1 governance, corruption and poverty: analytical and empirical approaches handout for session on...

Governance, Corruption and Poverty: Analytical and Empirical approaches

Handout for session on Governance and Poverty ReductionIn Learning Activity "Attacking Poverty for APP Family"January 28 and 29, 2002, Washington D.C. Daniel Kaufmann and colleagues The World Bank Institute http://www.worldbank.org/wbi/governance

Governance: 9 Orthodoxies + 1 ChallengePoverty is key cause of misgovernance and corruptionAmbiguous evidence on whether misgovernance affects poverty and under-developmentPoverty of Data on Governance: cannot use empiricsUnclear evidence on links between Governance and Public Expenditures / Public Service Delivery Misgovernance = CorruptionFocus: Bureaucratic bribery in developing countriesGovernment leads Anti-Corruption (A-C) programParamount: A-C Agencies/Commissions/Ethics OfficeHigh Pay in public service for combating corruption

Challenge: The 9 orthodoxies above contain myths

What is Governance?: A working definition for governanceGovernance is the process and institutions by which authority in a country is exercised: (1) the process by which governments are selected, held accountable, monitored, and replaced; (2) the capacity of governments to manage resources efficiently, and to formulate, implement, and enforce sound policies and regulations; and, (3) the respect for the institutions that govern economic and social interactions among them

Operationalizing Governance: Unbundling its Definition into Components that can be measured, analyzed, and worked onEach of the 3 main components of Governance Definition is unbundled into 2 subcomponents:Voice and AccountabilityPolitical Stability and lack of ViolenceQuality Regulatory FrameworkGovernment EffectivenessControl of CorruptionRule of Law

For access to data on these indicators:http://www.worldbank.org/wbi/governance/pubs/govmatters2001.htm

Governance and Poverty Nexus, ILower Investment and GrowthUnsound economic/institutional policies due to vested interestsDistorted allocation of public expenditures/investments Low human capital accumulationElite corporate interests capture laws and distort policymakingAbsence of rule of law and property rights Governance obstacles to private sector developmentLack of Health and Education Low human capital accumulation Lower quality of education and health care

ContImmediate Causes of Poverty: How Misgovernance and Corruption affects Immediate Cause of Poverty

Governance and Poverty Nexus, cont. Poor have Smaller share in GrowthState capture by elite of government policies and resource allocationRegressiveness of bribery tax on small firms and the poorRegressiveness in public expenditures and investmentsUnequal income distribution

Bribery imposes regressive tax and impairs access and quality of basic services for health, education, and justicePolitical capture by elites of access to particular servicesImpaired Access to Public Services

Control of Corruption: Aggregate Indicator (selected countries from 155 worldwide, for illustration, based on 1998 research data*)Source: Governance Matters, PRWP 2196 by Kaufmann, Kraay and Zoido. http://www.worldbank.org/wbi/governance/POORGOODCorruption LevelMargin of ErrorGood Corruption Control

Application of Rule of Law Varies by RegionOECDEastAsiaMiddleEastSouthAsiaEasternEuropeLatinAmericaSub-SaharanAfricaFormerSovietUnion(based on aggregation of surveys/polls 1997-99*)High Indexof Rule of LawAppli-cationLowIndexNote: Regional Averages shown for discussion purposes, and hide large intra-regional variation in each case. Thin vertical line reflects estimated margin of error. Source: Kaufmann, Kraay and Zoido-Lobaton (1999). "Aggregating Governance Indicators" and "Governance Matters" PWRP 2195 and 2196. http://www.worldbank.org/wbi/governance

The Dividend of Good GovernanceNote: The bars depict the simple correlation between good governance and development outcomes. The line depicts thepredicted value when taking into account the causality effects (Development Dividend) from improved governance to betterdevelopment outcomes. For data and methodological details visit http://www.worldbank.org/wbi/governance.

