1 Ethics and Corruption in Public Service

2 CHALLENGES OF PUBLIC SERVICE Large scale problems Transcend borders Stress limited resources Require knowledge and skill Drug Trafficking Terrorism Human Trafficking

3 DOMESTIC AND TRANSNATIONAL Provision of domestic public services Transnational challenges –Organized crime and terrorism –Poverty and disease –Environment and resources –Interconnectivity and technology

4 STABILITY AND ORDER Regional conflicts National insurrections Rogue organizations International response Funding and manning issues Human rights: order vs. individual / group freedoms

5 ETHICS Principles and values that guide public and private conduct Personal, collective, professional, societal dimensions Go beyond criminal law Involved everyday in public administration and policy making

6 MILITARY Professional v. personal obligations Administration of arms, supplies, equipment, and personnel Command over subordinates Control over missions Darleen Druyun Darleen Druyun Darlene Druyun Former Principal Deputy Undersecretary of the Air Force for Acquisition

7 CORRUPTION Abuse of entrusted power Public or private actors “According to the rule” or “against the rule” Grand v. petty Organized v. unorganized Systemic v. localized Political v. administrative Linked to other criminal activities Demonstrations in Kyrgyzstan

8 CORRUPTION Can occur in any public context Many forms: –Bribery, extortion, embezzlement –Kickbacks, self-dealing –Under-assessments –Coerced donations –Nepotism and cronyism –Ghost employees –“Grease” payments Former U.S. Congressman Dan Rostenkowski

9 PERCEPTIONS OF CORRUPTION Source: Transparency International Global Corruption Barometer 2010

10 CAUSES OF CORRUPTION

11 DISPELLING MYTHS Poverty is not the same as corruption Corruption is not a necessary characteristic of developing nations Corruption does not result in efficiency

12 CORRUPTION MATTERS Distorts social, economic and political decisions Diverts scarce resources Suspends rule of law Impedes skill development Encourages deception Discourages development and investment Threatens democracy

13 DEVELOPMENT FUNDED SCHOOL

14 ACTUAL SCHOOL 500 FEET AWAY

15 ACTUAL USE OF FINANCED BUILDING

16 REFORM High-level commitment? Enforcement power? Overcome entrenched resistance? Coordination, specificity, and regular application? Realistic promises and expectations? More than textual changes? Institutional mechanisms?

17 What type of corruption is this?

18 …and this?

19 ACTIVITIES PRONE TO CORRUPTION Privatization Large-scale public works projects Defense spending Revenue collection (customs) Licensing and permitting

20 SECTORS PRONE TO BRIBERY 0 = High Bribery; 10 = Low Bribery Agriculture – 5.9 Light Manufacturing – 5.9 Fishery – 5.9 IT – 5.1 Forestry – 5.1 Civilian Aerospace – 4.9 Banking & Finance Heavy Manufacturing – 4.5 Pharmaceuticals/Medical Care – 4.3 Transportation/Storage – 4.3 Mining – 4.0 Power Generation/Transmission 3.7 Telecommunications – 3.7 Real Estate/Property – 3.7 Oil & Gas – 2.7 Arms & Defense – 1.9 Public Works & Construction – 1.3 Note: Respondents were asked, “Which are the sectors in your country of residence where senior public officials would be very likely, quite likely or unlikely to accept bribes? TI estimates the standard error to be 0.2 or less. Conducted by Gallop in 15 Emerging Market Countries. Source: Transparency International’s Global Corruption Report 2003

21 CAUSES OF CORRUPTION INSTITUTIONALSOCIETAL CORRUPTION WIDE AUTHORITY LITTLE ACCOUNTABILITY PERVERSE INCENTIVES POVERTY & CONFLICT PERSONAL LOYALTIES ILLEGITIMATE GOVERNMENT

22 AN ILLUSTRATION

23 AN ILLUSTRATION CONTINUED

24 CONCLUSION Anti-corruption efforts: – Foster culture of principled conduct – Create institutional mechanisms for prevention, detection and punishment

25