1. World Bank Institute María González de Asís September 2008
Capacity Enhancement Program on Controlling Corruption and Improving Governance for Thailand
World Bank Institute
María González de Asís
September 2008

2. Points for discussion
Why should we care about information, transparency and accountability? What is the impact of corruption on service delivery?
Key concepts: governance, information, transparency accountability, coordination, patronage, nepotism
Why you should measure corruption?
You can have impact but the solution is in all of us: government, communities, private sector, international organizations.
What is this program about?
Tools to improve information, transparency and accountability

3. 1. Why should we care about information, transparency and accountability?
Public institutions are vulnerable to C when they:
Have direct interactions with citizens/private sector
Manage discretionary power
Manage public budget for large projects
Do not have any complaining mechanism in place
Have a bureaucratic culture and practice built on personalistic ties
Do not have any information system in place

4. 1. Why should we care about information, transparency and accountability (continued)?
According to research in different regions it is estimated that as a result of corruption :
In Asia….
In Latin America…
In Africa…
Conclusion:
Corruption distorts the allocation of social resources: the diverted funds could be used for schools, roads, security, social services, certainly corruption has a direct impact on investment, economic growth, efficiency, and equity.

5. Percentage of firms that pay public procurement kickbacks by country
Why should we care? Corruption is not just a developing country problem
Percentage of firms that pay public procurement kickbacks by country
Source: “Are Foreign Investors and Multinationals Engaging in Corrupt Practices in Transition Economies?” by Kaufmann, Hellman, Jones, in Transition, May-June Note: Survey Question was “How often nowadays do firms like yours need to make extra, unofficial payments to public officials to gain government contracts?” Firms responding “sometimes” or “more frequently” were classified as paying kickbacks. These figures are subject to significant margins of error and thus should be regarded as approximate.

6. Corruption poses three risks Development Effectiveness Risk
Organizations
Development Effectiveness Risk
Reputational Risk
Fiduciary Risk

7. Governance Quality Why should we care?
Good Governance matters for investment and growth
% Investment share in GDP
Income per capita Growth Rate
20%
-1.5% 0% 1% 2%
1.5%
-0.5%
-1.0%
0.5%
15%
10%
High
Medium
Low
High
Medium
Low
Governance Quality
Governance Quality measured by perception of 4000 firms in 67 countries on: (i) protection of property rights; (ii) judicial reliability; (iii) predictability of rules; (iv) control of corruption. World Development Report Survey 1997

8. What is the WB doing to fight corruption?
At the country level
In projects
In partnerships

9. 2. Key Concepts Governance Information Transparency Accountability
Corruption

10. Governance and Corruption Not the same thing!
“The manner in which public officials and institutions acquire and exercise the authority to shape public policy and provide public goods and services,” Refers not only to the functioning of central government administration, but also to the way services are delivered and public resources management
Governance
Corruption
Abusing public office for
private gain

11. What do we understand by corruption?
Administrative Corruption
Nepotism & Patronage
State Capture

12. 3. Why should you measure corruption
3. Why should you measure corruption? (Percentage of users of administrative procedures -Permits and Licenses)
Fuente: González, María (2000). Reducing Corruption at the Local Level

13. Significant changes in voice and accountability (1998-2007)
Significant reduction
(selected countries)
Little change
Significant improvements
(selected countries)

14. 4. The solution is in all of us: Where to start? # Entry Points
Citizens/Firms
Political Accountability
Effective Public Sector Management
Formal Oversight Institutions
Civil Society & Media
Citizens/Firms
Private Sector Interface
Citizens/Firms
Decentralization and Local Participation
Citizens/Firms
Good Governance has many entry points

15. 5. What is this program about?

16. Capacity Enhancement Program
How to control corruption and improve governance in Thailand
Session 1
The importance of good governance and the impact of corruption
Session 7
Designing a strategy/action plan
Action plan
Session 6
Tools to improve inter-agency coordination
Session 2
Tools for diagnostic analysis
Session 5
Tool to improve transparency and accountability
Session 4
Tools to improve information and civil society participationg
Session 3
Public sector reform experiences 16

17. How to design an action plan
A step by step process
Finalization
(timeline, roles, indicators)
Selection of
Governance tools
Diagnostic analysis
Identifying
gaps
and challenges

18. What tools can be used to improve information, transparency and accountability?

19. Tools Key Issue: Instruments to Support Demand-side Interventions
Civil Society Oversight; transparent, competitive procurement
(Slovakia)
Transparent, competitive e-procurement
(LAC)
Strengthening Supreme Audit Institutions
(Hungary)
Strengthening Public Accounts Committees
(Kenya, Ghana, Zambia -- AFR)
Procurement oversight by CSOs (Philippines)
Accountability, Transparency & Integrity Project
(Tanzania)
Strengthening Public Accounts Committees
(India)
Participatory Budgeting, Puerto Alegre
(Brazil)
Public Expenditure Tracking & Information Campaigns
(Ghana, Madagascar, Mozambique, Peru, Senegal, Tanzania, Zambia)
Key Issue: Instruments to Support Demand-side Interventions

20. Program Objectives Develop a common understanding of AC and Governance
Learn diagnostic, monitoring and evaluation tools
Identify concrete tools for improving information flow, transparency, accountability and coordination.
Share initiatives
Design an AC to improve Information, Transparency, accountability and coordination

21. Program Outputs
One action plan (matrix) from each WORKING GROUP to improve governance in the Civil Service
Recommendation for one tool/strategy to improve information, transparency and/or accountability by AGENCY
Proposal for improving the current governance challenges that Thailand is facing

22. Governance websites World Bank Institute - Governance
Specific data
GAP Program website