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Impact Assessment Case Study: Monitoring Corruption in Indonesia. Nick York and Miguel Valadez Laric Economist, Evaluation Department 15 th November 2006. 1 Palace Street, London SW1E 5HE Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA. Issues.

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impact assessment case study monitoring corruption in indonesia

Impact Assessment Case Study: Monitoring Corruption in Indonesia

Nick York and Miguel Valadez Laric

Economist, Evaluation Department

15th November 2006

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

issues
Issues
  • Limited Empirical Evidence on Mitigating Corruption though Monitoring
  • 2 Empirical Questions:
  • Effectiveness of Top Down Approach (Becker and Stigler 1974)
  • Effectiveness of Grassroots Monitoring

(poor people’s interests vs local elites)

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

background
Background
  • Study Conducted 2003-2004 by Harvard Researcher Ben Olken
  • Funded by DFID/World Bank Strategic Poverty Trust Fund.
  • Subject: Kecamatan Development Project, Village infrastructure.
  • Focus: East and Central Java
  • www.nber.org/~bolken

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

method
Method
  • Data sample: 608 villages
  • Roads about to be built.
  • Randomly assign audits to villages and inform ex ante (clustering due to spillovers)
  • Randomly assign accountability meetings
  • Independent randomization of two alternatives plus control villages- some overlap.

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

measuring corruption
Measuring Corruption
  • Independently estimate actual expenditures of building roads
  • Incorporate measures of quality
  • Compare “reported” with “actual estimated” expenditures: isolate missing expenditures
  • Compare missing expenditures control and treatment to unpack impact of each type of monitoring.

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

results top down audits
Results: Top Down Audits
  • Corruption found in missing materials and labour expenditure not misreported goods prices.
  • Audits reduced corruption by 8% on average
  • Benefits are 150% of cost of audit
  • Threat of Audit enough for effect: not due to audit corrective measures

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

results grassroots monitoring
Results: Grassroots Monitoring
  • Accountability Meeting attendance raised by 40%.
  • Substantial Reductions in missing labour expenditures 9 – 18% .
  • Small, non-significant reduction in missing materials expenditure.
  • Since bulk of cost is in materials overall effect is negligible.
  • Hypotheses: information, incentives, public good?

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

impact evaluation case study monitoring corruption in indonesia

Impact Evaluation Case Study: Monitoring Corruption in Indonesia

Nick York and Miguel Valadez Laric

Economist, Evaluation Department

15th November 2006

1 Palace Street, London SW1E 5HE

Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA