Governance and corruption
Download
1 / 10

GOVERNANCE AND CORRUPTION - PowerPoint PPT Presentation


  • 83 Views
  • Uploaded on

GOVERNANCE AND CORRUPTION. WHY DO THEY MATTER AND WHAT DO THEY REALLY MEAN? Helen Sutch, PRMPS, April 21, 2003. 2%. 1.5%. 1%. 0.5%. 0%. -0.5%. -1.0%. -1.5%. Good governance leads to higher investment & growth. % Investment share in GDP. Income per capita Growth Rate. 20%. 15%. 10%.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' GOVERNANCE AND CORRUPTION' - octavia-barnett


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Governance and corruption

GOVERNANCE AND CORRUPTION

WHY DO THEY MATTER AND WHAT DO THEY REALLY MEAN?

Helen Sutch, PRMPS, April 21, 2003


2%

1.5%

1%

0.5%

0%

-0.5%

-1.0%

-1.5%

Good governance leads to higher investment & growth

% Investment share in GDP

Income per capita Growth Rate

20%

15%

10%

Medium

Low

High

High

Medium

Low

Quality of Governance

Quality of Governance in this case was measured by perceptions of 4,000 firms in 67 countries on: (i) protection of property rights; (ii) judicial reliability; (iii) predictability of rules; (iv) control of corruption. Source: World Development Report Survey, 1997


Per Capita Income and

Infant Mortality and Corruption

Regulatory Burden

12,000

90

80

10,000

70

8,000

60

50

6,000

40

4,000

30

20

2,000

10

0

0

Weak

Average

Good

Weak

Average

Good

Development

Regulatory Quality

Control of Corruption

Development

x

x

Dividend

Dividend

Literacy and Rule of Law

Per Capita Income and

Voice and Accountability

100

10000

9000

8000

75

7000

6000

50

5000

4000

3000

25

2000

1000

0

0

Weak

Average

Good

Weak

Average

Strong

Development

Development

Rule of Law

x

x

Voice and Accountability

Dividend

Dividend

Good governance improves development outcomes

Note: Based on a collaborative research project, the bars depict the simple correlation between good governance and development outcomes.The line depicts the predicted value when taking into account the causality effects (“Development Divided”) from improved governance to betterdevelopment outcomes.


Governance a definition
Governance – a definition

  • Governance is how power is exercised and mediated through institutions

  • Institutions: rules that shape behavior

  • Formal: constitutions, laws, regulations

  • Informal: traditional or tribal hierarchies, nomenklatura, mafia, family, other networks


The how word is critical
The “how” word is critical

  • Through strict hierarchies/diffused laterally?

  • Arbitrarily?

  • Transparently?

  • Accountably?

  • Fairly?

  • With participation and consultation?

  • Effectively? Do systems work?


Do less developed countries have less developed institutions
Do less developed countries have less developed institutions?

  • We think of countries as having weak or even no institutions – LICUS

  • But there is no tabula rasa: where formal institutions are weak, informal institutions are often strong

  • “The most effective system is corruption. The challenge is how to replace it” - JDW, March 2003.


What happens to healthy projects…in sick country environments?

  • The wrong firm gets the contract

  • Funds don’t arrive on time

  • Money is diverted or stolen

  • Projects are not staffed with the right skills

  • Shoddy materials are substituted, safety standards flouted

  • The road/bridge… is not built at all

  • It was the wrong project anyway

  • ……these are all corruption = a cause and a symptom of poor governance


State capture administrative corruption
State capture/administrative corruption

  • State capture = corruption in the formation of laws and policies

  • Administrative corruption = corruption in theimplementation of laws and policies


Good governance has many dimensions

  • Structure of Government

  • Executive decision-making structure

  • Legislative oversight

  • Independent and effective judiciary

  • Decentralization and intergovernmental relations

  • International dimensions: rules for foreign investors, trading partners, donors

  • Political Accountability

  • Political competition, credible political parties

  • Transparency in party financing

  • Disclosure of parliamentary votes

  • Asset declaration, conflict-of-interest rules

  • Competitive Private Sector

  • Economic incentive framework/policies

  • Competitive restructuring of monopolies

  • Regulatory simplification for entry

  • Transparency in corporate governance

  • Collective business associations

  • Civil Society Voice & Participation

  • Freedom of information

  • Public hearings

  • Role of media/NGOs

  • Governance monitoring

GOOD

GOVERNANCE

  • Public Sector Management

  • Meritocratic civil service with monetized, adequate pay

  • Public expenditure management (budget preparation and execution, financial accountability, procurement, audit)

  • Decentralization with accountability

  • Service delivery (health, education, infrastructure, courts and other dispute resolution mechanisms)

  • Tax and customs


Changing our approach: we are moving…

  • From a focus on technical, one-off projects to – systems for sustainability

  • From quick adjustment operations to programmatic lending over a longer time frame – strong formalinstitutions take time to build

  • From imposing external models of “best practice” to good fit with the country environment

  • From Bank to country ownership

  • To a new focus on key factors in designing interventions:accountability, transparency, voice


ad