1. Governance and Integrity Prepared for Bali Workshop Infrastructure in East Asia and Pacific – the Way Forward Alex Sundakov
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2. Main themes
Infrastructure places particular demands on the integrity of processes
Integrity of transactions is decided within an institutional and governance framework
Accountability and reduction of corruption are key components of such a framework
Key objectives:
Extend time horizon for decision-making
Improve quality of decisions
Improve sustainability of decisions

3. Analytical Framework

4. Corruption Dynamically destructive
Affects both public and private sectors
Infrastructure particularly susceptible
Fight against corruption also has negative aspects
In the extreme – state capture

5. Accountability To whom and for what?
Every sector needs to be accountable
Confusion between accountability and independence
External vs. organic accountability

6. Political Stability and Property Rights
Obvious need for stability
However, predictability does not necessarily lead to good social outcomes
Genuine rule of law and government accountability may create uncertainty
The need to consult and reach accommodation with wide interests adds to the costs
There may be a trade-off between greater certainty and higher quality of decisions.

7. Government effectiveness
Competence of public sector policy-making is critical
Policy-making - processes and institutions through which policy decisions at various levels of government are made, including the policy advice and analysis role of the public sector.
Policy implementation - processes and institutions, which ensure the implementation of public policy, such as the application of regulatory principles to individual cases.
Private sector participation in the infrastructure sectors imposes additional demands on government effectiveness.

8. Approach to Case Studies

9. The Way Forward Governments Whistleblower protection
Information disclosure
Open hearings
Civil Society
Better information on consumer needs
Clear rules of standing
Private Sector
Donors
Address conflict between policy and transaction focus