1. COLLECTIVE ACTION AGAINST CORRUPTION 4 TH CARIBBEAN PUBLIC PROCUREMENT CONFERENCE 2 DECEMBER 2014 Dr. Sope Williams-Elegbe Deputy Director, African Public Procurement Regulation Research Unit & Research Fellow, Stellenbosch University, South Africa. Senior Lecturer in Law, University of Lagos, Nigeria. sopewe@sun.ac.za

2. OVERVIEW OF PRESENTATION  Introduction  The Scale of the Problem  What is Collective Action?  Why Collective Action?  What Should Collective Action Achieve?  Examples of Collective Action in Action  How do we Implement in the Caribbean?  What will the Future Look Like With Collective Action?  Conclusion 2

3. 1960s1960s 1990s1990s Scholarly study of corruption Most work consisted of single –case studies Linkage between corruption, GDP & Investment 19951995 Corruption perceptions index created & other indicators INTRODUCTION 19991999 2000s2000s Collective action (UNGC)

4. THE SCALE OF THE PROBLEM (1)  There have been different causes attributed to the low level of economic development in the Caribbean  These include:  Dependency theory;  Cultural and social history;  Unfair world trading system;  Political and other forms of corruption;  Underdeveloped democracies;  The absence of adherence to the rule of law  The effects of the illegal trade in drugs 4

5. Country2013 Rank 2012 RankGDI per capita 2013Classification Barbados15 $15, 080 (2012)High income Bahamas22 $20,600 (2012)High income St Lucia22 $7,090Upper middle income Puerto Rico33 $19, 210High income St Vincent & The Grenadines 3336$6,580Upper middle income Dominica41 $6,760Upper middle income Cuba6358$5,890Upper middle income Jamaica83 $5,220Upper middle income Trinidad8380$15,760High income Suriname9488$9,260Upper middle income Dominican Republic123118$5,620Upper middle income Guyana136NA$3,750Low middle income Haiti163165$810Low income 5 THE SCALE OF THE PROBLEM: CORRUPTION PERCEPTIONS INDEX

6. Country2013 Rank2012 RankGDI per capita 2013Classification St KittsNA $13, 460High income AntiguaNA $12, 910High income BelizeNA $4,660Upper middle income GrenadaNA $7,460Upper middle income MontserratNA 5 THE SCALE OF THE PROBLEM: CORRUPTION PERCEPTIONS INDEX Low income is $1,045 or less Middle income is $1,045 to $12,746 Lower-middle income is $1,045 to $4,125 Upper middle income is $4125 to $12,746 High income is above $12,746.

7. WHAT IS COLLECTIVE ACTION? (1) According to Olson (1965): it is any action which provides a collective good. Does not exclude individual actions but focuses on collective behaviour. Olson felt collective action was irrational and the tendency is to free-ride so incentives are required. It modern times it is a strategic approach which mobilises the private sector to fight corruption Theory has been criticised and issue is whether self-interested persons can make a difference in providing a collective good The answer is YES!

8. WHAT IS COLLECTIVE ACTION? (2) Collective action is a coordinated sustained process of cooperation amongst private firms and other stakeholders. It amplifies the impact of company efforts, brings vulnerable and individual players into a supportive alliance and levels the playing field. ~ World Bank Institute

9. WHAT IS COLLECTIVE ACTION? (3) 9

10. WHAT IS COLLECTIVE ACTION? (4) 10 Conscious, Voluntary, Active, Lasting Credible leadership Compelling focus Incentives for participation Alliances & Coalition building Sustainable

11. WHY DO WE NEED COLLECTIVE ACTION? Research (Persson 2012) shows that anti-corruption measures can’t be left to public sector The principal-agent paradigm is faulty Corruption is a collective problem and requires a collective effort Corruption is an institutional problem and the underlying institutional framework must be addressed If supply stops- this will affect demand Businesses and civil society have a compelling incentive to reduce corruption

12. WHAT SHOULD COLLECTIVE ACTION ACHIEVE? AcceptanceEngagement Change behavior

13. HOW DOES COLLECTIVE ACTION WORK? Define messageCreate awareness Build coalition/traction Celebrate changeEnforcement

14. HOW DOES COLECTIVE ACTION WORK (2) Collective action ExternalInternal

15. TYPES OF COLLECTIVE ACTION MEASURES EnrollmentMobilization Education/advocacy Transaction specific pacts

16. COLLECTIVE ACTION IN ACTION: UNGC Aim: To get businesses involved in work of UN. Launched 2000 Method: Enrollment program & awareness building Outcome: 12,000 participants in 145 countries. Largest voluntary initiative

17. COLLECTIVE ACTION IN ACTION: NIGERIA Convention on Business Integrity (Enrollment) Corporate Governance Rating System (Enrollment) Enough is Enough (Mobilization) Generational Voices (Mobilization) BudgIT (Data & Information)

18. COLLECTIVE ACTION IN ACTION: THAILAND Aim: To get businesses committed to ethical conduct and fighting corruption. Champion – IOD. Launched 2010 Method: Enrollment- Signature to Collective action declaration & company measures. Evaluation Outcome: 325 companies; 25% of listed companies, 50% of market capitalization, 20% of GDP

19. COLLECTIVE ACTION IN ACTION: RUSSIA Aim: Reduce barriers to business for SMEs. Corruption noted as biggest barrier. Method: Mobilization: 225 coalitions of SMEs created. Coalitions developed regional agendas for reform. Outcome: 138 legislative changes on corruption, taxation, administration etc. coalitions dialogue with public sector and share information.

20. HOW DO WE IMPLEMENT IN THE CARIBBEAN? Build a coalition of businesses genuinely tired of the status quo. Who will lead this? Three-pronged approach may be necessary: 1.Enrollment- a commitment to internal ethics 2.Mobilization and advocacy 3.Information sharing and training

22. HOW DO WE ENSURE IT IS SUSTAINABLE? What is the goal? Organization to manage the initiative How will it be funded ?

23. WHAT WILL THE FUTURE LOOK LIKE WITH COLLECTIVE ACTION 23 GOOD GOVERNANCE Economic developmen t Increased trade & investment Better service delivery Rule of law Improved HDI Democratic stability Stronger institutions

24. CHALLENGES TO COLLECTIVE ACTION 24 Is it a priority? Funding Whichmodelworksbest? Criticalmass/defaulters Leadership&Ownership.Who will champion?

25. SOME LESSONS FROM OTHER JURISDICTIONS 25 Top-Down Approach i.e. through the largest business association/c hamber of commerce Bottom-Up Approach i.e. through smaller city based orgsnisations Collaborative Engagement Support from all sectors Enhance Capacity Transparent advocacy

26. CONCLUSION Collective action against corruption is necessary and it works It increases the impact of action, is sustainable and scalable Good for reputation and business Assists in operational implementation of ethics Addresses institutional weaknesses and behavior

28. THANK YOU Dr. Sope Williams-Elegbe sopewe@sun.ac.za