The WB used the findings to outline a new long-term strategy in its operation. Rather than discussing these reports, I will address today s topic by sharing with you some of my experience in dealing with the Indonesian crisis which has some bearing on problems of corruption and accountability. I would pose to you how an unhealthy surrounding become a major constraint for policy implementation. Corruption practices in a crony capitalistic economy cause professionals to become ineffective. The weaknesses engulf the economic structure, the real sectors and the financial sectors, the social as well as political structures.
Weak governance is prevalent in both public as well as private sectors.
Transparency has not been part of the government and private characteristics. Legal tradition is weak. As corruption is both economic, social as well as political phenomena, it is easy to conjecture that it must had been widely practiced in such a muddy environment pertaining in Indonesia, when the economy was experiencing high growth for a long period. One could trace corruption in different stages of budgetary process, from the initial preparation of a proposal for a project to the actual disbursement of the fund, to find where have irregularities been occurring. One could do a similar process to bank loan, awarding contract, tender, procurement, licensing, and other activities to find out about leakage.