The Fight Against Bribery and Corruption

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Policy Brief September 2000 The fight against bribery and corruption Why fight corruption? Summary Since 1989 the OECD has played a leading role in the battle against inter- What is bribery? national bribery and corruption. The fight gathered momentum in 1999 with the entry into force of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. How does the OECD The Convention is open to accession by any country that first becomes a full participant in the OECD Working Group on Bribery in International enforce the Business Transactions in accordance with its procedures, and that is willing Convention? and able to assume the obligations of the Convention. Signatories currently include all 29 OECD Members and five non-Members (Argentina, Brazil, Bulgaria, Chile and the Slovak Republic). As of June 2000, 21 signatories How is had ratified the Convention. (See website www.oecd.org/daf/nocorruption implementation for dates of deposit of instruments of ratification.) monitored? The Convention represents the result of an ambitious undertaking that began with the development by the OECD Working Group on Bribery in International Business Transactions of various instruments – the Recom- What about the tax mendations of 1994, 1996 and 1997 – and culminated with the entry into force of the Convention. The overall purpose of these instruments is to pre- deductibility of vent bribery in international business transactions by requiring countries bribes? to establish the criminal offence of bribing a foreign public official, and to have in place adequate sanctions and reliable means for detecting and enforcing the offence. They also include non-criminal rules for prevention, How can integrity of overall transparency and co-operation between countries. In addition, par- public officials be ties are also required to deny the tax deductibility of such bribes. encouraged? The OECD takes a multifaceted approach to fighting bribery, recognising that tackling both the supply and the demand side of the bribery transaction requires different measures. It recognises that reducing the supply of bribes requires more than criminalising the act of bribing a foreign public What is the role of the official. Businesses themselves must play a role, and address the practice private sector? internally by changing the corporate culture that enables it to continue. To provide businesses with guidance in this regard, the OECD has revised the 1976 Guidelines for Multinational Enterprises to include a new chapter on What lies ahead? the measures that should be taken by enterprises to prevent the furnishing (as well as the solicitation) of bribes. In addition, the provisions in the OECD Principles of Corporate Governance on improving disclosure and For further reading transparency in financial as well as other matters provide a framework that discourages bribery. The demand side of bribery has also been addressed by certain OECD ini- Where to contact us tiatives. For instance, the 1998 OECD Council Recommendation on Improving Ethical Conduct in Public Service calls on Member countries to

© OECD 2000 Organisation for Economic Co-operation and Development 2 Policy Brief The fight against bribery and corruption take steps to ensure well-functioning addition, the Working Group on their own. Through the Centre for institutions and systems for promot- Bribery in International Business Co-operation with Non-Members ing ethical conduct in the public serv- Transactions is studying ways of (CCNM), the OECD promotes initi- ice. The OECD Public Management incorporating demand side issues atives on both the supply and Committee (PUMA), recently sent to into its agenda, and has already held demand sides to engage non-Mem- the OECD Ministerial Council a several meetings with the private sec- bers in the fight against bribery and report on the implementation of the tor for this purpose. corruption. For developing coun- Recommendation, including meth- tries specifically, anti-corruption ini- Moreover, the Financial Action Task ods for detecting, investigating, pros- tiatives are carried out by the OECD Force on Money Laundering, which ecuting and penalising misconduct Development Assistance Committee includes most OECD Members as by public officials. SIGMA (Support (DAC) and the OECD Development well as some key financial centres for Improvement in Governance and Centre. ■ outside the OECD, addresses both Management) – a joint initiative of the supply and the demand sides of Why fight corruption? the OECD and the European Union, bribery by addressing the illegal laun- principally financed by EU – advises dering of bribes and proceeds deriv- Instances of corruption around the Central and Eastern European coun- ing from bribery and corruption. world are reported on almost a daily tries on improving accountability, basis. There is no scarcity of scandals efficiency, management and transpar- OECD Member countries cannot that illustrate the depth and perva- ency in the public administration. In effectively control corruption on siveness of corruption: the shady

