Combating Corruption (2022)

Combating Corruption

The World Bank Groupconsiders corruption a major challenge to its twin goals of ending extreme poverty by 2030 and boosting shared prosperity for the poorest 40 percent of people in developing countries.

Corruption has a disproportionate impact on the poor and most vulnerable, increasing costs and reducing access to services, including health, education and justice. Corruption in the procurement of drugs and medical equipment drives up costs and can lead to sub-standard or harmful products. The human costs of counterfeit drugs and vaccinations on health outcomes and the life-long impacts on children far exceed the financial costs. Unofficial payments for services can have a particularly pernicious effect on poor people.

Empirical studies have shown that the poor pay the highest percentage of their income in bribes. Some studies have suggested that the poor may even be preyed upon since they are seen as powerless to complain. Every stolen or misdirected dollar, euro, peso, yuan, rupee, or ruble robs the poor of an equal opportunity in life and prevents governments from investing in theirhuman capital.

Corruption erodes trust in government and undermines the social contract. This is cause for concern across the globe, but particularly in contexts of fragility and violence, as corruption fuels and perpetuates the inequalities and discontent that lead to fragility, violent extremism, and conflict.

Corruption impedes investment, with consequent effects on growth and jobs. Countries capable of confronting corruption use their human and financial resources more efficiently, attract more investment, and grow more rapidly.

The World Bank Group recognizes that corruption comes in different forms. It might impact service delivery, such as when an official asks for bribes to perform routine services. Corruption might unfairly determine the winners of government contracts, with awards favoring friends, relatives, or business associates of government officials. Or it might come in the form of state capture, distorting how institutions work and who controls them, a form of corruption that is often the costliest in terms of overall economic impact. Each type of corruption is important and tackling all of them is critical to achieving progress and sustainable change.

(Video) How to combat corruption

Making inroads against corruption often requires determined efforts to overcome vested interests. Transparency and open governance are typically part of the story, but rarely the whole story. When popular disaffection with corruption and cronyism reaches a boiling point, the political rewards to addressing corruption can exceed the costs of upsetting interests.

Short of sweeping reform efforts, progress can be achieved through better and more open processes, professional accountability systems, and the use of the latest advanced technologies to capture, analyze, and share data to prevent, detect, and deter corrupt behavior.

The World Bank Group leverages innovative technologies to strengthen public sector performance and productivity, confront corruption and to help foster greater trust and accountability, particularly in more fragile environments.

Much of the world's costliest forms of corruption could not happen without institutions in wealthy nations: the private sector firms that give large bribes, the financial institutions that accept corrupt proceeds, and the lawyers, bankers, and accountants who facilitate corrupt transactions. Data on international financial flows shows that money is moving from poor to wealthy countries in ways that fundamentally undermine development.

Approach:

Corruption is a global problem that requires global solutions. The World Bank Group has been working to mitigate the pernicious effects of corruption in its client countries for more than 20 years.

The Bank Group works at the country, regional, and global levels to help build capable, transparent, and accountable institutions and design and implement anticorruption programs relying on the latest discourse and innovations. The World Bank Group’s work revolves around sustainability and changing outcomes by helping both state and non-state actors establish the competencies needed to implement policies and practices that improve results and strengthen public integrity.

Additionally, the World Bank Group works with the public and private sectors as well as civil society to support efforts to prevent corruption, improve remedies to address wrongdoing when it occurs as well as work towards improving behaviors, norms, and standards needed to sustain anticorruption efforts.

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The World Bank Group has includedGovernance and Institutions as a theme in IDA19– its Fund for the Poorest Countries – in order to focus global attention on the issue.

Fighting corruption within World Bank Group-financed projects:

The World Bank Group's approach to fighting corruption combines a proactive policy of anticipating and managing risks in its own projects. The Bank Group subjects all potential projects to rigorous scrutiny and works with clients to reduce possible corruption risks that have been identified. The Bank Group’s independent Sanctions System includes theIntegrity Vice Presidency, which is responsible for investigating allegations of fraud and corruption in World Bank-funded projects. Public complaint mechanisms are built into projects to encourage and empower oversight, and projects are actively supervised during implementation.

When allegations of fraud and corruption are substantiated, companies involved in misconduct are debarred from engaging in any new World Bank Group-financed activity. Concerned governments receive the findings of World Bank Group investigations. To date, the World Bank Group has publicly debarred or otherwise sanctioned more than 1,000 firms and individuals.

