Components of Integrity: Data and Benchmarks for Tracking Trends in Government Michael Johnston Colgate University Hamilton, New York USA OECD/OCDE, Paris October 2, 2008

Integrity… Not just the absence of corruption Justice, equity to promote the public interest Justice, equity to promote the public interest Transparency, openness Transparency, openness Accountability Accountability Efficiency Efficiency How to andin detail? How to measure and track trends in detail?

The dominant approach… Measuring Corruption…? But we cannot measure corruption directly But we cannot measure corruption directly  It is secretive  Usually lacks immediate victims to file reports  Comes in many forms difficult to compare And it is only one aspect of integrity… And it is only one aspect of integrity…

Corruption indices are flawed: Based on perceptions, not corruption itself Based on perceptions, not corruption itself “Echo chamber” problems “Echo chamber” problems Give whole countries one number Give whole countries one number Uncertain reliability for tracking Uncertain reliability for tracking change Are not actionable: don’t tell us Are not actionable: don’t tell us what to do

The DB strategy: Data… How long, how many steps to get a license How long, how many steps to get a license Prices paid for supplies, services, labor Prices paid for supplies, services, labor Invoices: paid quickly and accurately? Invoices: paid quickly and accurately? Inspections, assessments: too frequent, arbitrary, “negotiable”? Inspections, assessments: too frequent, arbitrary, “negotiable”? Amounts, quality of goods received Amounts, quality of goods received Client evaluation of services and integrity Client evaluation of services and integrity Officials’ own knowledge of processes Officials’ own knowledge of processes

The DB strategy: Benchmarks… Comparisons to other governments Comparisons to other governments comparisons to private sector Limited comparisons to private sector Compare variation in cases (e.g., tax assessments) creating norms for discretion Compare variation in cases (e.g., tax assessments) creating norms for discretion Judicious sampling of officials’ knowledge, views Judicious sampling of officials’ knowledge, views Citizen, client involvement, evaluation, consultation Citizen, client involvement, evaluation, consultation

Data, Benchmarks must be… Useful,, detailed Useful, actionable, detailed Appropriate to the public sector Minimally intrusive, expensive Minimally intrusive, expensive Defined in terms of values of integrity Defined in terms of values of integrity Expressed in real units, not points in a ranking Expressed in real units, not points in a ranking High in validity, readily understandable High in validity, readily understandable knowledge Useful knowledge Supportive of trust, accountability Supportive of trust, accountability

Indirectly, DB assesses corruption: Data, Benchmarks reflect Data, Benchmarks reflect past corruption  Many steps in a process, wide discretion in assessments, frequent and arbitrary inspections suggest that  Many steps in a process, wide discretion in assessments, frequent and arbitrary inspections suggest that bribes have usually been available And assess And assess incentives sustaining corruption  Slow processes, abuse of discretion, poor controls on prices/procurement, poor accountability  Slow processes, abuse of discretion, poor controls on prices/procurement, poor accountability all encourage bribery, extortion

DB also assesses integrity…  Where processes move quickly…  Numbers of steps are reasonable…  Discretion is limited…  Prices paid and charged are reasonable…  Oversight and accountability are sound…  Services are of high quality…  Citizen, client satisfaction is high... Integrity is more likely to be strong

Goals and uses To provide to officials and their clients To provide useful, detailed information to officials and their clients Not to rank whole countries, or stigmatize Not to rank whole countries, or stigmatize To identify points of To identify points of vulnerability To show movement toward positive goals To show movement toward positive goals To confer credit for success, fix accountability for failure To confer credit for success, fix accountability for failure

Sequence of activities: Examine core of Integrity Framework Examine inputs, processes, outputs Gather data on supportive management, governance conditions Repeated assessments in all sectors

Main types of Data: Inputs required to produce a service Public sector processes: “structures, procedures, and management arrangements” Outputs: results of services, processes Outcomes: impact and consequences for the community

DB produces detailed, actionable information: processes to improve, and how Which processes to improve, and how prices, fees must be brought down Where prices, fees must be brought down discretion is too broad Where discretion is too broad change is needed How much change is needed reforms produce What results reforms produce Where countermeasures are working Where countermeasures are not working

A culture of integrity: Data identify opportunities for responsive government, management Data identify opportunities for responsive government, management Failing agencies, programs, managers are identified Failing agencies, programs, managers are identified Effective leaders Effective leaders can claim credit

Priority areas: Procurement Procurement Taxation Taxation Customs Customs Regulatory functions Regulatory functions Licensing and inspection functions Licensing and inspection functions by sector “Blinking indicators” by sector

Problems and precautions… “Gaming” of the data “Gaming” of the data Abuse of the results Abuse of the results The “efficiency trap” The “efficiency trap” Contrasts between public, private sectors Contrasts between public, private sectors Losing sight of integrity values Losing sight of integrity values

Problems and precautions… Participation and compliance Resistance, obstruction, deception Resistance, obstruction, deception Maintaining incentives to participate Maintaining incentives to participate Openness, accountability in DB processes Openness, accountability in DB processes Sponsorship, of DB processes Sponsorship, ownership of DB processes

Still, a valuable approach Valid measures of process and change Valid measures of process and change Offering a high level of detail Offering a high level of detail Linked to positive integrity values Linked to positive integrity values Readily gathered, published, Readily gathered, published, understood Offering positive incentives Offering positive incentives Recognizing Recognizing integrity in its broadest senses