Managing Corruption

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No country is immune to corruption. Tax payers' money is lost in different ways, siphoned off from Schools, Hospitals, Roads etc. to line the pockets of people up to no good. Equally damaging is the way it corrodes the Govt's ability to help grow the economy in the manner it benefits all citizens. A few countries' reforms generated more revenues. For example, Georgia and Rwanda reforms to fight corruption since mid-1990s bore fruit and tax revenues increased by 6 percentage points of their GDP. These examples demonstrate the Political will to build strong and transparent institutions which can turn the tide against corruption. Corrupt countries collect fewer taxes as people pay bribes to avoid them. It is generally said that where there is Political will, there is a way. Fighting corruption requires political will to create strong fiscal institutions that promote accountability and integrity throughout the public sector.

Here are some issues for the countries to help them effective institutions that curb vulnerabilities to corruption:

1)  Build a Professional Civil Service - Transparent, Merit based hiring and Pay reduce the
     opportunities for corruption. The Heads of Public Enterprises, Agencies, Ministries and
     Enterprises must promote ethical behaviour by setting a clear tone at the top.

2)  Reforms Institutions - The chances for success are greater when countries design reforms to
     tackle corruption from all angles. For example, reforms to Tax administration will have a
     greater payoff if Tax laws are simpler and they reduce officials' scope for discretion.

3)  Invest in high levels of Transparency and Independent External Scrutiny - Allows Public and
     Audit agencies to provide oversight. For example- Colombia, Costa Rica and Paraguay are using
    online platforms that allows citizens to monitor the physical and financial progress of Investment
    projects. Norway has developed a high standard of transparency to manage its natural resources.
    Also Free Press enhances the benefits of fiscal transparency. In Brazil, results of Audits impacted
   the re election of prospects of officials suspected of misuse of public money, but the impact was
   greater in areas with local radio stations.

4) Keep Pace with new challenges as Technology and opportunities for wrong doing evolve- Focus
   on areas of higher risk, such as: Procurement, Revenue Administration and Management of
   Natural Resources - as well as effective controls. In Chile and Korea, Electronic procurement
  systems have been the powerful tools to curtail corruption by promoting transparency and
  improving competition.

Countries can also join efforts to make it harder for Corruption to cross Borders. More than 40 countries have already made it a crime for their companies to pay bribes abroad. These countries
can also aggressively follow-up with Anti-money laundering activities and reduce transnational opportunities to hide corrupt money in non-transparent financial centres.

Curbing corruption is a challenge which starts with Political will, continuously strengthening institutions to promote Integrity and Accountability and Global co-operation to achieve economic growth.

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