In fiscal year 2020, the World Bank Group debarred or otherwise sanctioned 49 firms and individuals and recognized 72 cross-debarments from other multilateral development banks. At the end of fiscal year 2020, 372 entities have been sanctioned with conditional release, a process by which firms are afforded the opportunity to improve their internal compliance programs as part of their sanction.

Reaffirming commitment to helping countries address corruption

When approaching anticorruption at the country level, it is important to put in place institutional systems and incentives to prevent corruption from occurring in the first place. Prevention also calls for credible deterrence, relying on accountability and enforcement mechanisms sufficiently strong to send a message to potential wrongdoers of the potential cost of their misconduct. At the same time, we must recognize that the local political and social context influences both the level of corruption and the reform approaches likely to meet with success or failure.

The World Bank has recently launched a set of Anticorruption Initiatives to reaffirm its commitment to helping countries address corruption, addressing changes in globalization, technology, social science, and other factors. The Anticorruption Initiatives broaden the Bank’s focus beyond developing countries to also include financial centers, take on the politics of corruption more openly than before, harness new technologies to understand, address, and prevent corruption, and integrate the insights of behavioral social science.

COVID-19 pandemic has resulted in large scale emergency spending by governments, sometimes without adhering to the regular checks and balances. While speed is understandable, without proper controls it exposes governments to a variety of corruption risks that may undermine the effectiveness of their responses. The strains placed on the public sector in responding to the current situation present enormous opportunities for corruption to flourish. Corruption can lead to the theft, wastage, and misuse of scarce resources. It can also entrench elite privilege and inequality, undermining institutions of accountability with lasting consequences. A full description of the risks and the Bank’s policy advice to counteract them are set out in a policy note: ‘Ensuring Integrity in the Government’s Response to COVID-19’, part of a series of policy notes to assist governments in improving governance during the COVID-19 crisis.

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As countries embark on a road to a more resilient and inclusive economy, policy makers face the challenge of reactivating the economy in the context of huge fiscal stress compounded by the accumulation of large amounts of debt. Prudent use of scarce resources in a transparent manner is critical. This presents an opportunity to build a clean, accountable and transparent government by introducing highest standards of integrity through plugging entry points that allow corruption to flourish. In the context of tight fiscal space over the coming years it is even more important than before to spend the billions of dollars lost to corruption on reviving the economy and ensuring that the poor and vulnerable groups who suffer disproportionately due to corruption are protected.

Recognizing that attempts to control corruption have brought important lessons, the World Bank Group released in September 2020 a global report drawing on case studies of various tools and approaches. Enhancing Government Effectiveness and Transparency: The Fight Against Corruption covers five key thematic areas: public procurement, infrastructure, state-owned enterprises, customs administration and service delivery, and cross-cutting themes such as open government initiatives and GovTech, with case study examples from around the world.

Selected country examples include:

Afghanistanis making inroads to root out corruption, improve the management of its public finance, and make its procurement system more transparent. The country’s National Procurement Authority (NPA) was instrumental in developing a transparent procurement system. The early data and information on procurement processes is accessible to everyone on the NPA website. Robust oversight and monitoring have helped the government save about $270 million.

In Brazil, the World Bank helped develop an Artificial Intelligence System that identifies 225 red-flags of potential fraud in public procurement processes and can help improve expenditures. The system has, so far, led to the identification of hundreds of high-risk cases, firms with high likelihood of being shell companies, linked firms competing against each other, public servants working at the same governmental agency that has executed the contract, among others.

In Kenya, a World Bank judicial project helped establish an advanced data analytics system which is being used to monitor performance of courts, judges, and court personnel. Operating as part of an explicit anticorruption effort, the performance management system is being used in combination with surveys of court users to identify and address corruption risks.

In Mongolia, the World Bank supported the government’s efforts to support open budgets, including the publication of user-friendly Citizen’s Budgets, updating the online portals for accessing expenditure information, and others.

In Serbia, the Bank is helping build a participatory platform to convene stakeholders and identify and follow up on specific actions in order to improve transparency, integrity and good governance to support inclusive growth.

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In Somalia, the World Bank in collaboration with the IMF and other partners has supported the creation of a joint Somalia Government - international donor advisory group that has been reviewing all substantial government contracts that have not been appropriately awarded, leading to those contracts being halted and reset. In one case, the restructuring and competitive tendering of the largest goods contracts that the state had - for military food supplies – saved over 40%.

In Ukraine, the World Bank worked with other partners to promote the creation of a specialized anticorruption court, and helped create a comprehensive electronic asset declaration system.

