ations A CONF. 187/9 United Nations Congress Distr. General CPPME 31 December 1999 on the Prevention of crim Original: english and the Treatment of offenders Vienna, 10-17 April 2000 Item 4 of the provisional agenda International cooperation in combating transnational crime new challenges in the twenty-first century International cooperation in combating transnational crime new challenges in the twenty-first century Background paper for the workshop on combating corruption and The workshop on combating corruption will deal with issues related to the prevention control of corruption using a multidisciplinary approach, as advocated in the global Programme against Corruption of the Centre for International Crime Prevention and the United Nations Interregional Crime and Justice Research Institute. According to the Global Programme, the purpose of a national anti-corruption programme is(a)to increase the risk and cost of being corrupt; (b)to build integrity such that the rules of the game and the behaviour of the players change; and(c)eventually to ensure the rule of law Among the few success stories, the experience of Hong Kong Special Administrative Region(SAr)of China should have shown that it takes time and considerable effort to urb corruption in a systemically corrupt environment. After more than 25 years, Hong Kong SAR is now spending 90 million United States dollars per year (1998 figure)and employs 1, 300 staff, who in 1998 conducted 2, 780 training sessions for the private and public sector. The Independent Commission against Corruption(ICAC) is focusing its efforts on three major areas: (a) the Operations Department, which investigates complaints; (b) the Community Relations Department, which conducts community outreach, educational programmes and their development; and(c)the Corruption Prevention Department, which aims at preventing corruption through improved systems and procedures. The amount spent is probably more than all 50 African countries spent on fighting corruption in 1999 A/CONF. 187/ The present paper was prepared by the United Nations Interregional Crime and Justice Research Institute. 99-91376(E)
* A/CONF.187/1. ** The present paper was prepared by the United Nations Interregional Crime and Justice Research Institute. V.99-91376 (E) United Nations A/CONF.187/9 Tenth United Nations Congress on the Prevention of Crime and the Treatment of Offenders Vienna, 10-17 April 2000 Distr.: General 31 December 1999 Original: English Item 4 of the provisional agenda* International cooperation in combating transnational crime: new challenges in the twenty-first century International cooperation in combating transnational crime: new challenges in the twenty-first century Background paper for the workshop on combating corruption** Summary The workshop on combating corruption will deal with issues related to the prevention and control of corruption using a multidisciplinary approach, as advocated in the Global Programme against Corruption of the Centre for International Crime Prevention and the United Nations Interregional Crime and Justice Research Institute. According to the Global Programme, the purpose of a national anti-corruption programme is (a) to increase the risk and cost of being corrupt; (b) to build integrity such that the rules of the game and the behaviour of the players change; and (c) eventually to ensure the rule of law. Among the few success stories, the experience of Hong Kong Special Administrative Region (SAR) of China should have shown that it takes time and considerable effort to curb corruption in a systemically corrupt environment. After more than 25 years, Hong Kong SAR is now spending 90 million United States dollars per year (1998 figure) and employs 1,300 staff, who in 1998 conducted 2,780 training sessions for the private and public sector. The Independent Commission against Corruption (ICAC) is focusing its efforts on three major areas: (a) the Operations Department, which investigates complaints; (b) the Community Relations Department, which conducts community outreach, educational programmes and their development; and (c) the Corruption Prevention Department, which aims at preventing corruption through improved systems and procedures. The amount spent is probably more than all 50 African countries spent on fighting corruption in 1999
A/CONF. 187/9 Taking into account the increasing number of international instruments dealing with corruption, the Workshop will be aimed at promoting coordinated efforts for the and best practices in prevention at the international, national and municipal levels ts development of joint strategies for the implementation of those international instrum A solid and successful anti-corruption strategy advocated rests on four pillars (a)economic development; (b)democratic reform; (c)a strong civil society with access to information and a mandate to monitor the actions of the State; and (d) the presence of the rule of law. Given these four broad principles, there are four basic areas in which action can be taken against corruption within a country (a) The basic institutions of good governance need to be strengthened, first and foremost, the judiciary, which is itself the guardian of laws and of integrity. If the judiciary itself is corrupt, the problem is compounded and the public at large is left without the rule of law: (b) The capacity and integrity of enforcement need to be enhanced. The best law has no value if it is not enforced. The best judges and magistrates are wasted if cases are never brought before them. Good investigations are wasted effort if the police or prosecutors are themselves corrupt (c) A Government needs to put in place a solid set of preventive tools. Codes of conduct and strong independent oversight bodies can help ensure that acceptable standards of behaviour are followed in both the private and public sector. Political leaders in all branches of government, the legislature and the judiciary can be required to have transparency in their own financial dealings through asset disclosure for themselves and members of their families (d) The public needs to be educated on the advantages of good governance. It must also be clear that the public itself bears a large share of responsibility for insisting on honesty and integrity in government and business. Members of the public need to learn not to let anybody buy their votes; not to pay bribes themselves, to report incidents of corruption to the authorities, and to teach their children the right values, for instance, that grity is good and corruption is bad
A/CONF.187/9 2 Taking into account the increasing number of international instruments dealing with corruption, the Workshop will be aimed at promoting coordinated efforts for the development of joint strategies for the implementation of those international instruments and best practices in prevention at the international, national and municipal levels. A solid and successful anti-corruption strategy advocated rests on four pillars: (a) economic development; (b) democratic reform; (c) a strong civil society with access to information and a mandate to monitor the actions of the State; and (d) the presence of the rule of law. Given these four broad principles, there are four basic areas in which action can be taken against corruption within a country: (a) The basic institutions of good governance need to be strengthened, first and foremost, the judiciary, which is itself the guardian of laws and of integrity. If the judiciary itself is corrupt, the problem is compounded and the public at large is left without the rule of law; (b) The capacity and integrity of enforcement need to be enhanced. The best law has no value if it is not enforced. The best judges and magistrates are wasted if cases are never brought before them. Good investigations are wasted effort if the police or prosecutors are themselves corrupt; (c) A Government needs to put in place a solid set of preventive tools. Codes of conduct and strong independent oversight bodies can help ensure that acceptable standards of behaviour are followed in both the private and public sector. Political leaders in all branches of government, the legislature and the judiciary can be required to have transparency in their own financial dealings through asset disclosure for themselves and members of their families; (d) The public needs to be educated on the advantages of good governance. It must also be clear that the public itself bears a large share of responsibility for insisting on honesty and integrity in government and business. Members of the public need to learn not to let anybody buy their votes; not to pay bribes themselves; to report incidents of corruption to the authorities; and to teach their children the right values, for instance, that integrity is good and corruption is bad
A/CONE.187八9 Contents L. Introduction 1-5 A. Consequences of corruption 14-195 B. Top-level corruption 20-226 C. Corruption in public administration and the criminal justice system 23-24 D. Corruption in the private sector 25-28 7 The ed A. National measures 34-44 B. Prevention 45-48 C. Use of statistical data to understand the dimensions of corruption 49-5610 D. Future areas of concern 57-6111 IV. International experience and activities A. United Nations 64-6811 European Union 69-7012 C. Organisation for Economic Cooperation and Development 71-7413 D. Council of Europe 75-7713 E. World Bank 78-8114 F Other bodies and mechanisms V. Measures required to succeed in the fight against corruption 88-9015 IV. Conclusion
