Development Committee calls for World Bank anti-corruption framework, Wolfowitz highlights importance of good governance
24 April 2006
The call follows Wolfowitz's recent sketching of broad measures to address corruption during his recent trip to Indonesia.
"Promoting good governance, including fighting corruption, and mutual accountability are essential to efforts to achieve the MDGs," the World Bank/IMF Development Committee declared in an April 23 communique on their Spring Meetings discussion, but anti-corruption efforts should not be ad hoc. "We called on the Bank to lay out a broad strategy, to be discussed at our next meeting, for helping member countries strengthen governance and deepen the fight against corruption, working closely with the Fund, other multilateral development banks and the membership, to ensure a coherent, fair and effective approach. This strategy should lead to clear guidelines for operations," the communique continued.
The need for a consistent and transparent approach to fighting corruption has also been called for by civil society organizations monitoring the Bank's recent and seemingly subjective suspension of loans to countries including Chad, Kenya, Bangladesh, India, Argentina, Congo-Brazzaville and Uzbekistan. Many groups have not protested suspension of individual loans to countries named above; rather, they have asked for more even application of anti-corruption measures both globally and within the institution itself.
Good governance key to fighting corruption
In an April 24 press conference Wolfowitz highlighted the importance of strengthening governance, to both avoid corruption and increase aid effectiveness. "Simply uttering the word corruption drives headlines," he noted, "but the real issue that we are addressing at the World Bank Group is how to promote good governance and accountability within our lending and project portfolios and in step with our development partners..."
The president outlined four key issues to addressing governance. First, a common diagnostic tool is needed. Second, effective policies and institutions can help prevent corruption. Improved public financial management is also key, and is dependent in part upon civil society engagement. "Parliamentarians, NGOs, the media, and a wide range of other groups must have access to information in order to be able to track funds and hold officials accountable," he noted. Finally, it is critical to improve governance through partnerships with countries.
It is also critical to monitor the role that developed countries and corporations play in corruption, he said.
"But we have to be realistic"
Wolfowitz concluded with a nod towards the difficulty of applying anti-corruption measures. "We have to be realistic," he said. "We can't expect that a single anti-corruption standard would work in the broad, complicated development environment that we operate in every day. And we should not confuse having zero tolerance for corruption with a requirement for perfection in order to work with us. No country has achieved perfection when it comes to corruption; it is doubtful that any ever will. But what we can expect is progressive improvement over time."
The president also suggested broad measures for tackling corruption in an April 11th speech in Jakarta. He classified the institution's renewed efforts to tackle corruption into three fronts: at the country and project levels, and through partnerships with civil society, the private sector, borrowing countries and other multilateral development banks.
Resources
Press
- Wolfowitz pledges to develop formal framework to help tackle corruption, by Krishna Guha and Chris Giles, the Financial Times, April 24, 2006 (Financial Times website)
- Wolfowitz anti-corruption agenda gets cautious nod, by Lesley Wroughton, Reuters, April 23, 2006 (Reuters website)
- World Bank Chief Outlines a War on Fraud, by Celia W. Dugger, The New York Times, April 12, 2006 (New York Times website)
- World Bank steps up anti-graft fight, by Florian Gimbelin, the Financial Times, April 12, 2006 ( www.ft.com )
- Wolfowitz unveils anti-corruption strategy ,by Jerry Norton, Reuters, April 11, 2006 ( www.alertnet.org
- Cleaning Up The World Bank , by Edward T. Pound and Danielle Knight, US News & World Report, April 3, 2006 (US News and World Report website)
- A hot seat for the World Bank's new president , by Edward T. Pound, US News & World Report, March 28, 2006 (US News and World Report website)
Civil society
- Advocates Demand Stronger Anti-Corruption Measures at World Bank, Press Release from Jubilee USA, 50 Years is Enough, the Development GAP, Food & Water Watch, Sustainable Energy and Economy Network and International Rivers Network, April 20, 2006 (Bank Information website)
- Wolfowitz announces World Bank anti-corruption strategy, Bank Information Center, April 24, 2006 (Bank Information Center website)
- The World Bank weeds out corruption: Will it touch the roots?, by Jeff Powell, Bretton Woods Project, April 8, 2006 (Bretton Woods Project website)
World Bank