1. Donors can be helpful in fighting corruption, if….
there is political will to limit corruption from the government
there is popular pressure for reform from the people
they are asked by the government, or by non-government organisations which represent popular pressure for reform
Donors cannot initiate anti-corruption work

2. Donor Support for Reduction of Corruption
Richard Holloway - Panelist

3. Donors, if invited to a country , have a choice to make:
Is this a country of occasional corruption ? or
Is this a country of endemic and systemic corruption ?
The answer to this question guides their possible activities and support

4. If it is a country of occasional corruption: if there is….
basically clean governance
occasional pockets of corruption
political commitment to eradicate corruption,
Then they can provide….

5. Technical assistance to Government to identify the causes of corruption
Information about best practices elsewhere in the world (SIGMA, TI)
Advice on improved laws, regulations, incentives, management structures
Support for organisations to fight corruption within government or civil society (Anti-corruption commissions etc)
Support for a free press and investigative journalists
Support to civil society organisations to monitor backsliding and keep up standards

6. Then donors have a hard job….
If, however, there is:
a rule of law that is flouted with impunity
anti-corruption agencies who are impotent or constrained
government regulatory systems which are built on bribery and nepotism
hypocritical political commitment to decreasing corruption
Then donors have a hard job….

7. When government is corrupt to whom do they respond?
they need clean champions of reform to respond to (Universities, religious groups, membership organisations?)
they need “islands of integrity” if they can find them (Government depts? Businesses? Local Government?
They need people prepared to expose corruption and educate the people
In such cases they can……

8. Conduct and popularize citizens’ surveys of corruption to show the power of people’s feelings
Support investigative journalists who will report corruption
Help corruption fighting organisations to have real “teeth”
Support “Watch” organisations (Justice Watch, Aid Watch, Procurement Watch, Budget Watch)
Research and communicate the costs of corruption
Publicize people’s rights and the actual rules and regulations

9. And above all – Donors must themselves be clean
Some people suggest that donor money promotes corruption
Donors must clean their own houses, and be prepared to expose corruption where they find it.
Donors must design and support anti-corruption safeguards in projects spending their own money
Under Wolfensen, the World Bank has become the best at doing this.

10. Very few donors are prepared to do this
Finally…
Donors can refuse to give funds to corrupt regimes.
This stops some of the money that corrupt people steal for themselves
This also encourages popular indignation with corrupt rulers
Very few donors are prepared to do this