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Anti-corruption policies and programs : a framework for evaluation

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  • Huther, Jeff
  • Shah, Anwar

Abstract

The anti-corruption strategy the World Bank announced in September 1997 defined corruption as the"use of public office for private gain"and called for the Bank to address corruption along four dimensions: 1) Preventing fraud and corruption in Bank projects; 2) Helping countries that request Bank assistance for fighting corruption; 3) Mainstreaming a concern about corruption in Bank work; and 4) Lending active support to international efforts to address corruption. The menu of possible actions to contain corruption (in both countries and Bank projects) is very large, so the authors develop a framework to help assign priorities, depending on views of what does and does not work in specific countries. Their framework, based on public officials'incentives for opportunistic behavior, distinguishes between highly corrupt and largely corruption-free societies. Certain conditions encourage public officials to seek or accept corruption: a) The expected gains from undertaking a corrupt act exceed the expected costs. b) Little weight is placed on the cost that corruption imposes on others. In a country with heavy corruption and poor governance, the priorities in anti-corruption efforts would then be to establish rule of law, strengthen institutions of participation and accountability, and limit government interventions to focus on core mandates. In a country with moderate corruption and fair governance, the priorities would be decentralization and economic reform, results-oriented management and evaluation, and the introduction of incentives for competitive delivery of public services. In a country with little corruption and strong governance, the priorities might be explicit anti-corruption agencies and programs, stronger financial management, increased public and government awareness, no-bribery pledges, efforts to fry the"big fish,"and so on.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2501.

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Date of creation: 31 Dec 2000
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Handle: RePEc:wbk:wbrwps:2501

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Keywords: TF054599-PHRD-KYRGYZ REPUBLIC: WATER MANAGEMENT IMPROVEMENT PROJECT; National Governance; Governance Indicators; Corruption&Anitcorruption Law; Public Sector Corruption&Anticorruption Measures;

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References

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  1. Carlos Leite & Jens Weidmann, 1999. "Does Mother Nature Corrupt," IMF Working Papers 99/85, International Monetary Fund.
  2. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 333-38, May.
  3. Alberto Ades & Rafael Di Tella, 1997. "The New Economics of Corruption: a Survey and Some New Results," Political Studies, Political Studies Association, Political Studies Association, vol. 45(3), pages 496-515.
  4. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 681-712, August.
  5. Swamy, Anand & Knack, Stephen & Lee, Young & Azfar, Omar, 2001. "Gender and corruption," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 25-55, February.
  6. Tugrul Gurgur & Anwar Shah, 2014. "Localization and corruption: panacea or pandora's box?," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 109-136, May.
  7. Gerd Schwartz & Réjane Hugounenq & Benedict J. Clements, 1995. "Government Subsidies," IMF Working Papers 95/91, International Monetary Fund.
  8. Goel, Rajeev K & Nelson, Michael A, 1998. " Corruption and Government Size: A Disaggregated Analysis," Public Choice, Springer, Springer, vol. 97(1-2), pages 107-20, October.
  9. Anwar Shah, 1999. "Governing for Results in a Globalised and Localised World," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 38(4), pages 385-431.
  10. Brunetti, Aymo & Weder, Beatrice, 2003. "A free press is bad news for corruption," Journal of Public Economics, Elsevier, Elsevier, vol. 87(7-8), pages 1801-1824, August.
  11. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
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Citations

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Cited by:
  1. Tugrul Gurgur & Anwar Shah, 2008. "Localization and corruption: panacea or pandora's box?," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 581, China Economics and Management Academy, Central University of Finance and Economics.
  2. Bryane Michael, 2004. "Explaining organizational change in international development: the role of complexity in anti-corruption work," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(8), pages 1067-1088.
  3. Dimakou, Ourania, 2013. "Monetary and fiscal institutional designs," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1141-1166.
  4. Raphael H. Solomon, 2005. "Pocket Banks and Out-of-Pocket Losses: Links between Corruption and Contagion," Working Papers, Bank of Canada 05-23, Bank of Canada.
  5. Blackburn, Keith & Forgues-Puccio, Gonzalo F., 2009. "Why is corruption less harmful in some countries than in others?," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 72(3), pages 797-810, December.
  6. Matei, Ani & Matei, Lucica, 2010. "Assessing the Anti-corruption Strategies: Theoretical and Empirical Models," MPRA Paper 30035, University Library of Munich, Germany, revised 18 Jan 2011.
  7. Matei, Ani & Matei, Lucica, 2010. "Anti-corruption strategies in some South-Eastern European states.An empirical study on the impact of the government performance," MPRA Paper 24741, University Library of Munich, Germany, revised 01 Sep 2010.
  8. Shah, Anwar, 2006. "Corruption and decentralized public governance," Policy Research Working Paper Series 3824, The World Bank.
  9. Ogus, Anthony, 2004. "The Importance of Legal Infrastructure for Regulation (and Deregulation) in Developing Countries," Centre on Regulation and Competition (CRC) Working papers, University of Manchester, Institute for Development Policy and Management (IDPM) 30603, University of Manchester, Institute for Development Policy and Management (IDPM).
  10. Keith Blackburn & Rashmi Sarmah, 2008. "Corruption, development and demography," Economics of Governance, Springer, Springer, vol. 9(4), pages 341-362, October.
  11. World Bank, 2001. "Combating Corruption in the Philippines : An Update," World Bank Other Operational Studies 15435, The World Bank.
  12. Franklin Steves & Alan Rousso, 2004. "Anti-corruption programmes in post-communist transition countries and changes in the business environment, 1999-2002," Law and Economics, EconWPA 0401004, EconWPA.
  13. Tausch, Arno, 2009. "Schaufenster Griechenland – was kann aus dem aktuellen Debakel für das soziale Europa gelernt werden?
    [Showcase Greece – what can be learnt from the current debacle for a Social Europe?]]
    ," MPRA Paper 14251, University Library of Munich, Germany.
  14. Keith Blackburn & Niloy Bosey & Salvatore Capasso, 2008. "Living With Corruption: Threshold Effects in Red Tape and Rent Seeking," Working Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 4_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  15. Mikael Priks, 2011. "Judiciaries in corrupt societies," Economics of Governance, Springer, Springer, vol. 12(1), pages 75-88, March.
  16. Maurizio Bovi, 2003. "The Nature Of The Underground Economy. Some Evidence From Oecd Countries," ISAE Working Papers, ISTAT - Italian National Institute of Statistics - (Rome, ITALY) 26, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).

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