Improving Governance and Fighting Corruption, Brussels, Belgium (March 14 - 15, 2007)

Em Português : Nota para os Leitores : Pretendo partilhar com cada um de vós os aspectos essenciais dos debates sobre governança e combate à corupção, realizados em Bruxelas, de 14 a 15 do corrente. Trata-se de temáticas vitais para a nossa sobrevivência enquanto Estado e como Nação digna , a cujo estudo me venho dedicando desde quando (em 1995) tive necessidade de elaborar a Proposta de Lei de Criação da Inspecção Superior Contra a Corupção e , posteriormente, a Lei de Responsabilidade dos Titulares de Cargos Políticos. Propositadamente "postei" os assuntos em debate do final para o início , à excepção da sessão de abertura. Podem encontrar o desenvolvimento destas matérias no site http://www.improvinggovernance.be .

Permitam-me, que remeta particularmente a V/ atenção para a apresentação de Daniel Kaufmann e para as intervenções da Sra. Ngozi Okonjo-Iweala, antiga ministra MNE e ex- ministra das finanças da Nigéria, do novo ministro da cooperação da Holanda , Bert Koenders , do administrador da Volkswagen, Gerhardt Pratorius, de Paul Wolfowitz, do Comissário Louis Michel e da Sra. Presidente E Ellen Johnson Sirleaf, por quem também nutro muita admiração.

Clicando nos Links ( to hear recordings ) poderão escutar todas as intervenções acima referenciadas , assim como as sessões de trabalhos.

Tentarei inventar tempo para vos " postar " ainda hoje um relato dos trabalhos do "The Africa Local Government Action Forum - Participatory Governance as a Tool for Enhancing Social Accountability " , que teve lugar a 2 de Março , congregando participantes da Ethiopia, Ghana, Kenya, Rwanda, Tanzania, Uganda, e Zimbabwe.

Peço desculpas aos que me têm criticado pelo excesso de "postagens " em linguas outras que não a nossa, mas , mais uma vez não disponho de tempo para proceder a traduções desnecessárias e que me tomariam imenso tempo. Desejo a todos uma Páscoa Feliz e que seja também um período de reflexão sobre nós e sobre os caminhos que trilhamos e o nosso destino comum.

Improving Governance and Fighting Corruption, New Frontiers in Public-Private Partnerships, Brussels, Belgium (March 14 - 15, 2007)This conference, organized by the Government of Belgium in cooperation with the World Bank and the OECD, brought together representatives of governments, international organizations, the private sector, and the academic community. The objective of the conference was to identify policy recommendations that can be taken forward in the OECD/DAC, World Bank and other international fora. To read more about the event visit http://www.improvinggovernance.be/ and to view Daniel Kaufmann's presentation go to http://siteresources.worldbank.org/INTWBIGOVANTCOR/Resources/Brussels_presentation.pdfFor further information contact mnelson1@worldbank.org

Improving Governance and Fighting Corruption: New Frontiers in Public-Private Partnerships" was a two-day event in Brussels, Belgium, organized by the World Bank Institute, OECD, and the Belgian government. It centered on the challenges of creating good governance with the cooperation of the private sector. With more than 400 participants from countries around the world, this event integrated innovative use of technology with an interactive, results-oriented conference format with the hope of creating concrete recommendations for future work.

Launch of "Improving Government and Fighting Corruption"

"Improving Governance and Fighting Corruption: New Frontiers in Public-Private Parternships" launches at the elegant Egmont Palace in Brussels, Belgium. With over 400 participants from all around the world, the high-level conference was organized by the World Bank Institute, OECD, and the Belgian government. Nik Gowing of BBC TV will moderate the sessions, while breakout panels will cover such topics as "Building Policy Capacities for a Positive Trade and Investment Climate" and "Conducting Business Responsibly." Heads of state and government, leaders of the private sector, officials from international organizations, and civil society organizations from Africa and beyond will participate. Developing countries, donors and private sector players face a common set of governance constraints when engaging in development activities. These problems are particularly acute in the so-called fragile states, where poor governance, corruption, political fragility and the availability of valuable natural resources often combine to do more harm than good. In addition, donor countries and the private sector alike are demanding better analysis of the quality of governance to help track the impact of reforms and to assess investment risk. The objective of this conference is to explore the potential of a three-way partnership of donors, developing partner countries and the private sector to improve governance and fight corruption.

