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Fighting Corruption in Public Services:
Chronicling Georgia’s Reforms
The World Bank2012
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Objective of the book
1. To chronicle Georgia’s anti-corruption reforms in public services
2. To understand the ‘how ’ of these anti-corruption efforts
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Framework for Analysis….
Case study approach: looking at 8 sub-sectors 1. patrol police 2. power supply 3. tax collections4. customs 5. business regulation6. public and civil registry7. university entrance examinations8. municipal services
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…..Framework for Analysis
Each case study is structured in 3 parts: The state of affairs in 2003The post-2003 anti-corruption reformsResults
Senior policymakers were interviewed on the ‘how ’ of anti-corruption reforms
World Development Report 2004 framework was used to analyze accountability arrangements between the government, service providers, and citizens
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Aggregative Scorecard2003 2010-11
% of people reporting paying a bribe (Transparency International Corruption Barometer Survey)
7 2
Rank in Corruption Perception Index (Transparency International)
124 68
Ease of Doing Business rank (World Bank Doing Business Surveys)
118 16
% of Responses that Corruption is Most Problematic Factor for Doing Business (World Economic Survey)
… 1.8
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Very Low Prevalence of Unofficial Payment(2010 data, % of population surveyed)
Educ. (Prim., Sec.)
Road Police
Official Docs.
SS, Unem. Ben.
Civil Court
sGeorgia 5 1 1 3 3
Former Soviet Union
23 30 20 17 20
New EU Members
4 7 3 3 5
EU-5 (UK, France, Germany, Italy, Sweden)
1 0 1 1 1
Source: EBRD-World Bank, 2011, Life in Transition 2
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Sectoral ScorecardsPatrol Police Tax Collections
2003 2011
Bribe to become a police officer
$2K-20K
None
Ratio of police officers to population
1:21 1:89
Bribe to obtain a Driver’s License
About $100
None
2003 2011
TaxCollectionsas a % of GDP
12 25
No. of taxes(# of taxpayers)
22(80,000)
5 (252,00
0)
E-filing (%) 0 70-80
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Sectoral ScorecardsCustoms Power Supply
2003 2011
Bribe to become a customs official
$5000(at Red Bridge)
0
No. of import tariffs/bands
16 3
Average Tariffs
20 < 2
2003 2005-11
Average Daily Service(hours)
7-8 24
Collection rates (%)
22 100
Power generation (TWh)
6.9 10
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Sectoral ScorecardsDeregulating Businesses
Public and Civil Registries
2003-05
2011
No. of permits and licenses
≈ 900 ≈ 130
Dealing with Construction Permits – Rank
42 4
Bribes to get permits or licensees
Common
None
2003-05 2011
Registering Property – Rank (no. of days)
16
1
Bribes to get a job
$5,000-$25,000
None
Public perception of corruption (%)
97 1
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Sectoral ScorecardsUniversity Entrance Exams Municipal Services
2003 2011Bribes for University Entrance
$8K - $30K
No bribes;competitiv
e selection
Number of entrance exams
Many; unique
for each university
One common
exam
Satisfaction with admissions
Very low High
2003 2011Average Water Daily Service
4-6 hours 16-18 hours
Collection Rate (%)
20 75
Annual LSG Budget (GEL)
400m 1.7 b
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Ingredients for Success? Ten Tenets
1. Exercise Strong Political Will
2. Establish Credibility Early
3. Launch a Frontal Assault
4. Attract New Staff
5. Limit the Role of the State
6. Adopt Unconventional Methods
7. Develop Unity of Purpose and Coordinate Closely
8. Tailor International Experience to Local Conditions
9. Harness Technology
10. Use Communications Strategically
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1. Exercise Strong Political Will
Campaign slogan of ‘Georgia without corruption’
Strong presidential leadershipOver 90 percent popular support in the
electionsSense of urgency – short window of
opportunityShared ideology of a diminished ‘role of the
state’
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2. Establish Credibility EarlyEnforced ‘zero tolerance’ for corruptionEstablished a ‘virtuous cycle’ of reformsDestroyed ‘symbols of corruption’: thieves-in-
lawShowed ‘equality before law’Make necessary legal changes
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The Georgian Virtuous Reform CycleReplenish
‘Windows of Opportunity’
Political Will and
Vision
Flexible Strategy
Pragmatic
Design
Rapid Implementati
on
Quick Results
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3. Undertake a ‘Frontal Assault’Introduced holistic, interconnected reforms;
no ‘piecemeal’ approachEstablished clear sequencing: started by
enforcing law & order and improving tax collection then moved to reforms that benefited the most people in the shortest possible time
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4. Attract New StaffRenew staffing: Bring in ‘new blood’- recruit
new, dynamic staff; removed corrupt, inefficient staff
Developed a strong team with shared valuesProvided clear incentives - good
remuneration and employment conditions, with clear accountabilities
Created a new culture of public service: putting the citizens first
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5. Limit the Role of the State Limit the interface between the citizens and
the stateEncouraged private initiativeDeregulated businessesApplied the ‘guillotine’: eliminate
unnecessary or inefficient public agenciesBalanced institutional development with the
capacity of the stateMicroeconomic incentives matter
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6. Adopt Unconventional MethodsImprovise: first-best solutions may not work
or be politically possibleTook decisive and quick actionsEnsured direction of movement was correct,
even if specific measures may not be perfectInitially focused on prosecutorial methods
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7. Have Unity of Purpose and Coordinate Closely
Have a core team of policymakers, with shared common values and vision
Ensured intensive coordination at the cabinet of ministers
Established high level commissions on sectoral reforms
Ensured timely decisions and actions
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8. Tailor International Experience to Local Conditions
Drew from international experience but adapt to local conditions (e.g. anti-mafia legislation, plea bargaining, business deregulation)
Learned from international successes as well as failures
Helped to have policymakers who have seen how things are done differently in other countries
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9. Harness Technology
Computerization aided business simplification and anti-corruption
Technology helped to reduce the interface between the citizens and the state
Used simple IT solutions, consistent with local capacities
Technology helped establish time bound service standards
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10. Use Communications Strategically
Leadership needed to maintain close contacts with the people
Constantly used political calculus to inform anti-corruption reform design and implementation
Used regular public polling to inform decision-making
Used media to expose cases of corruption and publicize important actions
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The Accountability Framework
Government
ProvidersCitizens/Firms
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The Right Balance?Prosecutorial Actions
Institutions
Time
• Need to strengthen the system of checks and balances on executive power
• Strengthen public institutions for service delivery
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Are Georgia’s Reforms Replicable to Other Countries?
Public services can be cleaned upMany reforms are replicable with adaptation to
local conditionsThe specific design, pace, and sequencing of
the ‘how to’ depends on country circumstances
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THANKS
www.worldbank.org/georgia/georgiabook
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