Regional and Global initiatives:

The World Bank Group:

  • Provides leadership in creating international transparency standards (Global Initiative on Financial Transparency,Open Contracting Standards, Asset Disclosure Standards) and support for the implementation of open government (through support for theOpen Government Partnership).
  • Actively assists in the implementation of transparency and accountability efforts such asExtractive Industries Transparency Initiative(EITI),Publish What You Pay,Fisheries Transparency, Anti-Money Laundering rules.
  • Strategically supports and engages in international alliances and regional anticorruption forums, such as the International Corruption Hunters Alliance and LAC Regional Parliamentary Network.
  • Engages in international forums on anticorruption including the G20 Anti-Corruption Working Group, the Financial Accountability Task Force, and the OECD Anti-Corruption Task Team.
  • Assists countries with the coordination and mutual legal assistance required to identify and return stolen assets, through itsStAR initiativein partnership with United Nations Office on Drugs and Crime (UNODC).

Helps countries identify possible source of illicit flows and how to address them through National Risk Assessments, completed or ongoing in over 100 countries.

Last Updated:Oct 19, 2021

SELECTED BLOG POSTS

  • Working in partnership is key to fighting corruption
  • Corruption has modernized, so should anticorruption initiatives
  • Can corruption risks be mitigated without hindering governments’ COVID-19 response?
  • Addressing corruption risks in the age of COVID-19: Preventing and managing conflicts of interest in the public sector
(Video) Combating the Corruption Achievement WoW

FAQs

How can we overcome corruption? ›

Report corruption
  1. expose corrupt activities and risks that may otherwise remain hidden.
  2. keep the public sector honest, transparent and accountable.
  3. helps stop dishonest practices.
  4. ensure that public sector employees act in the public interest.

What is corruption easy answer? ›

Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain.

Why is it important to solve corruption? ›

The impacts of corruption disproportionately affect the most vulnerable people in society. Widespread corruption deters investment, weakens economic growth and undermines the rule of law.

How can we prevent corruption in public sector? ›

Here are five ways that citizens and governments can make progress in the fight against corruption:
  1. End impunity. ...
  2. Reform public administration and finance management. ...
  3. Promote transparency and access to information. ...
  4. Empower citizens. ...
  5. Close international loopholes.

What is the conclusion of corruption? ›

By addressing corruption through a human rights framework “the social impact of corruption is made visible; this generates awareness in society about the consequences of this scourge and creates new alliances in the fight against corruption” (UNHRC, 2015, p.

What are main causes of corruption? ›

Causes of public sector corruption
  • Country size. ...
  • Country age. ...
  • Resource curse. ...
  • Political instability. ...
  • Wages. ...
  • Lack of rule of law. ...
  • Failure of governance. ...
  • Size of government.

What are the impacts of corruption? ›

Corruption erodes the trust we have in the public sector to act in our best interests. It also wastes our taxes or rates that have been earmarked for important community projects – meaning we have to put up with poor quality services or infrastructure, or we miss out altogether.

How do you conclude a corruption essay? ›

In your corruption essay conclusion, you should restate the thesis and summarize your findings. You can also provide recommendations for future research on the topic. Keep it clear and short—it can be one paragraph long. Don't forget your references!

Why is it important to fight the prevalent corruption in our society? ›

Corruption has a disproportionate impact on the poor and most vulnerable, increasing costs and reducing access to services, including health, education and justice.

Why is anti-corruption education important? ›

With anti- corruption education is expected to give awareness and change to all the younger generation to understand and realize the importance of having the character of anti-corruption and can mengnglemlem in society. Corruption is considered a major disadvantage to development [1].

How corruption is a threat to development? ›

"Corruption is a global threat. It is a serious roadblock to economic development," said the Executive Director of the United Nations Office on Drugs and Crime (UNODC), Yury Fedotov. "Corruption aggravates inequality and injustice, and undermines stability, especially in the world's most vulnerable regions."

What causes corruption in the workplace? ›

A corporate culture of corruption is brought about by a multiplicity of factors such as competition and growth orientation, complicated leadership structures, and high levels of autonomy and discretion, with a lack of transparency, accountability and ethics.

What is types of corruption? ›

The most common types or categories of corruption are supply versus demand corruption, grand versus petty corruption, conventional versus unconventional corruption and public versus private corruption.

What is corruption in the workplace? ›

In a business context, corruption can include false or misleading financial reporting, procurement fraud, embezzlement, bribery, and a range of other acts.