The conference ends, and the real work begins

Now that "Improving Governance and Fighting Corruption" has drawn to a close, participants have the opportunity to reflect on what was said, and how to continue action on the issues raised. Bringing nearly 500 policymakers, development professionals, and private sector leaders to the Egmont Palace in Brussels, the conference provided overwhelming support for the idea that governance should be a central theme in building relationships between developed countries, developing countries, and the private sector. The conference included participation from World Bank President Paul Wolfowitz, along with Liberia President Ellen Johnson Sirleaf, former Nigerian finance minister Ngozi Okonjo-Iweala, Belgian King Albert II, and the heads of a number of major multinational corporations. The discussion was led by moderator Nik Gowling, a veteran BBC World TV anchor.

By the end of the conference, Belgium had announced its intention to join the Extractive Industries Transparency Initiative (EITI) with a $650,000 contribution, making it the fourth largest donor to the organization's work of improved governance in oil, gas, and mining industries. Additionally, conference attendees had begun to reach some conclusions about the struggle for good governance and against corruption:

Technical support to shape institutions may be less effective than building peer and demand-side pressure. Shifts in donor support may be needed.

OECD countries need to provide resources to speed the recovery of assets deposited in OECD-based banks.

Stronger action is needed by OECD countries on the supply side of corruption.

The private sector needs to bring more big companies into the growing group of companies that are taking a zero tolerance approach to corruption.

The next generation of leaders, from grammar schools to business schools, has to be brought into the debate.

24-hour videoconference final recommendations now available

After twelve videoconference sessions, the students of the 24-hour videoconference marathon had submitted more than 130 recommendations for fighting corruption. These were collected and evaluated, and the items with the most consensus were presented to the policymakers and leaders present at Egmont Palace. In this way, the promise of feedback was completed, from the future leaders of tomorrow to those of today.

The five top recommendations were:

Media & Technology - There was a strong recognition of the necessity for the increased involvement and freedom of the media, as well as access to media channels and outlets. However, students noted that attention needs to be paid to the balance between increased media freedom and the safety of journalists and reporters.

Expansion of Codes of Conduct - Students talked a lot about Codes of Conduct. They noted that Codes of Conduct are becoming more and more commonplace within the private sector, but that there is a definitive value for Codes of Conduct within the public and civil society sectors as well--for example, something as simple as a declaration of transparency posted on the walls of government agencies.

Labeling - This was another common recommendation arising from students worldwide. Of note was the suggestion of creating a "Clean Business" and/or "Clean Organisation" label to be affixed to companies and institutions much like the "Fair Trade" or "organic ingredients" labels. Such a label can become an important value-added for companies in terms of competitiveness and enhanced brand value and reputation.

National Anti-Corruption Strategies/Plans - There was a call for the establishment of national independent agencies, including representatives of all sectors, with the aim of integrating and facilitating governance and anti-corruption policies. For example, the strategy plans created by these agencies should include clauses on how local and foreign companies should act at home and abroad.

Curriculum Development - Finally, there was a call for increased inclusion of business ethics, anti-corruption, and governance topics to be included in school curricula, both at the secondary and collegiate levels. This was recognized as one of the single best ways to educate and raise awareness about anti-corruption and ethical behavior from a very young age.

