Ethics and Corruption in Public Service

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Ethics and Corruption in Public
Service
1
CHALLENGES OF PUBLIC SERVICE
• Large scale
problems
Drug Trafficking
• Transcend borders
• Stress limited
resources
Terrorism
• Require knowledge
and skill
Human Trafficking
2
DOMESTIC AND TRANSNATIONAL
• Provision of domestic
public services
• Transnational
challenges
– Organized crime and
terrorism
– Poverty and disease
– Environment and
resources
– Interconnectivity and
technology
3
STABILITY AND ORDER
• Regional conflicts
• National insurrections
• Rogue organizations
• International response
• Funding and manning
issues
• Human rights: order vs.
individual / group freedoms
4
ETHICS
• Principles and values
that guide public and
private conduct
• Personal, collective,
professional, societal
dimensions
• Go beyond criminal law
• Involved everyday in
public administration
and policy making
5
Darleen Druyun
MILITARY
• Professional v.
personal obligations
• Administration of
arms, supplies,
equipment, and
personnel
• Command over
subordinates
Darlene Druyun
Former Principal Deputy
Undersecretary of the Air Force
for Acquisition
• Control over
missions
6
CORRUPTION
• Abuse of entrusted power
• Public or private actors
• “According to the rule” or
“against the rule”
• Grand v. petty
• Organized v. unorganized
• Systemic v. localized
• Political v. administrative
• Linked to other criminal
activities
7
Demonstrations in Kyrgyzstan
CORRUPTION
• Can occur in any public context
• Many forms:
– Bribery, extortion, embezzlement
– Kickbacks, self-dealing
– Under-assessments
– Coerced donations
– Nepotism and cronyism
– Ghost employees
– “Grease” payments
Former U.S. Congressman Dan Rostenkowski
8
PERCEPTIONS OF CORRUPTION
Source: Transparency International Global Corruption Barometer 2010
9
CAUSES OF CORRUPTION
10
DISPELLING MYTHS
• Poverty is not the same
as corruption
• Corruption is not a
necessary characteristic
of developing nations
• Corruption does not
result in efficiency
11
CORRUPTION MATTERS
• Distorts social, economic
and political decisions
• Diverts scarce resources
• Suspends rule of law
• Impedes skill development
• Encourages deception
• Discourages development
and investment
• Threatens democracy
12
DEVELOPMENT FUNDED SCHOOL
13
ACTUAL SCHOOL 500 FEET AWAY
14
ACTUAL USE OF FINANCED BUILDING
15
REFORM
• High-level commitment?
• Enforcement power?
• Overcome entrenched
resistance?
• Coordination, specificity,
and regular application?
• Realistic promises and
expectations?
• More than textual changes?
• Institutional mechanisms?
16
What type of corruption is this?
17
…and this?
18
ACTIVITIES PRONE TO CORRUPTION
•
•
•
•
•
Privatization
Large-scale public works projects
Defense spending
Revenue collection (customs)
Licensing and permitting
19
SECTORS PRONE TO BRIBERY
0 = High Bribery; 10 = Low Bribery
Agriculture – 5.9
Light Manufacturing – 5.9
Fishery – 5.9
IT – 5.1
Forestry – 5.1
Civilian Aerospace – 4.9
Banking & Finance - 4.7
Heavy Manufacturing – 4.5
Pharmaceuticals/Medical Care – 4.3
Transportation/Storage – 4.3
Mining – 4.0
Power Generation/Transmission 3.7
Telecommunications – 3.7
Real Estate/Property – 3.7
Oil & Gas – 2.7
Arms & Defense – 1.9
Public Works & Construction – 1.3
Note: Respondents were asked,
“Which are the sectors in your
country of residence where senior
public officials would be very
likely, quite likely or unlikely to
accept bribes? TI estimates the
standard error to be 0.2 or less.
Conducted by Gallop in 15
Emerging Market Countries.
Source: Transparency International’s
Global Corruption Report 2003
20
CAUSES OF CORRUPTION
INSTITUTIONAL
SOCIETAL
WIDE
AUTHORITY
POVERTY
& CONFLICT
LITTLE
ACCOUNTABILITY
PERVERSE
INCENTIVES
CORRUPTION
PERSONAL
LOYALTIES
ILLEGITIMATE
GOVERNMENT
21
AN ILLUSTRATION
If there is no possibility that anyone will know
33% Report and
Return Funds
50% Undecided
17% Keep
Option Finder Results: Various Audiences
22
AN ILLUSTRATION CONTINUED
If there is a 30% probability that you will be observed
22% Undecided
4% Keep
74% Report and Return Funds
Option Finder Results: Various Audiences
23
CONCLUSION
• Anti-corruption efforts:
– Foster culture of principled conduct
– Create institutional mechanisms for prevention,
detection and punishment
24
25
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