1. Workshop on Programming in Support of Anti- Corruption Agencies Bratislava,30 june-1July, 2009 United Nations Development Programme www.undp.org/governance Corruption & Development

2. Objectives of this Session To provide an overview of AC interventions in the context of preventive measures in UNCAC Identify linkages between corruption and development Finally, to assist in designing anti- corruption prevention interventions from a developmental perspective

3. Defining Corruption Misuse of entrusted power, office or authority for private benefit – through bribery, extortion, influence peddling, nepotism, fraud, speed money or embezzlement Robert Klitgaard’s Formula: C (Corruption) = M (Monopoly) + D (Discretion) – A (Accountability) Corruption = Monopoly + Discretion – Accountability - (Integrity + Transparency) [Relevant to prevention]

4. Historical dev. of Conceptualization As old as civilization Moral Plane Criminal angle Internal codification Linkages to Development- UNCAC

5. Definition of Corruption (Contd.) UNCAC doesn’t define corruption, but components of corruption such as bribery. Most national statutes do not define Corruption UNCAC does not have an article dedicated to corruption & Dev Dev. aspect captured in preamble paragraphs: Extends to private sector (e.g., the Article 12)

6. For UNDP, UNCAC as a Governance and Development Framework (contd.) Governance: the process of making and implementing decisions. A set of values, policies, processes and institutions through which a social group manages its economic, political and social affairs including interactions between the state, civil society and the private sector. “Democratic Governance” elements: participation, transparency, effectiveness and efficiency, responsiveness, accountability, consensus, equity and inclusiveness, and the rule of law. Aspects of all of these elements are covered by numerous provisions contained in the UNCAC

7. UNDP entry points Mandates to reduce poverty Promote realization of MDGs Promote sustainable and Human development Promote full realization of human security and human rights Corruption is a threat to these mandates

8. How big is the problem? 1.A global concern: found in both rich and poor countries (Enron’s scandal– tens of billions of dollars, global financial crisis, Medoff Scandal – 65b) 2.Corruption goes beyond governments and crosses national boundaries 3.Corruption a critical development issue (a governance deficit) 4.Corruption particularly tragic in the case of the poor 5.Corruption costs African countries an estimated 25% of its combined national income - some $148bn a year (AU 2002 estimate) 6.Money extorted and stolen each year from developing countries is over 10 times the approximately $100 billion in ODA (WBI)

9. How big is the problem?

10. Corruption: Consequences Exacerbates poverty; negatively affects economic growth (less investment; higher transaction cost) A disproportionate impact on women (and other vulnerable and marginalized groups) A debilitating effect on development in countries rich in natural resources Encourages conflict and is an obstacle to consolidating peace (Iraq, Afghanistan) Undermines the delivery of humanitarian and reconstruction assistance A nexus with organized crime (LACexperience) Violates human rights and fosters an anti- democratic environment

11. Prevention in UNCAC vs. Practice No working group on prevention under the CoSP What constitute the prevention??? [Teach morality, target the youth, awareness raising, public education] No methodologies for prevention (mainstreaming) System audits lagging behind Good practices rare [AC agencies with prevention mandates: what it means in Practice]

12. UNCAC Prevention Articles: At What Is There Prevention? UNCAC ArticlesDemand for Programming Article 5: Anti-corruption policies Policy framework, legal framework, strategies, coordination, and consultation processes Article 6: Independence of AC bodies Technical assistance to establish and strengthen oversight institutions Article 7: Civil service capacity-building Public sector reform Article 8: Code of conductPromotion of integrity, honesty and responsibility Article 9: Public procurement and management of public finance Promote the introduction of a transparent effective system of public procurement and public finance management. Article 10: Public reportingCivil society empowerment; access to information, inclusive participation, awareness raising, Article 12: Private sectorRole of private sector in delivering of social services Article 13: Civil societySocial audit, citizen’s audit, and budget tracking

13. Principles for Mainstreaming Governance Responsiveness Non- discrimination ParticipationTransparencyAccountability

14. Conclusion: Making Prevention Work? Strong political backing at the highest level of government (soft spot vs. system overhaul) Coordination (many players in both horizontal and vertical levels with sufficient competency and capacity) Need clarity of mandates AC body/agency Work where other institutions are functional Availability of information (e.g., surveys to quantify and quality corruption)

15. Conclusion: Making Prevention Work? Realistic costing exercise; sufficient resources (financial, human and technical) over the long run (address issue of resources upfront) Poor institutional capacity preparations Created for political expediency Need for sound performance indicators of ACCs (monitoring methodology and indicators of success: How to measure success of prevention) Systemic, long-term, coherent and holistic strategy for combating corruption (prevention, investigation and awareness raising)

16. Thank You! Further information www.undp.org/governance phil.matsheza@undp.orghil.matsheza@undp.org Tel:1-212-906-5043