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Slide 1 - 1 Corruption October 26th 2011 Dr Robert Barrington Director of External Affairs, Transparency International UK
Slide 2 - 2 Agenda Transparency International Cultural perspectives Measuring corruption Academics in policy and public debate
Slide 3 - 3 Transparency International
Slide 4 - 4 Transparency International Founded in 1993 Chapters in 90 countries Specialist anti-corruption NGO
Slide 5 - 5 TI National Chapters around the world
Slide 6 - 6 Transparency International’s approach Zero tolerance Corruption has victims Any bribery embeds corruption in the system Fighting corruption often requires collective action to achieve systemic change
Slide 7 - 7 Victims of corruption overseas Corruption… raises average Kenyan family’s annual cost of living by 15% [source: East Africa Bribery Index, Transparency International] Raises project costs for companies by at least 10% [source: Global Corruption Report 2009]
Slide 8 - 8 Implications of corruption ‘Corruption is bleeding Africa to death and the cost is borne by the poor. Some estimates put money corruptly leaving the continent at greater than that arriving as aid. Much of the money is banked in Britain or our overseas territories and dependencies and sometimes British citizens or companies are involved in corrupt deals.’ Hugh Bayley MP, Chair, House of Commons Africa All Party Parliamentary Group, 29 March 2006 ‘As a result of corruption, private mansions are being built instead of bridges; swimming pools are dug instead of irrigation systems; funds destined to run hospitals and buy medicines find their way into the pockets of corrupt officials; economic growth is held back; and public trust in government is undermined.’ OECD/ADB ‘Curbing Corruption in Public Procurement in Asia and the Pacific’
Slide 9 - 9 Cultural perspectives
Slide 10 - 10 TI definition of corruption ‘Corruption is the abuse of entrusted power for private gain’
Slide 11 - 11 International legal framework United Nations Conventions Against Corruption (UNCAC) OECD Anti-Bribery Convention US FCPA and the UK Bribery Act
Slide 12 - 12 Common understanding Business Principles for Countering Bribery Experience of TI Chapters Arab spring
Slide 13 - 13 Islamic scholarship “Allah’s curse be upon the bribe-giver and bribe-taker” Hadith 1595 in the ‘Sunan of Abu Dawood’
Slide 14 - 14 How does bribe-paying happen? Copyright Transparency International UK 2011
Slide 15 - 15 Is it just overseas? A leaked Metropolitan Police investigation in 2006 estimated that there are around 1000 corrupt prison officers currently working, with a further 600 officers being involved in an inappropriate relationship with a prisoner. In 2009 alone, there were 10,090 prosecutions under the 2006 Fraud Act, with no indication as to how many may have included some elements of corruption. It is currently estimated that 38,000 people are involved in organised crime in the UK, and such activities cost the economy anywhere between £20 and £30 billion per year. A 2006 survey for the construction sector found that 41% of respondents had personally been offered a bribe at least once in their career.
Slide 16 - 16 Is corruption always illegal? Sometime illegal; sometimes unethical but legal: MPs’ expenses Revolving door Political party donations Unregulated political lobbying
Slide 17 - 17 Measuring corruption
Slide 18 - 18 Measuring corruption Why measure it? What to measure? Who should measure it? How to measure? How to present the data? What to do with the data?
Slide 19 - 19 Corruption Perceptions Index 2010
Slide 20 - 20 Corruption Perceptions Index Ranks countries 1-180 Scores countries 0-10 Measures perceptions of public sector corruption 133 countries score less than 5 out of 10 2010 best performers: NZ, Denmark, Singapore, Finland, Sweden 2010 worst performers: Somalia, Myanmar, Afghanistan Undertaken annually
Slide 21 - 21 Global Corruption Barometer Citizen’s view of corruption in their own countries Opinion survey of 77,000 citizens conducted in c.75 countries Every two years
Slide 22 - 22 How extensive is bribe-paying? Global Corruption Barometer [Transparency International 2010]
Slide 23 - 23 Perceptions and reality: CPI vs GCB?[source: Corruption Perceptions Index & Global Corruption Barometer 2010]
Slide 24 - 24 Bribe Payers Index 2008 Country’s companies least likely to pay bribes Country’s companies most likely to pay bribes 22 countries ranked representing 75% of global exports of goods and services and outflows of foreign direct investment in 2006. Based on responses of 2,742 senior business executives from companies in 26 developed and developing countries, chosen by the volume of imports and inflows of foreign direct investment. Conducted every two years
Slide 25 - 25 Bribe Payers Index: high-risk sectors Bribery of Public Officials by Sectors 2008 Worst performers Public works contracts & construction 5.2 Real estate & property development 5.7 Oil & gas 5.9 Heavy manufacturing 6.0 Mining 6.0 Best performers Banking & finance 7.1 Fisheries 7.1 likelihood of companies in each sector to bribe public officials [possible scores range from 0 to 10. 0 represents the view that ‘bribes are almost always paid’ and 10 that ‘bribes are never paid’ by a sector] – extract below of best and worst performers. Source? TI Bribe Payers Index 2008
Slide 26 - 26 Measuring companies
Slide 27 - 27 TRAC report Survey of 500 companies globally Data to mid-2007, publicly-available data Rated as 1-5 stars 7 companies scored 5 stars 151 companies scored 1 star Scored out of 50 26 companies scored 35 or more 108 companies scored less than 3 out of 50 75 companies scored 0 out of 50
Slide 28 - 28 National Integrity Study (NIS)
Slide 29 - 29 Corruption in the UK
Slide 30 - 30 Corruption in the UK
Slide 31 - 31 Academics and public policy
Slide 32 - 32 Academics – how? Integrate into university research and teaching Conferences Summer schools Specialist MA courses Anti-Corruption Research Network (ACRN) Calls for proposals EU DFID TI Responses to enquiries Scope for new publications 90 projects identified for defence sector
Slide 33 - 33 Academics - what? Theories of change Data to guide responses and priorities What is happening? Where is it happening? Impacts
Slide 34 - 34 www.transparency.org www.transparency.org.uk