Our Perspective

anti-corruption

The political economy of illicit financial flows

In this blog series, our experts share their thoughts and lessons learned on key financing for development issues, in the run-up to the UN’s Financing for Development conference in July. Tax evasion has often been the hallmark of the elites. In ancient Rome, the upper class viewed tax as ‘the mark of bondage.’  Two millennia later, Leona Helmsley, the wife of a real estate billionaire in New York, reportedly said: ‘Only little people pay taxes’. But the Roman Empire collapsed because the tax on land was largely passed on the poor, and later on the middle classes, while the elite carried less and less of the public financial burden. Today, both developed and developing countries alike face similar problems. Illicit Financial Flows (IFFs) such as tax avoidance and evasion, embezzlement of national resources, trade misinvoicing, and smuggling of goods and capital across borders, are widespread phenomena and occur for a range of reasons, including theft, corruption, high political or economic instability in the originating country or higher returns on investment in the destination country. Although these problems can affect all countries, it can be particularly prevalent (and harmful) in natural resource-rich states with weak governance such as Nigeria, Gabon and Equatorial... Read more

Fighting corruption: Adapting ‘best practices’ or ensuring a ‘best fit’ to local contexts

image
Korea’s case is particularly interesting because of its rapid economic and social development despite governance challenges such as corruption.

At UNDP’s Seoul Policy Centre for Global Development Partnerships, we often get to hear: “Korea developed so fast. I want to know how this happened, so that I can help my country too”. Policy makers and practitioners in developing countries find Korea’s case particularly interesting because of its rapid economic and social development despite governance challenges such as corruption. At the 2015 Seoul Debates, participants honestly wanted to take practical and immediate solutions home, and found Korea’s innovative tools particularly attractive. Besides the integrity assessment of Korea’s anti-corruption body - conducted by over 600 public organizations in Korea, and now applied in several countries including Bhutan - there was also the electronic subcontract payment system for transparent public infrastructure projects of the Seoul Metropolitan Government. Other countries also shared their experiences, among them Uganda and Columbia. Uganda’s Inspector General of Government shared how her country had exceeded its target of prosecuting 50 cases of corruption per year, and stressed the importance of working with all stakeholders both within and beyond the country. Our colleagues from UNDP Colombia shared a transparency assessment tool that helps political parties manage the integrity of political processes. Yet we deliberately avoided the ‘best practices approach,’ or... Read more

Breaking the corruption chain is our collective responsibility

image
In India, UNDP and the Ministry of Law and Justice reach more than two million people and informed them of their rights in an effort to enable equitable access to justice for all. Photo credit: Shubhangi Singh/UNDP India

When corruption is rampant, some of us might think that the magnitude and complexity of the situation is hopeless. At the same time, making governments more open, accountable, and responsive to citizens is not a choice, but a responsibility which lies with each and every one of us. To “break the corruption chain” and encourage turning this fight into a global movement, we, at UNDP and at the United Nations Office on Drugs and Crime (UNODC) have launched a global campaign  to commemorate the 2014 International Anti-corruption Day.   The message is simple: “Taking back what was lost to corrupt practices is everyone’s responsibility”. It is the responsibility of our governments and civil society organizations, of the private sector and the media, the general public, and of the youth, who must play a pivotal role in seeing this agenda through so that their future is built on solid and honest foundations. There are compelling reasons why everyone should have a stake in fighting corruption. Corruption is impeding the achievements of the Millennium Development Goals (MDGs).  When public money is stolen for private use, fewer resources are allocated to building schools, hospitals, roads and water treatment facilities. Corruption also enables fake or... Read more

Shared commitment and collective action are key in fighting corruption

image
UNDP in Sudan Organized a Drawing Contest with the Faculty of Fine and Applied Art, University of Sudan as part of an Anti-corruption campaign. Photo credit: UNDP/Sudan

This is a call to action, a call against a cancer, a call for health and a call for integrity. In the fight against corruption, everyone has a stake. Businesses, large and small, require an enabling environment to support growth, jobs, trade, and innovation. Only bad business thrives in an atmosphere of traffic of influence, access to privileged information and widespread bribery. That’s the businesses afraid to compete because they can’t win fair and square against the competition. All other businesses, the medium enterprises, the startups, the big ones, the innovators, those who play by the rules need a state to enforce such rules. So the question is: are you afraid to compete or are you happy to play the integrity game? In the midst of increasing pressures on public budgets striving to meet growing demand for more and better public services, the private sector presents models that are tremendously helpful to the public administration. The corporate world brings not only investment finance and capital but also normative frameworks, expertise and knowledge to the fight against corruption. Yet, despite progress, corruption continues to be a major challenge for companies operating both in developed and developing countries. According to the Institute of... Read more

Fighting corruption and urban inequality

image
Medellín, Colombia. (Photo: UN Habitat)

Today, the majority of the world’s population lives in cities. This poses great challenges but also brings big opportunities. With good management, cities can work as engines of growth and incubators for innovation. They can also serve as job providers, build sustainability and fight inequality. On the other hand, corrupt cities could also transfer resources from the public to the elites, and generally from the poor to the rich, worsening urban inequity. How can we thus ensure that urban governance delivers resources and services in a transparent, accountable way? To answer this question and others, two weeks ago UNDP’s Global Anti-corruption Initiative, UNDP Colombia and the Bogota Chamber of Commerce organized a policy dialogue at the 7th World Urban Forum (WUF7) in the city of Medellín, Colombia. The event, which took place in a traditional Maloca (a long house used by the natives of the Amazon as the centre of the village government) brought together government representatives, mayors, academics, the private sector, and UN officials to discuss how cities can fight corruption more efficiently to contribute to urban equity. One takeaway from the dialogue was that “the end cannot justify the means.” As long as corruption prevails, sustainable development of cities... Read more

The Speakers Corner
thumbnail

The Speakers Corner helps connect think tanks, academia, the media and the public to a diverse group of experts who can speak to UNDP’s commitment to “empower lives” and build "resilient nations.”

Visit the Speakers Corner
Tag Cloud