APEC Puts the Squeeze on Corruption: Regional Practitioners Share Strategies
It should seem obvious that the fight against corruption is crucial.
For it hampers development, affects income distribution, reduces the
effectiveness of state institutions and facilitates crime.
Weak accountability in government and overly complex administrative procedures can result in discouraging citizens from participating in the process.
"Corruption is detrimental to development. Broadly, it can affect macroeconomic stability and lack of confidence in the market," said the World Bank's Jennifer Thompson.
"Over two thousand years ago Aristotle wrote, to protect the treasury from being defrauded, let all money be distributed openly," Ms Thompson continued.
A systematic approach to fighting corruption is needed. One of the key measures is sound financial management. It's a prerequisite for reducing corruption.
"Each of our economies face the same challenges. But there are certain degrees of difference. While we don't compare one economy in the region to another, there is evidence in polls conducted by Transparency International and other surveys that measure corruption indicators which show that some are more advanced than others. We are all aiming at the same objective - to combat corruption at all costs," said Ramiro del Carpio Bonilla who is the Chair's Representative to the APEC Anti-Corruption Task Force and in Peru's National Office of Anti-Corruption.
Acknowledging the existence of corruption in government does not eliminate the need to take further steps to find solutions.
"We need to move beyond comparisons and find how each individual economy performs. We need to determine the extent of corruption and look at how to improve public services despite these factors," said Jairo Alfaro, UNDP Viet Nam.
"If corruption is high, effectiveness of governance is low. To improve, governments should undertake reform measures, strengthen financial accountability, raise public and official awareness and engage in anti-bribery pledges," Alfaro explained.
If corruption is a failure of governance, then it's important to draw linkages between public administrative reform and the fight against graft.
Anti-corruption measures needs to be both comprehensive and targeted. An ongoing process, officials need to monitor and measure different levels and different stakeholders.
Sharing Practices that Curb Corruption
Concerned about improving procedures for business to be more competitive, APEC officials convened a symposium for representatives of anti-corruption agencies, local and international experts and the private sector. At this multilateral meeting, they exchanged views in order to draw out effective ways to foster the interactive relationships between anti-corruption and administrative reform.
Through a remarkably candid discussion about sometimes politically sensitive topics such as administrative polices, public budgeting and procurement, member economies shared information and practical experiences in order to better improve the way they fight graft in government.
"The public is tired of corruption." Mr. Roni Ihram Maulana, who is the Director of Monitoring for Indonesia's Corruption Eradication Commission, said, "It's most important to change the culture."
Going further, Transparency International's Australia Executive Director, Michael Ahrens, said, "There's an insatiable demand for it."
Achieving Reform
Public administrative reform strengthens the fight against corruption, but will the government actually get stronger during the reform process?
Incentives can not be addressed in a vacuum. Consideration also needs to be given to transparency, accountability and integrity.
Said World Bank advisor, Jim Anderson, "Surveys have been valuable in many respects because they show that progress is possible in areas that can be politicized.
"Surveys provide an objective analysis of whether things are getting better or getting worse. As countries move to simplify tax regimes, interaction with tax officials is reduced, resulting in less corruption."
Cutting Red Tape?
"How do you get the political will to get actions on reforms when some may not be supportive of it," asked Mr. Andrew Boname, the Regional Anti-Corruption Advisor to the American Bar Association's Asia Division, who chaired the session on the role of inspection for boosting administrative reform.
"In Korea, we have gone through various stages of development since the 1960s. We've put in place different policies on administrative reform over time," said Mr. Hyun-sun, Standing Commissioner of the Republic of Korea's Anti-Corruption and Civil Rights Commission.
"Countries can learn from Korea's experience, especially given their different stages of development."
"From the 1960s to 1980s, Korea adopted "government led" development policies.
"In the face of political democratization in the late 1990s, the government led development model was undermined; hence the need for reform and strong anti-corruption policies. The goal was to implement basic measures focused on minimizing bureaucratization and public participation. Mainly, this was about introducing basic tools to fight corruption."
"Between 1998 - 2007, we focused on building institutional frameworks," Mr. Hyun concluded.
Creating strong domestic institutions minimizes the loopholes for officials to take advantage for personal interest.
