CorruptionDevelopment Nexus Session 2 The Nexus between corruption

Corruption-Development Nexus Session 2

The Nexus between corruption and development Vanishing Video

QUIZ ! Corruption Myths

Session Objectives By the end of this session participants will be able to: 1. Understand how corruption affects various aspects of development: e. g. human rights, poverty, energy and environment, gender, governance, armed conflict, and HIV/AIDS; 2. Understand why anti-corruption is currently seen as a global, regional and national concerned, particularly in the context of the post-2015 agenda; 3. Provide a perspective on how the ‘corruption- development nexus’ manifests in the national development context.

UN Secretary-Generals: development & corruption

Corruption and development nexus Corruption SUSTAINABLE DEVELOPMENT (economic growth/poverty and inequality) Governance / Government’s capacity to respond to people’s needs

Corruption-development nexus Inequality

Relationship between corruption and development Summarizing relationship between Corruption and Development Economic Poverty/ Governance Growth Inequality Corruption Impact Through: Human Rights Discouraging Undermining Distorting rule of Perpetuating • investment efforts to law and discrimination and aid achieve MDGs weakening Denying rights Adding Increasing the moral values to social unpredictabil cost of public Undermining services ity in services and government Weakening business lowering their legitimacy by democratic environment quality reducing public institutions trust in Distorting Worsening Undermining government economic income and delivery of policies other Weakening justice inequalities institutional foundation by worsening ATI Gender Increasing sexual extortions Environment Worsening environmental governance and reducing the Affecting stringency of women disproportio environmental regulations nately in terms of access to essential public services Conflict Fuelling war when, in the absence of a legitimate political regime, certain social groups are favoured in the allocation of resources, thus fuelling grievances among marginalized groups.

Corruption and development: Empirical evidence - some examples Linkages The evidence shows Corruption & Economic growth In 2012, half of Afghan citizens paid a bribe while requesting a public service total cost of bribes paid to public officials amounted to US$ 3. 9 billion (20% of GDP, according to the UNODC survey) Corruption & Poverty/Inequality 64 million people were pushed into poverty by the economic crisis, which was in part caused by lax regulation, lack of financial transparency and conflicts of interest (World Bank) Corruption & Governance People’s distrust about the government and opinions about the government corruption go hand in hand: (72% of citizens in Latin America, Latin Barometer) Corruption & Human rights Corruption is estimated to raise household price of water by as much as 30% and general price of goods by 20% (TI 2008) Corruption & Gender Corruption harms women’s access to justice. The findings of a survey on the impact of corruption on women in from the Asia-Pacific show various levels of discrimination in the handling of cases of human trafficking or rape, the victims of which are for the most part female (Asian Human Rights Commission) Corruption & Environment In Cambodia, where a robust illegal logging trade has flourished since the mid 1990 s, payments to government officials in the form of bribes are estimated at $200 million for 1997 alone. That is more than 13 times the $15 million in revenue the Cambodian government took in from legal forest operations that year. (World Resources Institute) Corruption & Conflict Out of 5 country cases studies by UNDP in 2010, corruption was found to be a serious threat to peace and stability in post-conflict environments.

Fighting Corruption facilitates Development An estimated of US$1 trillion per year is lost in the developing world through illicit financial flows (WB). This amount is more than enough to fund the resources required to meet the MDGs.

Anti-corruption is a part of the national, regional and global development discourses Demanded accountability, transparency & integrity from governments & international community. Before there was no focus on corruption as a bottleneck Provided opportunity to talk about sustainable development & governance issues.

Anti-Corruption and MDGs http: //mdgs. un. org

Anti-Corruption in the context of Post-2015 Development Agenda § Transparency and accountability are among top issues discussed in global, regional and country level consultations on post-2015 § My World survey reflects : ‘An honest and responsive government’ is ranked the third priority after education and health) www. myworld 2015. org/

From global discourse to national development context Global discourse National discourse

Key messages § § § § Corruption is a major bottleneck in achieving the MDGs as it diverts resources away from basic social services and limits access to health, education and water and sanitation. It thus enhances the inequality in access to basic services and fundamental rights; Corruption hinders sustainable economic development by reinforcing social inequality Corruption undermines public trust and the rule of law. Corruption thrives wherever there is weak transparency and accountability. Corruption fuels civil war and armed conflict by reinforcing the establishment of exclusive political institutions, fuelling grievances among conflict parties and facilitating state capture by illegal armed actors. Corruption hinders universal access to public services recognized as a human right. Corruption in judicial systems is proven to violate the basic right to equality before the law and deny procedural rights guaranteed by the Universal Declaration of Human Rights. Corruption impedes sustainable development by penetrating the sector of natural resources, particularly in developing countries, accelerating deforestation and threatening the sustainable management of natural resources. As the post-2015 agenda evolves and takes shape, it is imperative to recognize and remove governance/corruption bottlenecks to the achievement of development outcomes including the MDGs.