Quality of Public Administration “ A Toolbox for Practitioners ”

1. Quality of Public Administration “A Toolbox for Practitioners” “Embedding ethical and anti-corruption practices”

2. Context Linking "Policy" to Funding 20 countries country specific recommendations from European Semester; EUR 5 Billion+ for 18 countries under ESF/ERDF 2014-20; ex-ante conditionalities; demand for guidance Learning & Managing Knowledge 12 commission directorates general involved; many (existing) initiatives (public sector innovation, Small Business Act, Digital Agenda, etc.); comprehensive overview; complement with intl. good practice (e.g. HR); break down silos No new policy! Guidance (non prescriptive); basis for discussion with practitioners and stakeholders; Commission as a facilitator

3. Themes • Introduction • Principles & values of good governance • Seven thematic chapters: • Better policy-making • Embedding ethical & anti-corruption practices • Professional and well-performing institutions • Improving service delivery • Enhancing the business environment • Strengthening the judicial system • Managing public funds effectively (including PP and ESIF, TO11)

4. Process May 2014 – Feb 2015 • Commission Inter-service Group – agree structure and develop content on basis of CSR and TO11 relevance • Presentation & discussion of drafts (EUPAN, ESF committee, TO11 practitioners, academia) • Verification of case studies (170; mainly member states)

5. Content & Style Compendium style (many sources, underlying messages, lessons, not a roadmap – context may limit transferability) + Blue Boxes Commission policy and initiatives Orange Boxes Key studies and speeches Case studies Lighter Green "Cited" from existing studies and guides Darker Green Checked with "original sources" Green Boxes

6. Publication Hard copy Abridged Version (140 pages) E-version • Abridged version • Full publication 7 chapters • Links/Cross-references • http://ec.europa.eu/esf/toolbox

7. Outline theme 2 • Introduction • Key questions for ethical and anti-corruption practices • Establishing the policy framework (Ethical values and standards, Risk-based strategies, Laws and regulations, Coordinators and agencies) • Building public trust through transparency and accountability (Open government, External scrutiny) • Promoting integrity and reducing the scope for corruption (Human resources management and training, Disclosure by public officials, Simplification, controls and automation) • Detecting and acting on corruption (Whistle-blowing mechanisms, Investigation, prosecution and sanctions) • Key messages – call for future action

8. Introduction • Context: • Anti-corruption measures as part of economicadjustment programmes, the EuropeanSemester (CSRs) and Europe 2020. • Corruption istoxic for long-termeconomicprosperity and sound public finances. • Definition of the key terms: • Ethics: set of values that guide the performance of public duties. • Integrity of the whole system of administration: serving the public interest. • Corruption: the misuse of public position or power for personal or private gain. • Grand and petty corruption • Systemic and sporadic corruption • Whendoes corruption arise? One in 12 Europeans surveyed in 2013 had experienced or witnessed a case of corruption in the past 12 months, one in four felt personally affected by corruption in their daily lives. Over four in ten companies felt corruption, patronage and nepotism to be a problem for doing business. Analysis by the EU-financed ANTICORRP programme shows a strong correlation between corruption and government over-spending, under-collection of taxes, fiscal deficits, and under-absorption of ESI Funds. It is also strongly associated with ‘brain-drain’ from the economy to more meritocratic environments.

9. Key questions for ethical and anti-corruption practices How to set the frameworkfor integrity and combatting corruption? What role for transparency and accountability play in (re)building public trust? What preventativemeasures to strengthen ethical performance and reduce the scope for corruption? How to detect and act on corruption?

10. 1. Establishing the policy framework Introduction • Ethicalbehaviour in public life shouldbe the norm. • Systemiccorructionrepresents the absence of public service ethos and a failure to identify or take corrective action. • The challenge for public administrations is to: • incentiviseintegrity • detercorruptactivities • dismantelsystemic corruption This demands leadership.

11. 1. Establishing the policy framework 1.1. Ethical values and standards • Ethicalbehaviourstartswith attitudes and values at the top of the administration. • Integritypoliciescanbecodified as standards for behaviour. • Codes of ethics • Codes of conduct Inspiring examples: UK’s Seven Principles of Public Life; Ireland’s Standards in Public Office Commission Inspiring example: Finland’s “Values in the Daily Job – Civil Servants’ Ethics”

12. 1. Establishing the policy framework 2. Risk-based strategies • Anti-corruption strategies: • Necessary when corruption is systemic • and requires a clear, comprehensive and centrally coordinated package of measures • Key ingredient: sound evidence base • Risk assessment: • Identify the highest risk of corruption and capacity for change • Risk-mapping as a tool: likelihood and impact of corruption (risk matrix and ‘heat map’) Inspiring example: Lithuania’s Anti-Corruption Strategy & Programmes Inspiring examples: Slovenia’s sample integrity plan & methodology; Lithuania’s corruption risk analysis The Commission supports national authorities through OLAF’s HERCULES III programme, and the risk-scoring tool for ESI Funds, ARACHNE.