"We mainly rely on two tools to fight corruption - first, the investigative element and then there's prevention. Administrative reform is a measure to prevent corruption," said Chinese official, Mr. Kong Xiangren, who is Deputy Director General of the Foreign Affairs Department in the Ministry of Supervision.
"Anti-corruption is especially important to those countries like Viet Nam and China and other developing countries, because in our case we used to have a centralized planned economy. Now we have a socialized market economy and it is developing very fast. Public administration needs to be improved to manage this economy.
In order to train Thai officials, the National Counter-Corruption Commission works to inculcate values, morals, ethics and discipline by promoting a lifestyle which includes the principles of "sufficiency, economy and philosophy."
"These values are derived from the King of Thailand and from his life. For example, one shouldn't consume more than you earn," said Mr. Wanlop Yutidhammadamrong who is the Director of the International Affairs Bureau in the NCCC. He went on to explain how this strategy can be useful for convincing Thai stakeholders to work together in the fight against corruption.
"It's important to develop mechanisms for education and prevention, and ethics to develop morals for this." said Mr. Wanlop.
In summarizing the session, Mr. Boname agreed that there is a need for a professional civil service and institutional culture that does not embrace corruption. Furthermore, officials must have the authority to inspect the underlying cause of corruption in order to have real impact on administrative reform.
Certainly, there are concerns about inspectors misusing, or even abusing their powers. How does the inspectorate hear what's going on in other agencies?" wondered a delegate from Chinese Taipei.
Deputy Director of the Inspection Research Institute in the Government Inspectorate, Dinh Van Minh, summed up the system in Viet Nam: "As Uncle Ho said: Inspectors are the eyes and ears of the superiors and the threats to the inferiors."
"Wherever there is management, there are inspectors," Mr. Minh explained that he has offices in the provinces and other ministries.
Higher Salaries?
A meritocratic civil service, with transparent and adequate remuneration, contributes to the systemic approach to anti-corruption.
Fighting the urge to take bribes, some governments offer incentives to public officials that drain the thirst for illicit payments.
"The government decided to peg public service pay to the private sector. We divide the salary into two components: the variable component is based on performance and adjusted according to the Singapore economy. Quite a large portion of salary is available. Those who perform better will get quite a lot of pay but it is subject to the economic conditions of the country," said Mr. Tin Yeow Cheng of Singapore's Corrupt Practices Investigations Bureau.
In part, these incentives result from a tight labor market. "In the public service we are fighting for talent," Mr. Tin said. "We face manpower shortages so there is no noticeable cut in public servants with the introduction of e-services."
In the comfort of a collaborative forum where alternative views were welcomed, not everyone agreed that Singapore's efficiencies will lead to a stronger public service.
Expressing concern about implementing e-government initiatives, a representative from Viet Nam suggested that the workforce of public officials could be significantly reduced.
Disagreeing with the way Singapore has traditionally structured its public service salary structure to prevent graft, Mr. Roni stated that administrative reform, including increasing remuneration, will not stop corrupt acts.
But it's important to note that graft is not tolerated in Singapore. "Public officers who engage in corrupt activities receive mandatory jail sentences," Mr. Yin added.
Benefits to the region
Fighting corruption can not be done without active participation from the private sector.
In response to questions by the Peruvian delegate about what examples could be provided by joint efforts between the private and public sectors, Mr. Comas stressed the need to form coalitions.
"In the past, for example, many countries allowed businesses to declare certain expenses, such as bribery, as tax deductions," said Mr. Comas.
"Now if they do that, they go to jail," said Mr. del Carpio.
"In Peru, we are facilitating relationships between guilds, chambers of commerce and other organizations to participate in this effort jointly. The outcomes will not occur tomorrow, but they will come about soon."
With profit as motivation, the private sector pursues its own agenda. But business can not excel if corruption is present.
"They have to be aware of the important role they play in this game. I'm sure they'll contribute with their best efforts," said Mr. del Carpio.
Economies generally agreed that government should be transparent in response to identifying flaws in transparency practices.
A professional civil service and institutional culture that does not embrace corruption is required.
"They must have the authority to inspect the underlying cause of corruption in order to have real impact on administrative reform," said Andrew Boname when he summarized the results of the workshop.