A/CONF.187/9 3 Contents Paragraphs Page I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5 4 II. Aspects and causes of corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-33 4 A. Consequences of corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-19 5 B. Top-level corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-22 6 C. Corruption in public administration and the criminal justice system . . . . . . . . . 23-24 6 D. Corruption in the private sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-28 7 E. The link to organized crime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-33 7 III. Responses to corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-61 8 A. National measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-44 8 B. Prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45-48 9 C. Use of statistical data to understand the dimensions of corruption . . . . . . . . . . . 49-56 10 D. Future areas of concern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57-61 11 IV. International experience and activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62-87 11 A. United Nations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64-68 11 B. European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69-70 12 C. Organisation for Economic Cooperation and Development . . . . . . . . . . . . . . . . 71-74 13 D. Council of Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75-77 13 E. World Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78-81 14 F. Other bodies and mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82-87 14 V. Measures required to succeed in the fight against corruption . . . . . . . . . . . . . . . . . . . . 88-90 15 IV. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91-94 17
A/CONF. 187/9 I. Introduction (c) Prevention and best practices (d) Recommended executive, law enforcement 1. The topic of corruption has long been a priority of legislative, private sector, civil society and international the Commission on Crime prevention and criminal measures Justice. The United Nations Interregional Crime and Justice Research Institute (UNICRI) has been 5. The sessions of the workshop will aim at promoting entrusted with the organization of a workshop or the best practices approach advocated in the global combating corruption within the framework of the Programme, by bringing such practices to the attention Tenth United Nations Congress on the Prevention of of potential donor and recipient countries. Particular Crime and the Treatment of Offenders The attention will be devoted to issues of prevention, taking preparatory work for the workshop has included, in into consideration their potential effectiveness in cooperation with the International Scientific and raising the risk of being caught when combined with Professional Advisory Council of the United Nations (a) a strong political will; (b)increased balancing of power across the legislative, judiciary and executive, Crime Prevention and Criminal Justice Programme, (c)an empowered civil society; and(d) the existence of the organization of an International Conference on free and independent media with access to information Responding to Challenges of Corruption in Milan Italy, on 19 and 20 November 1999 to confront corruption 2. In its resolution 54/128 of 17 December 1999 entitled"Action against corruption", the General II. Aspects and causes of corruption Assembly stressed the need for a global strategy against corruption, and invited Member States to 6. There is a general consensus that, although the most examine the adequacy of their domestic legal regimes serious consequences to the economic and social in terms of preventing and controlling corruption and development of a country are likely to come from the providing for forfeiture of the proceeds of corruption pread of corruption at the upper levels, citizens 3. The Office for Drug Control and Crime Prevention of perception is related for the most part to their own the Secretariat has recently launched a Global Pro- first-hand experience with public administration at the gramme against Corruption(E/CN. 15/1999/CRP 3), to "street"level. While bribery was seen for many years be undertaken jointly by the Centre for International as a way of getting things done in most developing Crime Prevention and uNiCri The Global countries and countries with economies in transition Programme is aimed at assisting Member States in this"greasing the wheel" syndrome has turned into their efforts to curb corruption through two sanding the wheel". This change in perception is due components, assessment and technical cooperation in part:(a)at the international level, to the recent The first component involves the development of a economic crisis in Asia, which, according to many corruption-monitoring protocol for a thorough experts, was triggered in part by inadequate corporate assessment of corruption at all levels, while the second governance practices(e.g. inadequate accountability omponent envisages the implementation of a set of and transparency)and(b)at the national level, to the chnical assistance activities aimed at building and/or fact that citizens who give bribes are actually less strengthening institutional capacity to prevent, detect, likely to be satisfied with the service received than investigate and repress corruption those not paying bribes, as shown by data from surveys in Uganda(1998), Ukraine(1999)and the United 4. The workshop on combating corruption will adopt Republic of Tanzania(1997). In the United Republic of the multidisciplinary approach advocated in the Global Tanzania, survey participants who did not pay a bribe Programme and discussed at the Milan Conference according to the following structure were 2.9 times as likely to find a higher level of service provided On the other hand, those who paid bribes (a) Aspects and causes of corruption: the three were 1.7 times more likely to receive poor service than levels of corruption, the organized crime nexus, good service. In fact only 13 per cent of those surveyed (b) Measures against corruption at the international paid a bribe and received good service and national levels
A/CONF.187/9 4 I. Introduction 1. The topic of corruption has long been a priority of the Commission on Crime Prevention and Criminal Justice. The United Nations Interregional Crime and Justice Research Institute (UNICRI) has been entrusted with the organization of a workshop on combating corruption within the framework of the Tenth United Nations Congress on the Prevention of Crime and the Treatment of Offenders. The preparatory work for the workshop has included, in cooperation with the International Scientific and Professional Advisory Council of the United Nations Crime Prevention and Criminal Justice Programme, the organization of an International Conference on Responding to Challenges of Corruption in Milan, Italy, on 19 and 20 November 1999. 2. In its resolution 54/128 of 17 December 1999, entitled “Action against corruption”, the General Assembly stressed the need for a global strategy against corruption, and invited Member States to examine the adequacy of their domestic legal regimes in terms of preventing and controlling corruption and providing for forfeiture of the proceeds of corruption. 3. The Office for Drug Control and Crime Prevention of the Secretariat has recently launched a Global Programme against Corruption (E/CN.15/1999/CRP.3), to be undertaken jointly by the Centre for International Crime Prevention and UNICRI. The Global Programme is aimed at assisting Member States in their efforts to curb corruption through two components, assessment and technical cooperation. The first component involves the development of a corruption-monitoring protocol for a thorough assessment of corruption at all levels, while the second component envisages the implementation of a set of technical assistance activities aimed at building and/or strengthening institutional capacity to prevent, detect, investigate and repress corruption. 4. The workshop on combating corruption will adopt the multidisciplinary approach advocated in the Global Programme and discussed at the Milan Conference, according to the following structure: (a) Aspects and causes of corruption: the three levels of corruption, the organized crime nexus; (b) Measures against corruption at the international and national levels; (c) Prevention and best practices; (d) Recommended executive, law enforcement, legislative, private sector, civil society and international measures. 