Bribery for Grade in Eastern Europe

a recent survey of university students in several ECA countries found that more than 60 percent of respondents knew other students who had purchased either entrance to the university or a specific grade

Source: Skills, Not Just Diplomas-Managing Education for Results in Eastern Europe and Central Asia [October 2011]

Assorted

NGO Sustainability Index

Uses and Abuses of Governance Indicators

Measuring Democracy

A Users Guide to Measuring Corruption

Can WikiLeaks model work for the government

He had come to understand the defining human struggle not as left versus right, or faith versus reason, but as individual versus institution. As a student of Kafka, Koestler, and Solzhenitsyn, he believed that truth, creativity, love, and compassion are corrupted by institutional hierarchies, and by “patronage networks”—one of his favorite expressions—that contort the human spirit. He sketched out a manifesto of sorts, titled “Conspiracy as Governance,” which sought to apply graph theory to politics. Assange wrote that illegitimate governance was by definition conspiratorial—the product of functionaries in “collaborative secrecy, working to the detriment of a population.” He argued that, when a regime’s lines of internal communication are disrupted, the information flow among conspirators must dwindle, and that, as the flow approaches zero, the conspiracy dissolves. Leaks were an instrument of information warfare.

These ideas soon evolved into WikiLeaks. In 2006, Assange barricaded himself in a house near the university and began to work. In fits of creativity, he would write out flow diagrams for the system on the walls and doors, so as not to forget them. There was a bed in the kitchen, and he invited backpackers passing through campus to stay with him, in exchange for help building the site. “He wouldn’t sleep at all,” a person who was living in the house told me. “He wouldn’t eat.”

As it now functions, the Web site is primarily hosted on a Swedish Internet service provider called PRQ.se, which was created to withstand both legal pressure and cyber attacks, and which fiercely preserves the anonymity of its clients. Submissions are routed first through PRQ, then to a WikiLeaks server in Belgium, and then on to “another country that has some beneficial laws,” Assange told me, where they are removed at “end-point machines” and stored elsewhere. These machines are maintained by exceptionally secretive engineers, the high priesthood of WikiLeaks. One of them, who would speak only by encrypted chat, told me that Assange and the other public members of WikiLeaks “do not have access to certain parts of the system as a measure to protect them and us.” The entire pipeline, along with the submissions moving through it, is encrypted, and the traffic is kept anonymous by means of a modified version of the Tor network, which sends Internet traffic through “virtual tunnels” that are extremely private. Moreover, at any given time WikiLeaks computers are feeding hundreds of thousands of fake submissions through these tunnels, obscuring the real documents. Assange told me that there are still vulnerabilities, but “this is vastly more secure than any banking network.”

Before launching the site, Assange needed to show potential contributors that it was viable. One of the WikiLeaks activists owned a server that was being used as a node for the Tor network. Millions of secret transmissions passed through it. The activist noticed that hackers from China were using the network to gather foreign governments’ information, and began to record this traffic. Only a small fraction has ever been posted on WikiLeaks, but the initial tranche served as the site’s foundation, and Assange was able to say, “We have received over one million documents from thirteen countries.”

-Julian Assange’s mission for total transparency

Related:
WikiLeaks on Twitter

Wikileaks and Iceland MPs propose 'journalism haven'

Strategic Sourcing- Can it work in Developing Countries

For Discussion: Do you think it can work in developing countries? Or would it lead to more corruption?

Increasing the use of strategic sourcing by agencies, where agencies band together to use their purchasing power to buy commodities – such as paper, copiers, and printers — at a discount.

PFM Books

The Many Faces of Public Management Reform in the Asia-Pacific Region;

During the past decade, globalization and democratization have been the major forces that helped transform the structures, functions, and processes of Asian public sectors. Nevertheless, these transformation efforts of Asian countries vary considerably depending on local context, and have met with different degrees of success. Some countries experienced smooth transformations. For others, the reform process has been more volatile. These issues were explored at a conference July 7-9, 2008 in Bangkok, Thailand, hosted by the Faculty of Political Science, Chulalongkorn University, and co-sponsored by the International Public Management Network, the Asia-Pacific Governance Institute, and Thailand Democracy Watch. This book presents some of the works contributed by participating scholars and practitioners at the conference. The contents fall into three categories: corruption and anti-corruption initiatives, public financial management reforms, and public management reforms with emphasis on performance and results.