"There should be strategic approaches where administrative reform can occur. This could be based on public surveys and data reviews as a result of examination and assessments."
Weak accountability in government and overly complex administrative procedures can result in discouraging citizens from participating in the process.
"Corruption is detrimental to development. Broadly, it can affect macroeconomic stability and lack of confidence in the market," said the World Bank's Jennifer Thompson.
"Over two thousand years ago Aristotle wrote, to protect the treasury from being defrauded, let all money be distributed openly," Ms Thompson continued.
A systematic approach to fighting corruption is needed. One of the key measures is sound financial management. It's a prerequisite for reducing corruption.
"Each of our economies face the same challenges. But there are certain degrees of difference. While we don't compare one economy in the region to another, there is evidence in polls conducted by Transparency International and other surveys that measure corruption indicators which show that some are more advanced than others. We are all aiming at the same objective - to combat corruption at all costs," said Ramiro del Carpio Bonilla who is the Chair's Representative to the APEC Anti-Corruption Task Force and in Peru's National Office of Anti-Corruption.
Acknowledging the existence of corruption in government does not eliminate the need to take further steps to find solutions.
"We need to move beyond comparisons and find how each individual economy performs. We need to determine the extent of corruption and look at how to improve public services despite these factors," said Jairo Alfaro, UNDP Viet Nam.
"If corruption is high, effectiveness of governance is low. To improve, governments should undertake reform measures, strengthen financial accountability, raise public and official awareness and engage in anti-bribery pledges," Alfaro explained.
If corruption is a failure of governance, then it's important to draw linkages between public administrative reform and the fight against graft.
Anti-corruption measures needs to be both comprehensive and targeted. An ongoing process, officials need to monitor and measure different levels and different stakeholders.
Sharing Practices that Curb Corruption
Concerned about improving procedures for business to be more competitive, APEC officials convened a symposium for representatives of anti-corruption agencies, local and international experts and the private sector. At this multilateral meeting, they exchanged views in order to draw out effective ways to foster the interactive relationships between anti-corruption and administrative reform.
Through a remarkably candid discussion about sometimes politically sensitive topics such as administrative polices, public budgeting and procurement, member economies shared information and practical experiences in order to better improve the way they fight graft in government.
"The public is tired of corruption." Mr. Roni Ihram Maulana, who is the Director of Monitoring for Indonesia's Corruption Eradication Commission, said, "It's most important to change the culture."
Going further, Transparency International's Australia Executive Director, Michael Ahrens, said, "There's an insatiable demand for it."
Achieving Reform
Public administrative reform strengthens the fight against corruption, but will the government actually get stronger during the reform process?
Incentives can not be addressed in a vacuum. Consideration also needs to be given to transparency, accountability and integrity.
Said World Bank advisor, Jim Anderson, "Surveys have been valuable in many respects because they show that progress is possible in areas that can be politicized.
"Surveys provide an objective analysis of whether things are getting better or getting worse. As countries move to simplify tax regimes, interaction with tax officials is reduced, resulting in less corruption."
Cutting Red Tape?
"How do you get the political will to get actions on reforms when some may not be supportive of it," asked Mr. Andrew Boname, the Regional Anti-Corruption Advisor to the American Bar Association's Asia Division, who chaired the session on the role of inspection for boosting administrative reform.
"In Korea, we have gone through various stages of development since the 1960s. We've put in place different policies on administrative reform over time," said Mr. Hyun-sun, Standing Commissioner of the Republic of Korea's Anti-Corruption and Civil Rights Commission.
"Countries can learn from Korea's experience, especially given their different stages of development."
"From the 1960s to 1980s, Korea adopted "government led" development policies.
"In the face of political democratization in the late 1990s, the government led development model was undermined; hence the need for reform and strong anti-corruption policies. The goal was to implement basic measures focused on minimizing bureaucratization and public participation. Mainly, this was about introducing basic tools to fight corruption."
"Between 1998 - 2007, we focused on building institutional frameworks," Mr. Hyun concluded.
Creating strong domestic institutions minimizes the loopholes for officials to take advantage for personal interest.