Incomes vs. Government Effectiveness

Incomes vs. Control of Corruption

Voice, Accountability and Civil Liberties Matter for DevelopmentSource: KKZ 1999

Chart6

226144.0384000125

20985.7042760284

4036.8760591259

1158.1102555227

2424.3533848214

19.394296982536.0552586921

79.2261566929

710.753705541

2379.8006750563

200109.107468038

710.8520366783

14920.3415280501

16943.8951175461

10437.1011513033

2421.9814856105

1188.18111659

20.700000762914.0167630698

16.628958209183.3757666559

15.257935604556.9401463674

39.599998474112.9108764069

9626.2983405962

4422.9593809377

17.200000762910.3687499214

11.300000190779.8214417858

167.8285658565105.9637293034

8818.9439156134

16038.0849791531

811.5586633375

68.7275998311

1321.7600334317

39109.8179277533

14059.3224522661

7866.4428406212

14570.5379118268

3040.5536107194

9334.7850209116

71.699996948215.8893506998

1511.7229962829

9126.2448243388

10.300000190714.2501155306

813.2425670737

610.3673410203

175.100006103560.978865191

69.1860223041

4739.1331261571

39111.0902333151

3929.2049825013

6664.8586736177

9560.6233441478

711.7952520195

1318.780861796

17555.9339641349

59.4294742845

2436.2350752472

613.828009022

13647.8007714886

710.3790169805

2146.8852764769

10252.9399297213

18276.7352960379

11.3000001907

114.124171052883.409876563

22053.8077166784

177118.7617213728

914.7444736048

5559.0997899055

7815.5779728439

5.953449756639.0018145651

4838.3918183676

1048.1718485113

12566.7887459727

1213.2768709689

6098.3122049405

8824.0323053852

710.2740849392

3558.8297521119

140161.6926998371

710.7552006476

814.6343114555

712.3169832518

1419.4050478007

3532.172267521

613.6787860125

2966.9392823284

11266.3493518446

37.937684616245.1860396647

14779.1015152086

1115.6744236484

1336.6268770164

145.862606353389.1750784849

3251.5944717066

19477.7479681246

30114.5715715217

1941.8473645211

13741.4548863062

1319.1329208086

6.699999809310.6325259951

1921.5817535834

5.1890465341

6744.8760247104

2431.9702333927

15828.1925556394

3979.1015152086

3840.156567645

1734.0406692616

23525.7686495008

8.899999618511.0681153331

131160.9893259516

6817.9455342572

20142.3844591915

14983.3757666559

8.4035270372

2315.5510193336

22434.7699571251

1441.3743084723

10124.5367088915

178.093921141168.8018635932

122104.2185098875

5734.5548674417

79.3884554508

69.0272230313

11735.1942054989

710.6644369233

2859.3769672848

13653.2038600498

2620.8605561765

5265.5687867704

4121.7873300512

8233.0660257547

1214.7994258316

13.895464681

74166.6691199016

810.4650742009

2852.2488277418

1570.6573460526

11.3000001907

2625.9790660368

2547.6863105911

20999.0726034867

2893.2509219916

115130.3017753418

11046.9029612386

635.4202341741

27.513.568787383

286144.8924449978

3939.8794331732

205.1999969482153.8086276779

74.300003051818.2832298367

3328.8359888977

11.199190594419.6115863707

614.846946672

59.2261566929

100.570.784028965

38115.7036252154

18275.4957425183

13889.2350746072

3830.5255821494

36137.8581427703

50125.1790125982

1516.3397037661

3360.3132247104

5075.8538608522

8.399999618520.1429955968

13646.576113587

16256.7740073539

1736.8967857408

2019.0865190231

8.547838952710.2422422407

31114.2968935761

2531.478948912

40121.5225964505

2840.9530089581

13752.0518392675

2079.840962403

6515.8218506209

148138.1915340745

18938.0770524561

10864.3789328342

Voice, Civil Liberties and Accountability

Infant Mortality

Finland

Sheet1

Intercept3.601

Slope-0.847

LABELSVOICEINFMORFITTED

AfghanistanAFG-1.6163871674226144.0384000125

AngolaAGO-1.003427059820985.7042760284

AlbaniaALB-0.00774797674036.8760591259

United Arab Em*ARE-0.54467787881158.1102555227

ArgentinaARG0.48208872862424.3533848214

ArmeniaARM0.018827951319.394296982536.0552586921

AustraliaAUS1.628048915279.2261566929

AustriaAUT1.4471660016710.753705541

AzerbaijanAZE-0.91916406582379.8006750563

BurundiBDI-1.2884691167200109.107468038

BelgiumBEL1.4364193924710.8520366783

BeninBENBenin0.694610964414920.3415280501

Burkina FasoBFA-0.213462923616943.8951175461

BangladeshBGD-0.014932705510437.1011513033

BulgariaBGR0.60306902492421.9814856105

BahrainBHR-1.03706356841188.18111659

Bahamas, TheBHS1.134292827120.700000762914.0167630698

Bosnia and HerzBIH-0.970906374816.628958209183.3757666559

BelarusBLR-0.520661927315.257935604556.9401463674

BelizeBLZ1.231322209639.599998474112.9108764069

BoliviaBOLBolivia0.39137444879626.2983405962

BrazilBRA0.55168050954422.9593809377

BarbadosBRB1.490204879117.200000762910.3687499214

BruneiBRN-0.919471266111.300000190779.8214417858

BhutanBTN-1.2539514276167.8285658565105.9637293034

BotswanaBWA0.77865076258818.9439156134

Central Africa*CAF-0.04583229816038.0849791531

CanadaCAN1.3619418792811.5586633375

SwitzerlandCHE1.69363589368.7275998311

ChileCHL0.61502366191321.7600334317

ChinaCHN-1.296131986139109.8179277533

Cote d'IvoireCIV-0.569052958714059.3224522661

CameroonCMR-0.70288316247866.4428406212

CongoCOG-0.773495066914570.5379118268

ColombiaCOL-0.11998207823040.5536107194

ComorosCOM0.06117253779334.7850209116

Cape verdeCPV0.986246614571.699996948215.8893506998

Costa RicaCRI1.3452746081511.7229962829

CubaCUB-1.46071200949126.2448243388

CyprusCYP1.11479927510.300000190714.2501155306

Czech RepublicCZE1.2013737669813.2425670737

GermanyDEU1.4903653145610.3673410203

DjiboutiDJI-0.6015670978175.100006103560.978865191

DenmarkDNK1.633195969469.1860223041

Dominican Rep.DOM-0.07788586144739.1331261571

AlgeriaDZA-1.309731740139111.0902333151

EcuadorECU0.26760409883929.2049825013

EgyptEGY-0.674392746664.8586736177

EritreaERI-0.59466356069560.6233441478

SpainESP1.3380199772711.7952520195

EstoniaEST0.78885671581318.780861796

EthiopiaETH-0.499612494717555.9339641349

FinlandFINFinland1.602313641359.4294742845

FijiFJI0.01295445192436.2350752472

FranceFRA1.1502996759613.828009022

GabonGAB-0.31409891313647.8007714886

United KingdomGBR1.489036399710.3790169805

GeorgiaGEO-0.29126764082146.8852764769

GhanaGHA-0.434661002710252.9399297213

GuineaGIN-0.872918282818276.7352960379

GuadeloupeGLP11.30000019070

GambiaGMB-0.9713892873114.124171052883.409876563

Guinea-BissauGNB-0.453857012522053.8077166784

Equatorial GuineaGNQ-1.3885704183177118.7617213728

GreeceGRC1.074535606914.7444736048

GuatemalaGTM-0.56461318715559.0997899055

GuyanaGUY1.00961284627815.5779728439

Hong KongHKG-0.07391755895.953449756639.0018145651

HondurasHND-0.05530622624838.3918183676

CroatiaHRV-0.32322880121048.1718485113

HaitiHTI-0.70901368712566.7887459727

HungaryHUN1.19831936661213.2768709689

IndonesiaIDN-1.16546420266098.3122049405

IndiaIND0.49775798948824.0323053852

IrelandIRL1.5010334127710.2740849392

Iran, I.R. ofIRN-0.55920627543558.8297521119

IraqIRQ-1.7528897512140161.6926998371

IcelandISL1.4470018669710.7552006476

IsraelISR1.0833897624814.6343114555

ItalyITA1.2869196432712.3169832518

JamaicaJAM0.7502559291419.4050478007

JordanJOR0.15335912123532.172267521

JapanJPN1.1631096027613.6787860125

KazakhstanKAZ-0.71167175282966.9392823284

KenyaKENKenya-0.701220769811266.3493518446

Kyrgyz RepublicKGZ-0.247683804237.937684616245.1860396647

CambodiaKHM-0.908774533914779.1015152086

Korea, SouthKOR1.00232548171115.6744236484

KuwaitKWT0.00025700641336.6268770164

LaosLAO-1.0502970618145.862606353389.1750784849

LebanonLBN-0.4042674493251.5944717066

LiberiaLBR-0.888397186919477.7479681246

LibyaLBY-1.346162581530114.5715715217

Sri LankaLKA-0.157058821941.8473645211

LesothoLSO-0.145933599713741.4548863062

LithuaniaLTU0.76692980651319.1329208086

LuxembourgLUX1.46054569896.699999809310.6325259951

LatviaLVA0.62473646261921.5817535834

MacaoMAC5.18904653410

MoroccoMAR-0.2395557046744.8760247104

MoldovaMDA0.16079661932431.9702333927

MadagascarMDG0.309258608415828.1925556394

MaldivesMDV-0.90877453393979.1015152086

MexicoMEX-0.10836600323840.156567645

Macedonia, FormMKD0.08671078571734.0406692616

MaliMLI0.415397145923525.7686495008

MaltaMLT1.41314228778.899999618511.0681153331

Myanmar (Burma)MMR-1.747742697131160.9893259516

MongoliaMNG0.84257225966817.9455342572

MozambiqueMOZ-0.172115426920142.3844591915

MauritaniaMRT-0.970906374814983.3757666559

MartiniqueMTQ8.40352703720

MauritiusMUS1.01165739262315.5510193336

MalawiMWI0.061683928122434.7699571251

MalaysiaMYS-0.14363650521441.3743084723

NamibiaNAM0.473234571110124.5367088915

NigerNERNiger-0.7440741814178.093921141168.8018635932

NigeriaNGA-1.2343444529122104.2185098875

NicaraguaNIC0.06901012825734.5548674417

NetherlandsNLD1.607460695479.3884554508

NorwayNOR1.653784187669.0272230313

NepalNPL0.047365463311735.1942054989

New ZealandNZL1.4570076106710.6644369233

OmanOMN-0.57013742032859.3769672848

PakistanPAK-0.440532409713653.2038600498

PanamaPAN0.6648640952620.8605561765

PeruPER-0.68724884455265.5687867704

PhilippinesPHL0.61354355314121.7873300512

Papua New Guin*PNG0.12100785958233.0660257547

PolandPOL1.07014358341214.7994258316

Puerto RicoPRI13.8954646810

Korea, NorthPRK-1.788678310674166.6691199016

PortugalPRT1.4792875487810.4650742009

ParaguayPRY-0.41914693632852.2488277418

QatarQAT-0.77549242251570.6573460526

ReunionREU11.30000019070

RomaniaROM0.40579567742625.9790660368

RussiaRUS-0.3112684382547.6863105911

RwandaRWA-1.174560743720999.0726034867

Saudi ArabiaSAU-1.10306250982893.2509219916

SudanSDN-1.4980556187115130.3017753418

SenegalSEN-0.291712884211046.9029612386

SingaporeSGP0.0398072684635.4202341741

Solomon IslandsSLB1.172642137327.513.568787383

Sierra LeoneSLE-1.6233668342286144.8924449978

El SalvadorSLV-0.10018976593939.8794331732

SomaliaSOM-1.6938714902205.1999969482153.8086276779

Sao Tome and PrSTP0.820561703374.300003051818.2832298367

SurinameSURSuriname0.28261603133328.8359888977

Slovak RepublicSVK0.737756159511.199190594419.6115863707

SloveniaSVN1.066358639614.846946672

SwedenSWE1.628048915259.2261566929

SwazilandSWZ-0.7776073148100.570.784028965

SyriaSYR-1.357770916938115.7036252154

ChadTCD-0.853690984918275.4957425183

TogoTGO-1.051091116213889.2350746072

ThailandTHA0.21538950293830.5255821494

TajikistanTJK-1.564610632236137.8581427703

TurkmenistanTKM-1.450702259350125.1790125982

Trinidad & Tob*TTO0.95324916191516.3397037661

TunisiaTUN-0.58860849463360.3132247104

TurkeyTUR-0.85927816495075.8538608522

TaiwanTWN0.70619053738.399999618520.1429955968

TanzaniaTZA-0.28345670113646.576113587

UgandaUGA-0.517212047216256.7740073539

UkraineUKR-0.00841138131736.8967857408

UruguayURY0.7697966052019.0865190231

United StatesUSA1.5046982718.547838952710.2422422407

UzbekistanUZB-1.343328680831114.2968935761

VenezuelaVEN0.17908024332531.478948912

VietnamVNM-1.415702744440121.5225964505

West BankWTB-0.13155287652840.9530089581

YemenYEM-0.414687285713752.0518392675

YugoslaviaYUG-0.91975995992079.840962403

South africaZAF0.99127280366515.8218506209

ZaireZAR-1.5674623978148138.1915340745

ZambiaZMB-0.045586544218938.0770524561

ZimbabweZWE-0.665627449510864.3789328342

Under 5 Infant Mortality (World Bank, plus CIA Factbook)

Sheet1

Voice, Civil Liberties and Accountability

Infant Mortality

Finland

Sheet2

Sheet3

Sheet4

Sheet5

Sheet6

Not FreePartly FreeFreeCorruption High LowCivil LibertiesCorruption is associated with absence of Civil Liberties Based on averages of data from 160 countries.

Control of Graft and Freedom of the PressHighLowLowHighr = .68 Freedom of the Press (Freedom House)Control of Graft [kkz]

Salient Features of New Governance Diagnostic ToolsMulti-pronged surveys of: households, firms and public officials [triangulation] Experiencial questions (vs. opinions/generic) Specially designed and tested closed questions Conceptual framework: Incentive Structure behind Governance; focus on development Rigorous technical requirements in implementation Local Institution Implements, with WB Collaboration Recognizing Multidimensionality of GovernanceFocus on Service Delivery: Input for Action and Change

Romania: Disproportionally Negative Impact on the Poor

Corruption as a regressive tax on the household(% of income paid in bribes, as reported by all users that requested public services)

Corruption as a regressive tax: small firms pay disproportionally in bribes(% of gross monthly revenue paid in bribes)

Citizen Voice Improves Accessibility of Public Services to the Poor (Bolivia diagnostic results, 2000)Based on Bolivia Public Officials Survey. The sample of institutions includes 44 national, departmental, and municipal agencies which are a prior anticipated to be accessible to the poor

Citizen Voice Helps Control Bribery (Bolivia diagnostic results, 2000) Based on 90 national, departmental, and municipal agencies covered in the Bolivia Public Officials Survey.

