Category Archives: Guest Commentary

Guest Post: High Level Reporting Mechanisms — A Promising New Tool To Fight Corruption

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GAB is delighted to welcome back Gönenç Gürkaynak (Managing Partner at ELIG Attorneys-at-Law in Istanbul and 2015 Co-Chair of the B20 Anti-Corruption Task Force), who, along with his colleagues Ç. Olgu Kama (ELIG partner and B20 Anti-Corruption Task Force Deputy Co-Chair) and Burcu Ergün (ELIG associate), contributes the following guest post:

One of the most promising new tools for eradicating public sector corruption, especially in public procurement, is the so-called High Level Reporting Mechanism (“HLRM”), a concept that began under the 2012 G20 process and that has been advocated by various international institutions (mainly by the Basel Institute and the B20). An HLRM provides a reporting channel that companies can use to report corrupt behavior they encounter during a public process, such as a tender. An HLRM presents an alternative mechanism to companies who need to deal with corruption allegations swiftly, rather than waiting for the outcome of a criminal investigation. An HLRM can also provide an enforceable independent mechanism to resolve commercial disputes in countries where criminal law enforcement is unduly influence by politics. To be clear, an HLRM does not aim to replace formal, judicial reporting channels. Rather, the HLRM is used for rapid response and is advantageous particularly in situations where a swift clarification is critical for business, as when allegations of corruption affect a tender process that is still open. By quickly resolving such claims, an HLRM can both deter potential perpetrators and will generate more public trust in the procurement process. Continue reading →

Guest Post: Is It Lawful Under UNCAC to Attach Conditions to Asset Returns?

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GAB is pleased to welcome back Robert Packer, from the University of Nanterre, who contributes the following guest post:

Article 57 of the United Nations Convention Against Corruption (UNCAC), which outlines provisions concerning the return of stolen assets, was the most contentious piece of the entire convention. A straightforward reading of Article 57 appears to require state parties to return assets “on the basis of a final judgement in the requesting State Party” (emphasis added). Often, however, a final judgement is not forthcoming. Article 57 addresses that contingency in its final paragraph, which provides for “agreements or mutually acceptable arrangements, on a case-by-case basis, for the final disposal of confiscated property.” That gives rise to another extremely contentious question, discussed previously on this blog (see here, here, and here): Is it legally permissible for states that confiscate the assets to attach conditions on their return? Continue reading →

Legal Strategies for Anticorruption Litigation by Civil Society

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GAB is pleased to welcome this guest post by Ken Hurwitz, Senior Legal Officer, Anticorruption, the Open Society Justice Initiative, announcing the publication of a series of papers on civil society and anticorruption litigation sponsored by the Initiative:

Those of us working with civil society groups that seek to combat transnational grand corruption have what might be called a love-hate relationship with the law. Yes, sometimes we can push magistrates and prosecutors to hold perpetrators to account, provided the right conditions are met. But at the same time we too often see existing law and law enforcement mechanisms protecting those responsible for high-level corruption:  bribing business actors, self-dealing kleptocrats, and the financial, legal and business intermediaries who often profit from and facilitate the crime.

This post introduces a series of papers the Open Society Justice Initiative  commissioned to explore how civil society can see that the law holds the corrupt to account rather than protects them from any sanction. Continue reading →

Guest Post: A Behavioral Science Approach to Preventing Corruption

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Johann Graf Lambsdorff, Professor of Economic Theory at Passau University, contributes the following guest post:

Some of our current approaches to corruption prevention perform badly. One reason is that many preventive methods are built on distrust towards officials and employees, who are seen as potentially corrupt actors. Yet research in behavioral science has provided us with impressive evidence that (many) people are (mostly) trustworthy, intrinsically motivated, and responsive to encouragement, praise, expressions of gratitude, and criticism. The problem with assuming that everyone is prone to engage in corruption if not carefully monitored is not only that prevention strategies premised on that assumption are very costly, but also that such approaches can be counterproductive: The atmosphere of distrust that they create can reduce interpersonal trust, intrinsic motivation, and the self-esteem that people get from contributing to public goods and working responsibly.

