Integrity

Integrity and ethics: concepts (1) What does integrity mean to the individual civil servant? Commitment to work Competency and ethical character Transparency, trust and trustworthiness NASC BAT IG

Integrity and ethics: concepts (2) Government bodies and administrators act in ways that inspire public trust. It entails competency, transparency, honesty, commitment, ethical standards of public service. Ethics refers to well founded standards of right and wrong that prescribe what ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Higher ethical standard and practices is critical in administering work to gain public trust. NASC BAT IG

Ethics Framework serving the public interest transparency integrity legitimacy fairness responsiveness efficiency and effectiveness Ethics NASC BAT IG

Ethical vs unethical behaviour Group work: Video case study Work in groups and use the video case Read the case study and discuss: What is your opinion on the character of Mr. Acharya? What are the characteristics of an ethical person? What are the characteristics of an unethical person? Make notes on paper and be prepared to share their findings verbally in plenary. You have 30 minutes for group works and plenary. NASC BAT IG

Key learning points An ethical behaviour applies to proper conduct. Unethical behaviour is not to abide by the rules of morality. Being ethical means maintaining integrity all the time and take risks for a good cause Ethics is more than compliance with rules, regulations etc. Ethics is subjective and contextual NASC BAT IG

Consequences of unethical behaviour What are the consequences of unethical behaviour of civil servants? Legal consequences Morale decline and negative image Trust deficit Violation of rule of law Corruption increases WPE suffer most NASC BAT IG

Integrity promoting framework Values and standards Commitment Communication Continuous and consistent actions NASC BAT IG

Consolidating concepts: integrity, ethics and curbing corruption What does “zero tolerance to corruption” mean? What structures and mechanisms are in place in Nepal to control corruption and promote integrity? NASC BAT IG

Corruption: past and present Temporary Exceptional ‘problem’ Wealth and power Can be eradicated No positive aspect Local agenda Women in corruption control Singular focus Cannot be measured Decentralization, privatization, deregulation are the tools for control Anticorruption agencies Aid: a panacea Democracy Permanent concern Universal Rules and roles Cannot be totally eradicated Some positive aspects Global agenda Gender and corruption Demand and supply side anti-corruption Can be measured One size does not fit all Anticorruption agencies: Rhetoric vs Reality Aid: a challenge The cancer of corruption and governance

Survey findings

Frequency-dependent Equilibria Marginal benefit for a corrupt official The benefit of an honest official is higher than that of a corrupt official when very few officials are corrupt The M curve goes up at the beginning when more and more officials are corrupt but ultimately declines But it declines as the proportion of corrupt officials increases A, B, & C are 3 equilibrium points. A & C are stable but B is not. It does not pay to be corrupt at A, and honest at C. B is indifferent (between being corrupt and honest). Marginal benefit for a honest official No one is corrupt Proportion of a given total number of officials (or transactions) that is known to be corrupt Becomes even negative when almost all others are corrupt NASC BAT IG Source: Pranab Bardhan, 1997

Collective Action Dilemma Action: A Honest Corrupt Action: B (H, H) (H, C) (C, H) (C, C)

NASC BAT IG

Mechanisms to control corruption and promote integrity: Legal provisions: civil service act, CS code of conduct, good governance act, RTI act, Institutional arrangements: NVC, PSC, CIAA, NHRC, National Information Commission, Courts—Regular and special. Quasi-judicial bodies— tribunals, District Administration Office and authority to CDO Civil Societies, User Groups, Watchdog Organizations, Media etc. International commitments, eg: ratification of UNCAC NASC BAT IG

Solutions and remedies A ‘lawyer’s approach Toughening laws & legislations A ‘businessman’s approach Offering incentives to officials to disengage from corruption (buy out corruption). A ‘market’ or an ‘economist’s approach Introduce or increase competition An ‘institutional’ approach Genuine political/leadership commitment

Lesson learned from CPI top ranked countries Administrative culture: rules are brief, clear and strict few level of bureaucracy autonomy on the local level collective decision system job security (a public official‘s bread may be thin but at least it is long) the presence of women in decision making post

Lesson learned from CPI top ranked countries Transparency of the work Supervision of decision: - Justice and the Parliamentary Ombudsman Law enforcement: - National Bureau of Investigation

Lesson learned from CPI top ranked countries Social factors: equality in income welfare society high standard of living (the higher the standard of living, the lower the level of corruption) media

Action Punitive Preventive Education Reform Punishment Punitive Promotional Preventive

References Graaf, Gjalt De, 2007, Causes Of Corruption: Towards A Contextual Theory Of Corruption, Public Administration Quarterly, 39-86. Jain, Arvind, 2001, Corruption: A Review, Journal of Economic Surveys Vol 15, No.1, 71-121 Pinto, Jonathan; Carrie R. Leana; Frits K. Pil, 2008, Corrupt Organizations Or Organizations Of Corrupt Individuals? Two Types Of Organization-level Corruption, Academy of Management Review, Vol. 33, No. 3, 685–709.

Thank You NASC BAT IG