Although corruption is not an exclusively Third World phenomena as corruption exists both in developed and developing countries in different forms and degrees yet its pervasiveness in the developing countries cannot be denied. This presentation is an attempt to gauge this pervasiveness in the developing countries, find out its causes and lay down a framework for its minimization, if not total eradication

1. Shahid Hussain Raja
Author/Consultant
www.shahidhussainraja.com

2.  Besides various internet sources, a lot of material for this
presentation has been taken from the PH.D Thesis of Mr.
YEMANE DESTA.
 Entitled “Designing Anti-Corruption Strategies for Developing
Countries: A Country Study of Eritrea”, it is available for
downloading at
https://repository.lib.ncsu.edu/handle/1840.16/3844
 While paying my deepest giraudite to Mr.Desta, I will request
you to kindly do visit his above URL

3.  Introduction
 Definition of Corruption
 Causes/Conditions promoting Corruption
 Measuring Corruption
 Challenges of Corruption
◦ Economic Costs of Corruption
◦ Political Costs of Corruption
◦ Social Costs of Corruption
 Anticorruption Measures
Political Reforms
Economic Reforms
Administrative Reforms
Institutional Reforms
Societal Measures
Regional/Global Cooperation

4.  Described by OECD as the Enemy Number One for developing countries,
corruption is an historical as well as a universal phenomenon
 Antiquity-as old as the institution of state to run their affairs. Taken for granted
and accepted as a necessary evil by the people.
 Over 2,300 years ago Kutilia Chanakya enumerated more than forty ways of
embezzling money from the government
 Dante, in his book Inferno, described Hell as nine circles of suffering and
reserved the eighth circle for corrupt public officials.
 Shakespeare also wrote of corruption in several his plays.
 Universality- it exists both in developed and developing countries in different
forms and degrees yet more pervasive in developing countries

5.  World Bank-abuse of public office for private gain,
 USAID-abuse of entrusted authority for private gain-no distinction
between public office and the private one
 Nye-behavior that deviates from the normal duties of public role
 Van Klaveren-corrupt civil servant regards his office as a business, the
income of which he will seek to maximize.
 Friederich-public interest perspective. "pattern which exists whenever
responsible officeholder take illegal act to benefit those who provide him
rewards thereby doing damage to the public and its interests.”

6.  Design/selection of wrong projects for financial kickbacks/patronage
 Procurement fraud-selection of contractors, suppliers, and consultants on criteria
other than the lowest evaluated substantially responsive bidder
 Illicit payment of speed money to government officials for any purpose
 Misappropriation of confidential information that would prevent potential investors
from accurately valuing worth of SOE being privatisedf
 Theft or embezzlement of public property and monies
 Sale of official posts, positions, or promotion; nepotism
 Extortion and abuse of public office
 Obstruction of justice and interference in the duties of agencies tasked with
detecting, investigating, and prosecuting illicit behavior

7.  Widespread poverty and inequality without any social safety networks for
poor/disadvantaged.
 Low level of public sector salaries without properly legal/regulatory framework coupled
with Lax criminal prosecution to check their misuse of authority
 Lack of political commitment with absence of effective parliamentary/ institutional
oversight to enforce transparency and accountability
 Excessive state control on resource allocation in the presence of complex, poorly-
defined, constantly changing and inadequate rules and regulations
 Rule by unethical leadership in a country where socio-cultural norms accept corruption
even as a necessary evil
 Lack of appropriate structures for popular participation/political instability
 Ineffective civil society, weak media and low literacy rates

8.  As societies progressed, people started questioning this injurious practice
resulting in its deinstitutionalization
 Establishment of the Berlin-based Transparency International, a civil society
organization dedicated in early 1990s, was a watershed in this respect
 It annually develops global Corruption Perception Index (CPI), drawing on
surveys from 8 independent institutions reflect the perceptions of business
people, the general public and country analysts.
 Since 1995 when TI published its first survey results, many countries have
exited from list of most corrupt, giving place to new entrants in this list.
Similarly, many have lost their preeminence as the most honest and fallen down
 Important policy implication-any country can change its status by dedicated
efforts devising proper policy framework, creating appropriate institutions and
other measures.

9. Being an illegal tax, it increases cost of doing business in the country,
serves as a disincentive for local and foreign investment having its
multiplier negative effects in retarding economic growth
Reduces state funds through tax evasion/poor tax administration
resulting in less funds for human and infrastructural development
Adversely affects allocation of resources as conspicuous consumption
by corrupt leads to wastage of resources on production/import of
luxury items
Creates a Rentier Class who seek easy way of earning money by
becoming middlemen and commission agents, doing illegal, immoral
and un-productive work

10.  Corruption creates and perpetuates a corrupt ruling elite which
thrives on corruption and promotes it
 Unethical leadership has defective development policy formulation
process to seek avenues of kickbacks not of public welfare
 Public resentment leading to agitation and even collapsing political
system inviting non-democratic forces to intervene
 Increased state repression by corrupt ruling elite to save
themselves from accountability results in denial of fundamental
human rights

11.  Increases economic and social inequality by allowing the wealthy and connected
to reap maximum benefits of state activities at the cost of the rest of population
 It creates feeling of alienation and hatred against the institutions among youth
results in brain drain, depriving the nation of young energetic talent and creates
social leadership void
 Corruption adversely affects the poor directly by increasing the costs of
accessing the public services(health, education, water etc.) due to the kickbacks
involved in acquiring them.
 Corruption also adversely affects the poor indirectly by retarding the growth
process and hence creation of less job opportunities-one of the most effective
ways to reduce poverty and inequality
 Aggravates the worst form of poverty as corruption results in less state
revenues leading to less allocation for social safety networks

