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Global Corruption Report 2006

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Global Corruption Report 2006 Global Corruption Report 2006 GC2006 00 pre 1 8/11/05 17:53:05 GC2006 00 pre 2 8/11/05 17:53:05 Global Corruption Report 2006 Transparency International Pluto P Press TRANSPARENCY LONDON • ANN ARBOR, MI INTERNATIONAL GC2006 00 pre 3 8/11/05 17:53:05 First published 2006 by Pluto Press 345 Archway Road, London N6 5AA and 839 Greene Street, Ann Arbor, MI 48106, USA www.plutobooks.com in association with Transparency International Alt Moabit 96, 10559 Berlin, Germany www.globalcorruptionreport.org © Transparency International 2006 The right of Transparency International to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN hardback 0 7453 2509 2 ISBN paperback 0 7453 2508 4 ISSN 1749–3161 Library of Congress Cataloging in Publication Data applied for. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Edited by Jana Kotalik and Diana Rodriguez Contributing editors: Taslima Ahmed, Michael Griffin, Robin Hodess, Caroline Tingay and Marie Wolkers Every effort has been made to verify the accuracy of the information contained in this report, including allegations. All information was believed to be correct as of July 2005. Nevertheless, Transparency International cannot guarantee the accuracy and the completeness of the contents. Nor can Transparency International accept responsibility for the consequences of its use for other purposes or in other contexts. Contributions to the Global Corruption Report 2006 by authors external to Transparency International do not necessarily reflect the views of Transparency International or its national chapters. 10 9 8 7 6 5 4 3 2 1 Designed and produced for Pluto Press by Chase Publishing Services, Fortescue, Sidmouth, EX10 9QG, England Typeset from disk by Stanford DTP Services, Northampton, England Printed and bound in the European Union by Gutenberg Press, Malta GC2006 00 pre 4 8/11/05 17:53:05 Contents Acknowledgements x Preface xii David Nussbaum Foreword xiv Mary Robinson Executive summary xvi Transparency International Part one: Corruption and health 1 The causes of corruption in the health sector: a focus on health care systems 3 Why are health systems prone to corruption? 4 William D. Savedoff and Karen Hussmann A tale of two health systems 14 William D. Savedoff Corruption in health care systems: the US experience 16 Malcolm K. Sparrow Corruption in Cambodia’s health sector 22 Lisa Prevenslik-Takeda 2 The scale of the problem 25 Case study: Grand corruption in Costa Rica 26 Emilia González Measuring corruption in the health sector: what we can learn from public expenditure tracking and service delivery surveys in developing countries 29 Magnus Lindelow, Inna Kushnarova and Kai Kaiser Local-level corruption hits health service delivery in the Philippines 37 Omar Azfar and Tugrul Gurgur Corruption is bad for your health: findings from Central and Eastern Europe 39 Richard Rose GC2006 00 pre 5 8/11/05 17:53:06 ‘Citizens’ audit’ in Mexico reveals paper trail of corruption 43 Helena Hofbauer Fighting fraud and corruption in Britain’s National Health Service 46 Jim Gee 3 Corruption in hospitals 48 Corruption in hospital administration 49 Taryn Vian Cash registers inject transparency – and revenue – into Kenya’s Coast Provincial General Hospital 53 Taryn Vian Hospital waiting lists open for scrutiny in Croatia 55 Ana First No bribes for healthy business: India’s Transasia Biomedicals 58 Michael Smith 4 Informal payments for health care 62 Paying for ‘free’ health care: the conundrum of informal payments in post-communist Europe 63 Sara Allin, Konstantina Davaki and Elias Mossialos Gift, fee or bribe? Informal payments in Hungary 71 Péter Gaál Informal payments take a toll on Moroccan patients 74 Azeddine Akesbi, Siham Benchekroun and Kamal El Mesbahi 5 Corruption in the pharmaceutical sector 76 Pharmaceuticals and corruption: a risk assessment 77 Jillian Clare Cohen US pharmaceutical company fined for payments to charity headed by Polish health official 78 Transparency International The corrupting influence of money in medicine 85 Jerome P. Kassirer Promoting trust and transparency in pharmaceutical companies: an industry perspective 91 Harvey Bale Fighting corruption: the role of the medical profession 94 John R. Williams The fight against counterfeit drugs in Nigeria 96 Dora Akunyili vi Global Corruption Report 2006 GC2006 00 pre 6 8/11/05 17:53:06 Corruption in the Ministry of Public Health, Thailand 100 Stuart Cameron Malpractice in the Office of the Drug Controller in Karnataka, India 101 Stuart Cameron 