Editor are Clay Wescott, Bidhya Bowornwathana, L.R. Jones,

Highly recommended:
World Bank, 2008. Public Sector Reform: What Works and Why? An IEG Evaluation of World Bank Support.

Why Do People Do Bad Things?

Economic Gangsters talk

The Global Integrity Impact Challenge

The Global Integrity Impact Challenge is seeking proposals for projects that use Global Integrity’s diagnostic tools to fight corruption. The best proposals get a US$1,000 prize and a chance to pitch the Partnership for Transparency Fund (PTF) for funding to implement their ideas.

See also Grand Corruption Watch List.

Economic Gangsters

Economic Gangsters

Deception, waste and poor planning

Anti-Corruption Efforts Abandoned

Anti-corruption efforts were abandoned by both American and Iraqi officials, opening the door to waste, fraud and abuse.
“Grafted on to the existing Iraqi legal system and inadequately supported by their U.S. creators, the CPI [Iraq's Commission on Public Integrity" and the IGs [Iraqi Ministry Inspector Generals] have struggled to find their footing in the new Iraq. Anticorruption efforts by the CPA and the U.S. Embassy must be seen in this context, but the absence of progress in fighting corruption in Iraq is disappointing.

One (Iraqi Inspector General) noted: "If we're too active, our minister will fire us," and the chilling, "if I do my job, they'll kill me."

Volcker's remarks at World Bank Integrity Day

Paul Volcker at World Bank;

And my experience in writing reports is the connection between writing a report, reaching a conclusion, and having some implementation that is never very clear--until I came to the World Bank. Now, I'd like to think that this report, which really does read fairly well, that we produced a little more than a year ago has gone so far in its implementation in the Bank.

I was struck particularly by Bob's emphasis on trust, which is part of my usual speeches in a somewhat different context, because trust is important in this area, but it's important, and we are reminded so much, in financial markets now. I never thought I would live to see the day when the biggest banks in the world were unable or unwilling to deal with each other for more than overnight and sometimes not even overnight for some feeling of distrust as to what might happen.

And it's not just distrust in financial markets or the private financial markets that in some ways is so striking and has so complicated this current situation. What is really disturbing is the sense of distrust in governments, and I will give you an illustration of that.

When the United States Government says it will protect this or that kind of company, or it will protect these or those securities, it doesn't bring forth a response in terms of trading or in terms of pricing that you might expect if they really trusted the statement.

What do we see here? We see an erosion, I think, in trust in government, and I'm talking now of the United States Government, but it's probably applicable more broadly. There has been survey after survey in the United States, and one of these surveys asks the same question over the decades, and one of the standing questions is: Do you trust your government to do the right thing most of the time? That doesn't sound like the most difficult test to make--do the right thing most of the time, like 51 percent. The answer is 20 percent trust the government to do the right thing most of the time. Somebody told me the latest annual survey showed something less than 20 percent. That is what we are suffering from, I think, in a wider context than just corruption.

But let me say that a couple nights ago, Jim Wolfensohn was celebrating his 75th birthday--he's a young fellow, but it reminded me--and he spoke proudly of his going to the World Bank and his work with the World Bank, but it was just a little more than ten years ago when he made that speech where he mentioned the word "corruption" and said that was an important challenge for the World Bank, a "cancer on development." It was one paragraph in his speech, and obviously, this problem has gone on for some time, but I have not heard a more eloquent exposition of the point than you all just heard a few minutes ago from Bob Zoellick, and I'm glad I came to hear it.

I was handed by Leonard some remarks I made when we issued this report--I had no idea it went on for so many pages--but what I noticed with gratification was that there was a lot of underlining of particular points. Now, when you see a report like that underlined, it is one of two things. If it's underlined for emphasis, that's fine; if it's underlined with a big question mark in the margin or an exclamation point or two, or "That's dumb," that's another thing. I didn't see one question mark in the margin, Leonard, for which I am very grateful.

