Transcript Democratic Governance - United Nations Rule of Law

Corruption & Development
Regional CoP Workshop – Asia and the Pacific
Region
Bangkok, Thailand, 13-15 October, 2008
United Nations Development Programme
www.undp.org/governance
Objectives of this Session
To provide an overview of AC interventions in the
context of UNCAC as a development framework.
Discuss UNCAC as a development Framework
Identify linkages between corruption and
development.
Discuss costs of corruption to development and
entry points.
Finally, to assist in designing anti-corruption
interventions.
Historical Development: Corruption
2003 AU
1997 OECD Convention
Convention
1999 CoE
1996 OAS
Convention1997 EU
UNCAC
2003
Conventions
Convention
A crime/
Legislation
Moral issue
Since Origins
• Corruption as old as humanity/
civilization (e.g., India)
Moral and criminal issues
Internationalization
Global instruments
Defining corruption
UNDP defined corruption as: the misuse of public
power, office or authority for private benefit –
through bribery, extortion, influence peddling,
nepotism, fraud, speed money or embezzlement
Robert Klitgaard’s Formula: C (Corruption) = M
(Monopoly) + D (Discretion) – A (Accountability)
Corruption = Monopoly + Discretion –
Accountability + (Integrity + Transparency
Misuse of public office for personal gain
Definition of Corruption (Contd.)
Doesn’t define corruption, but components of
corruption such as bribery.
Most national statutes do not define Corruption
UNCAC does not have an article dedicated to
corruption & Dev
Dev. aspect captured in preamble paragraphs:
Extends to private sector (e.g., the Article 12)
UNCAC Defines the Relationship
UNCAC links corruption to sustainable development,
national stability, human security, democracy and
the rule of law
• Recognizes that corruption jeopardizes sustainable development.
• Basic tenets of Democratic Governance Principles of proper
management of public property, fairness, responsibility and equality
before the law permeate through the UNCAC.
• UNCAC recalls the Joburg Declaration on sustainable Dev. esp. para
19-corruption a threat to sustainable development of people.
UNCAC calls for a multi-disciplinary approach
UNCAC provides recommendations & guidelines
Components of Corruption
THE MOST COMMON FORMS OF CORRUPTION
Bribery:
Fraud:
Speed money
Inside trading:
Money laundering:
Extortion:
Kickbacks:
Peddling in influence:
Cronyism/Clientelism:
Nepotism:
Patronage:
Embezzlement:
Abuse of public property
Aims and Structure of Convention
1. Prevent and Combat Corruption More Efficiently and Effectively
2. International Cooperation & Technical Assistance including
Asset Recovery
3. Integrity, Accountability and Proper Management of
Affairs and Property
Public
UNCAC Comprehensive
Implementation
Preventive
Measures
Criminalization
Law Enforcement
Technical
Assistance
Asset
Recovery
International
Cooperation
Koffi Annan Nobel Peace Prize
Acceptance speech
“Beneath the surface of States and Nations,
ideas and language, lies the fate of individual
human beings in need. Answering their needs
will be the United Nations Missions for the
Century to come.”
“The true measure of the success for the
United Nations is not how much we promise
but how much we deliver for those who need
us most”
Lost Development is the Face
•
International norms and standards on AC (particularly, UNCAC)
continue to evolve
•
UNDP need to refocus its energies and priorities in anticorruption, within its area of comparative advantages
Kemal Dervis:
“A national system of democratic governance that is supportive of inclusive
growth, harmonized with international standards and norms developed
within a legitimate and cooperative multilateral framework, constitutes the
crucial software of development.”
--Statement to staff post HLP
November 2006
Cost of Corruption
Looting of State resources affect development
More than US$1 trillion (US $1,000 billion) are paid in
bribes every year, just over 3% of world income in 2002
(WBI estimate).
More than 70% of SMEs in transition economies perceive
corruption as an impediment to their business (BEEPS,
2000).