Chart4

46.2943.45-5-5Low

39.0236.84Moderate_Low

28.5831.16Moderate_High

21.424.8266High

Simple Average Association

Control Causal Link

Margin of Error

Voice / External Accountability

Bribery

all3

all3

45.4946.21-11.288

32.9132.80

23.1620.6811.288

Simple Average Association Between Transparency and Corruption

Controlled Causal Link of Transparency on Corruption

Internal Transparency

Frequency of Bribery

construct3

6.3324.95

35.3633.88

Simple Average Association Between Autonomy and Corruption

Controlled Causal Link of Autonomy on Corruption


all4

38.4736.399

35.533.8357

27.7230.6239

Simple Average Association Between Wages and Corruption

Controlled Causal Link of Wages on Corruption

Wage Satisfaction


construct4

22.3437.1118

43.733.9769

36.3730.4671

Simple Average Association Between Voice and Corruption

Controlled Causal Link of Voice on Corruption

Voice


effect

51.8255.0519

59.6560.1275

70.5365.279

Simple Average Association Between Resources and Service Delivery

Controlled Causal Link of Resources on Service Delivery

Resources

Service Delivery Performance

Sheet2

29.6126.97

36.4931.09

34.9536.33

Simple Average Association Between Politicization and Corruption

Controlled Causal Link of Policitization on Corruption

Politicization


Sheet1

45.4946.21-11.288

32.9132.80

23.1620.6811.288





Sheet6

6.3324.952.4402

35.3633.88-12.9646




38.4736.399-4.2432422

35.533.83570

27.7230.62394.2717278



Wage Satisfaction


5454.572.3904

59.1959.860.1730737705

6865.8-2.3572

Simple Average Association Between Voice and Service Delivery

Controlled Causal Link of Voice on Service Delivery

Voice

Quality of Services

51.8255.05192.18705

59.6560.12750

70.5365.279-2.2975064



Resources


29.6126.973.0212

36.4931.090

34.9536.33-2.2908



Politicization


TransparencyTransparencyControlled Causal Link of Transparency on CorruptionupperlowerSimple Average Association Between Transparency and CorruptiondifferenceMeritocracyControlled Causal Link of Meritocracy on CorruptionupperlowerSimple Average Association Between Meritocracy and Corruptiondifference

Low52.7346.2142.860223487552.617376512545.49-11.2886.8Low53.4138.646636.458637914740.834562085345.49-4.3759241706

Medium64.6432.833.731060142333.400739857732.9102.26Medium63.934.345734.196079146934.495320853132.91-0.2992417062

High75.420.6825.48338612116.03961387923.1611.2886.8High76.7129.093631.433126066426.754073933621.344.6790521327

64.2534.0364.6734.03

-1.190.4234875445-0.410.1943127962

AutonomyAutonomyControlled Causal Link of Autonomy on CorruptionupperlowerSimple Average Association Between Autonomy and Corruptiondifference

Autonomous Agencies124.95216.332.44021.47

Non-autonomous Agencies033.883635.36-12.9646-7.81

62.4633.74

-4.243.1879699248

WageControlled Causal Link of Wages on CorruptionSimple Average Association Between Wages and Corruption

Low21.0136.39939.133748837234.423051162838.47-4.24324222.55617

Medium36.2733.835734.257646511633.805553488435.50

High54.7730.623928.346251162833.056948837227.724.27172782.57333

37.8933.74

-0.18-0.1395348837

VoiceControlled Causal Link of Voice on CorruptionSimple Average Association Between Voice and CorruptionVoiceControlled Causal Link of Voice on Service DeliverySimple Average Association Between Voice and Service Delivery

Low38.5137.111835.599782062838.623817937222.34-3.0240358744Low38.5154.5756.011080327953.5477196721542.39041.44

Medium52.1433.976933.870666816134.083133183943.7-0.2124663677Medium52.1459.8660.454236885260.281163114859.190.1730737705

High67.430.467131.934768161428.999431838636.372.9353363229High67.465.865.428746721367.819853278768-2.3572-1.42

33.7460.79

53.1753.17

-0.23-0.10313901350.410.0840163934

ValuesControlled Causal Link of Values on CorruptionSimple Average Association Between Values and Corruption

Low33.8435.968236.1922228740.1795771336.37-3.9873542601

Medium50.8133.762134.039391928334.526208071734.52-0.4868161435

High67.7331.562531.892904035928.889495964130.283.0034080717

33.74

50.98ResourcesControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

-0.13-0.1048387097Low38.3355.051955.952403278753.458796721351.822.187051.3175

Medium51.0660.127560.102174590259.747625409859.650

High63.9965.27964.31714262366.13525737770.53-2.2975064-1.38404

60.79

51.27

0.40.0785854617

PoliticizationControlled Causal Link of Policitization on CorruptionSimple Average Association Between Politicization and Corruption

Low21.9826.9737.696794170444.130605829629.613.02121.82

Medium41.5731.0935.211587443937.604412556136.4900

High57.9236.3333.137410313932.157589686134.95-2.2908-1.38

33.74

40.7

0.340.1176470588

RulesControlled Causal Link of Ill-Specified Rules on CorruptionSimple Average Association Between Ill-Specified Rules and Corruption

Bad53.9840.902533.637242600933.470157399145.330.1670852018

Medium63.233.987532.467584304930.398615695132.942.0689686099

Good73.0726.58531.215466367727.110533632322.594.1049327354

33.74

63.53

-0.75-0.1536885246

00

00

00





00

00




00

00

00



Wage Satisfaction


00

00

00

Simple Average Association Between Voice and Corruption

Controlled Causal Link of Voice on Corruption

Voice


00

00

00

Simple Average Association Between Values and Corruption

Controlled Causal Link of Values on Corruption

Voice

Service Delivery

00

00

00



Politicization


00

00

00

Simple Average Association Between Ill-Specified Rules and Corruption

Controlled Causal Link of Ill-Specified Rules on Corruption

Rules


00

00

00



Voice


00

00

00



Resources


00

00

00

Simple Average Association Between Meritocracy and Corruption

Controlled Causal Link of Meritocracy on Corruption

Meritocracy


41.5436.7-4.482

36.434.57

31.832.91

23.530.14.6646



Wage Satisfaction


50.6851.292.72242.7224

56.3258.04

60.9962.7

73.669.85-2.6726-2.6726



Voice

Quality of Services

29.0327.484.4824.482

3332.46

3635.44

3538.72-3.486-3.486



Politicization


6.3324.952.4402

35.3633.88-12.9646




29.0327.4830.95

3332.4632.94

3635.4434.26

3538.7235.78



Politicization


6.3324.9521

35.3633.8836




TransparencyControlled Causal Link of Transparency on CorruptionSimple Average Association Between Transparency and Corruptiondifference

Low49.8348.81-12.05167.26

Moderately Low37.2935.743.13

Moderately High28.9132.672.92

High16.6417.9312.25087.38

WageControlled Causal Link of Wages on CorruptionSimple Average Association Between Wages and CorruptionHigh36.739.54-4.4822.7

Low36.741.54-4.4822.7Moderate_High34.5736.41.6

Moderately Low34.5736.41.6Moderate_Low32.9135.81.54

Moderately High32.9131.81.54Low30.123.54.66462.81

High30.123.54.66462.81

VoiceControlled Causal Link of Voice on Service DeliverySimple Average Association Between Voice and Service Delivery

Low51.2950.682.72241.64



High69.8573.6-2.67261.61

PoliticizationControlled Causal Link of Policitization on CorruptionSimple Average Association Between Politicization and Corruption

Low27.4829.034.4822.730.95



High38.7235-3.4862.135.78

ResourcesControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

Low5452.433.35322.02



High67.5974.04-3.4032.05

RulesControlled Causal Link of Ill-Specified Rules on CorruptionSimple Average Association Between Ill-Specified Rules and Corruption

Bad045.330

Medium032.940

Good022.590

33.74

0

DIRECT

QualityBribeTransparencyMeritocracyService QualityCorruption

Corruption-0.110.00-0.13-0.11

Meritocracy0.00-0.42-0.010.00-0.41

Transparency0.00-1.140.000.12-1.19

Resources0.400.000.000.000.400.00

Voice0.380.010.140.170.41-0.23

Politicization0.000.12-0.13-0.17-0.040.34

Autonomy0.00-11.33-4.46-4.780.47-4.24

Wage0.00-0.180.000.000.02-0.18

Enforcement0.00-0.010.000.000.00-0.01

Values0.00-0.130.000.000.01-0.13

Rules0.000.00-0.660.00-0.080.75

PerRules0.000.000.000.380.02-0.16

PerRuleControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryVoiceControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryVoiceControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryAutonomyAutonomyControlled Causal Link of Autonomy on CorruptionupperlowerSimple Average Association Between Autonomy and CorruptiondifferenceBudget DiversionControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

Low59.8956.572.87181.7359.86Low37.3138.895.0132-3.02Low43.0442.684.482-2.7Autonomous Agencies15.32216.9111.52046.94Low57.556.79-4.8142.9

Moderate_Low62.4359.721.3562.42Moderate_Low47.7249.211.35Moderate_Low50.853.771.35Non-autonomous Agencies011.13611.186.32463.81Moderate_Low54.855.211.48

Moderate_High65.0366.441.4865.03Moderate_High54.7453.561.48Moderate_High57.1258.791.4862.4633.74Moderate_High50.951.181.35

High68.7875.39-3.03781.8368.8High63.962.86-4.8142.9High64.53262.66-4.4822.7High45.2144.825.0132-3.02

Budget DiversionControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

Low6162.015.0132-3.02

Rule4Controlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryTransparencyControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryModerate_Low5656.141.35

