PRESS BRIEFING BY REPRESENTATIVES OF UNDP AND OECD

Press Briefing

PRESS BRIEFING BY REPRESENTATIVES OF UNDP AND OECD

The international community could help developing countries save billions of dollars by ending corruption, G. Shabbir Cheema, Director of Management Development and Governance Division of the United Nations Development Programme (UNDP), told a Headquarters press briefing this morning.

Introducing a compilation of views of experts on good governance -- Corruption and Integrity Improvement Initiatives in Developing Countries, jointly published by the UNDP and the Organisation for Economic Cooperation and Development (OECD) -- he said corruption diverted resources, and discouraged international assistance and private investment. Corruption also damaged the economy, the environment, and it could reverse the process of development.

But, global attitudes were changing and people all over the world were demanding a return to accountability and integrity in public office, he continued. In recent times, the public had tired of people in high positions who abused public power for private gain.

To end corruption -- the by-product of poor governance -- comprehensive reforms were needed, he said. Civil society and non-governmental organizations (NGOs) must play a major role in creating the conditions for good governance by strengthening the characteristics of accountability, transparency and integrity of national institutions.

Jean Bovin, President of the OECD, said there was a big gap between knowing what to do to combat corruption and actually doing it. The new report discussed social and political conditions needed for anti-corruption programmes to be successful. It critically reviewed current measures being used to combat corruption, presenting information gathered during detailed discussion with government officials, experts and journalists.

Alluding to a "great debate" on corruption and observing that the speakers obviously believed corruption was bad, a correspondent asked who was on the other side of the debate. In response, Michael Johnston, Professor of Political Science at Colgate University, said that for a long time people had contended that corruption could not be removed and that it had beneficial effects. Now, everyone agreed that there were no redeeming aspect to corruption and all recognized that it was something that had been embedded in the situation. The report provided a basis for tackling corruption in a variety of ways, including means of engaging civil society and the private sector.

A correspondent asked if studies such as the present report were being done about industrial countries afflicted by corruption. If not, she said it would amount to the "pot calling the kettle black". Mr. Bovin, said that

UNDP/OECD Briefing - 2 - 17 September 1998

corruption was indeed a big concern in the OECD countries. The World Bank was studying the impact of corruption in the industrial countries on developing countries. Responding to the same question, Mr. Cheema said that in this age of a global economy, corruption could not be contained within national boundaries. For example, corruption in a multinational corporation had an inevitable impact on developing countries.

To a question on corruption in Latin America, Mr. Johnston said that the subject was covered in the report's section on cross-border corruption.

Irene Hors, Administrator of the OECD Development Centre, responding to other questions, said that when fighting corruption, there were two enemies: economic groups with vested interests; and, individuals in many developing countries who believed that corruption was a form of culture.

Mr. Cheema added that while no one would say corruption was good, politicians might engage in it, although they recognized its detriment to political legitimacy and that it detracted from foreign investment and foreign aid. While the argument was often made that corruption in one place might not be viewed as such in another, every culture knew the definition of "corruption" in its own society.

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