Implementing the UN Convention against Corruption: Challenges and Perspectives from Asian

Countries

Pan Suk KimAssociate Dean & Professor of Public Administration

Yonsei University, South KoreaE-mail: pankim@yonsei.ac.kr or pankim@gmail.com

Contents

Corruption and Innovations•

II. Major International Organizations’ Recommendations

III. Asian Experience and Perspective

IV. Lessons Learned from Asian Countries

I. Corruption and Innovations

The Basic Ingredients and the Cost of the Corruption

“CORRUPTION flourishes when agents have MONOPOLY power •over clients, when agents have great DISCRETION, and when ACCOUNTSBILITY of agents to the principal is weak” (Corruption = Monopoly + Discretion - Accountability)•

The Costs of Corruption

Breeds popular alienation and cynicism, and creates regime instability

Politics

Distorts energies of officials & citizens toward the socially unproductive seeking of corrupt rents; and create risks, induce unproductive preventive measures, distorts investments away form areas with high corruption

Incentives

Reallocates resources to the rich & powerful, those with military or police power, or those with monopoly power

Distribution

Waste resources, create “public bads,” and distorts policy

Efficiency

Source: Klitgaard, Robert. 1991. Controlling Corruption. Berkeley, CA: University of California Press, p. 75.

Caution: NPM and CorruptionThe NPM style of government involves using a wide range of “tools” like grants, •loans, contracts, vouchers, and other alternatives to direct government provision. Many of these rely on third party actors to play an active role is delivering government services or to act in the public good.

Service delivery, proponents of NPM argue, is best left to “entrepreneurial” •governments based on principles like competition between service providers, outcome based performance standards, decentralized authority, market mechanisms and other qualities not traditionally found in government bureaucracy.

What is distinctive about many of the newer tools of public actions is that they •involve the sharing with third-party actors of a far more basic governmental function: the exercise of discretion over the use of public authority and the spending of public funds (Salamon, 2002).

New Public Management has two major implications for corruption: (1) NPM •creates the potential for corruption in a wide range of actors and that the flexibility of these networks makes it more difficult to maintain accountability and oversight; and (2) the line between the government and private actors becomes increasingly blurred in NPM.

Source: Andre Gratto, Bryan Preston and Thor Snilsberg. 2002. “Mitigating Corruption in New Public Management,” unpublished monograph.

II. Major International Organizations’ Recommendations

- United Nations (UN)- World Bank- Transparency International (TI)- OECD

UN Convention against Corruption (2003)

The objectives:

To promote and strengthen •measures to prevent and combat corruption more efficiently and effectively

To promote, facilitate and support •international cooperation and technical assistance in the prevention of and fight against corruption, including in asset recovery

To promote integrity, •accountability, and proper management of public affairs and property

Calls upon governments to:

Adopt preventive anti-corruption •policies and practices Establish and operate preventive •anti-corruption body or bodiesEstablish and enforce codes of •conduct for public officialsEstablish and operate appropriate •systems of public procurement and management of public finances based on transparency, competition and objective criteriaEstablish public reporting •mechanismsPromote active participation of •society in the prevention of and fight against corruption.

Source: UN/DESA. 2006. Aide Memoire for the Ad Hoc Expert Group Meeting on Ethics, Integrity, and Accountability in the Public Sector:Re-building Trust in Government Through Implementation of the United Nations Convention against Corruption in St. Petersburg, Russia on 26-27 September 2006.

World Bank’s Eight Pillars of the National Integrity System

The National Integrity System (NIS) consists of the key institutions, laws and practices that contribute to integrity, transparency and accountability in a society.

The World Bank (1997) introduced a National Integrity System consisting the following 8 pillars: 1. Watchdog agencies (anti-corruption or supreme audit institutions…)

2. Public participation in democratic process

3. Public awareness of the role of civil society

4. Accountability of the judicial process

5. The media

6. Public sector anti-corruption strategies

7. The private sector and international business

8. International cooperation

Source: Petter Langseth, Rick Stapenhurst and Jeremy Pope. 1997. The Role of a National Integrity System in Fighting Corruption. Washington, DC: World Bank, p. 10.

Transparency International’s (TI’s) Major Pillars of the National Integrity SystemThe main ‘pillars’ of the NIS are considered to be the following:•

· Executive· Legislature· Political Parties· Electoral Commissions· Supreme Audit Institution· Judiciary· Public Sector· Police and Prosecutors· Public Procurement· Ombudsman· Anti-corruption agencies· Media· Civil Society· Private Sector· Regional & Local Government· International Institutions

Source: Transparency International (TI)’s National Integrity System Approach at http://www.transparency.org/policy_research/nis.