Co-operating with Non-OECD Economies in the Fight against Corruption

OECD Member countries cannot effectively control corrup- ing effective budget planning, authorisation, and implemen- tion on their own. They recognise that a successful anti-cor- tation processes and structures for accounting, financial ruption strategy must involve the concerted action of many control and cash and information management. It also coun- diverse players, including non-members. sels on the strengthening of supreme audit institutions Through the Centre for Co-operation with Non-Members (SAIs), which serve a key role in government accountability. (CCNM), the OECD has sponsored several anti-corruption SIGMA provides advice on the creation of modern procure- initiatives involving non-members. In many cases these have ment systems and supporting legislation that promote trans- been staged jointly with Member countries and with other parency and accountability in the public sector’s purchase of international and regional organisations, including the Euro- goods and services. pean Union, the World Bank, the Organisation of American Further OECD initiatives in this region include the following: States and the Asian Development Bank. A Global Effort ■ The Anti-Corruption Network for Transition Economies (ACN), a collective effort of involving several OECD Direc- Central and Eastern Europe and Former Soviet Union torates, which brings together government, private sector Public institutions that are weak and underdeveloped con- and civil society participants from the transition economy tribute to an environment in which corruption and other regional organisations to promote reforms that foster integ- unethical behaviour can thrive. The OECD has created a rity in business operations and transparency and ethics in number of initiatives for strengthening government institu- government. It operates in partnership with USAID and tions in transition economies. other donors. Since 1992, the SIGMA Programme has counselled transition ■ The Public Management Service (PUMA), which assists gov- countries in Central and Eastern Europe on the reform of ernments in detecting corruption through budgeting and their core management systems of government. The Pro- financial control and by promoting ethics in government. gramme counsels 13 countries on modernising their public administrations in such areas as the civil service, expenditure ■ The Task Force for the Implementation of the Environmen- management, financial control, and external audit. tal Action Program (EAP), an EU-backed initiative. The SIGMA provides support to countries in the drafting of legis- EAP, which recently established a network on environmen- lation and procedures for regulating the civil service and con- tal compliance and enforcement in the New Independent tributing to the setting of high ethical standards in the States, will also address corruption issues that are related to discharge of public functions. It assists governments in creat- the application of environmental regulations. ☛ 3 Policy Brief The fight against bribery and corruption funding of political parties in Europe afford. It erodes public confidence in What is bribery? and North America, bribes to high- political institutions and leads to level officials for major export con- contempt for the rule of law. It dis- Bribery is defined by the Convention tracts in many countries, the deple- torts the allocation of resources, as the offering, promising or giving tion of health insurance funds in inflates spending on public procure- of something in order to influence a Argentina, the death sentence for a public official in the execution of ment and undermines competition high-ranking bureaucrat in China, his/her official duties. Bribes can the plundering of national assets in in the market place. It has a devastat- take the form of money, other pecu- Russia, and the endemic confusion ing effect on investment, growth and niary advantages, such as a member- between private and public funds in development. Furthermore, corrup- ship in an exclusive club or a some developing and transition tion exacts an inordinately high promise of a scholarship for a child, economies. price on the poor by denying them or non-pecuniary advantages, such access to vital basic services. With as favourable publicity. Similar defi- In the wake of these scandals and the nitions concerning bribery of corpo- increasing intolerance of these dev- role that corruption played in the rate employees are used in private financial crises in South East Asia, astating effects, pressure from citi- sector codes of conduct (See page 6). awareness has grown about the zens and financial markets has Every bribery transaction involves a social, political and economic costs mounted for an international fight supply side (the briber) and a of corruption, which no country can against corruption. ■ demand side (the public official).