US$148 billion leaves the continent every year because of
corruption (African Union estimates
Corruption can raise up to 20% of costs of producing
goods
Impact of Corruption in Contracts
Type of investment/ contract
Environmen
tal
Degradation
Erosion of
tax
revenues
Illegal or corruptly gained
logging
Yes
Yes
Purchase of ‘illegally traded’
products
Yes
Yes
‘Informal agreement’ on transfer
pricing
Yes
Corrupt privatization contract in
services
Yes
Erosion of
basic
social
services
Yes
Yes
Yes
Yes
Yes
Import of faulty drugs
Non cost-effective power project
Erosion of
sustainabilit
y of
livelihoods
Yes
Work and safety conditions
ignored
Infrastructure with
Community displacement
Exploitatio
n of labour
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Source: Cockcroft, Laurence, “Business and Corruption: The Human Rights Dimension”,
Transparency International (UK), March 2006.
Economic Implications of Corruption?
Raises transactions costs of business
Creates uncertainty in an economy, through
discretion and continues change in rules and
regulations
Poor quality work through hiring of nonperformers
Flight of business and capital
Creates underground economy
Undercuts government’s effort to collect
revenue
Reduces government’s ability to provide
essential social services
Creates budget on a few companies
Economic Implications of Corruption
Increases costs of bureaucracy through
wasted time in negotiating contracts
Leads to looting of state resources by a
few powerful and connected people
Leads to lowering of standards
(manufacturing, drugs, construction,
etc)
Undermines human rights, rule of law
and leads an unstable and failed state
UNDP Focus Areas
Democratic Governance
[AC]
Environment &
sustainable
development
Poverty reduction
Crisis prevention & recovery
Source: UNDP Strategic Plan 2008-11: Focus Areas
DG Outcome Areas
International principles
Gender equality | Anticorruption | Human rights
Inclusive participation
Responsive institutions
Civic engagement
National, regional and local
governance capacity
(Political parties/civil society/citizen’s audits)
Elections
Communication channels
Parliaments and assemblies
(Independent media,
E-gov, access to information)
Justice & rule of law
Enabling mechanisms
Knowledge networks | Capacity development and learning | Resource management/ partnerships | |
Regional bureau/SURF governance advisers
Country offices focal points for governance
Members of the DG knowledge network
UNDP total expenditure, 2007
UNDP Comparative Programme Expenditure By Practice
Area (2007)
Cris is Prevention
and Recovery
9%
Energy and
Environm ent for
Sus tainable Dev
7%
Res ponding to
HIV/AIDs
2%
Others
Others
19%
Achieving MDGs and
Reduding Poverty
Fostering Democratic
Governance
Energy and Environment
for Sustainable Dev
Fos tering
Dem ocratic
Governance
49%
Achieving MDGs
and Reduding
Poverty
14%
Crisis Prevention and
Recovery
Responding to HIV/AIDs
Corruption and Development UNDP
Experience
UNDP Implements AC within its Mandate.
The first generation of UNDP AC Support focused on the
Accountability, Transparency and Integrity (ATI)
programmes
1999, UNDP flagship manual Fighting Corruption to
Improve Governance, a pioneer product in anticorruption and development
Other development Partners have embrace anticorruption since the 1990s
Development of International norms and standards
(UNCAC and regional instruments)
UNDP entry points
Mandates to reduce poverty
Promote sustainable Dev.
Promote sustainable Dev
Corruption is a threat and risk
Presence of Global Framework
UNDP’s Global Responses
Development of international norms and standards
culminating in UNCAC
UNCAC now has 125 ratifications increasing demand
for AC interventions at country level
Need for UNDP to refocus its AC intervention in the
context of UNCAC
Challenges of limited policy guidelines and capacity
at country level
Hence Global Thematic Programme on AntiCorruption for Development Effectiveness (PACDE)
Main Features of the PACDE
4 years (2008 – 2011)
to strengthen the capacity of programme
countries to reduce corruption.
Programme implemented at three levels:
global, regional, and country levels
Emphasis on internal capacity development
Cuts across practices and service areas
Has main activities through Regional Centres
Develops methodolgies for maistreams anticorruption development activities
Thank You!
Further information
www.undp.org/governance
[email protected]
Tel:1-212-906-5043