6 Corruption and HIV/AIDS 103 The link between corruption and HIV/AIDS 104 Liz Tayler and Clare Dickinson Accountability in a time of crisis: corruption and the Global Fund 108 Toby Kasper Corruption in Kenya’s National AIDS Control Council 112 Kipkoech Tanui and Nixon Ng’ang’a Part two: Country reports 7 Lessons learned from anti-corruption campaigns around the world 119 Cobus de Swardt 8 Country reports Algeria Djilali Hadjadj 123 Bangladesh Iftekhar Zaman, Sydur Rahman and Abdul Alim 126 Bolivia Guillermo Pou Munt Serrano 130 Brazil Ana Luiza Fleck Saibro 133 Burkina Faso Luc Damiba 136 Cameroon Jean-Bosco Talla and Maurice Nguéfack 139 China Guo Yong and Liao Ran 142 Costa Rica Roxana Salazar 146 Croatia Ana First 149 Ecuador Andrés Tobar 152 Finland Santeri Eriksson 154 France Antoine Genevois 157 Georgia Daria Vaisman 160 Greece Markella Samara 164 Guatemala Alejandro Urizar 168 Ireland Elaine Byrne 172 Israel Doron Navot 176 Japan Transparency International Japan 181 Kazakhstan Sergey Zlotnikov 184 Kenya Wachira Maina and Noelina Nabwire 188 Kuwait Kuwait Economic Society 191 Kyrgyzstan Aigul Akmatjanova 195 Malaysia Mehrun Siraj and Sunita Chima 199 Global Corruption Report 2006 vii GC2006 00 pre 7 8/11/05 17:53:06 Morocco Azeddine Akesbi, Siham Benchekroun, Kamal El Mesbahi, Rachid Filali Meknassi and Michèle Zirari 203 Nepal Rama Krishna Regmee 206 New Zealand Shane Cave 210 Nicaragua Roberto Courtney 213 Panama Angélica Maytín Justiniani 216 Papua New Guinea Transparency International Papua New Guinea 220 Peru Samuel Rotta Castilla and Leonardo Narvarte Olivares 223 Poland Julia Pitera 227 Romania Adrian Savin 230 Serbia Nemanja Nenadic 235 Slovakia Emilia Sicáková-Beblavá 239 South Africa Ayesha Kajee 242 South Korea Geo-Sung Kim 246 Spain Manuel Villoria 250 Sri Lanka Anushika Amarasinghe 253 Switzerland Jeffrey Nilsen, Anne Schwöbel and Stefanie Teickner 257 Uganda Charles Mubbale and Paul Onapa 261 Ukraine Transparency International 265 United Kingdom Transparency International (UK) 267 United States of America Nancy Izzo Jackson with Michael Johnston, Mark Glaze, Holly Gregory and Chris Yukins 272 Vanuatu Anita Jowitt 277 Venezuela Transparencia Venezuela 280 Part three: Research on corruption 9. Introduction 287 Robin Hodess 10. Ten years of the CPI: determining trends 292 Johann Graf Lambsdorff 11. Corruption Perceptions Index 2005 298 Johann Graf Lambsdorff 12. Governance matters IV: new data, new challenges 304 Daniel Kaufmann, Aart Kraay and Massimo Mastruzzi 13. Corruption in the United States of America 308 Edward Glaeser and Raven Saks 14. Transparency and its impact on financial fragility 312 Saadia Zahidi 15. Budget transparency survey 315 Pamela Gomez viii Global Corruption Report 2006 GC2006 00 pre 8 8/11/05 17:53:06 16. Beyond the rhetoric: measuring revenue transparency in the oil and gas industry 319 Elizabeth Lort-Phillips and Vanessa Herringshaw 17. Benchmarking corporate reputation: an incentive for good anti-corruption practice 323 Transparencia Mexicana 18. Officials’ asset declaration laws: do they prevent corruption? 325 Ranjana Mukherjee and Omer Gokcekus 19. Tax evasion, fines and corruption in Mozambique 329 Ralf Lanwehr 20. The V4 index: corruption propensity in four Visegrád capitals 333 Michal Šticka 21. Efficiency of federal transfers to municipalities in Brazil 336 Marcos Jose Mendes 22. Integrity Index for Public Institutions: evaluating Colombia’s health sector 339 Transparencia por Colombia 23. Corruption in the public health service in Bangladesh 343 Iftekhar Zaman and Alim Abdul 24. Governance in Bulgaria’s pharmaceutical selection and procurement systems 346 Patrick Meagher 25. Survey research sheds light on Latin Americans’ experience with corruption 350 Eric Kite and Margaret Sarles 26. Corruption in Palestinian society 354 TI Palestine/the Coalition for Accountability and Integrity (AMAN) Index 357 Global Corruption Report 2006 ix GC2006 00 pre 9 8/11/05 17:53:06 Acknowledgements The editors of the Global Corruption Report 2006 would like to thank all the individuals who made the production of this report possible, above all our authors. We are particularly grateful to our Editorial Advisory Panel for their ongoing commitment to the Global Corruption Report and in particular for their large contribution to the thematic section of this year’s report: Sir George Alleyne, Harvey Bale, Zainab Bangura, John Bray, Sarah Burd-Sharps, Laurence Cockcroft, Dennis de Jong, Jean de Kerguiziau de Kervasdoué, John Makumbe, Anke Martiny, Phil Mason, Devendra Raj Panday, William D. Savedoff, Frank Vogl and Alexandra
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