deficit” definition: product of a weak or malfunctioning institutions 4. A broader and common concept: Corruption is the “misuse of entrusted power for private gain” 5. The United Nations Convention Against Corruption (UNCAC) does not define corruption but define a set of corrupt practices agreed by state members (e. g. , bribery, embezzlement, illicit enrichment, money laundering)
Historical trend of the notion of corruption 2005 UNCAC 1990 s/2000: Governance reform: “Corruption not primarily a problem of bad people but of a bad system, Klitgaard and Baser 1980 s/early 1990 s: Criminalization of corruption Corruption as old as humanity: Morale and ethical issue: “Bad men and bad laws”, Wang Anshi
Why we should fight corruption Corruption hinders economic growth and businesses operation • No direct causal link between corruption and GDP growth • However, there a number studies showing correlations and negative effects of corruption on a host of key transmission channels, such as investment (including FDI), competition, entrepreneurship, government efficiency, • Countries that improve on control of corruption and rule of law, can expect on the long-run a four-fold increase in incomes per capita (WB estimate). - Small businesses pay over twice as much in proportion to their annual revenue in bribes than large businesses. • According to Collier and Hoeffler, in Italy, a modest reduction in corruption would increase growth by 0. 3 percentage points, even with unchanged investment (UNDP 2008).
Why we should fight corruption Corruption affects the universal enjoyment of human rights • Corruption hinders universal access to public services recognized as a human right. • Corruption in judicial systems is proven to violate the basic right to equality before the law and deny procedural rights guaranteed by the Universal Declaration of Human Rights and other international human rights conventions. • According to a study of Transparency International on corruption and MDGs, in developing countries corruption is estimated to raise the price of connecting a household to a water network by as much as 30 to 45%.
Why we should fight corruption Corruption undermines gender empowerment and equality • Women make the majority of the poor in many developing countries. Women are likely to experience more corruption related to public services, which matter them the most. • A recent UNDP study titled “Seeing Beyond the State: Grassroots Women’s Perspectives on Corruption and Anti-Corruption”, revealed that 76% of women surveyed think that corruption has prevented their access to public goods and services and hence the need to fight corruption to reduce inequalities and exclusion.
Why we should fight corruption Summarizing relationship between Corruption and Development Economic Growth Poverty/ Inequality Governance Human Rights Gender Environment Conflict Corruption Impact Through: Discouraging Undermining Distorting rule of Perpetuating investment efforts to law and discrimination and aid achieve MDGs weakening moral Denying rights Adding Increasing the values to social unpredictabili cost of public Undermining services ty in business services and government Weakening environment lowering their legitimacy by democratic quality reducing public Distorting institutions trust in economic Worsening Undermining government policies income and delivery of other Weakening justice inequalities institutional foundation by worsening ATI • Increasing sexual extortions Worsening environmental governance and reducing the Affecting stringency of women disproportio environmental regulations nately in terms of access to essential public services Fuelling war when, in the absence of a legitimate political regime, certain social groups are favoured in the allocation of resources, thus fuelling grievances among marginalized groups.
Causes and symptoms of corruption There are multiple causes and symptoms of corruption. Causes are interrelated and reinforce one another A solid analysis is a must to determine the immediate, underlying and root causes. Political environment Social and cultural settings Corruption Institutional capacities Economic and Structural policies
Anti-corruption Strategies: What works, what does not and why? Contemporary literature review reveals three broad approaches/perspectives to anti-corruption strategies: 1. Economic perspective, looking at the “principal-agent” relationship to identify corruption and anti-corruption strategies by fixing agency/information/bargaining asymmetries. 2. Socio-cultural’ perspectives - to examine the social or cultural context of corruption and suggest, bring about mass attitudinal change or civic awareness. 3. Institutional perspective - looks either to strengthening institutions, such as the auditor-general or anti-corruption agency functions, or controls and procedures within institutions, such as codes and register of interests, to delineate the expectations of politicians and public officials
Anti-corruption Strategies: What works, what does not and why? • There’s neither a single approach nor a universally applied solution. • From our experience, there at least 4 key ingredients for a successful anticorruption strategy: Enabling environment- Institutional quality of oversight bodies Use of ICT Private sector, CSO and media
Anti-corruption Strategies: What works, what does not and why? 1. the enabling environment matters and an integrated and interdisciplinary approach to fighting corruption in all areas of development is getting traction. 2. institutional quality of anti-corruption and oversight bodies remains important. 3. the fight against corruption requires strong and independent media and civil society. 4. citizen action and mobilization via Information and Communication Technologies (ICT) is transforming the field of transparency and accountability.
Korea’s anti-corruption effort • Commendable track record – few firms give gifts to public officials “to get things done” in Korea than in many other countries (see the graph in the next slide) – the Republic of Korea has played a lead role through G-20 meetings held in Korea in 2010
Percentage of firms expected to give gifts to public officials “to get things done”
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