How does the corruption affect the economy? ›

Corruption diverts talent and resources, including human resources, towards “lucrative” rent-seeking activities, such as defence, rather than productive activities. business, ultimately raising production costs and reducing the profitability of investments.

What is the role of accountability in fighting corruption? ›

Accountability can reduce corruption and other abuses, assure compliance with standards and procedures, and improve performance and organizational learning [33].

How does corruption affect good governance? ›

Corruption, in turn, can prevent good governance principles and structures from being put in place, or enforced. Violations of the principles of transparency, accountability and rule of law appear to be most closely associated with corruption.

What is corruption essay in English? ›

Essay on Corruption – Corruption refers to a form of criminal activity or dishonesty. It refers to an evil act by an individual or a group. Most noteworthy, this act compromises the rights and privileges of others. Furthermore, Corruption primarily includes activities like bribery or embezzlement.

What makes society corrupt and unfair? ›

Thinking that we can take from the environment and destroy it indiscriminately leads us to corruption and inequity. Was this answer helpful?

What is corruption in the public sector? ›

improper or unlawful actions by public sector staff or agencies. inactions of public sector staff or agencies. actions of private individuals who try to improperly influence public sector functions or decisions.

Is corruption a crime? ›

Economic globalization has made corruption a borderless crime. The competitive world of international business can leave companies exposed to bribes and fraudulent financial practices. Corrupt transactions can cross multiple jurisdictions, making the ensuing police investigation both time-consuming and complex.

How does corruption affect human rights? ›

Corruption in the judicial sector damages the right to a fair trial, as corruption erodes the independence, impartiality, and integrity of the judiciary. The lack of independence of judges, prosecutors and lawyers directly harms the right to a fair trial.

How does corruption affect the development of a country? ›

Corrupted economies are not able to function properly because corruption prevents the natural laws of the economy from functioning freely. As a result, corruption in a nation's political and economic operations causes its entire society to suffer.

How does corruption affect the environment? ›

Key findings. Corruption hinders greenhouse gas reduction by increasing the transition costs to low-carbon alternatives, especially in developing countries. Corruption is one of the drivers behind deforestation and improper use of natural resources.

How do you start a corruption speech? ›

I welcome you all present here. I am here to present a speech on Corruption. By corruption, we mean that any dishonest or immoral behavior or activities that result in the gain of some powerful organization or people. Thus, corruption often results in loss to the weaker section of the society or organization.

What are corruption activities? ›

Corruption can informally be described as the act of unfairly or illegally influencing a decision-making process through the giving or receiving of a benefit (gratification) for the person making the decision or a third party connected to the decision maker.

How can you as a student prevent corruption practices? ›

Anti-corruption strategies in education can make use of (a) transparency-promoting tools, such as ICTs, participatory budgeting, Public Expenditure Tracking Surveys, and social audits, and (b) accountability-promoting tools, such as performance-based contracting, teacher codes of conduct, community monitoring, ...

How corruption has affected education? ›

In the education system, corruption has taken its grip by the bribes being paid for admission or good grades and many more other ways such as embezzlement of funds allocated to purchase teaching material or for the building of the school's infrastructure.

How can we eradicate corruption in education? ›

5 ways universities can support anti-bribery anti-corruption
  1. Governance: embrace anti-corruption initiatives. ...
  2. Education: mainstream ethics courses. ...
  3. Anti-corruption training. ...
  4. Promote the business case against corruption. ...
  5. Citizenship: support collective actions against corruption.
30 Mar 2021

How does corruption affect poverty? ›

Corruption increases income inequality and poverty through lower economic growth; biased tax systems favoring the rich and well-connected; poor targeting of social programs; use of wealth by the well-to-do to lobby government for favorable policies that perpetuate inequality in asset ownership; lower social spending; ...

How does corruption keep our country underdeveloped? ›

Corruption distorts incentives and market forces, leading to the misallocation of resources. Corruption diverts talent and resources, including human resources, towards “lucrative” rent-seeking activities, such as defense, rather than productive activities.

How does government corruption affect business? ›

In business, corruption can affect everything from licenses to contracts to lawsuits. Corruption means that business deals often contain hidden prices, competition is not what it seems, and partnerships are chosen for the sake of expediency rather than quality.

Why corruption is an ethical issue? ›

Corruption presents an ethical dilemma because it involves an assurance problem; however, it can be mitigated or possibly remedied by adopting strategies that incorporate Integrative Social Contract Theory.