5. The sessions of the workshop will aim at promoting the best practices approach advocated in the Global Programme, by bringing such practices to the attention of potential donor and recipient countries. Particular attention will be devoted to issues of prevention, taking into consideration their potential effectiveness in raising the risk of being caught when combined with: (a) a strong political will; (b) increased balancing of power across the legislative, judiciary and executive; (c) an empowered civil society; and (d) the existence of free and independent media with access to information to confront corruption. II. Aspects and causes of corruption 6. There is a general consensus that, although the most serious consequences to the economic and social development of a country are likely to come from the spread of corruption at the upper levels, citizens’ perception is related for the most part to their own first-hand experience with public administration at the “street” level. While bribery was seen for many years as a way of getting things done in most developing countries and countries with economies in transition, this “greasing the wheel” syndrome has turned into “sanding the wheel”. This change in perception is due in part: (a) at the international level, to the recent economic crisis in Asia, which, according to many experts, was triggered in part by inadequate corporate governance practices (e.g. inadequate accountability and transparency) and (b) at the national level, to the fact that citizens who give bribes are actually less likely to be satisfied with the service received than those not paying bribes, as shown by data from surveys in Uganda (1998), Ukraine (1999) and the United Republic of Tanzania (1997). In the United Republic of Tanzania, survey participants who did not pay a bribe were 2.9 times as likely to find a higher level of service provided. On the other hand, those who paid bribes were 1.7 times more likely to receive poor service than good service. In fact only 13 per cent of those surveyed paid a bribe and received good service.1
A/CONF. 187/9 7. Types of corruption have been classified the case of high-level corruption, national decision ways in the literature. For example, distinctions can be makers holding political and administrative office. made between" petty or survIval"and "grand"11. Finally, developed countries are also susceptible to rruption, or between“ episodic”and“ systemIc corruption. Another distinction has been made corruption as a result of elite groups establishing closed networks in which distinctions between private between"simpleand"complex "corruption as it is observed in European countries. This paper will refer and public interests become blurred to three levels-"street, "business and top12. A further multiplier of corruption is the increasing Programme against Corruption involvement of organized crime. As occurs in the business world, the influence of organized crime over 8. In discussions of the issue of corruption, a distinction public structures through the corruption of public must be made between the supply and the demand side officials is linked for the most part with international of that activity. Corruption involving the supply side whether exports o focuses on the payment of bribes in return for specific context, it should be noted that a close relationship services, preferential treatment or contracts, while exists between tax rates, trade barriers and the corrupt practices occurring on the demand side include involvement of organized crime solicitation of bribes and/or extortion. The latter is 13. As a rule, corruption goes hand in hand with abuse of typical of corruption involving political and financial power, political and economic monopolies and powers. organized crime. Thus, cultural, political, economic 9. Countries that are in a developing phase are most and legal measures, including criminal justice,to susceptible to corruption. This is basically the result of prevent and fight corruption cannot be divorced from hange in the needs of civil society as it moves broader processes of political democratization, towards a consumer society in combination with economic and social development and reliability o imperfectly organized and enforced public and judicial financial and legal transactions. To implement effective administrations. Previously existing corruption at the action against corruption, commitment on the part of street level thus provides a hotbed for corruption at he government at the highest level must be publicly higher levels. Greed, social injustice, peer pressure demonstrated by providing a good example to all and a lust for social status and power may all be sectors of civil society, including politicians, business contributing factors. Since corruption is in a narrow public administration and the private sector sense a victimless crime, the low risks of discovery and punishment do little to decrease the prevalence of these factors. Additionally, certain country-specific A. Consequences of corruption factors, such as population size and natural resources also appear to be strongly linked with the prevalence 14. The consequences of corruption are disastrous both of bribery and corruption for the economy in general and for the citizens in 10. Countries that are radically reforming their economic particular. The pain caused by corruption at the village and political systems, such as many central and eastern level has best been described by more than 3, 500 European countries during the 1990s, are confronted villagers participating in 348 focus groups facilitated with corruption in the business sector and at the high by Community Information, Empowerment political and financial levels. Their exposure stems Transparency(CIET)in Uganda in 1998 mainly from the strong impact of reforms on their 15. Corrupt behaviour, such as bribery, also produces national economy, through the large-scale external costs in the form of"added taxes", which are privatization of former state-owned properties, such as mainly shouldered by the national economy. This enterprises, buildings and other holdings, which are an undermines efficient allocation of badly needed important part of national economic value. The new financial resources for economic development, in opportunities arising from the distribution of such particular in developing countries, and is distorting the property increases the appeal of obtaining illegal composition of public expenditure advantages. The actors in this context are not only national or international business people, but also, in
A/CONF.187/9 5 7. Types of corruption have been classified in many ways in the literature. For example, distinctions can be made between “petty” or “survival” and “grand” corruption, or between “episodic” and “systemic” corruption.2 Another distinction has been made between “simple” and “complex” corruption as it is observed in European countries.3 This paper will refer to three levels— “street”, “business” and “top” political and financial—as referred to in the Global Programme against Corruption. 8. In discussions of the issue of corruption, a distinction must be made between the supply and the demand side of that activity. Corruption involving the supply side focuses on the payment of bribes in return for specific services, preferential treatment or contracts, while corrupt practices occurring on the demand side include solicitation of bribes and/or extortion. The latter is typical of corruption involving political and financial powers. 9. Countries that are in a developing phase are most susceptible to corruption. This is basically the result of a change in the needs of civil society as it moves towards a consumer society in combination with imperfectly organized and enforced public and judicial administrations. Previously existing corruption at the street level thus provides a hotbed for corruption at higher levels. Greed, social injustice, peer pressure and a lust for social status and power may all be contributing factors. Since corruption is in a narrow sense a victimless crime, the low risks of discovery and punishment do little to decrease the prevalence of these factors.4 Additionally, certain country-specific factors, such as population size and natural resources, also appear to be strongly linked with the prevalence of bribery and corruption.5 10. Countries that are radically reforming their economic and political systems, such as many central and eastern European countries during the 1990s, are confronted with corruption in the business sector and at the high political and financial levels. Their exposure stems mainly from the strong impact of reforms on their national economy, through the large-scale privatization of former state-owned properties, such as enterprises, buildings and other holdings, which are an important part of national economic value.6 The new opportunities arising from the distribution of such property increases the appeal of obtaining illegal advantages. The actors in this context are not only national or international business people, but also, in the case of high-level corruption, national decision makers holding political and administrative office.7 11. Finally, developed countries are also susceptible to corruption as a result of elite groups establishing closed networks in which distinctions between private and public interests become blurred. 