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Basic guide to anti-corruption

Defining corruption

Corruption can take many forms.

For well-nigh people, the word corruption invokes the paradigm of a government minister secretly accepting millions from a visitor in substitution for a public contract, or motorists paying off traffic police force to avoid speeding tickets. Bribes, big or pocket-size, are the nearly well-recognised type of corruption, simply other forms also exist.

Consider nepotism or cronyism, practices where officials extend preferential treatment – such equally access to jobs, or other resources and services – to their family members, or friends and associates. Or picture the finance manager who embezzles company funds that had been entrusted to her care.

Abuse of entrusted power for individual gain is a definition popularised past Transparency International – the leading global non-governmental anti-corruption movement. Whilst not without critics, this definition is widely used because it encapsulates iii core elements of corruption:

i. Corruption

Corruption involves a violation of norms of bear or professional obligations – explicit or implicit – arising from formal or other entrusted duties. The notion implies decision-making without due impartiality; counter to public policies; or more than broadly against the public interest.

2. Entrusted power

Abuse arises when a person misuses the authorization derived from all kinds of formal or professional roles, but also breezy or traditional ones.

This phrasing covers not only public officials, but also individuals working in the private sector, media, ceremonious society actors, religious leaders. It besides covers people such as customs elders who agree customary authority.

A company employee selling commercial secrets to a competitor is an instance of private sector corruption.

3. Private gain

The gain realised through corruption is individual considering it does not benefit the entity or the collective that the official is entrusted to represent or serve. Private gain expresses the opposite of public good. Only the proceeds demand not get directly to the official in question: it may besides benefit a designated family fellow member, friend, associate, or a political party.

Also note that annihilation of value tin can constitute a benefit: it'south non but money and material goods, simply also power and influence, and other advantages – fifty-fifty sexual favours.

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Abuse ever involves these three elements. However, it tin take very different forms. The roles of different participants and beneficiaries tin can as well vary considerably. For case, in some cases of bribery, the bribe-giver is a willing, proactive party who seeks undue reward. Simply in other settings, particularly those where corruption is systemic, people may accept no selection but to pay a bribe to access public services that they are rightfully due, like health or pedagogy. And public officials themselves may be coerced into accepting bribes by their superiors or clients.

The prevailing definition of corruption as corruption of entrusted power for individual proceeds does not differentiate among its many types and patterns. Neither does it say anything about the incentives or pressures that motivate them. However, this definition helps u.s. to distinguish corruption from other kinds of wrongdoing, eg bigotry or mismanagement.

The definition too helps united states to define related concepts, such every bit disharmonize of involvement. This is a situation where an private must choose between a individual interest, on the ane manus, and obligations arising from entrusted duty, on the other hand. Corruption always involves a conflict of interest, simply not every conflict of interest results in an act of corruption: the person may ignore the private interest and act as duty requires.

Corruption inflicts enormous harm

The impairment inflicted by corruption is globally recognised, including by the UN 2030 Agenda for Sustainable Evolution where the target for Goal 16 calls on states to 'substantially reduce corruption and bribery in all their forms.'

It is extremely difficult to measure the extent of harm that abuse leads to. 1 reason is the so-called 'iceberg phenomenon', meaning that only a small portion or decadent transactions is visible while much more is subconscious. Subsequently all, most corrupt exchanges accept place in secret, and very few cases are always reported or otherwise recorded, much less prosecuted and punished.

Another reason relates to the telescopic of indirect damage caused by dysfunctional public sector institutions and distorted public services. Consider the difficulties in measuring the post-obit dire consequences of abuse:

Corruption undermines development

When public officials pillage country budgets or distort public spending toward investments that yield large bribes – like major public works – less coin is left for essential services such as health or education. When politicians engage unqualified family members and political cronies to run public enterprises, the firms underperform. And every bit international companies tend to avert environments where demands for bribes volition increase their operating costs, the potential benefits of foreign investment may exist lost.

Corruption costs lives

Without access to quality healthcare and clean water, or when buildings plummet because developers have bribed their way out of complying with safety standards, people's lives are at hazard.

Corruption harms the vulnerable and perpetuates inequality

When officials in public institutions force citizens to pay for services that should exist free, the poorest and most vulnerable members of society – including women and girls – endure unduly. In low-income households, modest bribes to get health care can cut deep into a family unit's disposable income.

Corruption undercuts human rights

Courts violate the fundamental correct of access to justice when they only hear cases if parties bribe court staff and judges, or when they rule unfairly to protect the wealthy and the politically-connected.

Corruption amercement the environs

Activity against climate alter, environmental protection and responsible management of natural resources suffer when powerful industry representatives bribe policy-makers or political parties to vote downwardly necessary regulations.

Corruption damages commonwealth

Daily experience of abuse reduces public trust in land institutions and citizens' willingness to participate in autonomous processes. Citizens who perceive politicians as corrupt may non bother to vote in elections; engage in politics; or pay taxes.