"We mainly rely on two tools to fight corruption - first, the investigative element and then there's prevention. Administrative reform is a measure to prevent corruption," said Chinese official, Mr. Kong Xiangren, who is Deputy Director General of the Foreign Affairs Department in the Ministry of Supervision.
"Anti-corruption is especially important to those countries like Viet Nam and China and other developing countries, because in our case we used to have a centralized planned economy. Now we have a socialized market economy and it is developing very fast. Public administration needs to be improved to manage this economy.
In order to train Thai officials, the National Counter-Corruption Commission works to inculcate values, morals, ethics and discipline by promoting a lifestyle which includes the principles of "sufficiency, economy and philosophy."
"These values are derived from the King of Thailand and from his life. For example, one shouldn't consume more than you earn," said Mr. Wanlop Yutidhammadamrong who is the Director of the International Affairs Bureau in the NCCC. He went on to explain how this strategy can be useful for convincing Thai stakeholders to work together in the fight against corruption.
"It's important to develop mechanisms for education and prevention, and ethics to develop morals for this." said Mr. Wanlop.
In summarizing the session, Mr. Boname agreed that there is a need for a professional civil service and institutional culture that does not embrace corruption. Furthermore, officials must have the authority to inspect the underlying cause of corruption in order to have real impact on administrative reform.
Certainly, there are concerns about inspectors misusing, or even abusing their powers. How does the inspectorate hear what's going on in other agencies?" wondered a delegate from Chinese Taipei.
Deputy Director of the Inspection Research Institute in the Government Inspectorate, Dinh Van Minh, summed up the system in Viet Nam: "As Uncle Ho said: Inspectors are the eyes and ears of the superiors and the threats to the inferiors."
"Wherever there is management, there are inspectors," Mr. Minh explained that he has offices in the provinces and other ministries.
Higher Salaries?
A meritocratic civil service, with transparent and adequate remuneration, contributes to the systemic approach to anti-corruption.
Fighting the urge to take bribes, some governments offer incentives to public officials that drain the thirst for illicit payments.
"The government decided to peg public service pay to the private sector. We divide the salary into two components: the variable component is based on performance and adjusted according to the Singapore economy. Quite a large portion of salary is available. Those who perform better will get quite a lot of pay but it is subject to the economic conditions of the country," said Mr. Tin Yeow Cheng of Singapore's Corrupt Practices Investigations Bureau.
In part, these incentives result from a tight labor market. "In the public service we are fighting for talent," Mr. Tin said. "We face manpower shortages so there is no noticeable cut in public servants with the introduction of e-services."
In the comfort of a collaborative forum where alternative views were welcomed, not everyone agreed that Singapore's efficiencies will lead to a stronger public service.
Expressing concern about implementing e-government initiatives, a representative from Viet Nam suggested that the workforce of public officials could be significantly reduced.
Disagreeing with the way Singapore has traditionally structured its public service salary structure to prevent graft, Mr. Roni stated that administrative reform, including increasing remuneration, will not stop corrupt acts.
But it's important to note that graft is not tolerated in Singapore. "Public officers who engage in corrupt activities receive mandatory jail sentences," Mr. Yin added.
Benefits to the region
Fighting corruption can not be done without active participation from the private sector.
In response to questions by the Peruvian delegate about what examples could be provided by joint efforts between the private and public sectors, Mr. Comas stressed the need to form coalitions.
"In the past, for example, many countries allowed businesses to declare certain expenses, such as bribery, as tax deductions," said Mr. Comas.
"Now if they do that, they go to jail," said Mr. del Carpio.
"In Peru, we are facilitating relationships between guilds, chambers of commerce and other organizations to participate in this effort jointly. The outcomes will not occur tomorrow, but they will come about soon."
With profit as motivation, the private sector pursues its own agenda. But business can not excel if corruption is present.
"They have to be aware of the important role they play in this game. I'm sure they'll contribute with their best efforts," said Mr. del Carpio.
Economies generally agreed that government should be transparent in response to identifying flaws in transparency practices.
A professional civil service and institutional culture that does not embrace corruption is required.
"They must have the authority to inspect the underlying cause of corruption in order to have real impact on administrative reform," said Andrew Boname when he summarized the results of the workshop.
"There should be strategic approaches where administrative reform can occur. This could be based on public surveys and data reviews as a result of examination and assessments."