12. A further multiplier of corruption is the increasing involvement of organized crime. As occurs in the business world, the influence of organized crime over public structures through the corruption of public officials is linked for the most part with international transactions, whether exports or imports. In that context, it should be noted that a close relationship exists between tax rates, trade barriers and the involvement of organized crime. 13. As a rule, corruption goes hand in hand with abuse of power, political and economic monopolies and organized crime. Thus, cultural, political, economic and legal measures, including criminal justice, to prevent and fight corruption cannot be divorced from broader processes of political democratization, economic and social development and reliability of financial and legal transactions. To implement effective action against corruption, commitment on the part of the Government at the highest level must be publicly demonstrated by providing a good example to all sectors of civil society, including politicians, business, public administration and the private sector. A. Consequences of corruption 14. The consequences of corruption are disastrous both for the economy in general and for the citizens in particular. The pain caused by corruption at the village level has best been described by more than 3,500 villagers participating in 348 focus groups facilitated by Community Information, Empowerment, Transparency (CIET) in Uganda in 1998.8 15. Corrupt behaviour, such as bribery, also produces external costs in the form of “added taxes”, which are mainly shouldered by the national economy. This undermines efficient allocation of badly needed financial resources for economic development, in particular in developing countries, and is distorting the composition of public expenditure
A/CONF. 187/9 16. In the context of international trade, corrupti conflict of interest, extortion, nepotism, tribalism articular in the form of bribery--serves as a ba to fraud and corruption. It is the most dangerous type of corruption and the one that causes the most serious As aresult, a corrupt environment may present global damage to the country or countries involved. In developing countries, such corruption may undermine their capital. Those investors most likely to make a economic development through a number of related long-term contribution to development may therefore factors: the misuse or waste of international aid be discouraged, while those who seek quick profits unfinished development projects, discovery and through dubious ventures may instead be encouraged replacement of corrupt politicians, leading to political This in turn increases the harmful effects of corruption instability; and living standards remaining below the on the global economy, which have been mounting It country s potentia has been shown that countries suffering from pervasive 21. Industrialized countries, in particular, have been freed corruption invest less and achieve lower economic with systemic corruption at the highest level of growth. A country with widespread corruption is government. An environment in which long-term rule likely to achieve aggregate investment levels of almost by one political party and a system made up of a few 5 per cent less than a country relatively free of social and political groups that share power over corruption and to lose about half a percentage point of decades is conducive to the establishment of networks gross domestic product growth per year. Such personal networks hide behind consensual 18. Corruption in both the public sector and the private agreements, justified by political, social, ethnic and sector. regardless of the level at which it occurs, can eligious arguments, so that it is difficult for the publ eopardize free trade, distort competitiveness and to become aware of them These links are often undermine the stability upon which the free market discovered inadvertently, allowing them only then to be system is based. 2 Companies may resort to bribery prosecuted. Unfortunately, since individuals or small a means of bypassing existing trade barriers or parts of the network are generally identified, the reducing national tariffs and expediting international prosecution is, in most cases, unable to identify or trade. Such action, however, undermines the position eliminate the entire network of the State, reducing government revenue and 22. As public awareness increases of the immediate violating important environmental and safety negative effects of high-level corruption on day-to-day standards, among other things fe, tolerance of the problem will be reduced. Media 19. Widespread corruption jeopardizes the credibility of reports can be very effective in bringing corruption Governments and their institutions. As a result. a scandals to the attention of society. The perception that negative culture arises in which priority is given to a scandal exists and the motivation to have the individual success and short-term achievement participants brought to justice are the first signs of Systemic corruption also weakens the effectiveness of citizens'empowerment and willingness to confront the punishment tools: it is hard to punish one person severely when so many others are likely to be equally is likely to grow and infiltrate hent, organized crime C. Corruption in public administration and the guilty. Within such an environ high levels of public administration. In the worst scenario, public order may criminal justice system break down. as occurred in Albania in March 1997 or there may be civil war 23. Public administration officers, as the authority licences, permissions, permits and other authorizations, are both potential targets for corrupters, B. Top-level corruption as well as instigators of corrupt practices. Within the olice, opportunities are even greater, since that 20. Top-level corruption is often controlled by hidden institution not only enforces the laws but also has the networks and represents the sum of various levels and power to deprive individuals of their freedom, througl types ofirregular behaviour, including abuse of power he use of legitimate force, and to carry out nvestigations into criminal conduct that may lead to
A/CONF.187/9 6 16. In the context of international trade, corruption—in particular in the form of bribery—serves as a barrier to trade and investment. 17. As a result, a corrupt environment may present global investors with a poor environment in which to place their capital. Those investors most likely to make a long-term contribution to development may therefore be discouraged, while those who seek quick profits through dubious ventures may instead be encouraged.9 This in turn increases the harmful effects of corruption on the global economy, which have been mounting. It has been shown that countries suffering from pervasive corruption invest less and achieve lower economic growth.10 A country with widespread corruption is likely to achieve aggregate investment levels of almost 5 per cent less than a country relatively free of corruption and to lose about half a percentage point of gross domestic product growth per year.11 18. Corruption in both the public sector and the private sector, regardless of the level at which it occurs, can jeopardize free trade, distort competitiveness and undermine the stability upon which the free market system is based.12 Companies may resort to bribery as a means of bypassing existing trade barriers or reducing national tariffs and expediting international trade. Such action, however, undermines the position of the State, reducing government revenue and violating important environmental and safety standards, among other things. 19. Widespread corruption jeopardizes the credibility of Governments and their institutions. As a result, a negative culture arises in which priority is given to individual success and short-term achievement. Systemic corruption also weakens the effectiveness of punishment tools: it is hard to punish one person severely when so many others are likely to be equally guilty.7 Within such an environment, organized crime is likely to grow and infiltrate high levels of public administration. In the worst scenario, public order may break down, as occurred in Albania in March 1997,13 or there may be civil war. B. Top-level corruption 20. Top-level corruption is often controlled by hidden networks and represents the sum of various levels and types of irregular behaviour, including abuse of power, conflict of interest, extortion, nepotism, tribalism, fraud and corruption. It is the most dangerous type of corruption and the one that causes the most serious damage to the country or countries involved. In developing countries, such corruption may undermine economic development through a number of related factors: the misuse or waste of international aid; unfinished development projects; discovery and replacement of corrupt politicians, leading to political instability; and living standards remaining below the country’s potential. 