Low8.8812.39-1.992-1.2Low45.7340.633.5856-2.16Rule4Controlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryModerate_High5251.11.48

Moderate_Low8.2710.981.35Moderate_Low49.547.291.35Low43.4546.29-54.32High4450-4.8142.9

Moderate_High7.846.251.48Moderate_High52.97581.48Moderate_Low36.8439.021.35Simple Average AssociationControlled Causal Link

High7.344.652.2411.35High57.557.7-3.35322.02Moderate_High31.1628.581.48Low13.2814.511.8

High24.8221.464.91Moderately Low12.5111.55

Moderately High9.59.5

High8.96.941.87129.5250.6599526913

7108.51

484144.535

5974

26282742

24182130

111814.56

71410.517

242926.521

7129.54

101311.56Party finance (% of firms)Corruption

1278222013.8251821.527258.44

10714568.414020.535120.13

PoliticiControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery414839444042.435152513357.14

Low57583.43622.073.7167.97711.6229525058.844323.542425.97

Moderate_Low59591.357.1664.9165282628281925.8421327.5104230.52

Moderate_High62621.489.4462.963182430292926302226273036.35

High6564-3.2038-1.9312.0760.57591.3821811129911.863520.524670.78

1478889172018.5201777.27

292432182024.621814.5112124.68

1278557.44442429477.92

131019141414655.54614.29

181659263029.8272724.03

40498212628.8353549.35

1579111411.2131363.64

433040333436424240.26

13106121811.8101072.73

222026141719.8272737.66

353247242733242427.27

201237292524.6202062.99

854665.8111183.77

443737212633292912.34

548596.2449.09

PerRuleControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryPerRuleControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service DeliveryPerRuleControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

Low59.8956.572.87181.7359.86Low59.8956.572.87181.7359.86Low59.8956.572.87181.7359.86

Moderate_Low62.4359.721.3562.42Moderate_Low62.4359.721.3562.42Moderate_Low62.4359.721.3562.42

Moderate_High65.0366.441.4865.03Moderate_High65.0366.441.4865.03Moderate_High65.0366.441.4865.03

High68.7875.39-3.03781.8368.8High68.7875.39-3.03781.8368.8High68.7875.39-3.03781.8368.8

ValueControlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

Low36.4741.43-4.4156-2.6659.86

Moderate_Low34.38391.3562.42

Moderate_High33.234311.4865.03

High31.1219.624.2164-2.5468.8

00-1.992

00

00

002.241



Quality of Rules

Budget Diversion

003.58563.5856

00

00

00-3.3532-3.3532


Politicization

Quality of Services

005.01325.0132

00

00

00-4.814-4.814



Voice

Accessibility to the Poor

00

00

00

00



Voice

Poverty Reduction Impact

00

00

00

00





000

000

000

000



Rules in Personnel Management

Meritocracy

002.87182.8718

00

00

00-3.0378-3.0378

&A

Page &P




Meritocracy

002.87182.8718

00

00

00-3.0378-3.0378




Meritocracy

00-5-5

00

00

0066



Voice


002.4402

00-12.9646



Job Purchases

002.87182.8718

00

00

00-3.0378-3.0378




Bribery

00-4.4156

00

00

004.2164



Voice

Bribery

001.6221.622

00

00

001.3821.382


Politicization

Meritocracy

00-5

00

00

006



Quality of Rules


00

00

00

00



Voice


00

00

00

00



Budget Diversion


00

00

00

00



Budget Diversion


001.81.8

00

00

001.81.8


Controlled Causal Link

Transparency

Job Purchase

Simple Average AssociationControlled Causal Linkdifference

Simple Average AssociationControlled Causal LinkdifferenceLow40.6345.73-5

Low48.8149.83-12.0516Moderately Low47.2949.5

Moderately Low35.7437.29Moderately High5652.97

Moderately High32.6728.91High57.757.55

High17.9316.6412.2508

Rule4Controlled Causal Link of Resources on Service DeliverySimple Average Association Between Resources and Service Delivery

Low43.4546.29-5

Moderate_Low36.8439.02

Moderate_High31.1628.58

High24.8221.46

00-12.0516-12.05160

000

000

0012.250812.25080


Control Causal Link

Margin of Error


Bribery

00-5-50

000

000

00550


Control Causal Link

Margin of Error



00-5-50

000

000

00660


Control Causal Link

Margin of Error

Voice / External Acountability

Bribery

DIRECTThru CorruptionThru TransparencyThru Meritocracy

QualityBribeTransparencyMeritocracyQualityBribeTransparencyMeritocracyQualityBribeTransparencyMeritocracyQualityBribeTransparencyMeritocracy

Corruption-0.110.00-0.14-0.110.000.000.000.000.000.000.000.000.000.000.000.00

Meritocracy0.000.40-0.010.00-0.040.00-0.060.000.000.010.00-0.000.000.000.000.00

Transparency0.00-1.170.000.110.130.000.000.130.000.000.000.000.000.000.000.00

Resources0.400.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00

Voice0.380.040.150.18-0.000.00-0.01-0.000.00-0.180.000.000.000.00-0.000.00

Politicization0.000.09-0.14-0.18-0.010.00-0.01-0.010.000.160.000.000.000.000.000.00

Autonomy0.00-12.47-4.80-5.161.370.001.751.370.005.620.000.000.000.000.050.00

Wage0.00-0.170.000.000.020.000.020.020.000.000.000.000.000.000.000.00

Enforcement0.00-0.100.000.000.010.000.010.010.000.000.000.000.000.000.000.00

Values0.00-0.130.000.000.010.000.020.010.000.000.000.000.000.000.000.00

Rules0.000.00-0.650.000.000.000.000.000.000.760.000.000.000.000.000.00

PerRules0.000.000.000.380.000.000.000.000.000.000.000.000.000.00-0.000.00

DIRECTINDIRECTNET

QualityBribeTransparencyMeritocracyQualityBribeTransparencyMeritocracyQualityBribeTransparencyMeritocracy

Corruption-0.110.00-0.14-0.11Corruption0.000.000.000.00Corruption-0.110.00-0.14-0.11

Meritocracy0.000.40-0.010.00Meritocracy-0.040.01-0.06-0.00Meritocracy-0.040.41-0.07-0.00

Transparency0.00-1.170.000.11Transparency0.130.000.000.13Transparency0.13-1.170.000.24

Resources0.400.000.000.00Resources0.000.000.000.00Resources0.400.000.000.00

Voice0.380.040.150.18Voice-0.00-0.18-0.01-0.00Voice0.38-0.140.140.18

Politicization0.000.09-0.14-0.18Politicization-0.010.16-0.01-0.01Politicization-0.010.25-0.15-0.19

Autonomy0.00-12.47-4.80-5.16Autonomy1.375.621.801.37Autonomy1.37-6.85-3.00-3.79

Wage0.00-0.170.000.00Wage0.020.000.020.02Wage0.02-0.170.020.02

Enforcement0.00-0.100.000.00Enforcement0.010.000.010.01Enforcement0.01-0.100.010.01

Values0.00-0.130.000.00Values0.010.000.020.01Values0.01-0.130.020.01

Rules0.000.00-0.650.00Rules0.000.760.000.00Rules0.000.76-0.650.00

PerRules0.000.000.000.38PerRules0.000.00-0.000.00PerRules0.000.00-0.000.38

Corruption0%-1%0%

Meritocracy100%3%85%100%

Transparency100%0%54%

Resources0%

Voice-1%130%-5%-3%

Politicization100%65%7%5%

Autonomy100%-82%-60%-36%

Wage100%0%100%100%

Enforcement100%0%100%100%

Values100%0%100%100%

Rules100%0%

PerRules100%0%

0

Transparency within Government Agencies Increases Their Poverty Reduction Impact in BoliviaBased on Bolivia Public Officials Survey. The sample of institutions includes 50 national, departmental, and municipal agencies which are a prior anticipated to have a major impact on poverty reduction.

Chart2

0.0575495050.0382513661

0.27289603960.1967213115

0.08415841580.087431694

0.69987623760.5245901639

0.18316831680.174863388

0.09529702970.0327868852

0.1404702970.0710382514

0.51237623760.4644808743

0.39418316830.4972677596

0.46039603960.2732240437

0.11262376240.0655737705

0.6980198020.650273224

0.30940594060.3387978142

0.21225247520.1256830601

0.33725247520.131147541

Most Accessed Public Services Are lso Those Where People Have to Pay More Bribes:Are Users Buying Access? Or ...Are Providers Reaping the Benefits of Their Proprietary Rigths?

Rich Access Ratio

Poor Access ratio

Bribe Income Ratios

Share of Users With Access

Chart1

0.6646688995

0.7208653953

1.0388942462

0.7495470424

0.9546595776

0.3440493932

0.5057172432

0.9065230591

1.2615144418

0.5934543745

0.5822374347

0.9315971011

1.0949945355

0.5921394319

0.3888705068

Poor BRIBE MORE and get MORE ACCESS

The Poor BRIBE MORE and get LESS ACCESS

Poor BRIBE LESS and get MORE ACCESS

Poor BRIBE LESS and get LESS ACCESS

Poor/Rich Access Ratio (to Public Services)

Poor/Rich Access Ratio

Poor/Rich 'Bribe Tax' Ratio (Paid for Public Services)

'Bribe Tax' and Public Service Delivery Are Regressive

Custom Offices

License Department

Transit Authority

Construction Licenses

Public Hospitals

National Police

Public Registry

Social Security

Trash Collection

Post Office

Public Education

Tax Offices

Water Works

Power Company

Phone Company

poor and bribes

poorFreq.