OECD: New Actions Implemented in OECD Countries

Enhancing/establishing penalties•Increased transparency & public exposure•Introduction/establishment of powers of specialized •bodiesIncreased guidance or training for public officials •including codes of conductOrganizational effectiveness & improved performance•Review of regulations•Review of the interaction of domestic & international law•Review of high-risk areas vulnerable to corruption•Regulation of whistle-blowing•Restating public sector values•Simplifying administrative systems•Integrating ethical values into management•

Source: OECD. 1999. Public Sector Corruption: An International Survey of Prevention Measures. Paris: OECD, p. 24.

Suggested Measures for Tackling Corruption

1. Country strategies and policies: government anti-corruption strategies; access to information; and anti-corruption education

2. Oversight and control bodies: supreme audit institutions; and/or independent anti-corruption agencies

3. The legal system: anti-corruption conventions & legislations

4. The public sector: public sector codes of conduct

5. The political system: party political and campaign financing reform

6. Non-governmental actors: media; private sector; and corporate governance

Source: Transparency International (TI)’s Anti-Corruption Handbook (ACH) at http://www.transparency.org/policy_research/ach.

Suggested Anti-Corruption ToolkitAssessment of corruption and of institutional capabilities against corruption•

Institutional building: specialized anti-corruption agencies, ombudsman, auditors •(audit institutions), strengthen judicial institutions, civil service reform, codes of conduct, national anti-corruption commission, national integrity and action planning meetings, anti-corruption action plans, legislatures and their efforts against corruption, and strengthen local government

Situational prevention•

Social prevention & public empowerment•

Enforcement•

Anti-corruption legislation•

Monitoring and evaluation•

International judicial cooperation•

Repatriation of illegal funds•

Source: United Nations Office on Drugs and Crime (UNODC). 2004. Anti-Corruption Toolkit. 2nd ed. New York: UN Office on Drugs and Crime.

QuestionsInternationally available resources (best practices •and recommendations) are abundant from UN, OECD, World Bank, TI, etc

Anti-corruption conventionsAnti-corruption toolboxBest practices (anti-corruption)

Ideas and Tools are available•

Question: Are these applicable to the country •specific?

What to apply?How to carry out?Willingness to do?Capacity to do?

III. Asian Experience and Perspective

Major Causes of Corruption in Asia

The expansive role of governments in national •development (It increases opportunities for administrative discretion & potential corruption)

The low risk of detection and punishment (a low-•risk, high-reward activity)

The low salaries of civil servants•

A lack of political will•

Gift-giving culture•Source: Jon Quah. 2006. “Curbing Asian Corruption: An Impossible Dream?” Current History 105 (690), pp. 176-179.

Capacity DeficienciesThe developing countries are constrained by capacity •weaknesses.

The public sector might be short of qualified & adequately •motivated personnel – this is over and above the serious institutional capacity deficiencies.

Even the institutional arrangements do exist, the capacities •that would make them effective are either lacking or inadequate.

Institutional & human capacity building becomes a critical •issue in the implementation & in rebuilding trust in government.

Question: What are the specific measures that need to •be taken to strengthen the capacity of the institutions?

Different Features of Corruption Control in Asia

JapanMongolia

Anti-corruption laws without special agency

ChinaIndia

Philippines

Anti-corruption laws with various agencies

Singapore (1952)Malaysia (1967)

Hong Kong (1974)Thailand (1999)

South Korea (2002)Indonesia (2003)

Anti-corruption laws with a specialized independent

agency

Country (year)Key Feature

Anti-Corruption Agencies in Asia

https://www.cpib.gov.sg/ 1952Corrupt Practices Investigation Bureau (CPIB)

Singapore

http://www.kpk.go.id 2003Corruption Eradication Commission (CEC)

Indonesia

http://www.kicac.go.kr/english 2002Korea Independent Commission Against Corruption (KICAC)

South Korea

http://www.nccc.thaigov.net/ 1999National Counter Corruption Commission (NCCC)

Thailand

http://www.icac.org.hk/ 1974Independent Commission Against Corruption (ICAC)

Hong Kong

http://www.bpr.gov.my/ 1967Anti-Corruption Agency (ACA)

Malaysia

HomepageYear Formed

Anti-Corruption Agency

Country

Anti-Corruption Strategies in Selected Asian Countries

Ineffective Strategy:

China, India, Indonesia, Mongolia Philippines

Limited Strategy:

MalaysiaThailand

Weak Political

Will

Limited Strategy:

South Korea (KICAC’s lack of investigative powers)

Effective Strategy:

Singapore Hong Kong

Strong Political

Will

Inadequate Anti-Corruption

Measures

Adequate Anti-Corruption

Measures

Measure

Will

Source: Modified by the author from Jon Quah. 2006. “Curbing Asian Corruption: An Impossible Dream?” Current History 105 (690), pp. 176-179.