21. Industrialized countries, in particular, have been freed with systemic corruption at the highest level of government. An environment in which long-term rule by one political party and a system made up of a few social and political groups that share power over decades is conducive to the establishment of networks. Such personal networks hide behind consensual agreements, justified by political, social, ethnic and religious arguments, so that it is difficult for the public to become aware of them. These links are often discovered inadvertently, allowing them only then to be prosecuted. Unfortunately, since individuals or small parts of the network are generally identified, the prosecution is, in most cases, unable to identify or eliminate the entire network. 22. As public awareness increases of the immediate negative effects of high-level corruption on day-to-day life, tolerance of the problem will be reduced. Media reports can be very effective in bringing corruption scandals to the attention of society. The perception that a scandal exists and the motivation to have the participants brought to justice are the first signs of citizens’ empowerment and willingness to confront the phenomenon. C. Corruption in public administration and the criminal justice system 23. Public administration officers, as the authority issuing licences, permissions, permits and other official authorizations, are both potential targets for corrupters, as well as instigators of corrupt practices. Within the police, opportunities are even greater, since that institution not only enforces the laws but also has the power to deprive individuals of their freedom, through the use of legitimate force, and to carry out investigations into criminal conduct that may lead to
A/CONF. 187/9 appears that, in particular in a number of developing Business Transactions Iic Officials in International severe sanctioning and/or economic penalties. It Bribery of Foreign Pu countries and countries with economies in transition, 26. Business activities involving corruption and bribery further efforts are needed in order to improve the social status and salaries of public officials, thus are not al ways wilful acts on the part of criminal organizations. It may be difficult for establishments to making them less vulnerable to the lures of bribery In Uganda, of the 18,4 12 households surveyed in refuse to pay bribes. Organizations with a strong ethical corporate culture may be able to resist the cent re ported having paid bribes to the police and 50 per cent to the courts. While the temptation and large multinational corporations may be median bribe paid to the police was 20,000 Uganda able to afford to lose contracts in order to avoid situations involving bribes. Such decisions, however shillings(20 United States dollars)the median bribe paid to the courts was U Sh 50,000($50) may be more difficult for smaller businesses whose survival may depend upon securing a particular 24. Reforms are also needed to facilitate and make more contract. According to Laufer, 97 per cent of all transparent both the decision-making process and convictions in United States federal courts involved interaction with citizens. It is difficult to deal with companies with less than 50 employees. This, however corruption when there is a lack of confidence between may reflect the fact that small businesses are being the citizenry and public administration. Such a targeted or that it is easier to obtain a conviction in situation will be exacerbated if discretionary power cases involving smaller businesses with limited over public and/or private affairs is concentrated resources and skill mainly in the political regime or the financial-political 27. Another problem faced by businesses are transactions administrations that still maintain a philosophy of power over citizens rather than a service to citizens in grey areas where corruption is less obvious. These Initiatives must therefore be undertaken that not only are areas where activities such as the issuance of commission payments, signature bonuses, facilitation reform the organization of public administration but payments and donations to humanitarian causes all also modify the political culture as it relates to economic instability and market culture begin as legitimate practices, but somewhere in the process turn into corrupt practices or activities. The question for many businesses is how to decide what D. Corruption in the private sector 28. When examining issues of corruption addressed 25. Businesses may either be the perpetrator of corrup- bribery as well as the penal laws in various countries, various international conventions on corruption and tion by offering bribes to public officials to secure contractor they may be the victim, being it becomes clear that there are no good subjective or for bribes by public officials or other businesses from objective measures of corporate compliance. whom they can obtain licences, contracts, protection or assurances. Corruption may be confined entirel definition of corruption, which has resulted in the within the business world, occurring between enactment of more comprehensive national legislative companies may extend into th of acts or penal laws to cover activities not addressed in government or public officials. In either case, the international treaties 21 corrupt environment tends to favour domestic business. In addition to lacking sufficient local market E. The link to organized crime knowledge, foreign firms may also be liable in their own country if they are prohibited from offering bribes 29. Situations in which legitimate businesses are reduced by their national foreign bribery legislation or if their to paying bribes or witness legitimate practices Governments have ratified international agreements transformed into criminal behaviour were examined in such as the Organisation for Economic Cooperation the preceding section. The situation is completely and Development(OECD) Convention on Combating different where organized crime is involved in illicit activities
A/CONF.187/9 7 severe sanctioning and/or economic penalties.14 It appears that, in particular in a number of developing countries and countries with economies in transition, further efforts are needed in order to improve the social status and salaries of public officials, thus making them less vulnerable to the lures of bribery. In Uganda, of the 18,412 households surveyed in 1998, 63 per cent reported having paid bribes to the police and 50 per cent to the courts. While the median bribe paid to the police was 20,000 Uganda shillings15 (20 United States dollars) the median bribe paid to the courts was U Sh 50,000 ($50).8 24. Reforms are also needed to facilitate and make more transparent both the decision-making process and interaction with citizens. It is difficult to deal with corruption when there is a lack of confidence between the citizenry and public administration. Such a situation will be exacerbated if discretionary power over public and/or private affairs is concentrated mainly in the political regime or the financial-political administrations that still maintain a philosophy of power over citizens rather than a service to citizens.16 Initiatives must therefore be undertaken that not only reform the organization of public administration but also modify the political culture as it relates to economic instability and market culture. D. Corruption in the private sector 25. Businesses may either be the perpetrator of corruption by offering bribes to public officials to secure contracts17 or they may be the victim, being solicited for bribes by public officials or other businesses from whom they can obtain licences, contracts, protection or assurances. Corruption may be confined entirely within the business world, occurring between companies,18 or it may extend into the arena of government or public officials. In either case, the corrupt environment tends to favour domestic companies familiar with the local way of doing business. In addition to lacking sufficient local market knowledge, foreign firms may also be liable in their own country if they are prohibited from offering bribes by their national foreign bribery legislation or if their Governments have ratified international agreements such as the Organisation for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. 26. Business activities involving corruption and bribery are not always wilful acts on the part of criminal organizations. It may be difficult for establishments to refuse to pay bribes. Organizations with a strong ethical corporate culture may be able to resist the temptation and large multinational corporations may be able to afford to lose contracts in order to avoid situations involving bribes. Such decisions, however, may be more difficult for smaller businesses whose survival may depend upon securing a particular contract. According to Laufer,19 97 per cent of all convictions in United States federal courts involved companies with less than 50 employees. This, however, may reflect the fact that small businesses are being targeted or that it is easier to obtain a conviction in cases involving smaller businesses with limited resources and skills. 27. Another problem faced by businesses are transactions in grey areas where corruption is less obvious. These are areas where activities such as the issuance of commission payments, signature bonuses, facilitation payments and donations to humanitarian causes all begin as legitimate practices, but somewhere in the process turn into corrupt practices or activities. The question for many businesses is how to decide what actually constitutes a bribe.20 28. When examining issues of corruption addressed in various international conventions on corruption and bribery as well as the penal laws in various countries, it becomes clear that there are no good subjective or objective measures of corporate compliance.19 Furthermore, many such agreements focus on a narrow definition of corruption, which has resulted in the enactment of more comprehensive national legislative acts or penal laws to cover activities not addressed in international treaties.21 E. The link to organized crime 29. Situations in which legitimate businesses are reduced to paying bribes or witness legitimate practices transformed into criminal behaviour were examined in the preceding section. The situation is completely different where organized crime is involved in illicit activities