01616

with bribeincome ratios > 0allaccess all1183

-> poor=0-> poor=0poor=0Variables

VariableObsMeanStd. Dev.MinMaxVariableObsMeanStd. Dev. MinMaxVariableObsMeanStd. Dev.MinMaxRich bribe/income ratiosPoor bribe/income ratiosRich Freq. Bribe PayingPoor Freq. Bribe PayingRich Access RatioPoor access ratioPoor/Rich Bribe/Income RatioPoor/Rich Freq. Bribe Paying RatioPoor/Rich Access RatioAvge Bribe / Income RatioPoor/Rich Freq.*Cost of Corruption

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Customs Offices0.02347260.0176580.27956989250.42857142860.0575495050.03825136610.75228138341.5329670330.66466889950.02287111.1532225603

v79pin0260.02347260.02739510.00053330.1071932v7932178.0313386.702202000v73933.2580651.80520517Tax Collection Offices0.05764590.04464280.09977324260.250.27289603960.19672131150.7744314862.50568181820.72086539530.05543781.9404788939

v87pin0440.05764590.06743480.00020280.3333333v874594.33333139.94761800v814413.7936511.71372917Construction Permit Offices0.04707390.05684120.13970588240.18750.08415841580.0874316941.20748865081.34210526321.03889424620.04840581.6205768735

v95pin0190.04707390.06423370.00405680.2590674v952283.36364116.78780500v891363.9926471.81147117Water Works0.04610190.05521980.10256410260.16666666670.69987623760.52459016391.19777709811.6250.74954704240.04720711.9463877845

v103pin01160.04610190.05835440.00020280.2666667v1031391385.2595686.939140000v9711313.9664011.78060417National Police0.06864210.05875710.29729729730.343750.18316831680.1748633880.85599216811.156250.95465957760.06754380.9897409443

v111pin0880.06864210.08487160.00040.4v11195102.7263123.07660600v1052963.5810811.76217717Transit Authority Police0.04801720.06666670.20129870130.16666666670.09529702970.03278688521.38839207620.82795698920.34404939320.04861.1495289233

v119pin0310.04801720.07240660.00014340.3108808v119412554.24415599.640100000v1131543.1948051.78621417License Department Brevets, etc.0.0752220.05906740.22466960350.30769230770.1404702970.07103825140.78524101991.36953242840.50571724320.07404711.0754130408

v127pin0510.0752220.10083050.00053330.5641749v127591431.226771.044050000v1212274.074891.80428117Public Registry0.04965370.03384610.18840579710.28235294120.51237623760.46448087430.68164305981.49864253390.90652305910.0475461.0215392824

v135pin01560.04965370.08134040.00020280.6666667v1351791755.8838009.353050000v1298283.5507251.75351417Public Educational Institution0.10762080.02993610.09105180530.13186813190.39418316830.49726775960.27816277151.44827586211.26151444180.09430340.4028564277

v143pin0580.10762080.16166620.00103630.6666667v14368101.4118139.84820500v1376374.551021.58887217Phone Company0.0944010.18311270.08736559140.180.46039603960.27322404371.939732632.06030769230.59345437450.10519033.9964460585

v151pin0650.0944010.134720.00020280.6666667v15183135241.366402000v1457443.8991941.76760117Post Office0.04875070.00310880.0329670330.16666666670.11262376240.06557377050.06376934075.05555555560.58223743470.03734020.3223894449

v159pin060.04875070.0329590.0155440.1036269v159848.12563.128980200v1531824.5329671.64081617Power Company0.10664840.15690070.08156028370.15966386550.6980198020.6502732241.47119600481.95761782970.93159710110.11525012.8800395301

v167pin0920.10664840.18835640.00020280.8v16710492.53846143.72920600v16111284.2118791.75175417Public Hospitals0.07852620.04660210.1240.32258064520.30940594060.33879781420.59345925312.60145681581.09499453550.07073981.5438586189

v175pin0620.07852620.09909260.00103630.48v17570349.44292383.894020000v1695004.0481.64167217Social Security0.10052550.06666670.0553935860.04347826090.21225247520.12568306010.66318197870.78489702520.59213943190.09883260.5205295622

v183pin0190.10052550.18554580.00225670.7772021v183242044.6679367.301046000v1773433.3119531.83661717Trash Collection Service0.05536930.00719860.04403669720.16666666670.33725247520.1311475410.13001067383.78472222220.38887050680.04848780.4920542862

v191pin0240.05536930.13495720.00133330.6666667v1913038.592.056860500v1855454.5981651.63991917

-> poor=1-> poor=1-> poor=1Data chartsRich bribe/income ratiosPoor bribe/income ratiosRich Access RatioPoor Access ratioPoor/Rich Freq.*Cost of CorruptionPoor/Rich Access Ratio

VariableObsMeanStd. Dev.MinMaxVariableObsMeanStd. Dev. MinMaxVariableObsMeanStd. Dev.MinMaxPoor/Rich Freq.*Cost of CorruptionPoor/Rich Access RatioCustoms Offices0.02347260.0176580.0575495050.0382513661Post Office0.320.58

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Customs Offices1.15322256030.6646688995Tax Collection Offices0.05764590.04464280.27289603960.1967213115Public Educational Institution0.401.26

v79pin030.0176580.00790790.0101420.0259067v79383.3333357.7350350150v7373.7142862.69037117Tax Collection Offices1.94047889390.7208653953Construction Permit Offices0.04707390.05684120.08415841580.087431694Trash Collection Service0.490.39

v87pin090.04464280.06027460.00101420.16v87948.8888945.468245120v81363.5555561.7145517Construction Permit Offices1.62057687351.0388942462Water Works0.04610190.05521980.69987623760.5245901639Social Security0.520.59

v95pin030.05684120.06664640.01128350.1333333v95383.3333328.8675150100v89163.68751.40089315Water Works1.94638778450.7495470424National Police0.06864210.05875710.18316831680.174863388National Police0.990.95

v103pin0160.05521980.0502630.0040.1333333v103236163.26113016.39350000v97963.656251.93487717National Police0.98974094430.9546595776Transit Authority Police0.04801720.06666670.09529702970.0327868852Public Registry1.020.91

v111pin0110.05875710.11533130.00266670.4v111124681.414760300v105323.656251.80696517Transit Authority Police1.14952892330.3440493932License Department Brevets, etc.0.0752220.05906740.1404702970.0710382514License Department Brevets, etc.1.080.51

v119pin010.0666667.0.06666670.0666667v1192125106.06650200v11363.3333332.58198917License Department Brevets, etc.1.07541304080.5057172432Public Registry0.04965370.03384610.51237623760.4644808743Transit Authority Police1.150.34

v127pin040.05906740.05490890.01036270.1333333v12745533.1662520100v121133.1538461.5730116Public Registry1.02153928240.9065230591Public Educational Institution0.10762080.02993610.39418316830.4972677596Customs Offices1.150.66

v135pin0240.03384610.02211650.00243410.0666667v135328774.06323919.580100000v129854.0117651.78948117Public Educational Institution0.40285642771.2615144418Phone Company0.0944010.18311270.46039603960.2732240437Public Hospitals1.541.09

v143pin0120.02993610.02970830.0040.1066667v1431323.9230821.91446080v137914.5494511.56534517Phone Company3.99644605850.5934543745Post Office0.04875070.00310880.11262376240.0655737705Construction Permit Offices1.621.04

v151pin090.18311270.18560510.02590670.5333334v15111131.8182145.65840400v145503.621.55037817Post Office0.32238944490.5822374347Power Company0.10664840.15690070.6980198020.650273224Tax Collection Offices1.940.72

v159pin020.00310880.0029310.00103630.0051813v159265.656854210v1531251.27920437Power Company2.88003953010.9315971011Public Hospitals0.07852620.04660210.30940594060.3387978142Water Works1.950.75

v167pin0190.15690070.19556960.01036270.5333334v16722108.7273138.53350400v1611194.1512611.67047517Public Hospitals1.54385861891.0949945355Social Security0.10052550.06666670.21225247520.1256830601Power Company2.880.93

v175pin0200.04660210.04727030.00259070.2v175226403.13621489.83590000v169624.0645161.62834517Social Security0.52052956220.5921394319Trash Collection Service0.05536930.00719860.33725247520.131147541Phone Company4.000.59

v183pin010.0666667.0.06666670.0666667v183150.5050v177233.4347832.21207617Trash Collection Service0.49205428620.3888705068

v191pin040.00719860.00697410.00133330.015544v191413.513.91642130v185243.52.02162217

sum v7in0- v191pin0

VariableObsMeanStd. Dev.MinMax

-------------------------------------------------------------

v79pin0290.02287110.02603450.00053330.1071932

v87pin0530.05543780.06590610.00020280.3333333

v95pin0220.04840580.06301850.00405680.2590674

v103pin01320.04720710.0573370.00020280.2666667

v111pin0990.06754380.08810040.00040.4

v119pin0320.04860.07130550.00014340.3108808

v127pin0550.07404710.09797510.00053330.5641749

v135pin01800.0475460.07629590.00020280.6666667

v143pin0700.09430340.1503360.00103630.6666667

v151pin0740.10519030.14331560.00020280.6666667

v159pin080.03734020.03497930.00103630.1036269

v167pin01110.11525010.18965830.00020280.8

v175pin0820.07073980.09005120.00103630.48

v183pin0200.09883260.18075570.00225670.7772021

v191pin0280.04848780.12575860.00133330.6666667

Chart3

3.7142863.258065

3.5555563.793651

3.68753.992647

3.656253.966401

3.656253.581081

3.3333333.194805

3.1538464.07489

4.0117653.550725

4.5494514.55102

3.623.899194

54.532967

4.1512614.211879

4.0645164.048

3.4347833.311953

3.54.598165

Poor Quality Rating

Non-Poor Quality Rating

Gap Between Poor and Non-Poor Household Access to Public Services

Quality Service Ratings

Poor and Marginalized

Sheet1

. tab poor

poorFreq.PercentCum.

