COLLECTIVE ACTION AGAINST CORRUPTION 4 TH CARIBBEAN PUBLIC
COLLECTIVE ACTION AGAINST CORRUPTION 4 TH CARIBBEAN PUBLIC PROCUREMENT CONFERENCE 2 DECEMBER 2014 Dr. Sope Williams-Elegbe Deputy Director, African Public Procurement Regulation Research Unit & Research Fellow, Stellenbosch University, South Africa. Senior Lecturer in Law, University of Lagos, Nigeria. sopewe@sun. ac. za
OVERVIEW OF PRESENTATION § Introduction § The Scale of the Problem § What is Collective Action? § Why Collective Action? § What Should Collective Action Achieve? § Examples of Collective Action in Action § How do we Implement in the Caribbean? § What will the Future Look Like With Collective Action? § Conclusion 2
INTRODUCTION Corruption perceptions index created & other 1995 indicators Scholarly study of corruption 1960 s Most work consisted of single –case studies 1990 s Linkage between corruption, GDP & Investment 1999 Collective action (UNGC) 2000 s
THE SCALE OF THE PROBLEM (1) §There have been different causes attributed to the low level of economic development in the Caribbean § These include: Ø Dependency theory; Ø Cultural and social history; Ø Unfair world trading system; Ø Political and other forms of corruption; Ø Underdeveloped democracies; Ø The absence of adherence to the rule of law Ø The effects of the illegal trade in drugs 4
THE SCALE OF THE PROBLEM: CORRUPTION PERCEPTIONS INDEX Country 2013 Rank 2012 Rank GDI per capita 2013 Classification Barbados 15 15 $15, 080 (2012) High income Bahamas 22 22 $20, 600 (2012) High income St Lucia 22 22 $7, 090 Upper middle income Puerto Rico 33 33 $19, 210 High income St Vincent & The Grenadines 33 36 $6, 580 Upper middle income Dominica 41 41 $6, 760 Upper middle income Cuba 63 58 $5, 890 Upper middle income Jamaica 83 83 $5, 220 Upper middle income Trinidad 83 80 $15, 760 High income Suriname 94 88 $9, 260 Upper middle income Dominican Republic 123 118 $5, 620 Upper middle income Guyana 136 NA $3, 750 Low middle income Haiti 163 165 5 $810 Low income
THE SCALE OF THE PROBLEM: CORRUPTION PERCEPTIONS INDEX Country 2013 Rank 2012 Rank GDI per capita 2013 Classification St Kitts NA NA $13, 460 High income Antigua NA NA $12, 910 High income Belize NA NA $4, 660 Upper middle income Grenada NA NA $7, 460 Upper middle income Montserrat NA NA Low income is $1, 045 or less Middle income is $1, 045 to $12, 746 Lower-middle income is $1, 045 to $4, 125 Upper middle income is $4125 to $12, 746 High income is above $12, 746. 5
WHAT IS COLLECTIVE ACTION? (1) According to Olson (1965): it is any action which provides a collective good. Does not exclude individual actions but focuses on collective behaviour. • Olson felt collective action was irrational and the tendency is to free-ride so incentives are required. It modern times it is a strategic approach which mobilises the private sector to fight corruption Theory has been criticised and issue is whether self-interested persons can make a difference in providing a collective good • The answer is YES!
WHAT IS COLLECTIVE ACTION? (2) Collective action is a coordinated sustained process of cooperation amongst private firms and other stakeholders. It amplifies the impact of company efforts, brings vulnerable and individual players into a supportive alliance and levels the playing field. ~ World Bank Institute
WHAT IS COLLECTIVE ACTION? (3) COMMON OBJECTIVE 9 Collective actors Collective decisions Individual choices RESULTS AND OUTCOMES
WHAT IS COLLECTIVE ACTION? (4) Conscious, Voluntary, Active, Lasting Credible leadership Compelling focus Incentives for participation 10 Alliances & Coalition building Sustainable
WHY DO WE NEED COLLECTIVE ACTION? • Research (Persson 2012) shows that anti-corruption measures can’t be left to public sector • The principal-agent paradigm is faulty • Corruption is a collective problem and requires a collective effort • Corruption is an institutional problem and the underlying institutional framework must be addressed • If supply stops- this will affect demand • Businesses and civil society have a compelling incentive to reduce corruption
WHAT SHOULD COLLECTIVE ACTION ACHIEVE? Acceptance Engageme nt Change behavior
HOW DOES COLLECTIVE ACTION WORK? Define message Enforcement Celebrate change Create awareness Build coalition/tractio n
HOW DOES COLECTIVE ACTION WORK (2) Internal External Collective action
TYPES OF COLLECTIVE ACTION MEASURES Enrollment Mobilization Education/adv ocacy Transaction specific pacts
COLLECTIVE ACTION IN ACTION: UNGC Aim: To get businesses involved in work of UN. Launched 2000 Method: Enrollment program & awareness building Outcome: 12, 000 participants in 145 countries. Largest voluntary initiative
COLLECTIVE ACTION IN ACTION: NIGERIA Convention on Business Integrity (Enrollment) Corporate Governance Rating System (Enrollment) Generational Voices (Mobilization) Enough is Enough (Mobilization) Budg. IT (Data & Information)
COLLECTIVE ACTION IN ACTION: THAILAND Aim: To get businesses committed to ethical conduct and fighting corruption. Champion – IOD. Launched 2010 Method: Enrollment- Signature to Collective action declaration & company measures. Evaluation Outcome: 325 companies; 25% of listed companies, 50% of market capitalization, 20% of GDP
COLLECTIVE ACTION IN ACTION: RUSSIA Aim: Reduce barriers to business for SMEs. Corruption noted as biggest barrier. Method: Mobilization: 225 coalitions of SMEs created. Coalitions developed regional agendas for reform. Outcome: 138 legislative changes on corruption, taxation, administration etc. coalitions dialogue with public sector and share information.
HOW DO WE IMPLEMENT IN THE CARIBBEAN? • Build a coalition of businesses genuinely tired of the status quo. • Who will lead this? • Three-pronged approach may be necessary: 1. Enrollment- a commitment to internal ethics 2. Mobilization and advocacy 3. Information sharing and training
IF NOT NOW, WHEN? IF NOT YOU, WHO?
HOW DO WE ENSURE IT IS SUSTAINABLE? What is the goal? Organization to manage the initiative How will it be funded ?
WHAT WILL THE FUTURE LOOK LIKE WITH COLLECTIVE ACTION Better service delivery Rule of law Improved HDI Increased trade & investment Economic developme nt Democrati c stability GOOD GOVERNANCE 23 Stronger institution s
CHALLENGES TO COLLECTIVE ACTION Leadership & Ownership. Who will champion? Critical mass/def aulters Which model works best? 24 Funding Is it a priority ?
SOME LESSONS FROM OTHER JURISDICTIONS Top-Down Approach Bottom-Up Approach i. e. through the largest business association/c hamber of commerce i. e. through smaller city based orgsnisations Collaborative Engagement Support from all sectors 25 Enhance Capacity Transparent advocacy
CONCLUSION Collective action against corruption is necessary and it works It increases the impact of action, is sustainable and scalable Good for reputation and business Assists in operational implementation of ethics Addresses institutional weaknesses and behavior
THANK YOU Dr. Sope Williams-Elegbe sopewe@sun. ac. za
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