Sectors. The primary locus for corruption reform - PowerPoint Presentation

Sectors. The primary locus for corruption reform Discussions with World Bank communities of practice, April 4 th 2019 Mark Pyman: Soil scientist – Hazardous risk assessor - Oil industry CFO in West Africa, China, Europe – Transparency International – Defence & Security – Afg’n Anti-Corruption Commissioner CurbingCorruption.com Founded by Mark Pyman in 2018. Working with a group of editors led by Professor Paul Heywood, plus academics, grad students, practitioners, officials, company executives, others. Research-led, Wikipedia-like sourcing & sharing.

Earlier efforts.. Now, many voices for a fresh approach..

A five-layer approach Disaggregate corruption in the sector into 20-40 specific issues. E nables specific reform proposals; such reforms can be integrated in sector operation; enables conversation with Ministry leadership on political feasibility; provides a template usable across almost all countriesTake a total approach to the sector, not small pieces. Sectors are where the ‘rules of the game’ are set and can be contested. This enables demanding input from the private sector. Because a total view gets political attention. Because this fuels multilateral discussions and advances Take a problem-solving focus not a problem focus. You can spell out repertoires of reform approaches & reform strategies in each sector. You can use the ‘language’ of the professionals in that sector. There is ownership and pride in sectors. Progress examples exist but are rarely written up. Establish robust semi-quantitative analyses of the corruption vulnerabilities. I n the sector in each country, do comparisons/ranking across countries; do analyses and comparisons of the companies in the sector. Builds the base for measuring progress. Builds pressure. Establish corruption reform ecosystems for each sector. Corruption reform integrated in sectors + international collaboration + expertise groups + pressure groups

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Common language: Each sector’s language is different from others. Each is an ‘epistemic community’, with common vocabulary, conceptual ideas, sets of incentives Domain context: The solutions are usually sector-specific. Even where the corruption mode is similar across sectors, like favoritism, the solutions differPolitical context is not nationally homogenous: usually differs markedly between sectors. Incentives: Understanding and changing the ‘rules of the game’ happens within sectors Pride, ownership & line management: Only within professions can you build ownership of the problems & solutions among the professionals in that sector National AND international: If so, this can be better approached within the sector, not nationally Sector differences often greater than country differences : Corruption differences are often larger between sectors within a country than between countries Sectors

Sectors Differences in meritocracy in-country Hungary: Are promotions in your Ministry on a meritocratic basis?

Sectors Ministries Functions & structures of national lifeProfessionsAreas of activity where the government has policy goals AgricultureBorders/CustomsConstruction & Public WorksDefence & militaryEducationElectoral & political institutions Electricity & power Environment Fisheries Forestry Health Higher Education Humanitarian assistanceLandLocal governmentMediaMining Oil & GasPolicingPrisonsProfessional services PropertyPublic financial management & taxReligious affairsShippingSportState-owned enterprisesTelecommunicationsTourism, culture & heritage Transport Water Wildlife/ conservation Cross-cutting sectors Banking & finance Civil service Judiciary and courts Public procurement

The contemporary state has deep private sector involvement throughout government . Integration of contractors, outsourcing of support roles, complete privatization of previously government tasks…. The boundaries are movable, often hotly contested. Sector approach makes the forces involved more visible and challengeableConflicts of interest are pervasive. Choosing to be generous to badly performing companies, to ignore preferences being awarded or choosing to ignore violation, players with multiple undisclosed rolesExample: ‘revolving door’ problems in the mining industry. A government inspector in Australia. He sees his future career as working for one of the mining companies. As a result: “My job is to be a free consultant to the industry” while I am in Government. Yet the private sector is essential for reform, despite the downsides. Within sectors you know the players, fight with them, work with them, regulate them, command their engagement. Furthermore, there are always reformers, both public and private. Sectors … where Public + Private do the real work together

To take action – whether to improve system design or to improve operation - we must disaggregate the corruption types Not other general phenomena like bribery, nepotism, collusion. But specific issues Disaggregation into 20-40 specific corruption types seems about rightThis is enough to cover all the main corruption types in that sector, and be applicable across a wide range of countries Such a typology gets us away from binary distinctions - Grand/petty, need/greed, political/ bureaucratic, institutional/individual. All types are present. Corruption types

Corruption types in Health

Corruption types in School Education

Corruption types in Defence

Corruption types in Policing

Corruption types in Land

Corruption types – Electricity and power Politics and broad public policy Power transmission and distribution Power generation 1.Improper estimation of capacity addition needs 2.  Improper allocation of licenses/contracts 3. Insider-influenced procurement strategies 4. Improper construction contracting 4. Improperly low cost long term financing and/or capture of any state financing corporation 5.Improper behaviours at project formulation stage 6. Improper behaviours at project implementation stage 7. Improper behaviours at plant operations (Gulati and Rao 2006 WB slides) 9. Improper energy pricing agreements 10. Improper subsidies 11. Manipulated selection of regulators Electricity supply - Domestic Independent Regulatory Agency. 1. Improper allocation by the Electricity Boards 2. Theft of power via Illegal connections and Improper tapping of power of transmission and distribution lines 3. Resistance to paying for electricity 4. Improper non billing/under-billing or non payment by/to the distribution companies 6. Favouritism in appointments/ transfers/ sanctions 7. Billing at a low rate 8. Partial or complete diversion of load from the visibility of the metering system (SDN Nigeria 2018 p4) 9. Improper charging for fixing faulty lines & transformers Improper Non payment of bills Illegal connections to the grid Under and Overcharging Improper meter reading (bypassing; tampering) Improper payments for power connection Improper payments for repair/restoration/meter installation Illegal contractors connecting consumers to the grid Compromised/collusion of members (Imam 2018) 5. Improper rulings/policies from the electricity regulator Improper balancing of competing interests of customers and investors 28/01/2019 17:41 Corruption types in Power