-----------------------------------------------

0161689.8389.83

118310.17100

-----------------------------------------------

Total1799100

. sort poor

. by poor: sum v73 v81 v89 v97 v105 v113 v121 v129 v137 v145 v153 v161 v169 v1

> 77 v185 v74 v82 v90 v98 v106 v114 v122 v130 v138 v146 v154 v162 v170 v178 v18

> 6

-> poor=0

VariableObsMeanStd. Dev.MinMaxperc non poor with accesss

-------------------------------------------------------------

v73933.2580651.805205175.75%Non poor accessNon-Poor Quality RatingPoor accessPoor Quality RatingAccess Gapquality gapPoor Quality Rating% Usuarios que CoimeoCoima Promedio Por Visita (US$)**Calidad del serviciofrequenciaAccess GapQuality gapNon-Poor Quality RatingPoor Quality RatingNon-Poor Quality RatingPoor Quality RatingAccess Gap

v814413.7936511.7137291727.29%Customs Offices5.75%3.263.83%3.71-1.93%0.463.7194143.336.73016Trash Collection Service-20.61%-1.098165Transit Authority Police3.1948053.3333333.264069License Department Brevets, etc.4.074893.153846-0.0694320457

v891363.9926471.811471178.42%Tax Collection Offices27.29%3.7919.67%3.56-7.62%-0.243.5610083.819.3822License Department Brevets, etc.-6.94%-0.921044Social Security3.3119533.4347833.373368Transit Authority Police3.1948053.333333-0.0625101445

v9711313.9664011.7806041769.99%Construction Permit Offices8.42%3.998.74%3.690.33%-0.313.6996104.015.77273Water Works-17.53%-0.310151Customs Offices3.2580653.7142863.4861755Social Security3.3119533.434783-0.0865694151

v1052963.5810811.7621771718.32%Water Works69.99%3.9752.46%3.66-17.53%-0.313.66100143.914.57971Construction Permit Offices0.33%-0.305147License Department Brevets, etc.4.074893.1538463.614368Trash Collection Service4.5981653.5-0.2061049343

v1131543.1948051.786214179.53%National Police18.32%3.5817.49%3.66-0.83%0.083.6696123.637.46739Phone Company-18.72%-0.279194National Police3.5810813.656253.6186655Tax Collection Offices3.7936513.555556-0.0761747281

v1212274.074891.8042811714.05%Transit Authority Police9.53%3.193.28%3.33-6.25%0.143.3398123.232.82143Tax Collection Offices-7.62%-0.238095Tax Collection Offices3.7936513.5555563.6746035Phone Company3.8991943.62-0.1871719959

v1298283.5507251.7535141751.24%License Department Brevets, etc.14.05%4.077.10%3.15-6.94%-0.923.1598274.031.64706Power Company-4.77%-0.060618Phone Company3.8991943.623.759597National Police3.5810813.65625-0.0083049289

v1376374.551021.5888721739.42%Public Registry51.24%3.5546.45%4.01-4.79%0.464.019863.623.26531Public Educational Institution10.31%-0.001569Public Registry3.5507254.0117653.781245Water Works3.9664013.65625-0.1752860737

v1457443.8991941.7676011746.04%Public Educational Institution39.42%4.5549.73%4.5510.31%-0.004.5590124.610.27881Public Hospitals2.94%0.016516Water Works3.9664013.656253.8113255Construction Permit Offices3.9926473.68750.0032732781

v1531824.5329671.6408161711.26%Phone Company46.04%3.9027.32%3.62-18.72%-0.283.6290183.99.626198National Police-0.83%0.075169Construction Permit Offices3.9926473.68753.8400735Customs Offices3.2580653.714286-0.0192981388

v16111284.2118791.7517541769.80%Post Office11.26%4.536.56%5.00-4.70%0.475.009054.64.770492Social Security-8.66%0.12283Trash Collection Service4.5981653.54.0490825Public Registry3.5507254.011765-0.0478953633

v1695004.0481.6416721730.94%Power Company69.80%4.2165.03%4.15-4.77%-0.064.1594124.210.10549Transit Authority Police-6.25%0.138528Public Hospitals4.0484.0645164.056258Public Hospitals4.0484.0645160.0293918736

v1773433.3119531.8366171721.23%Public Hospitals30.94%4.0533.88%4.062.94%0.024.069574.016.80252Customs Offices-1.93%0.456221Power Company4.2118794.1512614.18157Power Company4.2118794.151261-0.0477465779

v1855454.5981651.6399191733.73%Social Security21.23%3.3112.57%3.43-8.66%0.123.4392173.37.72Public Registry-4.79%0.46104Public Educational Institution4.551024.5494514.5502355Public Educational Institution4.551024.5494510.1030845912

v74933.6236561.870329175.75%Trash Collection Service33.73%4.6013.11%3.50-20.61%-1.103.508254.65.939833Post Office-4.70%0.467033Post Office4.53296754.7664835Post Office4.5329675-0.0470499919

v824423.9004521.6980851727.35%

v901354.0444441.856279178.35%Non poor accessNon poorqualityPoor accessPoor Quality Ratingaccess gapquality gapPoor quality% Usuarios que CoimeoCoima Promedio Por Visita (US$)**Calidad del servicioFrequency of Bribes' RequestsAccess GapNon poor accessFrequency of Bribes' RequestsAccess Gap%who bribedbribe gapAccess Gap

v9811304.0008851.7724891769.93%Customs Offices0.057553.258070.038253.71429-0.019300.456223.7142994.2857113.852523.2900036.73016-0.019300.05755Trash Collection Service0.05939833-0.20610493430.2061049343Customs Offices0.350.1490015361-0.0192981388

v1062963.604731.8800951718.32%Tax Collection Offices0.272903.793650.196723.55556-0.07617-0.238103.55556100.000008.420673.7756819.38220-0.076170.27290Phone Company0.09626198-0.18717199590.1871719959Tax Collection Offices0.11320754720.1502267574-0.0761747281

v1141543.4285711.857179179.53%Construction Permit Offices0.084163.992650.087433.687500.00327-0.305153.6875096.0000010.359773.9605315.772730.003270.08416Water Works0.1457971-0.17528607370.1752860737Construction Permit Offices0.16447368420.04779411760.0032732781

v1222274.1982381.8650011714.05%Water Works0.699883.966400.524593.65625-0.17529-0.310153.65625100.0000013.829573.9413714.57971-0.175290.69988Social Security0.0772-0.08656941510.0865694151Water Works0.13202933990.0641025641-0.1752860737

v1308303.7638551.8099431751.36%National Police0.183173.581080.174863.65625-0.008300.075173.6562596.2616811.575843.5884237.46739-0.008300.18317Tax Collection Offices0.193822-0.07617472810.0761747281National Police0.32621951220.0464527027-0.0083049289

v1386374.6216641.6530041739.42%Transit Authority Police0.095303.194810.032793.33333-0.062510.138533.3333397.6744211.896903.2000032.82143-0.062510.09530License Department Brevets, etc.0.3164706-0.06943204570.0694320457Transit Authority Police0.26875-0.0346320346-0.0625101445

v1467444.0752691.8254171746.04%License Department Brevets, etc.0.140474.074890.071043.15385-0.06943-0.921043.1538598.4127027.449224.0250031.64706-0.069430.14047Transit Authority Police0.3282143-0.06251014450.0625101445License Department Brevets, etc.0.26250.0830227042-0.0694320457

v1541824.4835161.6477851711.26%Public Registry0.512383.550730.464484.01177-0.047900.461044.0117798.104276.144623.5930023.26531-0.047900.51238Public Registry0.2326531-0.04789536330.0478953633Public Registry0.23110624320.0939471441-0.0478953633

v16211294.2524361.7526721769.86%Public Educational Institution0.394184.551020.497274.549450.10308-0.001574.5494590.1234611.679664.5508210.278810.103080.39418Power Company0.1010549-0.04774657790.0477465779Public Educational Institution0.11126373630.04081632650.1030845912

v1705003.8961.7932141730.94%Phone Company0.460403.899190.273223.62000-0.18717-0.279193.6200090.4255318.294873.879259.62620-0.187170.46040Post Office0.04770492-0.04704999190.0470499919Phone Company0.11838790930.0926344086-0.1871719959

v1783423.2836261.8376071721.16%Post Office0.112624.532970.065575.00000-0.047050.467035.0000090.000005.341764.561864.77049-0.047050.11262Customs Offices0.3673016-0.01929813880.0192981388Post Office0.05154639180.1336996337-0.0470499919

v1865454.6697251.6597251733.73%Power Company0.698024.211880.650274.15126-0.04775-0.060624.1512694.4444412.196584.2035310.10549-0.047750.69802National Police0.3746739-0.00830492890.0083049289Power Company0.1010425020.0781035819-0.0477465779

Public Hospitals0.309414.048000.338804.064520.029390.016524.0645294.565227.424954.0498216.802520.029390.30941Construction Permit Offices0.15772730.0032732781-0.0032732781Public Hospitals0.16370106760.19858064520.0293918736

-> poor=1Social Security0.212253.311950.125683.43478-0.086570.122833.4347892.0000016.726023.319677.72000-0.086570.21225Public Hospitals0.16802520.0293918736-0.0293918736Social Security0.0683060109-0.0119153251-0.0865694151