A/CONF. 187/9 30. There is a tenuous line between activities involving shown that there are four important components to any corruption and other organized criminal pursuits anti-corruption strategy: (a) awareness-raising and Organized criminal groups are involved in corrupt public education;(b) institution-building across all ectors judicial, legislative, executive, private, civil illegal political campaign contributions in order to society, media);(c) prevention; and(d)enforcement gain an advantageous share of a particular market. 35. a distinction should be made between the political and legal national measures to be considered in legitimate economy further strengthens that advantage combating corruption. Progressive legal measures can only be enforced effectively when a politica 31. The corruption-organized crime nexus has long been environment is established that does not tolerate recognized. Strategic corruption, or mutual corrupt behaviour and that guarantees good accommodation, between organized crime and the governance police or long-lasting strategic alliances between organized crime and local authorities like town 1. At the political level councils, political parties or entrepreneurs"are examples of the damaging influence of organized 36. Since corruption is a hidden crime, transparency crime. An airline based in Japan participated in such within general public processes is one of the most an arrangement when it paid an estimated 22. 8 million Important political needs. Public administration must yen to an organized criminal front company over a ompany over a be regarded primarily as a service to citizens and not as three-and-a-half-year period in order to ensur the exercise of power. Rules of conduct and clear rules of procedure concerning access to public works or contracting must therefore be developed and adopted 32. Because organized crime penetrates at all levels of Furthermore, a clear and simply structured public the business world. measures to combat its influence dministration eeded. so that there are few be developed at each of those levels as well opportunities to use complex administrative 33. The draft United Nations Convention against arrangements to hide corrupt behaviour. In accordance Transnational Organized Crime, in its article 4 ter(see with the principle of checks and balances, such a A/AC 254/4/Rev. 6), envisages the criminalization of system should also include a strict separation of corruption when an organized criminal group is responsibilities so that no single agency or branch is involved. The types of acts publishable under the responsible both for decisions and for their Convention will include corrupt activities involving an enforcement. Moreover, a strict separation between and international civil servant, a foreign public official,a dence of different administrative unit judge or other official of an international court. The needed in order to avoid the appropriation of key importance of addressing organized crime's positions within different institutions by corrupt perpetration of and involvement in corruption is networks. In combating high-level corruption, binding undisputed. The degree to which the draft Convention and unambiguous rules of recruitment and disciplinary should address corruption issues remains unclear, sanctions must be established. Finally, the ver, in view of the fact that such offences may be effectiveness of those measures must be ensured by included in future international instruments independent monitoring and control mechanisms such corruption as auditing. 37. In addition, an administration that is impervious to corruption also needs a civic political culture in which Il. Responses to corruption the public can critically observe official activities which in turn requires transparency in and accessibility of fiscal data concerning all public transactions A. National measures Monitoring, auditing, the oversight of independent commissions and a strengthened free press can achieve 34. Successful experiences(such as in Hong Kong those objectives. 4 The effectiveness of such Special Administrative Region(SAR)of China" have anti-corruption monitoring bodies is illustrated by
A/CONF.187/9 8 30. There is a tenuous line between activities involving corruption and other organized criminal pursuits. Organized criminal groups are involved in corrupt practices, possibly in the form of extortion, bribery or illegal political campaign contributions in order to gain an advantageous share of a particular market. Laundering illegal profits for reinvestment into the legitimate economy further strengthens that advantage. 31. The corruption-organized crime nexus has long been recognized. Strategic corruption, or mutual accommodation, between organized crime and the police or long-lasting strategic alliances between organized crime and local authorities like town councils, political parties or entrepreneurs22 are examples of the damaging influence of organized crime. An airline based in Japan participated in such an arrangement when it paid an estimated 22.8 million yen to an organized criminal front company over a three-and-a-half-year period in order to ensure peaceful shareholder meetings. 32. Because organized crime penetrates at all levels of the business world, measures to combat its influence must be developed at each of those levels as well. 33. The draft United Nations Convention against Transnational Organized Crime, in its article 4 ter (see A/AC.254/4/Rev.6), envisages the criminalization of corruption when an organized criminal group is involved. The types of acts publishable under the Convention will include corrupt activities involving an international civil servant, a foreign public official, a judge or other official of an international court.23 The importance of addressing organized crime’s perpetration of and involvement in corruption is undisputed. The degree to which the draft Convention should address corruption issues remains unclear, however, in view of the fact that such offences may be included in future international instruments on corruption. III. Responses to corruption A. National measures 34. Successful experiences (such as in Hong Kong Special Administrative Region (SAR) of China4 have shown that there are four important components to any anti-corruption strategy: (a) awareness-raising and public education; (b) institution-building across all sectors (judicial, legislative, executive, private, civil society, media); (c) prevention; and (d) enforcement. 35. A distinction should be made between the political and legal national measures to be considered in combating corruption. Progressive legal measures can only be enforced effectively when a political environment is established that does not tolerate corrupt behaviour and that guarantees good governance. 1. At the political level 36. Since corruption is a hidden crime, transparency within general public processes is one of the most important political needs. Public administration must be regarded primarily as a service to citizens and not as the exercise of power. Rules of conduct and clear rules of procedure concerning access to public works or contracting must therefore be developed and adopted. Furthermore, a clear and simply structured public administration is needed, so that there are few opportunities to use complex administrative arrangements to hide corrupt behaviour. In accordance with the principle of checks and balances, such a system should also include a strict separation of responsibilities so that no single agency or branch is responsible both for decisions and for their enforcement. Moreover, a strict separation between and independence of different administrative units is needed in order to avoid the appropriation of key positions within different institutions by corrupt networks. In combating high-level corruption, binding and unambiguous rules of recruitment and disciplinary sanctions must be established. Finally, the effectiveness of those measures must be ensured by independent monitoring and control mechanisms such as auditing. 37. In addition, an administration that is impervious to corruption also needs a civic political culture in which the public can critically observe official activities, which in turn requires transparency in and accessibility of fiscal data concerning all public transactions. Monitoring, auditing, the oversight of independent commissions and a strengthened free press can achieve those objectives.24 The effectiveness of such anti-corruption monitoring bodies is illustrated by