12. Corruption being multidimensional phenomenon needs multi-
pronged attack on different fields-social, economic, political
administrative etc
Similarly, it is not state but also the society which must be
involved to combat this menace
Lastly, it is not confined within a state; hence needs a regional,
rather global approach to effectively tackle it

13.  Any reform effort starts with a vision given by the political elite which is itself ethical,
chosen by the people in a transparent electoral process
 Democracy is the ultimate but the best way to restrain corruption by holding their
leadership accountable for their performance in office.
 Free and fair elections in an open and competitive political environment an important
mechanism for electing ethical leadership
 Independent Election Commission/Election Tribunals to ensure fair and free elections
 Election Commission should introduce the option of “None of the Above” (NOTA) in the
ballot paper to allow the voters not to vote for any of the candidates. It will compel
political parties to nominate sound and ethical candidates.
 Legislative oversight through Committee System of Parliament provides a powerful
check on executive authority, enhancing accountability

14.  Economic liberalization/deregulation limits state authority thereby
stripping officials of the power to extract bribes. If price controls are
lifted, market prices will express scarcity values, not bribes
 Privatization of state-run enterprises and services can curb corruption
as competitive market pressures reduce opportunities for wrongdoing
 Taxation Reforms by simplifying tax code, eliminating multiple rates
and exemptions and limiting the discretionary powers of tax officials.
 Public Procurement Reforms by limiting the authority of the government
officials, removing personal discretion from the selection of government
suppliers and contractors by prescribing an open bidding process.

15.  Strict application of merit principle in recruitment, appointment and promotion of
government functionaries
 Putting in place explicitly written codes of ethics detailing rules and regulations
designed to achieve desired attitude and behaviour from public servants.
 Fair incentives/rewards system, to minimize the need for government officials to
indulge in corruption and corrupt practices
 Backed by strict accountability/punishment system to punish those who are caught and
proven guilty to deter others
 Maximum decentralization to curtail the span of activities of the officials
 Improved efficiency through simplification of procedures, capacity building and greater
digital governance, by automating the public sector functions

16.  Comprehensive Legal/Regulatory Framework needed to deter, access to information,
freedom of expression and financial disclosure. Must be approved by the assembly for its
institutional legitimacy.
 Also needed specialized and independent anti-corruption agencies, having capacity and
ability to perform their professional duties in a transparently independent fashion and
enforce the rule of law
 Similarly,instead of using normal courts to prosecute the corrupt,an entirely new setup not
already overburdened with the pending cases be created
 However, an independent, impartial and institutionally capable judiciary must for realization
of an accountable government. Itself must be subject to high ethical standards.
 Auditor-General Office, responsible for auditing the state’s income and expenditure, and a
watch-dog over its financial integrity is the first check on corruption. Auditor-General is not
appointed by the government but by the national legislature, is completely autonomous and
independent, well-staffed and its incumbent enjoys appropriate tenure of office.

17.  Any anti-corruption strategy needs holistic sociological perspective not merely
criminal justice approach. Must be a homegrown agenda- should not be carried
out or perceived to be carried out due to any foreign pressure
 Strong political commitment, essential but also most difficult element for any
successful and sustainable implementation of the anti-corruption strategy
 Fighting corruption is business of everyone, hence need for launching
awareness campaign to enlist support of public, opinion makers, civil society
and media for successful campaign. However, private sector, the biggest
stakeholder must play a leading role.
 Giving protection to those who report cases of corruption to competent
authorities-whistle blowers. Anti-corruption legislation must protect whistle
them from official sanctions, reward them and when necessary, physical
protection of key informants should be provided, whether inside or abroad

18. Corruption no more purely one nation-state issue; rapid globalisation and
breakneck speed of technological innovations have made it a global phenomenon
With tentacles in the region, even in far-off save havens for money laundering, it
also helps in terrorist activities-directly as well as indirectly.
Consequently, global cooperation in tackling this menace is the need of the day.
That’s why the International Association of Anti- Corruption Authorities (IAACA)
tends to promote implementing the UN Convention against Corruption and further
international cooperation against corruption
However, all such regional/global cooperation for the investigation and
prosecuting of corrupt offenses should be according to legal principles of respect
for national sovereignty, for human rights and with the aim of mutual benefit

19.  Corruption is an historical and universal phenomenon, retards economic
growth and sociopolitical development and adversely affects the quality
of life of the citizens of a country where it is rampant. Multidimensional
efforts are needed to curb it
 Anti-corruption campaign must be sincere and sustained effort,
implemented vigorously but prudently. Well publicized but poorly
organized, and halfheartedly implemented anti-corruption drives do not
work; they create despondency among the masses..
 Due to paucity of resources for anti-corruption measures, strategy must
have some built-in criteria to measure the results of all the
anticorruption efforts so that corrective action to could be taken in case
any deficiency is detected.

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 If not, please do tell me the points needing more elaboration/
correction in the comments section
 You can use the material wherever you like. However, as a
responsible student, I hope you will acknowledge it in your
assignment
 If you need its essay version(5000 words), kindly send your request
at shahidraja@hotmail.com

21. Thanks