What are the effects of corruption in an Organisation? ›

This will result in financial damage. Examples of such is a damaged reputation of the business, which causes fewer business opportunities. Following this loss of finances, the damage to morale will affect employee productivity. A loss in productivity leads to further losses in profits.

How is corruption defined in law? ›

corruption, Improper and usually unlawful conduct intended to secure a benefit for oneself or another. Its forms include bribery, extortion, and the misuse of inside information. It exists where there is community indifference or a lack of enforcement policies.

What are main causes of corruption? ›

Causes of public sector corruption
  • Country size. ...
  • Country age. ...
  • Resource curse. ...
  • Political instability. ...
  • Wages. ...
  • Lack of rule of law. ...
  • Failure of governance. ...
  • Size of government.

What are the measures taken to check corruption Class 10? ›

(1) Independence to vigilance officers to investigate complaints of corruption and malpractices. (2) Assurance to vigilance officers of promotion for efficient work. (3) Protection to vigilance officers against sending them back to their parent cadre for investigating the cases of highly placed officials.

What are the impacts of corruption in the society? ›

Corruption erodes the trust we have in the public sector to act in our best interests. It also wastes our taxes or rates that have been earmarked for important community projects – meaning we have to put up with poor quality services or infrastructure, or we miss out altogether.

What is the role of accountability in fighting corruption? ›

Accountability can reduce corruption and other abuses, assure compliance with standards and procedures, and improve performance and organizational learning [33].

What are types of corruption? ›

The most common types or categories of corruption are supply versus demand corruption, grand versus petty corruption, conventional versus unconventional corruption and public versus private corruption.

What are the consequences of corruption? ›

Effects of corruption
  • Undermining the Sustainable Development Goals. ...
  • Economic loss and inefficiency. ...
  • Poverty and inequality. ...
  • Personal loss, intimidation and inconvenience. ...
  • Public and private sector dysfunctionality. ...
  • Failures in infrastructure. ...
  • Rigged economic and political systems. ...
  • Impunity and partial justice.

What makes society corrupt and unfair? ›

Thinking that we can take from the environment and destroy it indiscriminately leads us to corruption and inequity. Was this answer helpful?

What are the steps taken by the government to stop corruption in India? ›

Anti-corruption laws in India

Prosecution section of Income Tax Act, 1961. The Prevention of Corruption Act, 1988. The Benami Transactions (Prohibition) Act, 1988 to prohibit benami transactions. Prevention of Money Laundering Act, 2002.

How has corruption become a serious problem for Indian democracy? ›

Corruption is a factor which is stopping the growth of india... thus,it is a major problem for indian democracy... Corruption has become a serious problem for India because it is one of the biggest obstacle that is hampering the development of the country. It also effects the economic growth of our country.

How does corruption affect human rights? ›

Corruption in the judicial sector damages the right to a fair trial, as corruption erodes the independence, impartiality, and integrity of the judiciary. The lack of independence of judges, prosecutors and lawyers directly harms the right to a fair trial.

Is corruption a moral issue? ›

To date, corruption is recognized as an issue of serious political, economic and moral significance representing a cost for growth and development.

How corruption is a threat to development? ›

"Corruption is a global threat. It is a serious roadblock to economic development," said the Executive Director of the United Nations Office on Drugs and Crime (UNODC), Yury Fedotov. "Corruption aggravates inequality and injustice, and undermines stability, especially in the world's most vulnerable regions."

What is the importance of good governance? ›

Good governance has many benefits

More specifically, it can improve the performance of your business, help it become more stable and productive, and unlock new opportunities. It can reduce risks, and enable faster and safer growth. It can also improve reputation and foster trust.

How does corruption affect good governance? ›

Corruption, in turn, can prevent good governance principles and structures from being put in place, or enforced. Violations of the principles of transparency, accountability and rule of law appear to be most closely associated with corruption.

How does transparency and accountability reduce corruption? ›

Furthermore, transparency allows detection (and reduces the likelihood of corrupt behaviour) because it lowers the information barrier, allowing for scrutiny and monitoring. Transparency also deters corruption by increasing the chances of getting caught.

Videos

1. Combating Corruption: The Role of Risk Assessment
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2. Combating Corruption: Safeguarding Sales and Marketing
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3. Combating Corruption to Drive Democratic Renewal
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4. Combating corruption in Uganda’s prisons | Alexander McLean
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5. 🔴 The Secret To Combating Corruption In Society By Jordan Peterson 💡 Big Ideas
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6. TAP-Plus: Combating corruption in the natural resource value chain
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