A/CONF. 187/9 examples such as the Independent Commission fact that corruption cases are often only discovered by against Corruption in Hong Kong SAR, the Corrupt relying on those information channels Experience has Practices Investigation Bureau in Singapore and the proved that a specialized jurisdiction with secret New South Wales Independent Commission against witnesses and hidden evidence is not an adequate Corruption in Australia. Although the creation of measure for combating corruption. This is mainly independent commissions is regarded as largely because the public is likely to perceive it as faceless successful, some question whether such organizations justice and, because of the latters lack of transparency, should have exclusive jurisdiction over the they may lose confidence in the judicial system problem. 26 43. Strengthening the criminal law is one of the most 38. The encouraging progress in combating crime by important legal tools against corruption. This includes installing control mechanisms can also be seen in norms for the punishment of bribery and corruption on Poland and Uganda. 2Another effective instrument to the supply and the demand side within the public and sharpen public pressure against corrupt institutions is private sector. Continuing along this line, since the scorecard method, whereby users rate local business- and high-level corruption are often service-providing agencies. This measure was installed committed by legal persons, normative solutions must in Bangalore, India, Samual Paul, helping to reduce be developed concerning their criminal responsibility bribery and resulting in the firing of corrupt officials. 44. However, criminal law as a repressive measure must 39. In addition, those economic policy reforms which be supplemented by preventive, non-criminal tools would minimize opportunities for corruption should be achieve a new ethical, corruption-free culture. As an considered. As stated previously, corruption is often example, reforming commercial law is one of the used to circumvent tariffs, taxes and barriers. optional measures. Binding rules of conduct, auditing Therefore, minimizing such openings for illicit and control are needed to establish transparency within behaviour will help to reduce corruption and also open the business world and public administration up new resources within the administration to control Furthermore, corruption within the private sector and enforce the remai should be sanctioned, especially by rules of private environmental and security standards law, to ensure that corrupt behaviour becomes unattractive. The example of the Republic of Korea 2. At the legal level shows that such rules could be effectively applied by 40. National measures within the legal system refe finding companies negligent for breaching standards of mainly to the development and application of various supervision gal tools, such as criminal sanctions and-something that has mostly gone unnoticed so far-the use of non-criminal measures such as liability, negligence or B. Prevention the confiscation of illicit assets 41. It should be noted at the outset that all administrative 45. Four components appear to be crucial for effective reforms also have to be implemented within the judicial system and the preferred administration. This prevention of corruption: (a)economic development may include restructuring the courts. A single-judge access to information and a mandate to oversee the system is more vulnerable to corruption than a State; and(d) the presence of the rule of law. It should chamber or a jury system - To guarantee a controlling system against corrupt judgements at least some form be noted, however, that there is no single model or of appeal should be available. An efficient practice that suits all countries and each jurisdiction needs to explore practices drawn from a variety corruption-free court system needs proper case management to ensure equal and fast access to justice. options: Measures to prevent corruption, in the form of codes of conduct and training in eth ics. must focus on 22. Furthermore, successful prosecution depends on various sectors and all levels within society to include adequate procedural rules. In that context, rules, laws local institutions in the public and private sectors and legal measures protecting witnesses and whistle- including public administration, political office and blowers should be available. This is motivated by the
A/CONF.187/9 9 examples such as the Independent Commission against Corruption in Hong Kong SAR, the Corrupt Practices Investigation Bureau in Singapore and the New South Wales Independent Commission against Corruption in Australia.25 Although the creation of independent commissions is regarded as largely successful, some question whether such organizations should have exclusive jurisdiction over the problem.26 38. The encouraging progress in combating crime by installing control mechanisms can also be seen in Poland and Uganda.27 Another effective instrument to sharpen public pressure against corrupt institutions is the scorecard method, whereby users rate local service-providing agencies. This measure was installed in Bangalore, India, Samual Paul, helping to reduce bribery and resulting in the firing of corrupt officials.28 39. In addition, those economic policy reforms which would minimize opportunities for corruption should be considered. As stated previously, corruption is often used to circumvent tariffs, taxes and barriers. Therefore, minimizing such openings for illicit behaviour will help to reduce corruption and also open up new resources within the administration to control and enforce the remaining barriers such as environmental and security standards. 2. At the legal level 40. National measures within the legal system refer mainly to the development and application of various legal tools, such as criminal sanctions and—something that has mostly gone unnoticed so far—the use of non-criminal measures such as liability, negligence or the confiscation of illicit assets. 41. It should be noted at the outset that all administrative reforms also have to be implemented within the judicial system and the preferred administration. This may include restructuring the courts. A single-judge system is more vulnerable to corruption than a chamber or a jury system.29 To guarantee a controlling system against corrupt judgements at least some form of appeal should be available. An efficient corruption-free court system needs proper case management to ensure equal and fast access to justice. 42. Furthermore, successful prosecution depends on adequate procedural rules. In that context, rules, laws and legal measures protecting witnesses and whistleblowers should be available. This is motivated by the fact that corruption cases are often only discovered by relying on those information channels. Experience has proved that a specialized jurisdiction with secret witnesses and hidden evidence is not an adequate measure for combating corruption. This is mainly because the public is likely to perceive it as faceless justice and, because of the latter’s lack of transparency, they may lose confidence in the judicial system.30 43. Strengthening the criminal law is one of the most important legal tools against corruption. This includes norms for the punishment of bribery and corruption on the supply and the demand side within the public and private sector. Continuing along this line, since business- and high-level corruption are often committed by legal persons, normative solutions must be developed concerning their criminal responsibility. 44. However, criminal law as a repressive measure must be supplemented by preventive, non-criminal tools to achieve a new ethical, corruption-free culture. As an example, reforming commercial law is one of the optional measures. Binding rules of conduct, auditing and control are needed to establish transparency within the business world and public administration. Furthermore, corruption within the private sector should be sanctioned, especially by rules of private law, to ensure that corrupt behaviour becomes unattractive. The example of the Republic of Korea shows that such rules could be effectively applied by finding companies negligent for breaching standards of supervision.31 B. Prevention 45. Four components appear to be crucial for effective prevention of corruption: (a) economic development; (b) democratic reform; (c) a strong civil society with access to information and a mandate to oversee the State; and (d) the presence of the rule of law.2 It should be noted, however, that there is no single model or practice that suits all countries and each jurisdiction needs to explore practices drawn from a variety of options.4 Measures to prevent corruption, in the form of codes of conduct and training in ethics, must focus on various sectors and all levels within society to include local institutions in the public and private sectors, including public administration, political office and
