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Corruption

Corruption. Sten Str öm Sida/Asdi Embassy of Sweden, Managua. How Big Is The Problem?. USD 1 000 000 000 000 (USD 1 trillion) Each year…. 6 x Sweden’s Gvt debt 152 x Nicaragua’s public debt. Disposition:. What is corruption? (4-6)

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Corruption

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  1. Corruption Sten Ström Sida/Asdi Embassy of Sweden, Managua

  2. How Big Is The Problem? USD 1 000 000 000 000 (USD 1 trillion) Each year…. • 6 x Sweden’s Gvt debt • 152 x Nicaragua’s public debt

  3. Disposition: • What is corruption? (4-6) • How to fight corruption at various levels (7-13) • Corruption in procurement (14-16) • Corruption in Health Sector (17-18) • interaction with patient (19-20) • medical supplies (21-22) • resources management (23-25)

  4. What Is Corruption? • Misuse of entrusted power for private gain (Transparency International) • Institutions, corporations or individuals obtaining inappropriate gain through their position in operations, thereby causing damage or loss (Sida’s anti-corruption rule)

  5. Examples of Corruption (1) • Bribes (given and received) But also • Extortion • Favouritism and nepotism • Conflict of interests

  6. Examples of Corruption (2) • Embezzlement • Fraud • Illegal financing of political parties • Impunity

  7. Anti-corruption Work Four levels: • Individual officers • Organisation • Structures of the country • Global development/initiatives

  8. Individual Officers • Public Administration Acts • Organisational rules • Systems for internal control • Organisational atmosphere • (including examples, incentives, sanctions)

  9. In The Organization • Assessment of capacity and risk of corruption • Mitigate risks (in procurement and monitoring mechanisms: reporting, audit, information to target group) • Extra audits (not just financial/regularity) • Take action

  10. Structures of Country (1) • Financial management systems - plans (revenue forecasts, medium term) - budgets - international control - payment systems - revenue (tax, customs, etc) - accounting - audit - parliament’s scrutiny

  11. Structures of Country (2) • - statistical systems - cadastre - police, prosecutors and courts - ombudsmen - election processes incl. political parties - anti-corruption commissions - decentralisation processes

  12. Structures of Country (3) • Corruption studies and support to anti-corruption strategies • Independent media • Watchdog organisations (TI local chapter)

  13. Global Development • Ratification and implementation of UN:s anti-corruption convention, • Regional convention (Convención Interamericana Contra la Corrupción), • OECD regulations, etc • Support to international organisations, methods development, lobbying (www.transparency.org) (www.corisweb.org)

  14. Where Corruption Occurs in The Procurement Process • Decision to procure • Specifications in tender documents • Access to tender documents • Qualification of tenderer • Evaluation of tenders • Award decision • Contract negotiation and design • Contract administration/implementation

  15. Preventing Corruption In Contracting (1) • Controls can be expensive, ineffective and/or too late • No single solution for a complex problem - Laws and Institutions - Education/training - Access to information by media, watchdog NGOs - Codes of Ethics

  16. Preventing Corruption In Public Contract (2) • Based on transparency - Facilitate monitoring and participation - Encourage accountability • Integrity pacts, publish what you pay • OECD Convention- illegal bribing of foreign officials • Increase risk of detection and “cost” if caught • Change of attitudes

  17. Corruption in Health Sector - Causes and consequences • Imbalance in information • High degree of discretion • Low productivity without accountability • Decentralisation without monitoring • Vulnerability

  18. Corruption in Health Sector

  19. Health worker/patient interaction - problems • Informal payments • Private practices/self-referral • Training/accreditation • Health care fraud • Conflict of interest

  20. Health worker/patient interaction - actions • Salaries • Official user fees • Accountability, improved management • Code of ethics • Access to information • Voice based strategies

  21. Management of medical supplies - problems • Availability • Registration of drugs • Drug selection • Procurement • Distribution/misappropriation

  22. Management of medical supplies - actions • Regulatory authorities/procedures • List of essential medicines • WHO principles • Inventory control

  23. Resources management - problems • Budget process • Lack of accountability • Budget leakages • Multiple/large funding • Promotion

  24. Resources management - actions • Improved systems • Budget transparency, participation • Decentralisation • Privatisation • Tracking resource flows • WHO ethical guidelines • Information campaigns

  25. But most importantly…. How to create a ”public ethos” (civil servants), focussed more on public good than on personal gain ?

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