Fighting Corruption in Public Services: Chronicling Georgia’s Reforms

1. Fighting Corruption in Public Services: Chronicling Georgia’s Reforms The World Bank 2012

2. Objective of the book • To chronicle Georgia’s anti-corruption reforms in public services • To understand the ‘how ’ of these anti-corruption efforts

3. Framework for Analysis…. • Case study approach: looking at 8 sub-sectors • patrol police • power supply • tax collections • customs • business regulation • public and civil registry • university entrance examinations • municipal services

4. …..Framework for Analysis • Each case study is structured in 3 parts: • The state of affairs in 2003 • The post-2003 anti-corruption reforms • Results • Senior policymakers were interviewed on the ‘how ’ of anti-corruption reforms • World Development Report 2004 framework was used to analyze accountability arrangements between the government, service providers, and citizens

5. Aggregative Scorecard

6. Very Low Prevalence of Unofficial Payment(2010 data, % of population surveyed) Source: EBRD-World Bank, 2011, Life in Transition 2

7. Sectoral Scorecards Patrol Police Tax Collections

8. Sectoral Scorecards Customs Power Supply

9. Sectoral Scorecards Deregulating Businesses Public and Civil Registries

10. Sectoral Scorecards University Entrance Exams Municipal Services

11. Ingredients for Success? Ten Tenets • Exercise Strong Political Will • Establish Credibility Early • Launch a Frontal Assault • Attract New Staff • Limit the Role of the State • Adopt Unconventional Methods • Develop Unity of Purpose and Coordinate Closely • Tailor International Experience to Local Conditions • Harness Technology • Use Communications Strategically

12. 1. Exercise Strong Political Will • Campaign slogan of ‘Georgia without corruption’ • Strong presidential leadership • Over 90 percent popular support in the elections • Sense of urgency – short window of opportunity • Shared ideology of a diminished ‘role of the state’

13. 2. Establish Credibility Early • Enforced ‘zero tolerance’ for corruption • Established a ‘virtuous cycle’ of reforms • Destroyed ‘symbols of corruption’: thieves-in-law • Showed ‘equality before law’ • Make necessary legal changes

14. The Georgian Virtuous Reform Cycle

15. 3. Undertake a ‘Frontal Assault’ • Introduced holistic, interconnected reforms; no ‘piecemeal’ approach • Established clear sequencing: started by enforcing law & order and improving tax collection then moved to reforms that benefited the most people in the shortest possible time

16. 4. Attract New Staff • Renew staffing: Bring in ‘new blood’- recruit new, dynamic staff; removed corrupt, inefficient staff • Developed a strong team with shared values • Provided clear incentives - good remuneration and employment conditions, with clear accountabilities • Created a new culture of public service: putting the citizens first

17. 5. Limit the Role of the State • Limit the interface between the citizens and the state • Encouraged private initiative • Deregulated businesses • Applied the ‘guillotine’: eliminate unnecessary or inefficient public agencies • Balanced institutional development with the capacity of the state • Microeconomic incentives matter

18. 6. Adopt Unconventional Methods • Improvise: first-best solutions may not work or be politically possible • Took decisive and quick actions • Ensured direction of movement was correct, even if specific measures may not be perfect • Initially focused on prosecutorial methods

19. 7. Have Unity of Purpose and Coordinate Closely • Have a core team of policymakers, with shared common values and vision • Ensured intensive coordination at the cabinet of ministers • Established high level commissions on sectoral reforms • Ensured timely decisions and actions

20. 8. Tailor International Experience to Local Conditions • Drew from international experience but adapt to local conditions (e.g. anti-mafia legislation, plea bargaining, business deregulation) • Learned from international successes as well as failures • Helped to have policymakers who have seen how things are done differently in other countries

21. 9. Harness Technology • Computerization aided business simplification and anti-corruption • Technology helped to reduce the interface between the citizens and the state • Used simple IT solutions, consistent with local capacities • Technology helped establish time bound service standards

22. 10. Use Communications Strategically • Leadership needed to maintain close contacts with the people • Constantly used political calculus to inform anti-corruption reform design and implementation • Used regular public polling to inform decision-making • Used media to expose cases of corruption and publicize important actions

23. The Accountability Framework

24. The Right Balance? • Need to strengthen the system of checks and balances on executive power • Strengthen public institutions for service delivery

25. Are Georgia’s Reforms Replicable to Other Countries? • Public services can be cleaned up • Many reforms are replicable with adaptation to local conditions • The specific design, pace, and sequencing of the ‘how to’ depends on country circumstances

26. THANKSwww.worldbank.org/georgia/georgiabook