# Presentation: 094751

## Anti-Corruption 201

- Workshop Findings and Wrap Up

## Executive Summary

- Systemic Corruption in all Four States
- Deteriorating Environment for All Sectors
- Strong Misincentives for Good Governance
- Do No Harm First
- New Activities
- Imaginative Interventions
- Counter an Information-Poor Environment
- Donors must Cooperate
- “Integrity” Content in Technical Assistance

## Common Traits

- _Patronage_ (not Competence) Determines Performance
- Ministries _Deliberately_ Underfunded...
*Icebergs* and Racket Systems
- Income Redistribution from Poor to Rich
- System WORKS for Short-Term Gain
- FAILS for Long-Term Development

## Business Case: Why Do This?

- Only _strong accountable_ *states* can build _strong accountable_ *markets;*
- Only states that _rule in the public good_ can legitimize the costs of social *reforms*;
- Only _states with integrity_ can effectively fight *poverty*;
- Only _transparent governments_ can prevent *conflict;*

## USAID Responses

*To strengthen *_*institutional arenas*_* where alternative governance perspectives can emerge and be heard*
*To help societies and governments articulate increasing *_*costs of corruption*_
*So that people can begin to answer ‘how much corruption is too much’;*
*To offer *_*models of integrity*_* in various sectors from other countries/regions*;

## Workshop Themes

- Must _Counter_ Scarcity of Information
- Must Train NGOs, Private Sector and Govt Officials _at same time_ & _under same roof_
- Public Education and Awareness on Corruption _and_ Integrity

## Kazakhstan

**DG/Media**
- Journalism Integrity and Strengthening
- Judicial Training vis-à-vis International Covenant of Civil and Political Rights
- What will Duties/Obligations of GOK Be?
- NGO Coalition to Work with Govt to Get Kazakhstan to sign/ratify OECD Anti-BriberyConvention
- OECD Law Supersedes/’Peer Groups’ set up

## Kazakhstan (cont’d)

**Health**
- Global AIDS Fund Disbursements
- Put Grant Application Process on Website
- Take Steps Now to Prevent Fraud Later
- Create Patients’ ‘Bill of Rights’
- Create a social contract b/w citizens/state
- Working Groups on Health Investment
- USAID to help develop financial transparency

## Kazakhstan (cont’d)

**Energy and Water**
- Stronger Parliamentary Oversight and Legal Base for Corporate Governance in Sector
- Prevent new ‘forced’ bankruptcies in energy
- Help Separate _Regulatory_ from _Commercial_ Functions in State Organizations
- Publicize Details of National Petrofund
- Investments, Obstacles, ‘Dutch Disease’
- Improved Economic Reporting by Journalists

## Kazakhstan (cont’d)

**Enterprise, Trade and Finance**
- Move toward Parliamentary *Public Hearings*, *Program-Based Budgeting*, *Better Corporate Governance* Regulations
- Public Education on Corruption
- Directed to SME Community
- Provide economic expertise to new Anti-Corruption Agency

## Kyrgyzstan

**Democracy/Media**
- Stronger, More Professional Focus on Village Councils (budget hearings, corruption education programs)
- Corruption Programs in Schools
- Better Donor Cooperation Efforts
- Revisit Freedom of Information Legislation (current is 2 pages long)

## Kyrgyzstan (cont’d)

**Enterprise, Trade and Finance**
- Improve Legislation/Implementation on Conflict of Interest;
- Get USAID out of buildings owned by the President’s family...
- Pursue efforts to track money and fiscal expenditures better at level of mayors;
- Bring private sector/NGO and govt officials together for training

## Kyrgyzstan (cont’d)

**Health and Education**
- Don’t accredit higher institutions until GOK restructures its primary/secondary education;
- Public Education on Corruption in Schools;
- Health Insurance Fund Activities need to be made more transparent
- Convene National Forum on Single-Payer System
- Increasingly seen as another form of corruption

## Tajikistan

**Democracy and Natural Resources**
- Introduce Public Hearings to IFI Programs across Sectors (Water, Health, Roads)
- Copying Machine in every Mayor’s, Communal Service and Financial Office (600)
- Regularize Audits of Every Ministry
- Thorough Analysis of Tax Code

## Tajikistan (cont’d)

**Enteprise, Finance, Health, Education**
- Donors MUST Cooperate to Prevent GOT from playing them off against each other;
- Skills Training for Entrepreneurs Focused on Business Environment;
- Public Education on Basic Civics and Corruption

## Uzbekistan

**Enterprise, Trade, Agriculture and Energy**
- Greater clarity in banking and related legal codes
- To prevent a ‘Roach Motel’ banking system

## Uzbekistan (cont’d)

**Democracy, Media, Health, Education**
- Transparency in Choosing Program Trainees
- New USG Roundtable Meetings on Corruption
- From Roundtables to ‘Integrity Corps’
- Incenvitize Cross-Recipient Programs
- NGOs, Private Sector training _under same roof_