Final remarks: Karel De Gucht

Providing the final remarks of the conference, Belgian Minister of Foreign Affairs Karel De Gucht spoke on how "Improving Governance and Fighting Corruption" had strived for genuine debate and interactivity on the part of the participants. He noted that the organizers had focused on the private sector because they had been ignored in the past, and the results had been rewarding. De Gucht asked listeners to remember that corruption constantly changes and definitions are never entirely complete. He urged the participants to make good use of research and indicators to help nations toward good governance. De Gucht also held partner countries responsible for creating a good business environment, while acknowledging that the supply side of corruption in the donor countries is often ignored and unpunished, which must change. He also took the idea of the "Clean Business" label from the 24-hour videoconference as a possible initiative in the future. Finally, De Gucht announced that Belgium would be joining the Extractive Industries Transparency Initiative as its fourth largest contributor, and asked for the conference to become a yearly event for improving dialogue.

Click here to hear a recording of De Gucht's final remarks.

Closing address: Ellen Johnson Sirleaf

Ellen Johnson Sirleaf, President of the Republic of Liberia, gave the closing address to the conference. She noted that the conference has exposed how developed countries, developing countries, and private sector companies both benefit from and suffer under corruption and bad governance. Hard choices must be made, said Sirleaf, but a strong constitutency has resolved for nothing less than accountability and social justice. She called for greater transparency in the financial system, so that payments can be exposed, and more effective expedition treaties, so that corrupt officials that have fled their countries can be caught and tried for their crimes. Sirleaf concluded that the partnerships between civil society and governments cannot be overstated in its importance to development and good governance.

Click here to hear a recording of Ellen Johnson Sirleaf's closing address.

Looking ahead: what lies in the future?

Gerhard Prätorius, Senior Executive Manager of Volkswagen Germany, spoke about how addressing corruption may be less important than preventing it in the first place, through training of managers and collection of best practices. He stated that a successful anti-corruption system addresses corporate culture guidelines, incorporates stronger leadership, uses a strict risk management system, establishes an ombudsmen system, and adds ethics training to its management skillset. He also spoke about the demand of many clients for high levels of corporate social responsibility.

Graham Baxter, Vice President of Corporate Responsibility for BP, discussed how globalization has given both corruption and communication a global reach, and so corporate conduct must be the starting place for fighting corruption. He noted that a reputation of incorruptibility and billions spent on this agenda has created valuable benefits for the company, but that a good governance initiative would be the right thing to do even if it were not good business. Baxter urged conference attendees to retain the energy, cooperation, and leadership that had been displayed during sessions.

Louis Michel, European Commissioner for Development and Humanitarian Aid, noted that governance and corruption are relatively new concepts to be addressed by the international community. He compared efforts against corruption to striving for legitimate democracy. Michel highlighted the central nature of good governance to a number of other development efforts, but he warned of the legacy of colonialism and its role in corruption, as there is always a corruptor where bad governance occurs.

Stan Sangweni, Professor from the South African Public Service Commission, spoke about his country's involvement in international politics despite its young age as a democracy, including the upcoming Global Forum 5 which will be held in Johannesburg. He summarized his conference as strong voices telling stories of success, but also stories of personal and political commitment to the fight against corruption. He called for rich countries to help repatriate the funds lost to corruption, and to join in a partnership between the North and South countries. Sangweni asked why there were not as many ministerial-level officials from the North present, compared to those from the South.

Bert Koenders, Minister for Development Cooperation from the Netherlands, made sure to link supply and demand sides of the corruption equation, and asked for more accountability at future meetings. He criticized the "wait and see" approach toward corruption, and laid out possible actions to curb the misuse of development funds. Koenders proposed initiatives that allow money to be followed more transparently, and suggested that harmonization and cooperation agreements should be much more specific. He finished with an appeal to reach out to small and medium enterprises as partners, and to examine links between privatization and corruption critically.

Hear recordings of the statements from Prätorius, Baxter, Michel, Sangweni, and Koenders.

Day two wrap-up session

On March 15, participants at "Improving Governance and Fighting Corruption" split into breakout sessions on state building and the private sector, conducting business responsibly, and measuring governance. Immediately afterward, they joined together in Egmont 2 to discuss the results of those panels, and to comment on each set of findings. Panelists noted the need to act on their measurements, to strengthen agreements like the Extractive Industries Transparency Initiative (EITI), and the potential of good corporate governace for attracting quality investors. A constant theme of the discussion was a desire for more harmonization and cooperation between organizations. Discussants also looked at potential pitfalls of private sector involvement in fragile states, the importance of a level playing field created by government, and the need to create in-depth diagnostics at the country level.