Economists have labelled these adverse collateral consequences “the hidden costs of control.” In a recent paper entitled “Preventing Corruption by Promoting Trust – Insights from Behavioral Science”, I explain how taking this phenomenon, as well related insights from behavioral sciences about creating positive incentives for good behavior, can help us design more effective policies. The paper illustrates this with the help of six examples: Continue reading →

Guest Post: A New Additional Indicator for Measuring Progress Toward SDG 16

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GAB is delighted to welcome back Dieter Zinnbauer, Programme Manager at Transparency International, who contributes the following guest post:

A very interesting discussion has evolved on this blog (see here, here, here, and here), and in the wider world (for example, see here), on about the indicators that should be used to measure progress toward the Sustainable Development Goals (SDGs) goals for improving governance and reducing corruption (Goal 16). There are already some very good suggestions on the table, including the use of Transparency International’s Global Corruption Barometer (GCB) to measure progress toward Target 16.5, on reducing corruption and bribery in all their forms. (TI has used the GCB since 2005 to compile one of the largest data troves on the detailed experience with corruption of households and individuals around the world. Using a GCB-type indicator for the bribery dimension of SDG 16.5 is supported by a wide variety of stakeholders, including the World Bank, UNDP, and Save the Children.)

Yet most of the indicators proposed so far, including the GCB, speak to very specific aspects of corruption (such as bribery) and don’t quite do justice to Goal 16’s broad ambitions and its emphasis on public accountability. So to spice up this stew a bit, let me suggest another possible indicator, one that complement to some of the ideas that are already on the table. My proposed indicator of progress toward SDG 16 is as follows:

What percentage of national-level parliamentarians (and perhaps top level members of the executive) have made assets, income, and interest disclosures (AIIDs) in a format that is publicly accessible online at sufficient level of detail, in timely manner, and in a machine-readable data format.

Using AIID as an additional SDG 16 indicator might at first seem to be a step backwards, since such an indicator measures “outputs” rather than “outcomes.” But let me try to convince you that in fact AIID would be an extremely useful complementary indicator for progress toward SDG 16: Continue reading →

Guest Post: Time to Go Beyond Anti-Corruption Agencies in Sub-Saharan Africa

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Njoya Tikum, United Nations Development Programme Regional Anti-Corruption Advisor for Africa and Yale University World Fellow, contributes the following guest post:

To achieve the aspiration for an inclusive and sustainable human development in Africa, as articulated in the Africa Union’s (AU) Agenda 2063 and reiterated in the Common Africa position on post 2015, African countries must reconsider their approach to the fight against corruption. In the last 15 years, the international community of anticorruption practitioners and advocates have induced African countries to establish anticorruption laws and bodies. With few exceptions, almost every African country—sometimes of their own volition and at times under immense pressure from international financial institutions—has embarked on wide-ranging reforms aimed at strengthening state accountability and eradicating corruption. However, these interventions have not resulted in any noticeable decline in corruption in most parts of Africa. Indeed, multiple indexes such as Transparency International’s Corruption Perception Index (CPI), the Mo Ibrahim Foundation’s Governance in Africa Report, and the Afrobarometer, indicate that corruption has been on the steady rise in Africa. The critical question, then, is why the legion of interventions aimed at combating corruption have not yielded positive outcomes.

With monumental trust deficit between the state and citizens in Africa, relying on Anti-Corruption Agencies (ACAs) to fight corruption can only yield limited results. For many countries, the establishment of an ACA was just another box to tick in order to get the next round of development assistance; the agencies themselves are mere window dressing, often suffering from institutional weaknesses and a lack of sufficient human and material resources. In several African countries, for example, ACA funding is tied to presidential benevolence instead of allocation through a transparent national budgetary processes. They are staffed by people with no technical expertise, sometimes including retired public servants who have no real zeal to rock the boat. In these countries, the modus operandi is to fight corruption in areas earmarked by the ruling political regime. In some countries, leaders have used the ACAs to further witch-hunts against political opponents.