You know, it is timely and a pleasure for me to be here particularly when the new members of the Advisory Board are here. We consider that one of our critical recommendations. Why do we consider it so critical? Because this whole record, as I'm sure you realize, has been a bit of a struggle for the Bank in kind of acclimating itself to the importance of corruption and infusing it through the operations. And we had a feeling that to make sure the message got through and continued, having an outside group to oversee from two dimensions--one is to kind of keep interest, keep a little fire on, as to the importance of this subject, but also to provide some confidence that had not been there earlier that the program would be carried out in a fair, sensible, effective way, respecting the rights and conditions that are appropriate.

So I think from both directions, we thought that at least for the time being, this kind of outside group had a very important role to play, and I'm glad to see the kind of people who have accepted responsibility. I had a chance to work with Mark Pieth, who isn't here, on an earlier investigation in the United Nations, and he is, added to the talent you see before you and the experience you see before you, a man who has had very long experience, incredible experience, in the anti-corruption area.

Now, I am told--Mr. Daboub keeps me in track of these things, and he proudly calls me up every few months to say "We have adopted another recommendation"--you've got them all adopted now, with a couple that I know are still in process, and that's terrific, because it's not often that somebody in my position who has written a report can actually see it implemented in a substantial kind of way.

Now, it is also true--and I think Bob has addressed this point--that I'll never forget that one of the retired or ex-senior officials of the World Bank, commenting on a draft of our report, said the most important part was not those 18 recommendations or whatever, the specific recommendations--it was the kind of tone that was argued in the first ten pages. He said it's the first ten pages of the report that are really important and whether this whole kind of ethic and effort suffuses the operation generally. And I hope, and from what I hear, that that is beginning to take place and is taking place in a large organization where it is sometimes difficult to change.

I noticed in these remarks I made a year ago that I started off by saying something about the challenge before the World Bank, the sense that it was in not quite a crisis but a point of difficulty because what the World Bank was doing in supplying capital to developing countries has to some degree in many cases been superseded by private markets, and the World Bank had a smaller proportion of the whole, and whether it had the same leverage that it had earlier was questioned by a lot of people, I think rightly. But it's remarkable how that has changed in the past year. In the midst of financial crisis, suddenly, the deficiencies of the private market, the discontinuities of the private market, the lack of confidence that I mentioned are very apparent, and the potential for an institution in which people do have confidence, confidence in integrity and confidence in its competence, has suddenly become very important again in dealing with this, what is now a worldwide crisis, not just of economics but of confidence.

I am struck in that connection that while it's evident that the role of the Bank is risen and restored, I might say, during this period, it is very difficult to almost read the daily press without reading stories about corruption and how corruption is affecting development and how corruption is unfortunately undermining some of the trust I talked about in my own country and other developed countries, but it is really crucial, I think, as part of the development process, and that is becoming better and better understood, not just because of the--well, partly because of the crisis--that some of the cases of flagrant corruption are so evident, beyond anything the World Bank is doing, but its conflict with development and dealing with this crisis has become very evident.

So I just want to--I can't say it with the same eloquence--but the remarks that Bob just made about the critical role of integrating this effort about corruption into your operations and into your attitudes and into your performance seems to me if anything much reinforced from what we were able to say a year or two ago.

I can't tell you the degree to which this institution, which in some sense is a small part of the world economy important as it is, and the way you approach these problems will send a signal to other development institutions internationally and nationally, and I think the critical importance of that should not be forgotten. And I suspect that what has been going on in this institution is already affecting to some degree what other institutions are doing in this area, and I look at the World Bank to take a leadership role in making sure that happens, because it does have the respect of other development institutions and I think the respect of world leaders generally.

So I think I will cease and desist at that point and wish Leonard well in developing relationships with the rest of the Bank.

That other crucial recommendation that we made for the Oversight Board, the other one was that this isn't going to work unless the Management of the Bank itself takes responsibility for the anti-corruption program and for implementing the reforms that are proved necessary in particular countries as revealed by the investigations of INT. And to the extent that is happening, and I believe it is, I think the foundation is being laid for this institution assuming and maintaining the kind of leadership role that it really had earlier and can be strengthened and reinforced today in the midst of what is the biggest financial crisis of my lifetime, and my lifetime has been fairly long, so that covers a considerable range of activities.