Click here (MP3, 25MB) to listen to an audio recording of this session.

24 hours later, the videoconference marathon ends

For twenty-four consecutive hours, moderators at "Improving Governance and Fighting Corruption" in Brussels led students around the globe in twelve videoconference sessions. The participants discussed their own experiences with corruption, role-played as public and private sector actors, and finally created their own list of recommendations for the policymakers and other participants at the Brussels conference. By the time it was concluded, more than 100 recommendations had been made, and those had been narrowed down to a few basic categories that garndered the most consensus. These included an increase of the media coverage to raise awareness, the creation of a "Clean Business" label (much like the Organic or Fair Trade logos), and the widespread adoption of conduct codes (both for public and private sectors).

The results were presented to the audience in Brussels, and commenters expressed their satisfaction with its results. During the streaming webcast, the video received more than 250,000 hits from viewers around the world.

Click here to watch a short video with clips from the conference. Recommendations from the videoconference sessions

Interview with Inder Bugarin

The 24-hour videoconference event wouldn't be possible without the talented journalists moderating the sessions. Trading off in shifts to cover 12 sessions in three languages, these moderators guided students around the world in the discussions of corruption and governance. One of these journalists, Inder Bugarin, took a moment to speak with us about the sessions and his own experiences with corruption. When he is not lending his expertise and charm to distance learning events, Mr. Bugarin is a reporter with Mexico's Reforma newspaper.Inder Bugarin

Day one wrap-up session

In the afternoon of March 14, participants split into three breakout rooms to discuss the topics of sharing responsibilities for improving governance, building policy capacities for a positive trade and investment climate, and partnerships against corruption. The stress was on developing concrete recommendations and controversial findings. Immediately afterwards, all participants reconvened in the Egmont 2 conference room to discuss their findings, as moderated by BBC World TV journalist Nik Gowing.

The conversations in each breakout room must have been lively, as the reporters from each session brought long lists of recommendations to the rest of the group. Some of the interesting comments presented during this summary session included a stress on the responsibility of rich countries for corruption, examination of corruption's short-term gains against its long-term pitfalls, and a need to bring China into the good governance conversation. This last suggestion actually initiated a response from Feng Ye, Secretary General from the International Association of Anti-corruption Authorities in China, with regards Chinese efforts for fighting corruption within its borders.

Finally, a report was heard from the 24-hour videoconference, which was just finishing its third session of twelve. A few of the recommendations from students around the world were presented, and the organizers promised a more thorough review at the conclusion of all twelve sessions on the afternoon of March 15. Listen to day one wrap-up

Recommendations

One of the outcomes of the Global Videoconference session is a series of concrete, actionable recommendations from the students of today (and therefore the leaders of tomorrow) on how the private sector can play a meaningful role in a worldwide governance and anti-corruption agenda.

Selected Recommendations

After twelve videoconference sessions, the students of the 24-hour videoconference marathon had submitted more than 130 recommendations for fighting corruption. These were collected and evaluated, and the items with the most consensus were presented to the policymakers and leaders present at Egmont Palace. In this way, the promise of feedback was completed, from the future leaders of tomorrow to those of today.

The five top recommendations were:

1.Access to a free and involved media is a necessity for good governance. The safety of journalists must also be assured.

2.Codes of conduct can be a valuable asset to both the public and private sectors, even something as simple as a clearly posted statement of transparency.

3.A "Clean Business" or "Clean Organization" label, similar to existing labels for organic food and Fair Trade products, should be created as an incentive and a value-added for brand reputation.

4.Independent national agencies, including representatives from all sectors, should be created with the intent of coordinating and facilitating strategies for governance and anti-corruption.

5.Business ethics, anti-corruption, and governance topics should be included in curricula at the secondary and collegiate levels.