continued from page 2 South Eastern Europe Anti-Corruption Initiative September 1998, which informed the region of OECD and The OECD, the Council of Europe, the European Commis- other initiatives for fighting corruption and served to sion, the Special Co-ordinator of the Stability Pact, the World encourage OAS countries to complete the ratification and Bank and the United States agreed to develop an Anti-Cor- implementation of the Inter-American Convention against ruption Initiative for South Eastern Europe under the Stabil- Corruption. Furthermore, Argentina, Brazil and Chile are ity Pact, adopted at a meeting in Sarajevo in February 2000. signatories to the Convention on Combating Bribery of The Initiative calls for states to take effective measures on the Foreign Public Officials in International Business Transac- basis of existing relevant international instruments, promote tions, and thus lead the way for fighting corruption in the good governance, strengthen legislation and promote the region. rule of law, promote transparency and integrity in business Developing Countries operations and encourage an active civil society. The Initia- tive gives the OECD a leading role together with the Council The foundation of the OECD Development Assistance Com- of Europe in its overall management as well as in the imple- mittee (DAC) anti-corruption work relates to its broader mentation of the action plan. A regional website operated by efforts to promote good governance and ensure aid effective- the OECD as part of the Anti-Corruption Ring Online sup- ness. Pervasive corruption undermines the credibility and ports the implementation and monitoring of the Initiative authority of the state and its institutions, and devalues the (www.oecd.org/daf/stabilitypact/nocorruption). aid effort through misuse of scarce resources. A more specific element of the DAC’s work concerns corruption in aid pro- Asia-Pacific Region curement (and government procurement more generally), In 1999, the OECD and the Asian Development Bank (ADB) based on its 1996 Recommendation which sends out a strong launched a Forum on Combating Corruption in the Asia- political, zero tolerance, message. Pacific Region. The Forum is now in its second year, enabling The OECD Development Centre has carried out policy-ori- those countries active in the fight against corruption in the ented research on corruption in developing countries since Asia-Pacific Region to continue to exchange experiences and 1996. The purpose of this research is to provide policy rec- discuss policy reforms. PUMA is also active in the CCNM ommendations to developing countries and agencies on programmes for China and for Emerging Asian Economies. fighting corruption, and informing OECD Members of the Anti-corruption initiatives in Pakistan and the Philippines causes and consequences of corruption in developing coun- have been the focus of studies by the OECD Development tries. Analyses of the situation in various countries have been Centre. undertaken, including corruption in customs administration Latin America in Senegal and Mali, and the anti-corruption programmes in The OECD collaborated with the Organisation of American Bolivia, Morocco, Benin, Pakistan and the Philippines. Work States and the Government of Argentina on the Workshop on also focuses on the role of the private sector in combating Combating Bribery in International Business Transactions in corruption. 4 Policy Brief The fight against bribery and corruption

However, it is not necessarily a sim- ing a foreign public official in the fol- ■ Each Party must establish effec- ple two-sided transaction, as in some lowing manner: tive, proportionate and dissuasive cases intermediaries are involved in criminal penalties for the foreign ■ the transmission of the bribe, and in It must apply to all persons. bribery offence. Where a Party’s certain instances the bribe is trans- ■ It must apply to the offering, legal system does not apply crimi- ferred to a third party for that per- promising or giving of a bribe. It is nal responsibility to enterprises, son’s benefit rather than for the an offence regardless if the offer- they shall be subject to effective, benefit of the public official. Nor- ing, etc., is done through an inter- proportionate and dissuasive non- mally, a private individual or busi- mediary and regardless if the criminal penalties for the offence. ness carries out the supply side of advantage is for a foreign public ■ Each Party must establish its juris- the transaction, but, ironically, pub- official or a third party. diction over the foreign bribery lic officials may also initiate bribes to offence when the offence is com- those in the private sector, as ■ It must apply regardless of the mitted in whole or in part in its recently illustrated by the scandal form that the bribe takes. Thus the territory. Where a Party has juris- regarding government representa- offering of an advantage that is diction to prosecute its nationals tives and members of the Interna- tangible or intangible as well as for offences committed abroad, it tional Olympic Committee. ■ pecuniary or non-pecuniary must be prohibited. shall establish such