Transparency International’s 2005 Corruption Perceptions Index (CPI)for Selected Asian Countries (Number of Countries =159)

1.8155thMyanmar

2.5117thNepal2.6107thVietnam

1.7158thBangladesh

2.1144thPakistan2.2137thIndonesia2.5117thPhilippines

2.988thIndia3.085thMongolia3.278thChina3.859thThailand5.040thSouth Korea5.139thMalaysia5.932ndTaiwan7.321stJapan8.315thHong Kong9.45thSingapore

CPI Score (0-10 points)RankCountry

Source: Transparency International’s homepage at http://www.transparency.org/policy_research/surveys_indices/cpi.

Sectors & Institutions Most Affected by Corruption: Wet Agencies?

Click to add text•

Source: Transparency International (TI). 2006. TI 2005 Global Corruption Barometer. Berlin: Transparency International (http://www.transparency.org/policy_research/surveys_indices/gcb).

WetVulnerableAgencies

Seoul: On-line Procedures Enhancement(OPEN) for Civil Applications System

Seoul had the problem of corruption that accompanies •rapid economic growth and Seoul adopted a systematic approach (ICT application) to corruption.

Seoul Metropolitan Government (SMG) has developed •a web-based system that allows citizens to monitor corruption-prone applications for permits and approvals.

The Online Procedures ENhancement • for civil applications (OPEN) system makes it easier to raise questions in the event that any irregularities are detected.

Homepage: http://open.seoul.go.kr (in Korean)

IV. Lessons Learned from Asian Countries

Lessons for Curbing CorruptionReduce opportunities for corruption in “wet” public •agencies (vulnerable agencies)

Don’t rely on the police to curb corruption•

Implement comprehensive anti-corruption legislation•

Provide the anti-corruption agency with adequate staff & •funding (ensure the incorruptability of the anti-corruption agency) and build up the capacity

Need to cut red tape to minimize opportunities for •corruption

Must punish severely (Punish the guilty to make corruption •a high-risk, low-reward activity)

Pay political leaders & civil servants adequate salaries to •reduce their temptation to be corruptSource: Modified by the author from Jon Quah. 1999. “Singapore’s Anti-Corruption Strategy,” Korean Corruption Studies Review 4:

173-193; and Jon Quah. 2004. “Best Practices for Curbing Corruption in Asia,” The Governance Brief (Issue 11). Philippines: Asian Development Bank (ADB).

Dynamics of Key Stakeholders in Establishing the Anti-Corruption Agency

Problem: Major stakeholders are usually NOT supportive for establishing the anti-corruption agency political will is crucial

Police Prosecutor’s Office and Courts

Establishment of the Anti-Corruption Agency

MPs (Lawyers) Legal Policy in the Parliament Community

Indicators of Political WillPolitical Will = Demonstrated credible intent of political •actors such as elected/appointed leaders, civil watchdogs and other stakeholders

The degree of analytical rigor that has been utilized to •understand the context & causes of corruption

Process (Has the regime adopted a strategy incorporating & •mobilizing the interests of stakeholders?)

The prevalence of incentives and sanctions•

The creation of an objective process that monitors the •impact of reform

The level of structured political competition in both the •economic and political spheres

Source: UNDP. 1998. Corruption and Integrity Improvement initiatives in Developing Countries. New York: UNDP, pp. 99-100.

SummaryPolitical & managerial will is critical to promote anti-corruption reforms•

Reduce opportunities for corruption in “wet” public agencies and do not •rely solely on the police to curb corruption. If necessary, establish the independent anti-corruption agency with comprehensive anti-corruption legislations.

Strategies should combine 3 components for action: law enforcement, •prevention through institutional reforms, and mobilization of the population

Enhancing professionalism, ensuring independence, and honing technical •skills should strengthen capacity in key initiatives (law, accounting/auditing, and investigative journalism)

Democratization is a necessary but not a sufficient condition for the •reduction of corruption

Although economic liberalization is not a panacea for public sector •corruption, reducing the size of the state reduces the size of the potential corrupt that enables the public sector to improve its efficiency

There is no single recipe for fighting corruption.•