Abuse fuels criminal offense and conflict

Organised crime networks rely on corrupt officials to circumvent the rule of police in times of peace, and to supply illicit goods and service in times of conflict. High levels of corruption can exacerbate inequalities and distrust betwixt groups, making prolonged conflict more likely, or pushing post-conflict societies dorsum into war.

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It is clear that economic and human costs of corruption are immense fifty-fifty if we struggle to measure them.

The conventional anti-abuse approach

Anti-corruption systems containing these components can exist constructed at any calibration: the national level, or in specific institutions, or even in particular programmes, such as development programmes (see more than about the challenges for development programming further down in the main text).

The larger the calibration, the more complex the system.

National anti-corruption systems are meant to encompass a myriad of institutions and governance processes, and various segments of society in an inter-related and mutually-reinforcing network of interactions.

This approach to countering corruption has been the mainstay of anti-corruption efforts and is reflected in international anti-corruption conventions.

However, two decades of pursuing this arroyo has not resulted in the expected changes. The disappointing results take prompted a neat deal of reflection and analysis, including theme-specific findings and recommendations featured on U4 topic pages.

For an overview of some of the lessons learned, meet Twenty years of anti-corruption – a serial of short texts reflecting on how United kingdom and the the international community has approached anti-corruption piece of work since around 2000.

Unconventional insights

Examining underlying factors and conditions for success has yielded some of the about exciting insight about anti-corruption exercise to engagement.

Many researchers have pointed to the claiming inherent in the pivotal role of leadership in constructing and implementing anti-abuse systems. This ascertainment relates to the notion of political will, which is viewed as indispensable for success, still cannot be assumed.

There is considerable analysis exploring the concept and the part of political will and the pressures that shape it:

• Political economy;
• behind-the-scenes calculations and deals to maximise political reward;
• informal obligations to donors, supporters, mentors, assembly, kinship groups, etc.

Researchers take likewise recognised the critical role of breezy rules and relationships in driving corruption by limiting individuals' options when confronting it. Various informal constraints may apply equally to the top leadership, lowly bureaucrats, or 'ordinary citizens'. For instance, breezy social norms that value kinship ties can create pressures on public officials to extend favours to their extended family, and lead to more societal tolerance for nepotism.

Or when breezy political party affiliations afford supporters admission to scarce resources, they create powerful incentives for many people to bring together and maintain them, rather than dismantle these patron-client structures. Dubbed 'informal' because they operate outside the 'formal' or 'official' land laws and institutions – such systems can be extremely well-structured and hierarchical.

Consider, for case, how rigid the rules and the structure of organised criminal networks are, and how effectively they can co-opt or even 'capture' and overwhelm the formal system of the state. In such a setting, the conventional, formal rule-based anti-corruption approach is unlikely to succeed without supplementary alternative strategies.

Other analysts have focused precisely on the strategic implications arising from these insights.They debate that to analyse and address high levels of corruption in contexts of scarce resources requires a dissimilar conceptual framework.

For instance, when membership in informal clientelistic networks – or simply paying bribes – is the only style to access scarce resources or solve other problems, abuse may serve a 'useful' function for most people. This 'functionality' inhibits incentives for alter. Similarly, in settings where it is commonly perceived that 'everyone' engages in abuse to access scarce resources, it is arguably irrational and foolish not to go on, because it ways losing out.

In both cases, in that location are few incentives to abstain from corruption unless: 1. there is an culling, and 2. there is reason to believe that everyone else will practise the aforementioned. Where such dynamics are in identify, addressing corruption is also – every bit formulated in economic theory – a commonage action problem that requires additional response strategies. This is in contrast to a principal-agent problem, which conventional anti-abuse approaches imply.

The challenges of transnational dimensions of corruption have besides gained prominence in recent years. When corruption is driven by international dynamics – eg increasing global demand for natural resources – an anti-corruption response must look beyond national systems. It as well requires addressing the circuitous and opaque global financial compages that helps corrupt officials hide or launder their illicit wealth, and the role of donor countries in creating or sustaining such opportunities. U4 topics Natural resource and energy, Oil, gas, and mining and Illicit financial flows examine some of these issues.

Implications for anti-corruption reforms

The above insights have generated new perspectives on alternative and supplementary anti-abuse strategies. They practise non categorically reject conventional anti-corruption approaches. Instead, they highlight the complication of the challenge and the relevance of factors outside formal governance systems – peculiarly the political economic system and breezy structures regulating the (re)distribution of resources.

The 2020 U4 Result How change happens in anti-corruption identifies the main trends shaping emerging policy advice. A one-hour video of four talks in 2021 on New approaches to anti-corruption also shares useful reflections.