jurisdiction How does the OECD over the foreign bribery offence ■ It must prohibit bribery for the according to the same principles. enforce the Convention? purpose of obtaining or retaining ■ Where a Party has established a "business or other improper money laundering offence in rela- The Convention on Combating Brib- advantage in the conduct of inter- tion to the bribe and/or proceeds ery of Foreign Public Officials in national business". This is not lim- of domestic bribery, it shall do so International Business Transactions ited to the procurement of on the same terms for foreign brib- is the principal tool at this time for contracts, but also includes the ery. fighting bribery of foreign public obtaining of regulatory permits officials. In addition to joining the and preferential treatment in rela- ■ Each Party is required to prohibit Working Group, signatories must tion to taxation, customs and judi- certain accounting and auditing accept the Revised Recommendation cial and legislative proceedings. It practices that facilitate the con- of 1997 of the Council on Combat- is irrelevant that the person con- cealment of foreign bribery. ing Bribery and the Recommenda- cerned was the best-qualified bid- tion on the Tax Deductibility of ■ Each Party is required to provide der or could properly have been prompt and effective legal assist- Bribes of Foreign Public Officials, awarded the business. And it is an adopted on 11 April 1996. The Con- ance to other Parties seeking offence irrespective of "the value assistance in the investigation and vention requires that each Party of the advantage, its results, per- establish the criminal offence of prosecution of foreign bribery ceptions of local custom, the toler- offences. In addition, the bribery bribery of foreign public officials and ance of such payments by local further establish the liability of of a foreign public official shall be authorities, or the alleged neces- deemed to be an extraditable enterprises (referred to as "legal per- sity of the payment". sons" in the Convention) for the offence under the laws of the Par- offence. The additional provisions in ■ A "foreign public official" must ties and the extradition treaties the Convention chiefly reinforce this include any person holding a legis- between them. requirement by enabling its effective lative, administrative or judicial In addition, to comply with the 1997 application and enforcement. office of a foreign country, whether Recommendation, Parties commit (Although the objective of the Con- appointed or elected; any person themselves to the following meas- vention is to combat foreign bribery exercising a public function for a ures for deterring, preventing and through equivalent measures, the foreign country, including for a combating international bribery: Convention is flexible in that Parties public agency or public enterprise; ■ may adapt the requirements accord- and any official or agent of a public Encouraging the introduction of ing to their individual legal sys- international organisation. sound internal company controls, tems.) including standards of conduct Each Party must also satisfy the fol- and controls applicable down to Countries that join the Convention lowing requirements under the Con- the operational level. In the area of agree to establish the offence of brib- vention: public procurement, companies 5 Policy Brief The fight against bribery and corruption

responsible for bribing foreign clarify specific issues. The Working helps serve as a deterrent, especially public officials should be sus- Group concludes the examination when it is combined with the crimi- pended from future public con- with the adoption of an evaluation nalisation of such conduct. It also tract bids. that targets specific issues requiring feels that non-deductibility sends a ■ Requiring that anti-corruption further examination in Phase 2 of strong signal to companies that brib- provisions be included in bilateral the evaluation process, and in some ery is no longer an acceptable busi- aid-funded procurement, promot- cases, recommends remedial action. ness practice, and serves as a ing the proper implementation of Together the final review and evalu- politically visible symbol of the com- anti-corruption provisions in ation comprise the report of a Party’s mon international commitment to international development institu- implementation of the Convention combat bribery. For these reasons, in tions, and working closely with and 1997 Recommendations. April 1996, the OECD adopted the Recommendation on the Tax development partners to combat Between April 1999 and June 2000, Deductibility of Bribes to Foreign corruption in all development co- the 21 Parties that had ratified the Officials, and then urged its prompt operation efforts. ■ Convention underwent the Phase 1 implementation in the 1997 Recom- examination by the Working Group mendation. How is implementation The overall assessment of countries’ monitored? compliance with the Convention Since agreeing to the 1996 Recom- was positive. However, the Working The Convention and the 1997 Rec- mendation, most OECD countries Group identified certain deficiencies ommendation are