Volcker Panel Full Report

Mr. Governance leaves the World Bank

Daniel Kaufmann's Farewell Lecture

Assorted reports

World of Work Report 2008

World Tariff Profiles

using knowledge to improve the development effectiveness

National Development Strategies Policy Notes

Anti corruption In Africa

2009 Education For All Global Monitoring Report focuses on inequalities

Review of Maritime Transport 2008

Have you heard about the CoST Initiative?

The Construction Sector Transparency Initiative (CoST) Criteria represent seven core requirements that will form the Pilot Phase. These criteria will be reviewed during the Pilot Phase, and will be amended, if necessary, before the design of CoST is finalised. The Criteria are:

1. For public-sector construction projects above an agreed threshold, there is regular disclosure of material project information to a wide audience in a publicly accessible, comprehensive and comprehensible manner.
2. Procuring bodies are subject to a credible audit process and, as far as possible, projects are subject to credible, independent financial and technical audits.
3. The adequacy of material project disclosures and audits are assessed by an independent, objective and technically competent Assurance Team, and reports published. The membership, terms of reference and activities of this team must be publicly disclosed.
4. The application of this approach is extended to the main procuring bodies responsible for public-sector procurement, and related contractors.
5. A Multi-Stakeholder Group (MSG) representing the interests of stakeholders has oversight of the implementation of CoST. The membership, terms of reference and activities of the MSG must be publicly disclosed.
6. Civil society is actively engaged as a participant in the design, monitoring and evaluation of this process.
7. A public, financially sustainable work plan for all the above is developed by the host government, including measurable targets, a timetable for implementation, and an assessment of potential capacity constraints.

Book Recommendation

Backstabbing for Beginners: My Crash Course in International Diplomacy
by Michael Soussan

Although Soussan can be described as a whistle-blower, his own role in all of this was not entirely innocent. Quite early on, Soussan receives a query from a Swiss magistrate puzzled by the fact that he is being asked to set up a contract for a “front” company (that is, one deliberately created to disguise the identity of the person behind the company) to handle one of the oil-for-food transactions: the use of such front companies was illegal under the terms agreed by the UN's Security Council. The Russians are the biggest beneficiaries of the scamming, profiting to the extent of $500m, some of which went directly to then President Putin's chief of staff (for subsequent disbursement to favoured politicians). Surprise, surprise, the UN official assigned to such legal issues is Russian. He tells Soussan that the Swiss magistrate's conscientious inquiry should be ignored - advice that our author goes along with, albeit with theatrically expressed misgivings.

After that, the use of front companies escalates out of all control. Some of the biggest personal beneficiaries turn out to be French officials attached to that nation's foreign ministry - which may help in retrospect to explain France's wholehearted sabotaging of Bush and Blair's attempt to gain UN support for the removal of Saddam by military means: not only would a switch from the sanctions policy put an end to the French profits from it, but if Saddam's ministries ever did fall to the Americans there might be some extremely embarrassing documents to be found in them.

Auditing a Dictator, and what you might find

From world's newest edition to democracy- the Maldives- an audit report of its president;

Between 2002 and 2005, at different times a total of Rf 7.2 million ($US 565,000) from the President’s Office budget and fund accounts were handed in cash to two senior officers of the Defence Ministry. Rf 6.3 million ($US 494,000) of this money was given for 'a special government purpose', and the remaining Rf 893,075 ($US 70,000) was given for the establishment and management of a student association in Sri Lanka.

There is no other written record of this money in the President’s Office. There is no way of determining what the required outcome was to be, and if it achieved that outcome. Therefore there is no benefit for the public from Rf 7.2 million given to the two officers of the Defence Ministry.

The business of pirates

His pirate team typically divvied up the loot this way: 20 percent for their bosses, 20 percent for future missions, 20 percent for the gunmen on the ship, and 20 percent for government officials.

-Somalia’s Pirates Flourish in a Lawless Nation

How does one reinforce an MTEF?

