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Budget process and corruption:

5. How to reduce corruption in the budget process

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5.3 Attitudes, culture, and citizen oversight

While transparency may help remedy bureaucratic corruption, it is not a sufficient solution for political corruption when the electorate is largely illiterate. An example of a long-term policy to reduce corruption is by improving basic education. Also, public financing of electoral campaigns is another possible factor.

It is clear that civil society can play a very important role in increasing contestability and accountability of institutions. In addition to the transparency mechanisms, ongoing innovations in a number of countries include:

  • Activist business associations of small and medium-scale entrepreneurs, as pressure groups for levelling the playing field and mitigating state capture by larger conglomerates.

  • Promoting transparency in access to information on parliamentary votes.

  • Promoting transparent access to assets and income declarations of leaders and senior public officials and their dependants.

  • NGOs dealing with judicial/legal issues who monitor and provide information on the integrity of the judiciary, transparent access to judicial decisions, lists of judges with high integrity, and which promote non-public sector institutional alternatives such as ADRs.

  • Discussing role of a responsible media in enhancing transparency and providing rigorous information in this area.

go to next page: 5.4 What can donors do?

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  Corruption in public financial management and procurement
Public Financial Management
and Procurement
Budget process
Revenue administration
Fiscal decentralisation
Direct budget support
Public Expenditure Tracking
Procurement

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CONTACT

Hannes Hechler
Programme Coordinator (U4)
hannes.hechler@cmi.no
+47 47 93 80 71


RECOMMENDED READING

“It is our money. Where is it gone?” is a short documentary, released by the International Budget Partnership, on an initiative, in Mombasa (Kenya) to involve communities directly in monitoring the Constituency Development Fund, a fund managed by Kenyan parliamentarians. Through social audits, communities monitored budgets and held their government accountable for managing the public’s money and meeting the needs of the poor.


RELATED U4 PUBLICATIONS

Profiting from corruption: The role and responsibility of financial institutions
Palmer, Robert (U4 Brief 2009:31)

This U4 Brief assesses how banks facilitate illicit capital flows from developing countries. The shortcomings of the existing regulatory frameworks are discussed, and recommendations are made for donor governments on what can be done to curb the flow of corrupt money out of the developing world.


RELEVANT EXPERT ANSWERS

Fiduciary safeguards for minimising corruption risks when using budget support

Examples of anti-corruption clauses in cooperation agreements

Auditing the auditors - International Standards to hold Supreme Audit Institutions to account

Exploring the Relationships between Corruption and Tax Revenue

Corruption in tax administration

Corruption and the international financial system

The role of supreme audit institutions in combating corruption

The political economy of public procurement reform

The implementation of Integrated Financial Management Systems (IFMIS)

Designing a Taxpayer Baseline Survey in Uganda



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