enforced through that previously allowed the tax in its review of some countries, as a programme of systematic follow- deductibility of bribes to foreign well as specific issues of varying up to monitor and promote their full public officials have amended their magnitude that need addressing for implementation. This is essentially legislation to disallow such tax almost all of the countries reviewed. accomplished through a rigorous deductibility, and a few countries The Group made specific recom- peer-review process involving two have bills to this effect pending in mendations for remedial action evaluative phases. Phase 1, which their parliaments. As with the Con- wherever potential loopholes or gaps began in April 1999, involves an vention, the successful application were observed, or where it consid- examination of the relevant laws and of these changes depends on their ered that the provisions fell below secondary legal sources of each Party effective enforcement as well as their the standards set by the Convention. to determine whether they conform specific construction. Enforcement The resulting reports on these coun- to the requirements under the Con- will be addressed by OECD Tax tries are available at www.oecd.org/ vention, whereas Phase 2 will focus Audit Guidelines for the Detection daf/nocorruption/report.htm. ■ on the application of the laws in of Bribes to Foreign Public Officials, practice. What about the tax which are being prepared. These will provide guidance to tax inspectors In preparation for the Phase 1 exam- deductibility of bribes? and the accounting profession for ination, each Party to the Conven- recognising suspicious payments Until recently, the bribery of foreign tion is required to reply to a through, for instance, the careful public officials has been accepted as questionnaire designed to evaluate scrutiny of recurring payments to a normal cost of doing business by compliance with the Convention. A anyone other than a normal supplier. many OECD countries. Companies provisional review is prepared on the And with respect to the construction doing business with foreign coun- basis of a Party’s responses and the of a non-deductibility provision, it is tries often claim that they must pay comments of the two countries that essential that a country does not bribes in order to be favourably con- serve as lead examiners as well as the define bribes too narrowly, and sidered for the awarding of con- OECD Secretariat. where bribes to foreign public offi- tracts. Previously, by allowing the Once the provisional review is trans- cials are not explicitly denied, the tax deductibility of such bribes as an mitted to the Working Group, two tax legislation should not contain expense in earning income, several rounds of consultations take place in other categories of expenses, such as governments were perceived as con- the Working Group for the purpose entertainment expenses and com- doning this practice. of further assisting Members in missions, under which bribes could understanding the country’s legal The OECD Committee on Fiscal possibly be claimed. The relevant tax system and approach to implement- Affairs (CFA) believes that the disal- laws are being examined by the ing the Convention and providing lowance of the tax deductibility of Working Group on Bribery in Inter- the Group with an opportunity to bribes to foreign public officials national Business Transactions, in 6 Policy Brief The fight against bribery and corruption co-operation with the Committee on ues. Over one-third of OECD coun- Proposals for Aid-Funded Pro- Fiscal Affairs, in the course of its tries have already updated their core curement, which recommends that Phase 1 examination of Parties’ public service values in the last five Members introduce or require implementation of the Convention years, and further reviews are under anti-corruption provisions govern- and the 1997 Recommendation. ■ way. ing bilateral aid-funded procurement and requires that Members How can integrity of Putting values into effect starts with communication and ensuring integ- work closely with development partners to combat corruption in public officials be rity in daily management. All OECD all development co-operation encouraged? governments provide training, prin- efforts. cipally to raise awareness among OECD has taken the leadership in public servants of ethical issues. ■ The inclusion by DAC Members of identifying sound ethics manage- Measures to enhance transparency explicit anti-corruption clauses or ment principles in the public serv- can reduce the possibility of con- equivalent measures in their pro- ice. Public ethics are a prerequisite flicts arising between public duties cedures concerning aid-funded to, and underpin, public trust and and private interests. Paying special procurement. are a keystone of good governance. attention to officials in positions, ■ These measures have been devel- Recognising this, in April 1998 such as public procurement, that are oped by DAC Members in collabo- OECD countries demonstrated their particularly susceptible to corrup- ration with their partner countries, commitment to improving ethical tion is a rising concern for