VariableObsMeanStd. Dev.MinMaxTrash Collection Service0.337254.598170.131153.50000-0.20610-1.098173.5000082.352944.960204.551855.93983-0.206100.33725Public Educational Institution0.10278810.1030845912-0.1030845912Trash Collection Service0.05975395430.1226299694-0.2061049343

-------------------------------------------------------------

v7373.7142862.690371170.04

v81363.5555561.71455170.20

v89163.68751.400893150.09

v97963.656251.934877170.52

v105323.656251.806965170.17

v11363.3333332.581989170.03

v121133.1538461.57301160.07

v129854.0117651.789481170.46

v137914.5494511.565345170.50

v145503.621.550378170.27

v1531251.279204370.07

v1611194.1512611.670475170.65

v169624.0645161.628345170.34

v177233.4347832.212076170.13

v185243.52.021622170.13

v7473.7142862.429972170.04

v82363.1944441.564233160.20

v90163.6251.746425160.09

v98963.6979171.947305170.52

v106324.031251.942469170.17

v11453.62.19089170.03

v122133.8461541.818706160.07

v130853.9411761.947849170.46

v138914.6593411.784002170.50

v146503.621.652333170.27

v154124.4166672.193309170.07

v1621184.1016951.860015170.64

v170623.9516131.778076170.34

v178233.3913042.016728170.13

v186243.252.090351170.13

Public Officials evaluation of effectiveness and access to the Poor by their public sector agencies [Preliminary results on Governance-Poverty nexus, Bolivia]Public officials themselves report that only one-half of public services they provide are accessible to the poorPerformance of re-distributive public agencies: Mixed Results; they do not perform better than others in terms of providing access to the poorLimited public service accessibility to the poor at local level is associated with high bribery in local administrationBribery in provision of public services reduces accessibility to the poorBribery does not increase public service qualityBribery increases cost of public services

Pro-Poor Public Officials: Who are they?[Illustrative results from one country diagnostic]Determinants of pro-poverty reduction reporting by public officials (Initial results from multivariate econometric analysis, Bolivia data): Municipality/Locality plays key role: significant differences across localities College-educated officials report higher pro-poverty alleviation impact Public officials in pro-poor institutions do not report higher poverty alleviation impact Public officials in better run, transparent, less corrupt agencies do report enhanced pro-poor impact

* Average bribe to public officialsLower Public Sector Salaries do not Increase Bribery in Ecuador7.7%15.5%8.4%Bribe*=3MSBribe*=0.2MSBribe*= 0.5MS0%3%6%9%12%15%Monthly SalaryLess than 3MSBetween 3 & 13 MSMore than 13 MSMonthly SalaryMonthly Salary

Indonesia (preliminary): Public Sector Corruption in Indonesia Is Not Caused by Low Government Pay (Indonesian Public Official Survey Very Preliminary Draft) Based on 36 public agencies covered in the Indonesia Public Officials Survey.

Chart9

64.364.43.024

73.866.1

67.469.3-3.584


Controlled Link

Average Wage

Bribery

Sheet1

Politicization vs CorruptionSimple Average AssociationControlled LinkerrorEnforcement vs CorruptionSimple Average AssociationControlled LinkerrorValues vs CorruptionSimple Average AssociationControlled LinkerrorVoice vs BriberySimple Average AssociationControlled LinkerrorWage vs BriberySimple Average AssociationControlled LinkerrorPoliticization vs TransparencySimple Average AssociationControlled Linkerror

Low67.264.781.665Low69.667.5Low69.0768.1-2.08Low71.9671.43.84Low64.364.43.024Low75.775.9

Medium6866.61.12Medium69.466.9Medium67.4567.55Medium67.866.9Medium73.866.1Medium76.776.7

High7168.82.4High6666.3High67.7766.951.92High64.664.22.4High67.469.3-3.584High77.577.9

68.733333333366.726666666768.333333333366.968.096666666767.533333333368.1267.568.566.676.633333333376.8333333333

Voice vs CorruptionSimple Average AssociationControlled LinkerrorResource Envelope vs CorruptionSimple Average AssociationControlled LinkEducation vs CorruptionSimple Average AssociationControlled LinkerrorResource vs BriberySimple Average AssociationControlled LinkerrorExtraJob vs BriberySimple Average AssociationControlled LinkerrorEducation vs TransparencySimple Average AssociationControlled Linkerror

Low70.469.4Low67.165.2Low67.367.9-2.08Low58.857.75.024Low69.565.5Low75.275.6

Medium67.966.7Medium69.469High68.5366.91.408Medium71.5569.4Medium65.167.8Medium76.176.5

High66.865.4High67.666.667.91567.4High67.468.994.384High74.169High77.977.9

68.366666666767.166666666768.033333333366.933333333365.916666666765.363333333369.566666666767.433333333376.476.6666666667

Sheet1

67.264.781.6651.665

6866.61.121.12

7168.82.42.4


Controlled Link

Degree of Politicization

Corruption

Sheet2

3734.8-2.49

3333.5

3231.8

30312.656



Personal Values

Bribery

Sheet3

69.667.5

69.466.9

6666.3


Controlled Link

Rule Enforcement

Corruption

Sheet4

00-2.08

00

001.92


Controlled Link

Personal Values

Corruption

Sheet5

00

00

00


Controlled Link

Citizen Voice

Corruption

Sheet6

67.165.2

69.469

67.666.6


Controlled Link

Resource Envelope

Corruption

00-2.08

001.408


Controlled Link

Education

Corruption

003.843.84

00

002.42.4


Controlled Link

Citizen Voice

Bribery

005.0245.024

00

004.3844.384


Controlled Link

Resource Envelope

Bribery

00

00

00


Controlled Link

Politicization

Transparency

00

00

00


Controlled Link

Education

Transparency

00

00

00


Controlled Link

Citizen Voice

Bribery

00

00

00


Controlled Link

Resource Envelope

Bribery

003.024

00

00-3.584


Controlled Link

Average Wage

Bribery

00

00

00


Controlled Link

Wage Shortfall

Bribery

500

502

503

504

505

506

800

810

850

851

852

853

854

890

904

905

906

1000

1001

1100

1101

1102

1109

1110

1200500502503504505506800810850851852853854890904905906100010011100110111021109111012001201120312041205150120012060220025012503260038013802410042014202420342044205430043104320432143224323

1201

1203

1204

1205

1501

2001

2060

2200

2501

2503

2600

3801

3802

4100

4201

4202

4203

4204

4205

4300

4310

4320

4321

4322

4323

Indonesia (preliminary): Agencies Providing for Citizen Voice Exhibit Less Bribery (Indonesian Public Official Survey Very Preliminary Draft)Based on 36 public agencies covered in the Indonesia Public Officials Survey.

Chart5

71.9671.43.843.84

67.866.9

64.664.22.42.4


Controlled Link

Citizen Voice

Bribery

Sheet1

Politicization vs CorruptionSimple Average AssociationControlled LinkerrorEnforcement vs CorruptionSimple Average AssociationControlled LinkerrorValues vs CorruptionSimple Average AssociationControlled LinkerrorVoice vs BriberySimple Average AssociationControlled LinkerrorWage vs BriberySimple Average AssociationControlled LinkPoliticization vs TransparencySimple Average AssociationControlled Linkerror

Low67.264.781.665Low69.667.5Low69.0768.1-2.08Low71.9671.43.84Low64.364.4Low75.775.9


High7168.82.4High6666.3High67.7766.951.92High64.664.22.4High67.469.3High77.577.9

68.733333333366.726666666768.333333333366.968.096666666767.533333333368.1267.568.566.676.633333333376.8333333333


Low70.469.4Low67.165.2Low67.367.9-2.08Low58.856.8Low69.565.5Low75.275.6


High66.865.4High67.666.667.91567.4High67.468.99High74.169High77.977.9

68.366666666767.166666666768.033333333366.933333333365.916666666764.996666666769.566666666767.433333333376.476.6666666667

Sheet1

67.264.781.6651.665

6866.61.121.12

7168.82.42.4


Controlled Link


Corruption

Sheet2

3734.8-2.49

3333.5

3231.8

30312.656



Personal Values

Bribery

Sheet3

69.667.5

69.466.9

6666.3


Controlled Link

Rule Enforcement

Corruption

Sheet4

-2.08

1.92


Controlled Link

Personal Values

Corruption

Sheet5

00

00

00


Controlled Link

Citizen Voice

Corruption

Sheet6

67.165.2

69.469

67.666.6


Controlled Link

Resource Envelope

Corruption

-2.08

1.408


Controlled Link

Education

Corruption

3.843.84

2.42.4


Controlled Link

Citizen Voice

Bribery


Controlled Link

Resource Envelope

Bribery


Controlled Link

Politicization

Transparency


Controlled Link

Education

Transparency


Controlled Link

Citizen Voice

Bribery


Controlled Link

Resource Envelope

Bribery


Controlled Link

Average Wage

Bribery


Controlled Link

Wage Shortfall

Bribery

500

502

503

504

505

506

800

810

850

851

852

853

854

890

904

905

906

1000

1001

1100

1101

1102

1109

1110

1200500502503504505506800810850851852853854890904905906100010011100110111021109111012001201120312041205150120012060220025012503260038013802410042014202420342044205430043104320432143224323

1201

1203

1204

1205

1501

2001

2060

2200

2501

2503

2600

3801

3802

4100

4201

4202

4203

4204

4205

4300

4310

4320

4321

4322

4323

Indonesia (preliminary): Bribery is More Prevalentin Resource-Rich Public Agencies (Indonesian Public Official Survey Very Preliminary Draft) Based on 36 public agencies covered in the Indonesia Public Officials Survey.

