Keith Sargent Public Policy Advisor

1. Re-thinking Post Conflict State Building: Developing Better Governance and Fighting Corruption - Have we got it right? Security, Conflict and International Development Symposium University of Leicester 13th March 2014 Keith Sargent Public Policy Advisor

2. 4 Key Questions • Re-thinking state building - do we need to? • Installing a democratically elected government - is the International Community in too much of a hurry? • Winning clean government - what does it entail? • Corruption - to what extent is it the cause of fragility? • Conclusions

3. State Building - a definition from OECD / DAC “Purposeful action to develop the capacity, institutions and legitimacy of the state in relation to an effective political process for negotiating the mutual demands between state and societal groups. Legitimacy will be a principal outcome of the effectiveness of such a process over time, although legitimacy may also be embedded in historical identities and institutions”. The OECD argue: “A focus on governance structures that addresses inequities and inequalities and promotes accountability is likely over time to promote resilience” .

4. Re-thinking state building - do we need to? Bosnia • Dayton agreement - a “treaty designed to end a war not build a state”, • “a broken political system” / “graft and misconduct remain widespread” Kosovo • parallel structures • Legitimacy of new ‘Republic of Kosovo Government’ questioned Iraq • “flawed state building” Afghanistan • “patronage and bribery .. an acceptable part of every day life” • accusations of manipulated elections and legitimacy of Karzai’s government questioned South Sudan • “political egos” / “potential to lead to a full blown civil war”

5. Re-thinking state building - do we need to?Paul Collier’s critique of the ‘Conventional approach’: • Conventional approach “Defies reality” • Conventional approach: ~ “politics matters” - try to build a political settlement first ~ provide peacekeepers but only for a short time ~ for the exit strategy, hold an election • elections produce “winners and losers” and not an “inclusion agenda”

6. Re-thinking state building - do we need to?Paul Collier’s ‘New Rules for Rebuilding a Broken State’: • An exit strategy must be based on economic recovery • Build an “inclusion agenda” and provide “reassurance that produces private investment” and “don’t fuss about the political constitution” • “Focus on a few things - jobs, basic services and ‘clean government’”

7. Re-thinking state building - do we need to?A need to re-think Collier’s analysis and proposals: • Need to re-think prioritisation and sequencing of state-building processes, not so much timing of elections • Winning ‘Clean’ government has major implications: its not just ‘following money’ or the need for ‘accountants without boundaries’ • The dimensions of governance are wide and viewed through different lenses by different donors • A major change in the donor community’s approach to governance and corruption is required • A Post Conflict Compact may work but in many circumstances may be unlikely. Full agreement on a cohesive and comprehensive approach to corruption between donors and fragile state/ post-conflict government will be necessary, however.

8. Installing a democratically elected government - is the International Community in too much of a hurry? • BiH elections held 10 months after Dayton. Those of Afghanistan 48 months • Only Iraq elections definitely called prematurely • However, prioritisation and sequencing of state building effort has been an issue in all 5 multi-dimensional missions • Building the state and winning better governance has been undermined by lack of focus on corruption • Doig and Tisné finding: the corruption agenda has traditionally been “downplayed and diluted” • Major risks if new administration can’t support new parliament: - time is of the essence - opportunity costs

9. Winning clean government - what does it entail? • “‘Clean’ means follow their money” (Collier) • need for “accountants without borders” (Paddy Ashdown) • But not quite this simple if: • aim of TA is to make itself unnecessary as quickly as possible • transferring skills and imbuing new culture takes time • centre to periphery money flows provide plenty of scope for corruption, and addressing corruption in fragile, peripheral areas incurs high risk

10. Corruption - to what extent is it the cause of fragility?A look first at the governance context: Governance: • IBRD (2007) ~ “the manner in which public officials and institutions acquire and exercise the authority to shape public policy and provide public goods and services” • AfDB ~ “a process referring to the way in which power is exercised in the management affairs of a nation” • Kaufmann, et al, 1999 ~ “the traditions and institutions by which authority in a country is exercised. This includes the process by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them,” Kaufmann, Kraay, and Zoido-Lobato´n , 1999,

11. Corruption - to what extent is it the cause of fragility?A look first at the governance context: The Dimensions of Governance • “Fundamental aspects of governance” are: graft, rule of law, and government effectiveness. Other dimensions are: voice and accountability, political instability and violence, and regulatory burden. Kaufmann, Kraay and Zoido-Lobaton 1999. • Property rights and rule-based governance; the quality of budgetary & financial management; the efficiency of revenue mobilization; the efficiency of public expenditures; and transparency, accountability and corruption. World Bank CPIA indicators. Source: “What is Governance?” A World Bank article at URL: http://go.worldbank.org/G2CHLXX0Q0

12. Corruption - to what extent is it the cause of fragility?Two of many definitions of Corruption Corruption is: • “the abuse of public office for private gain” ~ (Transparency International) ~ perhaps the most common definition. • “behaviour which deviates from the formal rules of conduct governing the actions of someone in a position of public authority because of private-regarding motives such as wealth, power or status*” ~ (Professor MustaqKhan) *From a Lecture on “Establishing effective anti-corruption measures in the state and corporate sectors in developing countries” given by Professor Mushtaq H. Khan of the School of Oriental and African Studies, University of London, at the International Centre for Parliamentary Studies, London, 13th March 2012

13. Corruption - to what extent is it the cause of fragility? • “whereas the root causes of intra state conflict are usually assumed to be poverty and economic inequality or clashes among different ethnic or religious groups, the central cause of violent conflict is weak governance institutions characterised by a lack of predictable and sustainable systems and by leaders who use public office to benefit themselves and their affiliates”. • “no progress can be made in promoting peace, development and protection of human rights unless appropriate governance and public administration institutions are established”. • a “common denominator (of any reform must be that) the public service must be seen to be fundamentally and positively different from (that of) the previous government”. Source: “Reconstructing Public Administration after Conflict”, UN Department of Economic and Social Affairs (UN DESA), 29 August 2011, World Public Sector Report, New York, 2010, ST/ESA/PAD/SER.E/135

14. Corruption - to what extent is it the cause of fragility? The OECD view corroborates that of UNDESA: “Corruption lies at the core of fragility. Certain forms of corruption can fundamentally delegitimize the state”. The OECD propose that donors should place stress upon having: • “robust accountability mechanisms”; and • “structures that address inequities and inequalities’ and that ‘promote accountability and transparency”.

15. Corruption - to what extent is it the cause of fragility? Concerns in addressing corruption: • indirect approach of donors (e.g. through PFM) • difficult questions => denial => strained relationships => potential for negotiated peace to flounder • possibility of amnesty • lack of joined-up working • challenge to take cross-cutting approach to anti corruption • two teams (anti corruption + peace/state building) , two conceptual approaches • no agreement on prioritisation and sequencing • no focus upon or understanding of systemic corruption

16. Conclusions • Sustainable state building undermined by weak / ‘un-joined-up’ governance / anti-corruption agenda • Allowing systems, procedures and personnel to become embedded can negatively impact on public service provision and lead to fragility • Robust prioritisation and sequencing necessary • Corruption sensitive approach necessary • Adequate resourcing required + security from backlash • Foundations should be laid for initiatives outside the state-building period (e.g. for civic education) • Upfront agreement between donors and government critical • Remember corruption feeds corruption and increases inequalities • The public service should support government with integrity and without corruption