13. 1. Establishing the policy framework 1.3. Laws and regulations Ethicalprinciples are embedded in the legal base : • Art. 83 (1) TFEU • International conventions and principles (e.g. Council of Europe, UNand OECD) • National laws, traditions and structures • to regulateconflicts of interest • to protectwhistle-blowers Inspiring example: UK Bribery Act 2010

14. 1. Establishing the policy framework 1.4. Coordinators and agencies • Integritycoordinators: someMember States have allocatedresources at the center of Government to manage theirethicspolicies. • Anti-corruption agencies(ACAs): • education and awareness-rising on corruption • monitoring and coordination • prevention, investigation and prosecution Inspiring example: Integrity coordination in the Flemish Government, Belgium

15. 2. Building public trust through transparency & accountability Introduction Corruption: • undermines public trust in public administration • resultsfrom a failure of individuals to beaccountable for theirbehaviour • relies on secrecy Antidote: transparency and accountability

16. 2. Building public trust through transparency & accountability 2.1. Open government The increasing importance of modern communication and social networks encourages the public sector to be more open. The public monitors if PA meettheir obligations on transparency. • Public Sector Information Directive Inspiring examples: Italy’s OpenCoesione open government strategy; UK’s Local Government Transparency Code All Member States are signatories to the 2009 Malmö Ministerial Declaration on e-Government, includes the objective to strengthen transparency of administrative processes, followed up in the e-Government Action Plan 2011-2015.

17. 2. Building public trust through transparency & accountability 2.2. External scrutiny Transparency is an effective tool when matched by external scrutiny and public’s active participation. This requires: • Strong institutions from outside the executive and judiciary: • Supreme Audit Institutions • Information Commissioners • Ombudsmen • Media • Healthy NGOs • Civil society organisations • Lobbying The EU Transparency Register provides citizens with access to information about who is engaged in activities aiming at influencing the EU decision making process. Registration is voluntary, but incentivised by controlled access to European Parliament & automatic alerts to consultations of interest.

18. 3. Promoting integrity and reducing the scope for corruption Introduction • Officials acting in the best interests of their organisations are the foundation of well-functioning institutions. • Public authoritiesshouldpromoteintegrityin the workplace. • Preventionis the highestprioritywithin anti-corruption measures. Balancedapproach: accentuating the positive benefits of ethicalbehaviour + beingaware of the potential for corruptactivities.

19. 3. Promoting integrity and reducing the scope for corruption 3.1. Human resources management and training • Human resources management should integrate ethical values into personnel policies • and provide clear rules in the ‘grey areas’ of integrity (e.g. meritocratic appointments, preventing conflicts of interest) • Identification of sources and risks of corruption • Ethics and dilemma training Inspiring examples: Slovene police’s ethics code and training; dilemma training in the Flemish Government

20. 3. Promoting integrity and reducing the scope for corruption 3.2. Disclosure by public officials As a preventivemeasure, many PA oblige public officials to submit a signeddeclaration of theirincome, assets and business interest: • The key to successisverification • The downside of disclosureis the danger of unintendedconsequences • Targetedapproach: disclosureis best targeted in areas whereitcanbemost effective.

21. 3. Promoting integrity and reducing the scope for corruption 3.3. Simplification, controls and automation ‘Rule-changing’ approaches aim to take the scope to misuse entrusted power out of the equation through: • Administrative simplification to reduce red tape and lower corruption. • Internal controls: ‘four eyes’ principle, clear and published procedures and internal audit. • Automation: positive impact of online services to reduce corruption. Inspiring example: Detecting health corruption through fraud audit in Calabria, Italy

22. 4. Detecting and acting on corruption Introduction • Reallistically, corruption willneverbewhollyeradicated. • A regulatory and reportingframework must be in place (systems for detection and prosecution). • Whistle-blowingis the most effective way of exposingwrongdoing.

23. 4. Detecting and acting on corruption 4.1. Whistle-blowing mechanisms • Whistle-blower: someonewho reports or discloses information on a threat or harm to public interest. • But often, nothingisdone about the wrongdoing and the whistle-blowersuffersrepercussions. Protection of whistle-blowers • Research shows thatexternalwhistle-blowingis more effective thatinternalwhistle-blowing. • An integritypolicy encourages staff to discussmattersopenly. Inspiring example: UK’s PIDA & the role of PCaW Inspiring example: Ireland’s Protected Disclosures Act

24. 4. Detecting and acting on corruption 4.2. Investigation, prosecution and sanctions • Transition fromregular to rare corruption: chances of detection and probablity of beingpenalised are high. • Anti-corruption agencies: lawenforcement and responsible for detection, investigation and prosecution. • For maximum deterrence, detectionshouldbematched by punitivesanctions (effective disciplinarypolicies, penalties and possibly restitutions).

25. Key messages- call for future action Agree and adopt a set of values to guide behaviour and actions Prepare and implement policies and strategies around the equation corruption risk = opportunity – constraints Make sure these policies and strategies are comprehensive Take a balanced approach that builds trusts Ultimate point? Values are internalised, rules are implicit and recourse to enforcement is the last resort. Good governance = ethical administration.

26. Thank you! Contact: Nick Thijs n.thijs@eipa.eu