The fact that an anti-abuse reform strategy must await beyond technocratic approaches is a common thread. By technocratic, we specifically include addressing weaknesses in laws, institutions, and governance systems through legislative and operational changes, chapters development, and other technical means. Anti-corruption measures must as well reply to contextual factors – informal dynamics in detail – that both constrain and besides create opportunities for engagement.

The importance of the specific reform context is broadly understood by now. Most practitioners recognise that good anti-corruption practices cannot simply be copied from i country to another. They must – at a minimum – exist adapted to the new legislative and institutional framework, or they may not exist 'transplantable' at all.Even so, the full extent and depth of requisite contextual knowledge – the political economy, the informal power relations, the societal norms – is only slowly becoming apparent.

Reform starts with thorough analysis

Understanding the complexity of a corruption challenge, especially the context in which information technology is situated, can announced daunting. Fortunately, in that location are tools to diagnose the challenge. At that place is both already-existing data and methodologies that can be applied as needed.

The resources vary in what they aim to practice. For example:

• Measure the scale or volume of decadent practices.
• Gauge the extent of corruption risks in specific institutions or sectors.
• Identify arrangement shortcomings that allow corruption to accept place, which should be reformed.
• Analyse the political economy and social dynamics that drive corruption and impact the prospects for reform.

Practitioners should employ a combination of these diagnostic approaches to construct a multi-dimensional moving picture of the extent and character of corruption, and the factors that perpetuate it. Such in-depth analyses bespeak the opportunities and constraints for reforms, and potential allies and opponents – all of which tin can facilitate a strategic, evidence-based approach.

Measurement and evaluation

In addition to describing the challenge, diagnostic data also provides a baseline against which it is possible to monitor the operation of anti-corruption interventions. Such feedback assists reformers in evaluating their effectiveness and adjusting the approach every bit necessary.

Come across the U4 topic page Measurement and evaluation for useful guidance.

Implications for development cooperation

Development partners tin accost corruption in multiple means:

Preventing abuse in donor programmes and evolution assistance

Development partners' first concern tends to be safeguarding their programmes and funds against leakage and corruption. They typically accept robust abuse chance direction systems with provisions to ensure that funds are used to advance development objectives.

These systems ordinarily include:

• Prevention measures at all stages of the programming.
• Ongoing monitoring of implementation.
• Hotlines for reporting misconduct.
• Periodic evaluations and audits.

For more data delight see the U4 topic page on Corruption risk management, and a 2020 U4 blog post on Zero tolerance policies. U4 also offers an online course on abuse risk management for U4 partners and their collaborators.

Supporting anti-abuse reforms

Many development partners also support anti-abuse efforts in partner countries. This almost often involves improving aspects of formal anti-corruption systems, or promoting broader expert governance reforms that comprise elements of these systems.

All of U4's research and training aims to support these efforts. Insights are summarised to a higher place, and laid out in the 2021 U4 Effect Reassessing donor performance in anti-abuse: Pathways to more than effective practice.

'Mainstreaming' anti-corruption measures

In pursuing development objectives in wellness, education, justice or whatsoever other sector, development partners should consider how abuse undermines their anticipated outcomes. Known as anti-corruption mainstreaming, the approach seeks to not merely prevent the misuse of plan funds, merely as well tackle specific corrupt practices that jeopardise programme results.

For instance, a programme may fail to accomplish vaccination targets if parents avert wellness clinics because providers demand bribes. To succeed, a programme must not but provide the vaccines, but also accost the conduct of wellness providers.

Mainstreaming can exist challenging considering it requires combining two sets of expertise: sector-specific and anti-corruption knowledge. At that place is a dandy deal of accumulated insights to help practitioners in their efforts.See for instance the U4 Cursory Mainstreaming anti-corruption into sectors: Practices in U4 partner agencies, or consult emerging sector-specific guidance on U4's topic pages.

Also check out U4'south online courses for partner staff and their collaborators:

• Addressing corruption in the health sector
• Addressing abuse in the natural resources sector
• Corruption in the justice sector

Harmonising policy streams

Development agencies promote one dimension of a country'south foreign policy that may sometimes contradict other policy streams. It is not unknown that donor countries pursue an anti-corruption calendar through development programming while at the aforementioned time ignoring corrupt concern practices by its firms operating in the partner country, or politically supporting corrupt leaders.

The notion of working politically discussed before as well implies recognising all the trajectories of interaction with partner governments that link to corruption, and aligning approaches across departments and agencies. This strategy is unremarkably known equally policy coherence or a whole of government approach.

The whole of government approach requires development partners to examine how their domestic financial, real manor, fine art or other markets may be used to transform illicit proceeds from corruption into legitimate assets. They also take to review their policies toward global financial structures used to conceal illicit wealth. The U4 topic pages on Natural resource and energy, Oil, gas, and mining and Illicit financial flows provide some entry points for engaging with these issues.

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Source: https://www.u4.no/topics/anti-corruption-basics/basics

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