Relative magnitude of each corruption type Political priority & feasibility Economic, social priority & feasibility Technical priority & feasibilityRelative ‘priority’ of each type for the initiative, taking into account political and technical feasibilityWith a full typology, you can directly engage your leadership, stakeholders and citizens in assessing priority & feasibility Corruption types and political feasibilityCentre the discussion around the detailed corruption types

Corruption types Engaging people on the corruption priorities Botswana top military leadership (30 people)

Corruption types Engaging people on the corruption priorities Botswana military top leadership (30 people)

Corruption types Engaging people on the corruption priorities Asian country military mid-rank leadership (100 people)

There is a limited, definable range of reform approaches. Eight seems to be sufficient. The reforms within each approach are largely sector-specific Reform experience is always sector specific Reform approaches

Reformmeasures e.g. Functional reforms In the Defence sector9 types of functional reform. Example of showing the status of defence budgeting in Burundi via the number of budget lines & headings; comparison between 4 Ministries, police and military.

Reform measures e.g. Monitoring reforms In the Shipping sectorMaersk working with captains and ports to eliminate whisky and cigarette gifts. Graph shows ship-board/global IT system recording all such gifts

Reform measures Because there aren’t any? Practitioners don’t write on progress. Nor do academics. Researchers have to dig hard to unearth written accounts of progress against corruption. Multiple incentives not to write up the stories:Progress is always partial, political, fragileWe always look upwards, to ‘better’ nations. So we always fall short, always seem to failPartial success is easily criticized and dismissed It’s politically correct to shout about the corruption, not cool to write about progressSector professionals prefer not to risk funding by being explicit, whether progress or failure CurbingCorruption.com seeks to address this by bringing together positive experience and positive strategies, sector by sector. But… Why are there so few accounts of progress in corruption reform?

There is limited articulation of strategies – Feasible combinations of reform measures, political calculation, champions, timeframes, collaborations, entry points, etc We can achieve more by doing strategies within sectors; and with a limited repertoire of strategy types Narrow focus 1: Bribery in surgery wait lists Narrow focus 2: Reducing Doctors’ power Narrow focus 3: Contract out primary care Broad focus: Full Ministry initiative Integrity focus: Ask doctors to lead reform External focus: Empower the patient groups Discipline focus: Move offending doctors to low-status positions Example – Different Health sector strategies Strategies

These have some positives: Global sector initiatives & Ministerial gatherings can press for change at the international level The secretariat can develop deep sector expertise. National public officials can utilize the experts & the sector knowledge They can show progress, usually by taking up single issues. We have some transnational sector initiatives: Education : IIEP-UNESCO, Accnt’blty Lab Water: WIN, OECD-WGI Policing: DCAF, Michigan Uni, Aus Uni Fisheries : FiTI, UNODC, FishCrime Defence: TI-DS, NATO, CIDS, UKDA Construction: GIACC, COST, OECD Health: U4, META Extractives: EITI Int’l initiatives

BUT …. 大声的雷声，但是小小的雨滴 Loud thunder, tiny raindrops Usually tiny, narrow scope, single issue They operate outside the usual operating framework of the Ministry Or… they are unrealistically grand multisector visions Reform ecosystems are needed in each sector Integration of corruption reform INTO the sector +  1 International/ Ministerial/ Multi-stakeholder +  5 Sector corruption & reform expertise centres +  5 Sector-specific, sector-wide NGOs +  1 Vulnerability assessments & rankings + many progress-monitoring entities

27 Semi-q sector assessments are the next layer Deep knowledge Applies pressure On both governments and the companies in the sector

GhanaDefence sector National result

Ghana Defence sector Methodology of sector vulnerability assessment Example of Scores on (some) individual questions. Each question scores 0-4 depending on expert assessment plus 3 peer reviewers plus government responseSee example of individual question (No. 50 of 77) and assessment on next slide

Strategically addressing corruption reform in the sector Integrating a-c into sectors : Provides a clear framework within which you can mainstream anti-corruption in large organisations. In the aid organisations this integrates anti-corruption elements into the functional design and line management operation in that sector, not as something other. Sector reform ecosystems: Provides a clear framework within which you can work with others on the overall approach and ecosystem for corruption reform in that sectorNurture independent sector centre, whether NGO, think-tank or academic, will probably take 10 yrs to reach critical massInternational sector ‘plan’: The sector focus means it can be part of a ‘real’ plan, that includes the industry associations, professional associations and companies in that sector as a long term part of the solution National anti-corruption plans become assemblies of sector plans plus overarching organisation, coordination and monitoring, and nation-wide elements

Thank you Do you agree? Do contribute material – Do share Do visit the website - Do be in touchwww.curbingcorruption.com Mark.Pyman@curbingcorruption.comPaul.Heywood@curbingcorruption.com