OECD multilateral development institu- conduct in the public service by countries. Countries have also tions and other OECD initiatives approving a set of 12 Principles for strengthened existing legal measures for fighting corruption. ■ Managing Ethics in the Public Serv- or established a legal framework for ice in an OECD Recommendation. internal control to detect individual What is the role of the The Principles – as a reference irregularities and systemic failures. private sector? checklist – are intended to help gov- There is a growing need to provide ernments review their broader pub- protection for whistleblowers in the Some companies have established lic service environment and public service. They now receive their own anti-corruption strategies, maintain effective frameworks to general protection in almost half of including the adoption of codes of promote integrity and prevent cor- OECD countries, mainly through ethical conduct that include provi- ruption by public officials. A recent their public service regulations. sions concerning bribery and extor- report, titled Trust in Government: tion between the private and public While public sector managers have Ethics Measures in OECD countries, sectors as well as between private the primary responsibility for initiat- gives a snapshot of progress in the companies. These codes express the ing disciplinary measures in their implementation of the 1998 Recom- companies' serious commitment to agencies in a timely manner, they mendation on Improving Ethical comply with international efforts to may also receive assistance from law Conduct in the Public Service. This combat corruption, and are intended enforcement authorities responsible report provides – for the first time – to modify the corporate culture and for investigating and prosecuting a comprehensive overview of ethics attitudes of its employees to reduce misconduct in the public service. measures in all 29 OECD countries, the risk of corrupt behaviour. They including overall trends, models, In developing countries a complex often are accompanied by the crea- promising practices and innovative set of factors – social, political, eco- tion of management systems for mon- solutions. nomic and administrative – provide itoring and reviewing compliance. The changing public sector environ- opportunity and incentive for cor- At the OECD's annual Council meet- rupt practices. The OECD's Devel- ment requires that core values be ing at ministerial level in June 2000, opment Assistance Committee widely known. Stating core values an agreement was reached on a (DAC) has been tackling corruption and standards of behaviour is a key revised set of Guidelines for Multi- in the field of development co- step to create a culture in which both national Enterprises (non-binding public servants and society have a operation between DAC Members recommendations to enterprises and partner countries in the devel- common understanding of the made by the Member countries). oping world mainly through the fol- expected behaviour of public office The Guidelines include rules for lowing measures: holders. Legislating standards of combating bribery that address the behaviour has become the primary ■ The adoption in 1996 of the Rec- supply and demand sides of the brib- way to elaborate on stated core val- ommendation on Anti-Corruption ery transaction. They focus on the 7 Policy Brief The fight against bribery and corruption

What lies ahead? Analysis is also under way in the The OECD Anti-Corruption Unit has OECD Trade Committee to deter- created one of the world’s largest The Convention and the Recom- mine to what extent the disciplines information centres on corruption mendations have laid the ground- of the World Trade Organisation can and bribery, the OECD Anti-Corrup- work for substantial progress in the contribute to anti-corruption efforts. tion Ring Online or AnCorR. The fight against international bribery, Bribery and corruption have not but there is still much work to be AnCorR, the repository of more than been among the issues specifically done. As more countries ratify the 5,000 references to anti-corruption addressed by the WTO Agreements. documentation, responds to the needs Convention, they too will be But the underlying principles of the of anti-corruption practitioners and required to submit to the Phase 1 WTO system and their enforcement individuals for the concrete informa- examination. Additionally, Phase 2 – by WTO Members are likely to have tion necessary to design and imple- the on-site assessment of each a preventive effect by reducing the ment anti-corruption activities. Party's application in practice of its motivations and opportunities for AnCorR also acts as a gateway by laws and rules for combating foreign bribery – must still be undertaken. proposing, requesting and accepting providing direct access to local initi- bribes. atives in OECD countries, Latin Moreover, the OECD Council America, the Middle East and Africa, decided that five related corruption For the fight against international and links to the three regional net- issues will be examined by the bribery to succeed, it is essential that works – the Anti-Corruption