How Open Data Will Prevent Corruption in Ukraine Reconstruction

Ukraine is creating the world’s most transparent system for the procurement of public works. To assure citizens and donors that the billions needed to reconstruct the nation’s infrastructure will be wisely and honestly spent, it has developed DREAM, the Digital Restoration EcoSystem for Accountable Management. DREAM will provide citizens, investors, and donors access to microlevel data on every single reconstruction project — from the initial feasibility study through the procurement process to the completion of construction.

Analysis of DREAM data will show when bills of quantity are unbalanced, when bids were likely collusively prepared, and suggest if not reveal other signs of project-level corruption.  Analysis of DREAM data across all procurements will disclose if cost estimates vary too much from the bid price and the final price, suspicious patterns in initial versus actual completion date, variation orders, or subcontracting, and similar indicators of possible weaknesses in the procurement and oversight of projects.

In a talk next week I will recommend the Ukrainian government use DREAM data to conduct the analyses listed below. Surely there are more I am missing. Comments/additions welcome.

Continue reading

Public Funding of Political Parties Is Unlikely To Reduce Corruption

Today’s guest post is from Dr. Sergiu Lipcean of the University of Bergen and Professor Iain McMenamin of Dublin City University.

Does public funding of political parties reduce corruption? Intuitively, there are good reasons to believe that it does. After all, when parties receive a substantial portion of their funding from public sources, they are less dependent on private contributions—both legal and illegal. That straightforward logic has led many scholars and prestigious organizations to recommend higher levels of public funding for parties and candidates. The Council of Europe’s Committee of Ministers, for example, recommends public funding of political parties and electoral candidates as an anticorruption measure, and the OECD, while not explicitly using the language of corruption, recommends public funding as part of a holistic system of political finance regulation to limit policy capture.

But the empirical evidence on the anticorruption impact of public funding for parties is surprisingly thin, and results that initially seem to show the sort of effect described above often turn out to be quite fragile and unreliable. We recently published our own study, which examines how the level of public funding for political parties affects enterprise managers’ perceptions of the impact of payments to government officials, using World Bank survey data from 27 post-communist countries. Although we find an association between higher public funding and lower corruption, this result is extremely sensitive to minor changes in method, and the results are too uncertain to recommend public funding as a policy intervention to reduce corruption.

We suspect that one of the reasons that empirical research has failed to find robust anticorruption effects of public funding is that many of the unlawful payments to politicians are used for their personal consumption, rather than for political purposes. As noted above, the economic logic of the view that public funding reduces corruption is that if parties can rely more on public funding for election campaigns and other legitimate political expenses, they will be less tempted to accept bribes, because they will have less need to fill their campaign coffers with dirty money. But if much of the illegal money given to politicians is used for their personal gratification, rather than for political purposes, than public funding of campaigns will not have much of an effect.

This is not to say that countries should not significantly increase public funding of political parties. Corruption is enormously damaging, and even very high levels of public funding for parties are unlikely to have much impact on most national budgets, so even the possibility that significant public funding might reduce corruption, at least in some contexts, may make this investment of resources worthwhile, even if we lack strong direct evidence of effectiveness. And of course there are many other reasons, besides anticorruption, to favor public funding of political campaigns. That said, an honest appraisal of the existing research compels the conclusion that, to date, the evidence that public funding will substantially reduce corruption is weak and speculative, and we should therefore not get too excited about its potential as a general anticorruption measure.

New Podcast Episode, Featuring John Githongo

A new episode of KickBack: The Global Anticorruption Podcast is now available. In this episode, host Liz David-Barrett interviews John Githongo, the legendary Kenyan anticorruption activist John Githongo about his extraordinary career, including his background in journalism, his government service as Kenya’s Permanent Secretary for Governance and Ethics in the early 2000s, and his role as a civil society activist, including his work with Transparency International. The conversation also covers recent developments in Kenya, and what lessons can be learned from Kenya’s anticorruption efforts, particularly the the role of anticorruption institutions. You can also find both this episode and an archive of prior episodes at the following locations: KickBack was originally founded as a collaborative effort between GAB and the Interdisciplinary Corruption Research Network (ICRN). It is now hosted and managed by the University of Sussex’s Centre for the Study of Corruption. If you like it, please subscribe/follow, and tell all your friends!

New Podcast Episode, Featuring Magnus Öhman

A new episode of KickBack: The Global Anticorruption Podcast is now available. (This one actually came out a couple weeks ago, so it’s not so new–apologies for the tardiness in posting this announcement.) In this episode, hosts Nils Kobis and Christopher Starke, interview Magnus Öhman, senior political finance adviser at the International Foundation for Electoral Systems, about challenges associated with the problem of illicit political finance, as well as broader issues concerning declining political trust and democratic backsliding. The interview also touches on the potential of artificial intelligence to improve political transparency. You can also find both this episode and an archive of prior episodes at the following locations: KickBack was originally founded as a collaborative effort between GAB and the Interdisciplinary Corruption Research Network (ICRN). It is now hosted and managed by the University of Sussex’s Centre for the Study of Corruption. If you like it, please subscribe/follow, and tell all your friends!

Trump Indictment’s Lesson for Prosecutors Charging Senior Political Figures

At long last federal prosecutors have filed charges against former President Donald Trump for crimes arising from his unlawful possession of classified documents. The charges are contained in what is called an indictment in the United States.

One aspect of the indictment merits the attention of prosecutors everywhere. Or at least for those considering charging senior government officials or ex-officials who, like Trump, can be expected to try to sway public or elite opinion by any means to escape convictions.

The Trump indictment is what American prosecutors call a “speaking indictment.”

Continue reading