The MTEF needs to be reinforced. Introduced in 2003/04 as part of the fiscal restructuring project financed by the European Union, it has guided the ministry of finance and line ministries in preparing a three-year budget outlook on which one-year budgets are based. Still needed, however, are a public expenditure tracking system aligning the annual budget with the PRSA and better project evaluation. The monitoring system should also cover delivery of services.

The improvements in the transparency, quality, and depth of the budgeting process for ministries and departments envisaged by the MTEF would allow for better prioritization of spending. The composition of current expenditure in Swaziland is less growth-enhancing than that in other SACU members. A review of the capital expenditure program is needed to focus on projects directly linked to more productive areas with a high social rate of return (e.g., irrigation programs). Project evaluation is critical for ensuring that public investment projects do not jeopardize debt sustainability; priority should be given to high-return, progrowth, and propoor projects where bottlenecks to be resolved by such projects have been clearly identified.

Well-functioning PEM systems and the MTEF help improve governance by ensuring that public resources are used transparently and efficiently. Greater transparency, tighter rules governing budget procedures and reporting, and preparation of medium-term expenditure plans would not only enhance the productivity and accountability of public policy, they could have a positive impact on business climate.

Empirical evidence shows that good governance is essential if spending is to be effective. The adverse impact of corruption and poor governance on economic and social outcomes is well recognized Corruption tends to be associated with poorly enforced property rights, weak rule of law, and few incentives for productive investment, all which damage economic growth.

Source: Kingdom of Swaziland: Selected Issues and Statistical Appendix

Related;
Swaziland - Public expenditure review

MEDIUM TERM BUDGET POLICY STATEMENT

Public Sector Reform: What Works and Why?

Webcast of a recent discussion on IEG report on public sector reform;

On July 17th, 2008, the World Bank presented a panel discussion on a new report from the IEG entitled Public Sector Reform, What Works and Why? The event was moderated by Sanjay Vani, Lead Financial Management Specialist (OPCFM), who introduced the report and related its importance. Steven Webb, and Lead Author of the IEG report, addressed the group by explaining its objectives and his hopes that the report would stimulate discussion and new ideas for the future. Additionally, Webb stated that while they could not cover every aspect of the public sector, they did focus on four key areas including: public expenditure and financial management, civil service and administration, tax administration, corruption and transparency.

Clay Wescott, Author of the Public Finance Management background paper, then addressed public expenditure and financial management issues within the report. Wescott divided the report into two sections, the first being key debates between scholars and practitioners on public financial management and procurement. Second, he discussed the World Bank’s support to procurement and financial management. Finally, Wescott addressed issues he felt the paper failed to acknowledge, but were important for the future. Webb then spoke again, speaking to Wescott’s comments and additional issues on how to evaluate and understand progress within public sector reform.

James Brumbry, Lead Public Sector Specialist (PRMPS), covered four specific areas within the report. His comments touched on comparisons between public financial management and civil service reform, the operation of partnerships between the bank and countries and sequencing and transitions, the gap between promise and performance. Next, Devesh Mishra, Regional Procurement Manager (ECA), cited examples, challenges, and solutions in his discussion on procurement. Finally, Vani, addressed the reports findings, his concerns and then opened up the floor for discussion. Questions and discussion centered on sub-service delivery, report recommendations and procurement options including outsourcing.

An Anti-corruption Ministry?

An interview with Paraguayan President Fernando Lugo;

Transparency Watch: How do you plan to institutionalise the fight against corruption?

Fernando Lugo: First, as a basis, by auditing and establishing permanent controls by and within each of the government’s departments. Additionally, through the creation – which will be finalised at the appropriate time – of a National Anti-corruption Ministry, which will set the political and technical norms to elevate such a battle to the most institutionalised level possible.

via PSD Blog

Prime MInister fired for cooking

Thai Prime Minister Samak Sundaravej has been ordered to resign after being found guilty of violating the constitution over a TV cookery show.

His entire cabinet has also been ordered to step down.

Mr Samak was found to have violated a ban on ministers having outside interests by taking money from a private company to host a TV show...

In court in Bangkok, Judge Chat Chonlaworn said that Mr Samak had "violated Article 267 of the constitution" and that "his position as prime minister has ended".

-Court says Thai PM 'must resign'