How does Africa navigate itself out of this quagmire? To win the battle against corruption, Africa must move beyond offices and notepads to pragmatism and action, exploring new and innovative solutions:

  • To begin with, anticorruption strategies must be comprehensive, and must include governance innovations such as open data, transparency and accountability in business, procurement, construction, etc. As part of this comprehensive approach, resources from the national budget must directly be allocated for anticorruption capacity building as part of national development plans (NDPs). As with other parts of NDPs, annual and biannual benchmarks and targets must be established to track the progress of anticorruption initiatives.
  • In addition, African governments can and should make use of new information and communication technologies (ICTs) and citizen social accountability tools. For instance, a number of web based applications have been developed to report instances of corruption in real time, providing an opportunity for cheap, affordable solutions to citizens and quick responses/actions by anti-corruption agencies and integrity institutions. See, for example, the Huduma, Ushahidi in Kenya and Frontline SMS campaigns on drug stock outs in the region.
  • Civil society organisations (CSOs) must play an increased role as the true watchdogs of the people. Given these responsibilities, and the need for CSOs to be autonomous and sensitive to local needs, it is unfortunate that almost 90% of anticorruption CSOs in Sub-Saharan Africa are funded by international donor agencies. The funding strategy must be adjusted, with national governments and other non-state actors taking up more responsibility for supporting anticorruption CSO activities.
  • Speaking of the international community, development partners must switch from playing a hypocritical role where they condemn corruption in the public sector in Africa but do little to stop corruption by private sector groups from their countries. They must embrace a new form of partnership where the private sector, including banks and transnational companies, are held to the same standards as public institutions.

Guest Post: A “Right to Truth” in Grand Corruption Cases?

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Lucas E. Gómez and Ignacio A. Boulin Victoria of the Latin American Center for Human Rights (Centro Latinoamericano de Derechos Humanos, CLADH) in Argentina contribute the following guest post:

Argentina, 1978. In the midst of terror, a group of parents searching for their children finds no answer in domestic justice. Thousands of habeas corpus petitions are rejected by judges. The military dictatorship denies having any clue about them: Videla, the leader of the government, declares: “they are neither dead, nor alive; they are disappeared.” These parents respond with innovative strategies (maybe without being aware of the innovation): They start sending letters of complaint (over a thousand) to the Inter-American Commission on Human Rights (IAHCR). The result: the IACHR visits Argentina and issues a 1980 report recognizing widespread human rights violations; the report has an enormous impact both inside and outside of Argentina. Yet by 1990, these parents still don’t know what happened to their children. Despite the return to democracy in 1983, and some trials of military officers and terrorists shortly thereafter, in 1986 and 1987 Congress passes two acts restricting the criminal prosecution of military officers, and a few years later, President Menem pardons both military hierarchies and terrorists, releasing them from jail.

Argentina, 1995. Some of these parents devise a new strategy: Even if criminal prosecution is forbidden, they assert that there is still a “right to the truth”—a right to know what happened to the disappeared. Though Argentina’s Supreme Court rejects the claim, the parents again take the case to the IACHR. Finally, in 1999, Argentina settles the IACHR case, recognizing the existence of the right to truth. This development ultimately led to the re-opening of the criminal prosecutions against military officers: Once information about the atrocities came out, society started mobilizing for justice. The right to truth put in front of people’s eyes the extent and gravity of the crimes, and the identities of both the victims and the perpetrators. Continue reading →

Guest Post: U.S. Implementation of the EITI–Good Progress, But Needs Improvement

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GAB is delighted to welcome back Daniel Dudis, Senior Policy Director for Government Accountability at Transparency International-USA, who contributes the following guest post:

