A Framework for ICT Use to Combat Administrative Corruption Subhash Bhatnagar Advisor eGovernment, ISGIA, World Bank, Washington DC (Adjunct Professor Indian Institute of Management, Ahmedabad)

Presentation Structure Types of administrative corruption and consequences of corruption Generic problems that lead to administrative corruption and some solutions Examples of ICT use with impact on corruption ICT use how does it help? Key design elements of different types of ICT interventions What are the critical success factors in sustaining impact on corruption?

Consequences of Administrative Corruption Largest cost is borne by the poor and the honest Raises cost of doing business for SMEs by 20% Irritant to investors, impedes FDI flows Loss of revenue to Government Disincentive to honest and efficient employees and citizens Petty corruption can be organized to collect funds for politicians and leads to corruption in hiring and transfers. Increases tolerance for corruption; penalizing the honest; society begins to accept a perverse incentive system Erodes TRUST in Government institutions

Types of Corruption in Government to Citizen Contact Administrative corruption –Service is denied unless bribe is paid –Service is delayed unless bribe is paid Collusion (both parties gain at the expense of Government) –Favored allocation when mismatch between supply and demand –Lower valuation by Tax collection agencies –Waiving of penalties and fines –Tempering government records to provide unfair advantage Extortion –Law enforcers, tax collectors make patently unreasonable demands to extort a bribe

Administrative Corruption: Some Generic Problems Complex rules-need for intermediaries Discretion to delay or deny without assigning reasons- speed money Incentive for collusion-both parties benefit at the expense of government/society Decisions and actions are not traceable. citizens have no access to information Lack of supervision in remote areas-problems of decentralization Large power distance between civil servants and citizens-afraid to assert and complain Poor mechanisms of complaint handling. Documentation is weak for any investigation Weak investigation, slow judicial system-small chance of punishment Government is usually the monopoly service provider. Mismatch in demand and supply—health and education

Anti-corruption Initiatives Preventing administrative corruption –Process redesign: efficiency, simplification (need for agents), gate keeper role, discretion, lack of transparency and accountability –Prevent face to face contact between officials and agents –Challenge: nexus between Politicians, Businessmen and officials Detecting Corruption –Complaint handling, whistle blower protection –Investigating agencies: independence, competence and efficiency Sanction/prosecution corruption and related offences –Legislative changes –Weak Institutions-Judiciary Active public involvement in the fight against corruption –Raising awareness about corruption and reforms –Public scrutiny and access to information –Organizing citizens to create a voice

Applications with Some Impact on Corruption Making forms available online Land Records-BHOOMI, Property Registration in India Railway Reservation System in India Municipalities in Seoul (OPEN), LAC countries, India Weigh and Pay- milk and garbage collection, fines for trucks E-procurement:Mexico,Philippines,Bulgaria,Chile Tax collection at State/ Federal and Local Levels Customs on-line: India, Philippines, Jamaica ICT use in Lok Ayukta’s Office in Karnataka Admissions processing, teachers transfers CVC Web site(India), CRISTAL(Argentina),examination results, land allotment results. Loan Defaulters

How Does ICT Use Help? Introduces transparency in data, decisions/actions, rules, procedures and performance of Govt. agencies Automates processes-less discretion, less delay Entry point for simplification of rules and reengineering Makes decisions traceable- tracks actions Builds accountability- greater access to information through web publishing-role of civil society Provides documentation to citizens for follow up Introduces competition amongst delivery channels Standardized documentation of comments/ objections leads to effective supervision- through comparative indicators Centralizes and integrates data for better audit and analysis. Enables unbiased sampling for audit purposes

Key Outcomes of ICT Interventions Automation and Process Reform –Reduce delay, less discretion, less mistakes, minimize face to face contact MIS and its use by supervisors and audit –Detect corruption, investigate, enhance accountability, improve processes Sharing information with public –Builds transparency and trust, supports complaint process, enables tracking, enhances accountability, involves civil society, deterrent Complaint handling –Use of SMS, detection, builds trust

Type of Information being made transparent Resulting benefits Rules and procedure governing services; public officials responsible for different tasks; citizen’s charter; Enhancing citizen’s exposure Standardizes procedures for delivery of service. Reduces arbitrariness, e.g. demand for additional documents Information about decisions and actions of government functionaries: outcome and process e.g. award of contracts and license, allocation of resources. Exposure of corruption and improved accountability Data about individual entities in Government records such as land records, comments on application for license, bill of entry for goods, status of tax payments. Exposure of manipulation for exchange of bribe and corruption Provides documentation for complaints Information to supervisors for monitoring Information on performance of economy: Statistical employment, income, trade etc. Performance indicator for Government departments Civic engagement in governance Greater accountability Names of citizens with large outstanding loans, taxes; civil servants under investigation or convicted, index of corruption, performance of investigating agencies. A kind of punishment for the corrupt (civil servants, business, citizens) through public exposure Disclosure of assets, income, profile of election candidates, elected representatives, ministers and civil servants Creates disincentive for corruption by creating fear of exposure

Different levels of transparency in Government functioning

Feedback & Complaint Handling Improved monitoring systems Simplify rules & procedures Sharing information Client / beneficiary of the service Lack of organization for demanding improvements Organizational Providers Lack of resources & poor management Lack of innovation Corruption in appointment and transfers Politicians and Policy makers Clientelism Personnel policies Corruption in appointment and transfers Frontline Providers Lack of skills and motivation Civil society action Surveys of performance Citizen’s charters Access to information, transparency in expenditures Transparency in G2G transactions Anticorruption enforcement Grievance redressal Tools for activity planning Reducing unproductive time in data recording Reducing discretion Efficiency in processing transactions Feedback & complaint handlingFeedback & complaint handling Organizational providersLack of resources & poor managementLack of innovative delivery practicesOrganizational providersLack of resources & poor managementLack of innovative delivery practices Politicians & policymakersPoliticians & policymakers Frontline providersFrontline providers Access to info (transparency) on expendituresTransparency in G2G transactionsReports that help reform policiesAccess to info (transparency) on expendituresTransparency in G2G transactionsReports that help reform policies ICT Applications in Service Delivery

Reasons for Marginal Impact on Corruption Privileged citizen seldom experience poor service Lack of motivation at the top to root out corruption Weak monitoring and supervision ICT can not be the only tool. Needs to be implemented in a context of multi-pronged action Processes not reengineered adequately-continued lack of transparency Insufficient education and awareness of citizens Inadequate complaint handling mechanisms

ICT Projects: Critical Success Factors Strong Political and Administrative Leadership Clearly identified goals and benefits Significant Process Reengineering Required Both simple and complex applications can be effective In-source Analysis ; Outsource design, software development, data preparation, training, etc. Detailed Project Management Tackling vested interest-management of change Training Expenses should not be minimized Evaluating success is difficult. Need for systematic evaluation

Enablers of e-Government 20 % Technology 35 % Business Process Reengineering 40 % Change Management 5% Luck ! Technology Process People