The document discusses the social costs of corporate irresponsibility and corruption. It notes that while corruption may provide some short-term gains, it often leads to disasters and loss of life due to circumventing important regulations. Two examples are provided where technology-based reforms reduced corruption: implementing e-procurement in Indonesia expanded competition and lowered costs, and centralized government purchasing in Italy through a national agency reduced prices by over 20%. However, anti-corruption reforms often face resistance and require broad citizen engagement to succeed in changing an entrenched culture of corruption.
The document discusses the social costs of corporate irresponsibility and corruption. It notes that while corruption may provide some short-term gains, it often leads to disasters and loss of life due to circumventing important regulations. Two examples are provided where technology-based reforms reduced corruption: implementing e-procurement in Indonesia expanded competition and lowered costs, and centralized government purchasing in Italy through a national agency reduced prices by over 20%. However, anti-corruption reforms often face resistance and require broad citizen engagement to succeed in changing an entrenched culture of corruption.
The document discusses the social costs of corporate irresponsibility and corruption. It notes that while corruption may provide some short-term gains, it often leads to disasters and loss of life due to circumventing important regulations. Two examples are provided where technology-based reforms reduced corruption: implementing e-procurement in Indonesia expanded competition and lowered costs, and centralized government purchasing in Italy through a national agency reduced prices by over 20%. However, anti-corruption reforms often face resistance and require broad citizen engagement to succeed in changing an entrenched culture of corruption.
The document discusses the social costs of corporate irresponsibility and corruption. It notes that while corruption may provide some short-term gains, it often leads to disasters and loss of life due to circumventing important regulations. Two examples are provided where technology-based reforms reduced corruption: implementing e-procurement in Indonesia expanded competition and lowered costs, and centralized government purchasing in Italy through a national agency reduced prices by over 20%. However, anti-corruption reforms often face resistance and require broad citizen engagement to succeed in changing an entrenched culture of corruption.
February 3, 2016 On the virtues of efficient corruption "Yes, there was corruption. Yes, he gave favours to his family and his friends, But there was real growth and real progress. I think the people of Indonesia are lucky.” (Lee Kwan Yew, 2008)
“Rouba mas faz”
Corruption: the “efficient grease” argument The costs of circumventing regulation
fuelskiller Corruption the China mine in China Corruption Two Charges men jailed for Hit disasters rail crash China’s Food corruption & Drug linked to Lotus Regulator,collapse Riverside Again Behind Blast, Shortcuts and Lax Rules
Chinese Report Details Role of Political
Connections in Tianjin Blasts On the social costs of corruption
“Corruption is one major reason why accidents
happen again and again…It is high time that we took a careful look at connections between local coal mine owners, local officials and the safety watchdog. These links have set up barriers against strict safety supervision.”
Li Yizhong, China Minister of Production Safety
Worker death rates are three times higher at politically connected companies
Source: Fisman and Wang, 2015
Despite high fatalities, connected companies never get preemptive safety audits!
behave more responsibly? A couple of “simple” fixes
● E-Procurement in Indonesia
● Centralized purchasing in Italy
A couple of “simple” fixes
● E-Procurement in Indonesia – Introduction of internet contract information and submission of bids online – Bidders can submit prequalification materials etc online – Result: higher quality provision; broader (geographically) set of bidders ● Centralized purchasing in Italy Government purchasing in Italy before centralized purchasing
Municipality B pays twice
as much for the same printer as municipality A
A B Centralized purchasing ● Between 2000 and 2005, goods were gradually made available via national purchasing agency (Consip) for a standard (low) price
● Cities could still buy directly if they wished
● Prices paid fell by over 20 percent!
● Previously high prices were partly
corruption, but a great deal was due to “passive waste” (i.e., laziness or weak bargaining) Fighting bribery: The bigger picture
● There will always be interests pushing
back against anti-corruption reforms, whatever the public benefits might be. Technocratic reform: a cautionary tale
● Major source of government expenditure in
India: liquid propane gas subsidies (US$8 billion/year), delivered locally
● Lots of “ghost households” thought to
receive subsidies Curbing leakage through biometric IDs
● In 2013, India rolled out biometric IDs
required to obtain means-tested subsidies (food; work; LPG)
● Initial results: – black market fuel premium increased by 15% (less black market fuel supply) – cost savings over more than US$1 billion (Barnwal, 2015) Technology: meet political reality
● “On January 31, 2014, the Cabinet
Committee on Political Affairs unexpectedly decided to terminate the UID-based LPG subsidy transfer policy.”
● Common explanation: recipients of false
subsidies lobbied for program’s termination Fighting bribery: The bigger picture
● Historically, anti-corruption reforms have
rarely succeeded without active engagement of the broader citizenry A vicious cycle: corruption and cynicism 3.6
Venezuela 3.4
Uruguay Argentina
Chile Brazil Paraguay
3.2
Ecuador
Nicaragua Dominican Rep.
Bolivia 3
Panama Costa Rica Honduras Colombia Peru Guatemala El Salvador 2.8
Mexico
2.4 2.6 2.8 3 3.2
How bad is national corruption?
Source: Latinobarometer survey, 2013
Fighting bribery: The bigger picture
● We are all a part of ensuring that
governments work better to keep promises to their people, especially when they’ve failed to do so in the past Reforming a culture of corruption
Super-citizen Mockus Changing culture in Bogota On reforming corruption – last word
Get (Ebook) Global Corruption Report 2008: Corruption in the Water Sector (Transparency International Global Corruption Reports) by Transparency International ISBN 9780521727952, 0521727952 PDF ebook with Full Chapters Now
Get (Ebook) Global Corruption Report 2008: Corruption in the Water Sector (Transparency International Global Corruption Reports) by Transparency International ISBN 9780521727952, 0521727952 PDF ebook with Full Chapters Now
