CORRUPTION Center for International Private Enterprise (CIPE)

Islamabad, Oct. 25, 2012

Olaf Kellerhoff, Resident Representative Pakistan

Corruption July 19, 2012 Olaf Kellerhoff

Olaf Kellerhoff Resident Representative Pakistan

Islamic History + International Relations (MA) at Hamburg Univ.

Missions & Experiences abroad !  Somalia !  Marocco !  Turkey !  Kosovo (3x) !  Afghanistan (3x) !  Lebanon

Apprenticeship as photographer

Corruption July 19, 2012 Olaf Kellerhoff

Overview

1. Few on FNF

2. What is corruption

3. Ways to go

Corruption July 19, 2012 Olaf Kellerhoff

1. Few on FNF

Corruption July 19, 2012 Olaf Kellerhoff

Friedrich Naumann Foundation (FNF) established by the first President of the Federal Republic of

Germany Theodor Heuss 1958

German non-profit org.

civic education

roots in philosophy of liberalism

One leading think tanks of the world, place 20 in Europe

FNF Head Office in Potsdam

Corruption July 19, 2012 Olaf Kellerhoff

FNF worldwide: in over 60 countries

Regional approach

Corruption July 19, 2012 Olaf Kellerhoff

FNF in Pakistan

working for Freedom in Pakistan since 1986

objectives: "  liberal democracy

"  civic education

"  human rights

"  free market economy

"  peaceful conflict resolution

Sharing the fate with Pakistan…

… and consequently working for betterment

©FNF

Corruption July 19, 2012 Olaf Kellerhoff

Sustainable work through partners Crucial Element is the self-responsible programme work of our partners. FNF trains, consults, interlinks and funds.

Corruption July 19, 2012 Olaf Kellerhoff

2. What is corruption?

Corruption July 19, 2012 Olaf Kellerhoff

Historical Examples

Around 1300 in Egypt death penalty for priests

1372 in Basel: on year exile + lifelong exclusion from all political activities

In MA mayors of Augsburg and Zürich executed

Preaching water, drinking wine… Published under Tom

Corruption July 19, 2012 Olaf Kellerhoff

Definition

Lat. corrumpere – to destroy

Corruption is operationally defined as the misuse of entrusted power for private gain.

Transparency International

Published under lynac

Corruption July 19, 2012 Olaf Kellerhoff

CPI

"  Corruption Perception Index (CPI) Scale 0–10

"  Estimate of corruption of different institutes in a country + interviewing different sources

"  Empirical data analyzed at University of Passau (Germany)

www.tranparency.org

Corruption July 19, 2012 Olaf Kellerhoff

Worldwide Corruption

Wikimedia Commons

Corruption July 19, 2012 Olaf Kellerhoff

TI-Ranking

"  Transparency International (2011)

"  Germany Place 14

"  Pakistan 134 (of 183)

"  New Zealand place 1

Existing in every country - more or less…

Published under eli867

Corruption July 19, 2012 Olaf Kellerhoff

Damage of Countries

"  Manager more time with bureaucrats in corrupt countries

"  Prices are indicators for economic activities =>not reliable =>wrong decisions

"  Less inflow of FDI & net capital inflow

Aus Politik und Zeitgeschichte, 3-4/2009, p. 24.

Corruption and Capital inflow

Year

ly n

et c

apit

al in

flow

, 197

0–19

95

High corruption low corruption Corruption index 2002

Corruption July 19, 2012 Olaf Kellerhoff

Grand corruption "  Risk of detection rises by quantity and

duration – but not by amount => high end corruption almost not discovered

"  Hard to detect, damage hard to assess: "  Cleptocracy – greek:

to steel & to reign "  Example from Indonesia:

Nephew of President Suharto got benefit from beer taxes – collected by private company =>rising of beer prises – reduction of tourism

Published under To2BoRnI

Corruption July 19, 2012 Olaf Kellerhoff

Affecting other sectors

"  Encompassing interest: cleptokrate remarks other sectors affected (most likely Suhoarto’s other relative in hotel business => beer tax withdrawn

If CPI up by 1 point, then: - Net capital import by 0,5% - productivity by 2% up, - GDP raises by 4%

Aus Politik und Zeitgeschichte, 3-4/2009, p. 23.

Corruption and Productivity

Prod

ucti

vity

(GD

P : c

apit

al

stoc

k), 2

000

High corruption low corruption Corruption index 2002

Corruption July 19, 2012 Olaf Kellerhoff

Actors: Men are more corrupt* "  Higher number in

leadership positions

"  No previous conflict with law

"  due to competencies in respective field high trust

"  High living standard

"  Decision equal other successful management actions

"  Persuasion of external control (the other’s fault)

"  Denial of immoral action

"  Readiness for high risk

"  Machiavellian

"  Pathologic narcism

* Anaylsis of actors in Germany

Corruption July 19, 2012 Olaf Kellerhoff

4. Way to go

Corruption July 19, 2012 Olaf Kellerhoff

Transparency

"  Support of local Government "  Trust building "  Increasing tax revenues "  Reduce citizens’ apathy

"  Press to deliver "  Raise ethical standards –

professionalization of politicians "  Measuring Transparency

Deputy City Nazim Karachi, Nasreen Jalil, Nov. 2009 ©FNF

Corruption July 19, 2012 Olaf Kellerhoff

Rule of Law & Good Governance

"  Media Election Monitoring

"  Monitoring Parliamentary / City Councils Work

"  Courts decision – judicial support

"  Manual for SME

"  Publishing Surveys

Published under International Rivers Hold accountable & be a vigilant citizen!

Corruption July 19, 2012 Olaf Kellerhoff

You have the right to know!

"  Freedom of information (FoI) Ordinance, 2002

"  well intended by Musharraf and ahead in South Asia

"  but diluted in policy process

"  All in all: we are glad to have it

"  Request this information! Hold accountable!

FoI Workshop at CIIM, Karachi, Nov. 2009 ©FNF

Corruption July 19, 2012 Olaf Kellerhoff

Extending FoI in 2012 "  FoI Study (engl.)

"  Poster and illustrated booklets for illiterates arranged

"  FNF cooperation partner CPDI drafts new law

"  Get actors on one table

FoI Workshop by CHRI, LFP, Shehri, in Regent Plaza Karachi, Aug. 2009

©FNF

Corruption July 19, 2012 Olaf Kellerhoff

Property & Privatisation "  Privatisation destroys monopolies which

enable power positions

"  Publicly known and clear property rights with tracking system

"  Property Rights Book

"  Book on Privatization

"  Study Transparency in Privatisation in drafting

Download Property Rights Index at our German homepage www.freiheit.org.

Corruption July 19, 2012 Olaf Kellerhoff

CPDI – Waste Collection

Corruption July 19, 2012 Olaf Kellerhoff

www.southasia.fnst.org for a peaceful and progressive Pakistan