VC1: Croatia, Egypt, Brazil Fundacao Vargas, Turkey Bigli

12:30-14:30

1.Curriculum development (long-term) – In order to form a new generation of future leaders, it is important to start developing a university curriculum on business ethics.

2.Raising awareness through the media and civil society – Through these channels, citizens can be informed about the risks of corruption, and light can be shed on bad governance practice.

3.Financial transparency and good governance in actions – Encouraging an open exchange of information with the private sector will encourage virtuous behavior for both public and private actors.

VC2: Burkina Faso, Senegal, Belgium, France Paris

14:30-16:30

1.Put in place a follow-up system in case of corruption.

2.Create an index of risky countries.

3.Ensure responsibility of all actors with a reimbursement of funds in case of corruption.

VC3: Benin, Cote d'Ivoire, Morocco, France Marseille Euromed

16:30-18:30

1.Put into place a judicial system of preventative regulation for the fight against corruption.

2.Create a label for "Clean Business".

3.Involve social actors in the choice of development policies.

VC4: Belgium, USA Washington, USA Boston Harvard University, Netherlands Maastricht

18:30-20:30

1.Invigorate a series of clearly defined tools to protect organizations.

2.Utilize government corruption ratings in cooperations with non-governmental organizations and civil society.

3.Encourage monitoring for collaboration between the government and private sector.

VC5: Chile, Argentina, Peru

20:30-22:30

1.Generate policies that reflect collective action and public opinion, incorporating feedback from the media, citizenry, and civil society.

2.Define an organization to act as a quality control for behavior in the private sector.

3.In assocation with that organization, create a mechanism for denouncing bad governance.

VC6: Guatemala, Colombia, Mexico Ipade

22:30-00:30

1.Create a certification mechanism for public and private institutions through an international organization.

2.Create a network of university observers.

3.Create instruments for verification and improvement of business practices.

VC7: Australia, Japan, USA Philadelphia Wharton University

00:30-02:30

1.Establish economic incentives to hinder corruption through a "naming and shaming" mechanism.

2.Create a "world corruption hotline" for reporting petty corruption.

3.Move towards collective action among industries, as well as among relevant stakeholders.

VC9: Indonesia, India Hyderabad School of Business, Siberia Irkutsk, Vietnam

04:30-06:30

1.Strengthen the relationship between civil society and the public sector.

2.Create a system for the transparency of cash flows.

3.Use technology to fight against corruption.

VC 10: Sri Lanka, India Delhi Teri, Kazakhstan

6:30-8:30

1.Implement information centers to inform citizens about corruption.

2.Create legal and social support for whistleblowers.

3.Increase public sector support for good corporate governance.

VC11: Ukraine, Jordan, Philippines

8:30-10:30

1.Create instruments with the aim of measuring and improving transparency.

2.Adopt legislation to encourage good governance and monitoring for e-commerce.

3.Ensure that special-purposed companies (public and private) are monitored by third parties.

VC12: Bosnia, Macedonia, Russia, Tanzania

10:30-12:30

1.An independent media system should be developed.

2.Education should be strengthened, and an anti-corruption curriculum should be developed. Specifically, anti-corruption capacity development needs to take place in the private sector.

3.Strong civil society should be encouraged, along with citizen activities and participation to combat corruption.

Framing the issue: Mr. Daniel Kaufmann

Defining and exploring the scope of governance is more difficult than it might seem. To shed light on this difficult conundrum, Daniel Kaufmann, Director of Global Programs for the World Bank Institute, presented his research on measuring governance. As was pointed out earlier in the conference, this kind of data is essential for a plan on fighting corruption, as it allows economists and policymakers to pinpoint where corruption is creating the greatest drag on a country, and where incentives are encouraging it. Progress has been mixed thus far, and thus hard questions remain to be asked. Kaufmann pointed out that easy picks, such as mere adoption of a revised law or a code, will not suffice. Instead, more focus is required on difficult issues of political and institutional governance, including reforms in the financial sector, transparency, media, and political finance. Evidence was presented on governance areas that matter for controlling corruption, and Kaufmann emphasized the need for collective action and responsibility, also showing the corruption that is generated in richer countries.