A/CONF. 187/9 corporations at the local, national and international types of corruption which are not envisaged by current domestic legislation. Furthermore, only incidents that Organizations are instrumental in curbing corruption are actually reported to the police are recorded. If within their own structure through internal measures people are afraid of or do not have faith in the criminal such as clear procedures, a simple accounting system, justice system, they will not report incidents even if an effective supervisory system and transparency, and they become aware of them the adoption of a suitable code of conduct will raise 50. Nevertheless, some standardized information is ethical standards within the organization Leaders must available at the international level through the United foster a culture of honesty within their organizations Nations Survey of Crime Trends and Operations of and compliance programmes must be introduced that Criminal Justice Systems. The International Crime include training of employees at all levels. Businesses ictim Survey has an advantage over other sources on must define and apply corporate values and foster an orruption because it measures the magnitude of crime aspiration"mentality as opposed to a"compliance" based on the direct experience of citizens and targets it to public officials. In other words, it attempts 47. On the whole, Governments have been reluctant to capture the magnitude of bribery by public official acknowledge the very real problem of solicitation which is probably the least transparent yet most This creates the illusion that businesses are the source conventional form of corruption. 5 of corruption. The solution is for Governments to 51. More and more surveys are being used in the battle acknowledge the demand side. Companies need some against corruption. Broadly there are two categories of form of assistance against solicitation of bribes and surveys Governments must take responsibility for dealing with this. Cooperation must be international (a) Awareness-raising surveys. These are conducted by international organizations and measure perceived levels 48. In the 1997 UNICRI study on corruption in countries of corruption across countries in order to raise awareness with economies in transition, suggestions were and encourage international monitoring. The data are used proposed for the development ofprevention measures: mostly by international organizations for awareness-raising (a)increase fair competition; (b)reduce monopolies in and sometimes for monitoring (for example, the the market; (c)enact an adequate economic and social Transparency International corruption perceptions index); 37 olicy;(d) introduce checks and balances for decision makers;(e) increase transparency in public (b) Community-based planning surveys. These administration and simplify administrative procedures, veys are conducted by national anti-corruption agencies and measure perceived levels of corruption at the national (D) introduce integrity testing, auditing procedures and and/or municipal levels in order to establish a baseline to ncrease accountability, but also to facilitate community corruption in vulnerable sectors; (h)improve controls based planning, where the data are being used as an input to over banks, including by removal of bank secrecy, a national or municipal action planning process. Such encouragement of detecting and reporting of surveys tend to be large, they are often supplemented by corruption, and reduction of cash transactions, and focus groups and may be disseminated through broad-based (1) provide more information to the public and raise blic aware action planning workshops 52. The opinions of selected professionals from the criminal justice system and/or business people, such as Use of statistical data to understand the those used in the surveys carried out by Transparency dimensions of corruption International for the production of its corruption perceptions index, can constitute a third source of 49. It is usually difficult to provide a clear picture of the information. The index relies mainly on perceptions dimensions of corruption through the use of official of the importance of the phenomenon drawn from crime statistics. First of all. at best. official crime ifferent sources, at different periods of time and from statistics measure the extent to which people breach ifferent individual respondents current legal codes and therefore cannot record those
A/CONF.187/9 10 corporations at the local, national and international levels.24 46. Organizations are instrumental in curbing corruption within their own structure through internal measures such as clear procedures, a simple accounting system, an effective supervisory system and transparency, and the adoption of a suitable code of conduct will raise ethical standards within the organization. Leaders must foster a culture of honesty within their organizations and compliance programmes must be introduced that include training of employees at all levels. Businesses must define and apply corporate values and foster an “aspiration” mentality as opposed to a “compliance” mentality. 47. On the whole, Governments have been reluctant to acknowledge the very real problem of solicitation. This creates the illusion that businesses are the source of corruption. The solution is for Governments to acknowledge the demand side. Companies need some form of assistance against solicitation of bribes and Governments must take responsibility for dealing with this. Cooperation must be international. 48. In the 1997 UNICRI study on corruption in countries with economies in transition,32 suggestions were proposed for the development of prevention measures: (a) increase fair competition; (b) reduce monopolies in the market; (c) enact an adequate economic and social policy; (d) introduce checks and balances for decision makers; (e) increase transparency in public administration and simplify administrative procedures; (f) introduce integrity testing, auditing procedures and structures; (g) enhance legislation and control of corruption in vulnerable sectors; (h) improve controls over banks, including by removal of bank secrecy, encouragement of detecting and reporting of corruption, and reduction of cash transactions; and (i) provide more information to the public and raise public awareness. C. Use of statistical data to understand the dimensions of corruption 49. It is usually difficult to provide a clear picture of the dimensions of corruption through the use of official crime statistics. First of all, at best, official crime statistics measure the extent to which people breach current legal codes and therefore cannot record those types of corruption which are not envisaged by current domestic legislation. Furthermore, only incidents that are actually reported to the police are recorded. If people are afraid of or do not have faith in the criminal justice system, they will not report incidents even if they become aware of them.32 50. Nevertheless, some standardized information is available at the international level through the United Nations Survey of Crime Trends and Operations of Criminal Justice Systems.33 The International Crime Victim Survey34 has an advantage over other sources on corruption because it measures the magnitude of crime based on the direct experience of citizens and targets it to public officials. In other words, it attempts to capture the magnitude of bribery by public officials, which is probably the least transparent yet most conventional form of corruption.35 51. More and more surveys are being used in the battle against corruption. Broadly there are two categories of surveys:36 (a) Awareness-raising surveys. These are conducted by international organizations and measure perceived levels of corruption across countries in order to raise awareness and encourage international monitoring. The data are used mostly by international organizations for awareness-raising and sometimes for monitoring (for example, the Transparency International corruption perceptions index);37 (b) Community-based planning surveys. These surveys are conducted by national anti-corruption agencies and measure perceived levels of corruption at the national and/or municipal levels in order to establish a baseline to increase accountability, but also to facilitate communitybased planning, where the data are being used as an input to a national or municipal action planning process. Such surveys tend to be large, they are often supplemented by focus groups and may be disseminated through broad-based action planning workshops. 52. The opinions of selected professionals from the criminal justice system and/or business people, such as those used in the surveys carried out by Transparency International for the production of its corruption perceptions index, can constitute a third source of information.38 The index relies mainly on perceptions of the importance of the phenomenon drawn from different sources, at different periods of time and from different individual respondents