Donors can be helpful in fighting corruption, if…. there is political will to limit corruption from the government there is popular pressure for reform from the people they are asked by the government, or by non-government organisations which represent popular pressure for reform Donors cannot initiate anti-corruption work

Donor Support for Reduction of Corruption Richard Holloway - Panelist

Donors, if invited to a country , have a choice to make: Is this a country of occasional corruption ? or Is this a country of endemic and systemic corruption ? The answer to this question guides their possible activities and support

If it is a country of occasional corruption: if there is…. basically clean governance occasional pockets of corruption political commitment to eradicate corruption, Then they can provide….

Technical assistance to Government to identify the causes of corruption Information about best practices elsewhere in the world (SIGMA, TI) Advice on improved laws, regulations, incentives, management structures Support for organisations to fight corruption within government or civil society (Anti-corruption commissions etc) Support for a free press and investigative journalists Support to civil society organisations to monitor backsliding and keep up standards

Then donors have a hard job…. If, however, there is: a rule of law that is flouted with impunity anti-corruption agencies who are impotent or constrained government regulatory systems which are built on bribery and nepotism hypocritical political commitment to decreasing corruption Then donors have a hard job….

When government is corrupt to whom do they respond? they need clean champions of reform to respond to (Universities, religious groups, membership organisations?) they need “islands of integrity” if they can find them (Government depts? Businesses? Local Government? They need people prepared to expose corruption and educate the people In such cases they can……

Conduct and popularize citizens’ surveys of corruption to show the power of people’s feelings Support investigative journalists who will report corruption Help corruption fighting organisations to have real “teeth” Support “Watch” organisations (Justice Watch, Aid Watch, Procurement Watch, Budget Watch) Research and communicate the costs of corruption Publicize people’s rights and the actual rules and regulations

And above all – Donors must themselves be clean Some people suggest that donor money promotes corruption Donors must clean their own houses, and be prepared to expose corruption where they find it. Donors must design and support anti-corruption safeguards in projects spending their own money Under Wolfensen, the World Bank has become the best at doing this.

Very few donors are prepared to do this Finally… Donors can refuse to give funds to corrupt regimes. This stops some of the money that corrupt people steal for themselves This also encourages popular indignation with corrupt rulers Very few donors are prepared to do this