Net- Working Group on a priority basis. the initiative receive sustained polit- work for Transition Economies, the These are: bribery acts in relation to ical commitment and the involve- Stability Pact Anti-Corruption Initi- foreign political parties; advantages ment of organisations positioned to ative for South Eastern Europe and promised or given to any person in play a key role. For this reason it is the Forum on Combating Corruption anticipation of that person becoming important to acknowledge the inval- in the Asia-Pacific Region. a foreign public official; bribery of uable contributions made by many Visit AnCorR at: www.oecd.org/daf/ foreign public officials as an offence organisations. For instance, several that triggers the offence of money nocorruptionweb/ international bodies have become laundering (i.e. where the gains involved, including the European thereof have been laundered); the Union, the Council of Europe, the bribery of public officials and the role of foreign subsidiaries in bribery Organisation of American States, the employees of business partners, as transactions; and the role of offshore International Monetary Fund, the well as preventing the channelling of centres in bribery transactions. payments through the use of subcon- World Bank, the Asian Development The OECD will build on work sup- Bank, the World Trade Organisation, tracts, purchase orders and consult- porting Member and non-Member ing agreements to public officials, the United Nations Development countries in strengthening public Programme, the International employees of business partners, rela- sector ethics. Future ethics work will tives and business associates. Labour Organisation, and the World focus on critical issues in relation to Customs Organisation. Moreover, governance, including ethical issues In addition, the Guidelines address non-governmental organisations, at the interfaces between the chang- the issue of remuneration of agents. such as Transparency International ing public/private sectors and Further provisions require enter- and the Open Society Institute, as between politicians and administra- prises to adopt management control well as international aid providers, tions, as well as methods to institu- systems, including financial and tax both government and private, help tionalise transparency and and auditing practices, for discour- raise public awareness of the dangers aging bribery and corrupt practices, accountability. The Anti-Corruption Network for Transition Economies, of corruption and provide technical and requires them to promote public assistance to countries in designing and employee awareness of their through a series of Network and effective anti-corruption strategies. programs and policies in this regard. Steering Group meetings, will continue to bring together donors, gov- The involvement of companies, Finally, there should be no illegal ernments, private enterprise and business associations and trade contributions to candidates for pub- civil society to provide mutual sup- unions remains essential. Likewise, lic office, political parties and other port and share experiences in curb- the contribution of free and inde- political organisations, and enter- ing corruption in Central and pendent media is vital to exposing prises should disclose political Eastern Europe and the New Inde- corruption and encouraging contributions. ■ pendent States. accountability of public officials. ■ 8 Policy Brief The fight against bribery and corruption

For further reading

■ No Longer Business as ■ Public Sector Corruption: An International Usual: Fighting Bribery Survey of Prevention Measures, 1999 and Corruption ISBN: 92-64-17071-5, US$31, 120p. ISBN: 92-64-17660-8, US$38, 250p. ■ Determinants of Customs Fraud and Corruption: Evidence from Senegal and Mali ■ Trust in Government: by David Stasavage and Cécile Daubrée Ethics Measures Technical Paper N° 138, September 1998 in OECD Countries, Free on Internet: www.oecd.org/dev/ October 2000 PUBLICATION/tp/Tp138.pdf ISBN: 92-64-18519-4, US$64, 350p. ■ Corruption and Integrity Improvement Initiatives in Developing Countries - by Irène Hors and Sahr ■ Corporate Governance Kpundeh - OECD Development Centre - UNDP/ in Asia : A Comparative Perspective PACT, 1998 - Sales Number : E.98.III.B.18, (Proceedings, Seoul, March 1999) ISBN: 92-1-126096-5, US$9.95 - To order directly Forthcoming - ISBN 92-64-18328-0 at UNDP: www.un.org/Pubs/whatnew/ orderfrm.htm ■ Trade Facilitation and the Fight Against Corruption in Customs Administration ■ Corruption: The Issues - Technical Paper N° 122, in Developing Countries 1997- Free on internet: www.oecd.org/dev/ and Emerging Economies, PUBLICATION/tp/Tp122.pdf by Irène Hors, Technical Paper, December 2000, Free on internet: www.oecd.org/dev/ENGLISH/ ■ The Role of Governance in Economic PUBLICATION/tp1a.htm Development: A Political Economy Approach, 1997 - ISBN: 92-64-15559-7, US$18, 94p. ■ European Principles for Public Administration, SIGMA Paper No. 27, 1999. SIGMA/OECD. ■ OECD Anti-corruption Unit Internet site: Free on Internet: www.oecd.org/puma/sigmaweb/ www.oecd.org/daf/nocorruption/

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