Daniel KaufmannPresentation

Opening address: Ngozi Okonjo-Iweala

Brookings Institute Distinguished Fellow and former Minister of Finance for Nigeria told the story of her experiences fighting corruption

With passion and deep conviction, Brookings Institute Distinguished Fellow and former Minister of Finance for Nigeria Ngozi Okonjo-Iweala spoke to the audience in Brussels about how she had fought corruption in her home country of Nigeria. She discussed three examples of corruption, including a governor embezzling project funds, an oil and gas project, and the Lesoto Highlands water project. Okonjo-Iweala specified three elements in a frontal assault on corruption: diagnostic surveys to establish the extent and impact of the problem, political will to carry out solutions, and improved institutions that will create new incentives for good governance. She detailed how she had implemented these changes in her country, including the publication of government budgetary information in a transparent manner (what she called "the most boring best-seller ever made"), and especially drew attention to the importance of the private sector and the needed reforms in donor countries.

Ms. Ngozi Okonjo-Iweala's opening address

Opening Session: De Gucht, De Decker, Gurria, and Wolfowitz

Led by a dynamic panel of state officials and leaders of international organizations, "Improving Governance and Fighting Corruption" kicked off its opening session in Brussels, Belgium.

K. De Gucht K. De Gucht

Mr. Karel de Gucht, Minister of Foreign Affairs for Belgium, began with remarks on the aim of the conference. "Our ambition is not to produce yet another lofty piece of paper on good governance, but to have an interactive 'working conference.' There will be no final declaration tomorrow, no 'Egmont Statement', no 'Appel de Bruxelles.' What we are aiming for, is a no nonsense analysis, concrete ideas and clear, actionable recommendations for the future." de Gucht said, concluding with the hope that the conference's results would feed directly into the Spring Meetings of the World Bank Group and the OECD-DAC Ministerial.

De Gucht was followed by Mr. Armand de Decker, Belgian Minister for Development Cooperation, who spoke in French, Dutch, and English about the importance of anti-corruption efforts. De Decker noted that by agreeing to the Millennium Development Goals, donor countries had implicitly embraced the centrality of governance to development efforts, which requires a good North-South dialogue. He praised what he called a "unique form of government," the democracy. De Decker also acknowledged the Bank's work on good governance and anti-corruption programs.

A. Gurria

Mr. Angel Gurria, Secretary General of OECD, called corruption the ultimate threat to good government, the private sector, and economic development. He noted that the OECD is a leader in anti-corruption through programs that improve transparency in the public sector, and encourage responsibility in the private sector. On the supply side, said Gurria, the organization's Anti-Bribery Convention, the main goal of which is to make bribery a crime. "Thanks to the convention, bribery is no longer 'business as usual,'" said Gurria, although he noted that many signatories of the convention have not yet begun even a single investigation into bribery. "Povery is the ultimate systemic threat," concluded Gurria, and he urged the audience to ensure that every penny is spent effectively to fight it.

P. Wolfowitz

Mr. Paul Wolfowitz, President of the World Bank, stressed the promise of Africa for the future in his remarks on why governance is important to development. He noted that Africa is changing, with higher levels of growth and signs of response to reforms. He cited the example of Nuhu Ribadu, Head of Nigeria's Economic and Financial Crimes Commission, which reclaimed more than $5 billion in stolen assets for the country and put powerful people in jail for corruption. Finally, Wolfowitz discussed the Government and Anti-Corruption (GAC) Strategy Paper produced after the last Spring Meetings. "We consulted with more than 3,200 stakeholders in 35 developing countries and 12 donor countries. We also held four global events and gathered more feedback through the Web," said Wolfowitz. "The issue is not *whether* we should support governance and anti-corruption reform, but *how.*" In answer to that question, he spoke to the potential of private business as a partner. "I am convinced we can make progress in the fight against poverty only if we engage the energy, talent, and 'can-do' attitude of the private sector--from the largest firms to the small enterprise."