Chart7

58.857.75.0245.024

71.5569.4

67.468.994.3844.384


Controlled Link

Resource Envelope

Bribery

Sheet1

Politicization vs CorruptionSimple Average AssociationControlled LinkerrorEnforcement vs CorruptionSimple Average AssociationControlled LinkerrorValues vs CorruptionSimple Average AssociationControlled LinkerrorVoice vs BriberySimple Average AssociationControlled LinkerrorWage vs BriberySimple Average AssociationControlled LinkPoliticization vs TransparencySimple Average AssociationControlled Linkerror

Low67.264.781.665Low69.667.5Low69.0768.1-2.08Low71.9671.43.84Low64.364.4Low75.775.9


High7168.82.4High6666.3High67.7766.951.92High64.664.22.4High67.469.3High77.577.9

68.733333333366.726666666768.333333333366.968.096666666767.533333333368.1267.568.566.676.633333333376.8333333333


Low70.469.4Low67.165.2Low67.367.9-2.08Low58.857.75.024Low69.565.5Low75.275.6


High66.865.4High67.666.667.91567.4High67.468.994.384High74.169High77.977.9

68.366666666767.166666666768.033333333366.933333333365.916666666765.363333333369.566666666767.433333333376.476.6666666667

Sheet1

67.264.781.6651.665

6866.61.121.12

7168.82.42.4


Controlled Link


Corruption

Sheet2

3734.8-2.49

3333.5

3231.8

30312.656



Personal Values

Bribery

Sheet3

69.667.5

69.466.9

6666.3


Controlled Link

Rule Enforcement

Corruption

Sheet4

-2.08

1.92


Controlled Link

Personal Values

Corruption

Sheet5

00

00

00


Controlled Link

Citizen Voice

Corruption

Sheet6

67.165.2

69.469

67.666.6


Controlled Link

Resource Envelope

Corruption

-2.08

1.408


Controlled Link

Education

Corruption

3.843.84

2.42.4


Controlled Link

Citizen Voice

Bribery

5.0245.024

4.3844.384


Controlled Link

Resource Envelope

Bribery


Controlled Link

Politicization

Transparency


Controlled Link

Education

Transparency


Controlled Link

Citizen Voice

Bribery

56.8

69.2

68.99


Controlled Link

Resource Envelope

Bribery


Controlled Link

Average Wage

Bribery


Controlled Link

Wage Shortfall

Bribery

500

502

503

504

505

506

800

810

850

851

852

853

854

890

904

905

906

1000

1001

1100

1101

1102

1109

1110

1200500502503504505506800810850851852853854890904905906100010011100110111021109111012001201120312041205150120012060220025012503260038013802410042014202420342044205430043104320432143224323

1201

1203

1204

1205

1501

2001

2060

2200

2501

2503

2600

3801

3802

4100

4201

4202

4203

4204

4205

4300

4310

4320

4321

4322

4323

Very Corrupt

Not Corrupt

The ratio at the top of each column is the corruption ranking of Parliament among all surveyed institutions. Thus, for instance, in Cambodia, relative to other surveyed public institutions, Parliament rated best among 10, while in Ecuador it rated worst among 35. Research sources: Governance Anti-Corruption Index Country Diagnostic Surveys, Bolivia, Cambodia, Ecuador, Georgia, Latvia, Paraguay, Romania, Slovakia, WBI /WB http://www.worldbank.org/wbi/governance/

Parliaments: Misgoverned or Honest Institutions?Enormous Variation on Corruption Relative Standing

Relative to All other institutions surveyed

Control of Graft and Freedom of the PressHighLowLowHighr = .68 Freedom of the Press (Freedom House)Control of Graft [kkz]

Understanding the Politics is key to Assess Misgovernace, grand corruption, and its incidence on socio-economic variables: State Capture Prevails in many countries 05101520253035404550HungaryEstoniaRussiaAzerbaijanParliamentary legislationDecreesCentral Bank Influence%of Firms affected by state capture%%%%%%%%%% Adverse Impact of Purchases of:

2%4%6%8%10%12%% firms 'purchase' legislativeDomesticInvestorWithFDI% of firms that 'Purchase' Legislation and Decrees in Transition Economies Transnational Corporate Responsibility Matters as Well:Note: For transition economies, average of 20 countries. Source: Hellman, Jones and Kaufmann, 2000 (www.worldbank.org/wbi/governance)

Enormous Social/Economi costs of state capture: Much lower growth in sales and investment in economy

State Capture exists where partial Civil Liberties and slow Economic ReformsDegree of Civil Liberties in Transition EconomiesEconomicReforms

Corruption

Public Oversight and Civil Society:Ombudsman in Albania and Bolivia Private Sector Coalition in Bolivia Diagnostic Surveys and NGO monitoring in Ecuador and others

Governance Improvement in Practice:Differentiated Strategies in Five Countries

Financial Controls: Procurement Reform in Bolivia, Ecuador and Georgia

Institutional and Civil ServiceReform: Transparent Privatization in Ecuador Salary Reform in Bolivia Disclosure of Assets in Bolivia and Georgia

Legal-Judicial: Revamp of Supreme Court in Bolivia Competency test and firing of judges in Georgia, Albania and Latvia Mediation in Albania

Economic Policy: Deregulation and Delicensing in Bolivia Revamping Customs in Ecuador and Latvia Tax Administration in Latvia and Ecuador Tax/Customs Code Reform in Albania

Open Law Making / Public Meetings on Procurement

Public Procurement Unit Cost Comparison Initiative

Anti-Corruption Compact: Firms, Leaders, NGOs

D. Modesty: The Infancy of Serious Anti-Corruption

Prioritization: Strategy will differ (illustrative)A. Little Political Will

Civil Society and Data Power/Diagnostics: Voice/ Accountable LeadershipDonor Public ProcurementADRs in the JudiciaryDelicensing ProcessNGO/participatory drive(to improve public service delivery)

B. With Political Will

Public Procurement and Budgetary Reformspro-poor Judicial reformsCivil Service ReformPolice -- AccountabilityCollective Action with Civil Society & Private

Percentage of RespondentsWho Should take the lead in a National Governance/Anticorruption Program?A-C: Anti-Corruption

National Governance: Challenges in Integrating Anti-Corruption Into Institutional Change

A simple Formula synthesizing Governance/Anticorruption: IG and AC = KI + LE + CA

Improving Governance and Anti-Corruption = = Knowledge/Info.Data + ...+ Leadership (incl. Political) + ...

... + Collective Action (change)

Overall Corruption Over Time(Selected Countries; ICRG index, rescaled 0-10)02468High corruptionLow corruption1992199319941995199619971998IndonesiaIndonesiaFinlandEl Salvador10El SalvadorFinlandRussiaRussiaPolandPoland1988-927

Governance and Poverty: Summing UpGovernance broader concept than corruptionMisgovernance results in poverty through various channels reduced growth being a key oneInterplay between voice, accountability, rule of law and anti-corruption for attacking poverty is keyPower of Data for analysis, reform formulation, and collective action: i) Cross-Country Indicators & analysis; ii) Regional Surveys, and iii) in-depth country diagnostics.Focus on varying quality of institutions within each country enormous variation (e.g. Parliaments)Misgovernance in extremis: Failed StatesResolute collective action can make a difference, and in 5-10 years IG = K.I + LE + CA

Visit: http://www.worldbank.org/wbi/governance

Selected ReferencesDiagnostics: Prem Note No. 7 (early synthesis)Governance Diagnostic Manual & Methodological Vol.Chapter 3 of WDR 00/01 on Poverty Chapter 6 of Quality of Growth bookKKZ Governance Matters Research & Indicators & web-interactivity:http://www.worldbank.org/wbi/governance/govdata2001.htm IMF papers on misallocation of pubexp, Y-distn, etc.Governance/A-C Diagnostic Reports (various)Governance/A-C Participatory Core (Course) ProgramGovernance, Parliament and PRSPGeneral website: http://www.worldbank.org/wbi/governance

Data Presented for Analysis and informing Policy Advise, not for Precise RankingsThe data contained in this presentation originates from a large variety of external sources as well as World Bank surveys and research. Governance data is typically subject to a significant margin of error. The purpose is therefore not to present precise comparative rankings across countries, but instead to illustrate characteristics of governmental and corporate performance in order to assist in drawing implications for action. No ranking of countries is intended in presenting these research-oriented empirical results from these external sources.

Further details and data, visit: http://www.worldbank.org/wbi/governance

Key point: the surveys not only reveal the incidence and extent of corruption, but allow us to examine the direct costs to different groups in society. This research demonstrates the highly unequal impact of so-called "gratuity payments" in Romania. Though they are often seen as a quasi-market pricing mechanism, they have an impact on the poor's access to health services.Firms Senior Management Time Spent with OfficialsDo the bribes paid by firms make life easier for them? Not necessarily; as it turns out, firms that pay more bribes end up spending more (not less) time with bureaucrats. In Russia, various estimates suggest that senior managers/owners of SMEs end up spending between 20-30 percent of their time negotiating with officials. Excessive control by officials over enterprise translates into excessive regulations, inordinate amounts of time spent by the enterprises owner with bureaucrats, and bribery. Our evidence suggests a very close association throughout the world between the extent of bribery and (higher) senior management time wasted with officials on licenses, as well as a close association between bribery and higher cost of investing and cost of capital for firms. Thus, we find no empirical support for the traditional grease argument, which suggested that petty bribery can help oil the squeaky wheels of commerce in developing countries. To the contrary, the business community ends up losing by bribing.

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