The United States recently published its first narrative report and payment reconciliation report under the Extractive Industries Transparency Initiative (EITI). The EITI was founded in 2003 to help end the “resource curse” by which the revenues generated from natural resource extraction benefit a small group of politically-connected insiders and do nothing to improve the lives of the vast majority of people in many resource-rich countries. The concept that underpins the EITI is simple: by requiring participating resource extraction companies to report the payments they make to all levels of government in a country, while simultaneously requiring participating governments to report the revenues (including royalties, bonuses, rents, penalties, fees, and corporate income taxes) received from those companies, one can compare the reported figures and bring transparency to an often opaque sector. This transparency can in turn be used to hold governments accountable for how they distribute and spend resource wealth. Membership in the EITI is voluntary; there are currently 49 countries participating. The EITI is governed at both the international and national levels by multi-stakeholder groups composed of representatives of government, civil society, and industry.

The recently published U.S. EITI report covers payments made and received in 2013. There is much valuable information in the both report and the accompanying U.S. EITI website. The Department of Interior is to be commended for publishing 100% of payments it received in 2013 from companies producing on federal lands and in federal waters (totaling approximately $12 billion), as well as state-by-state royalties for 18 resource-rich U.S. states. The report also provides detailed information on natural resource extraction governance at the federal, state, and tribal levels, statistics on the size of the extractives sector (in terms of economic output and employment), as well as a valuable assessment of the revenue sustainability in 12 resource-dependent counties.

That said, there are a couple of important respects in which the report falls short: Continue reading →

Guest Post: Empowering Youth To Fight Corruption — Examples from Kosovo

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Shqipe Neziri, Manager with UNDP’s anticorruption program in Kosovo, contributes the following guest post on behalf of UNDP-Kosovo. [Note: For purposes of this post, in reflection of the fact that Kosovo is not a member of the UN, references to “Kosovo” should be understood to be in the context of Security Council Resolution 1244 (1999)):

Young people are often forgotten victims of corruption, left without an opportunity to voice their concerns, to help make positive changes, or to enhance their skills and become active citizens for a better future. Yet young people can play an important role in the fight against corruption. They tend to be more open to wide-scale socio-political transformation and have less vested interested in maintaining the status quo. Moreover, the values and attitudes of young people today will shape the values of the society tomorrow. The question is how to harness then energy and innovation of young people, and to provide the right kinds of support.

UNDP’s recent efforts in Kosovo may provide an example of how to foster a youth-based anticorruption movement. Corruption in Kosovo is a serious problem, viewed by Kosovars as the third-most serious problem, after poverty and unemployment. Kosovo’s population skews young –half of its 2 million citizens are under the age of 30 – and Kosovo’s young people are frustrated by corruption and lack of economic opportunity. (The overall unemployment rate is 35%, while unemployment rate of youth aged 15-24 years is 60%.) For several years, UNDP Kosovo has been placing youth at the core of its development support. Through our anticorruption efforts we have been helping to strengthen the voice of the youth and to foster their participation in decision making through the use of traditional and social media, and working to make institutions more responsive to youth.

What are some of our most successful youth-focused anticorruption initiatives? Here are some examples, which might serve as useful models for others: Continue reading →

Guest Post: Spend Anticorruption Resources on Professional Training, Not Postgraduate Education

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Alan Doig, Professor at Newcastle Business School, Northumbria University, contributes the following guest post:

Resources for anticorruption are scare; how should they be spent? In particular, how should the international community (national aid agencies, international institutions, and private donors and foundations) allocate resources for education and training programs for anticorruption professionals?

Although “education” and “training” are often lumped together as one category, in fact they are quite different. Education is about the acquisition of knowledge, with the accompanying change in awareness and understanding, through the provision and assimilation of information. Training involves the acquisition of the applied knowledge and technical skills required to improve individual and organizational performance in the workplace, invariably in relation to specific roles or functions. In terms of impact, education would look for longer-term benefits and impact while training can be judged more immediately by what the person does once trained.

The question of how to spend the even more limited funds that are not tied to the big spenders (the multilateral and bilateral donors) brings this issue into sharp focus, and raises the question of whether too much too much is allocated to postgraduate anticorruption education, at the expense of practical anticorruption training. Continue reading →