1 Corruption in the UK June 16th 2010 Robert Barrington Director of External Affairs, Transparency International UK

2 Research vacuum… No systematic research of corruption in the UK

3 What is corruption? ‘The abuse of entrusted power for private gain’ Bribery Revolving door Conflicts of interest State capture Rent-seeking

4 What they think of us...

5 Corruption Perceptions Index : UK 17th

6 Bribe Payers Index 2008 [UK =5 th ] Country’s companies least likely to pay bribes Country’s companies most likely to pay bribes 22 countries ranked representing 75% of global exports of goods and services and outflows of foreign direct investment in Based on responses of 2,742 senior business executives from companies in 26 developed and developing countries, chosen by the volume of imports and inflows of foreign direct investment. RankCountryScore 1Belgium8.8 1Canada8.8 3NL/Switzerland8.7 RankCountryScore 20Mexico6.2 21China6.1 22Russia5.2

7 What we think of ourselves...

8 Global Corruption Barometer national opinion poll in 69 countries c. 1,000 people surveyed in each country ‘

9 Have you paid a bribe in the past 12 months?

10 Can we trust the private sector and the state?

11 Does the state fight corruption effectively?

12 Corruption & the City

13 Do City companies pay bribes?

14 51% won’t pay bribes…47% might –51% of respondents thought that City companies would not pay bribes as a matter of principle –47% thought that City companies would pay bribes in some circumstances. –One-third of respondents thought that City companies are willing to pay bribes as standard practice in some environments.

15 People like me might sometimes pay bribes…17%

16 My clients might sometimes pay bribes…34%

17 My competitors might sometimes pay bribes…35%

18 Does corruption matter?

19 Victims of corruption Who are the victims? Is the impact material? Does a little bit matter?

20 Victims of corruption overseas Corruption… raises average Kenyan family’s annual cost of living by 15% [source: East Africa Bribery Index, Transparency International] $100 of development funding in Chad – $1 reached the local health clinic [source: Paul Collier – The Bottom Billion] Raises project costs for companies by at least 10% [source: Global Corruption Report 2009]

21 Implications of corruption ‘Corruption is bleeding Africa to death and the cost is borne by the poor. Some estimates put money corruptly leaving the continent at greater than that arriving as aid. Much of the money is banked in Britain or our overseas territories and dependencies and sometimes British citizens or companies are involved in corrupt deals.’ Hugh Bayley MP, Chair, House of Commons Africa All Party Parliamentary Group, 29 March 2006 ‘As a result of corruption, private mansions are being built instead of bridges; swimming pools are dug instead of irrigation systems; funds destined to run hospitals and buy medicines find their way into the pockets of corrupt officials; economic growth is held back; and public trust in government is undermined.’ OECD/ADB ‘Curbing Corruption in Public Procurement in Asia and the Pacific’

22 Are there victims in the UK? Does the UK have: Companies that lose contracts to corrupt competitors? Victims of crimes not properly investigated due to bribery or conflicts of interest? Families who are allocated the worst housing – or none at all? Citizens subject to laws that have been ‘bought’? A self-interested tier of wealthy people in whose interest the state is run? Ineffective prisons because prison officers are bribed? Taxpayers whose aid money supports corrupt governments? Sports fans who are deprived of real results or lose their betting stakes?

23 Does a little bit matter? – Every little counts… – You can’t be a little bit pregnant – There are always victims – It is against the law

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