2010-02-01 FNF PAK - Corruption

CORRUPTIONWomen Media Center (WMC), Karachi, Feb. 2010

Olaf KellerhoffResident Representative Pakistan

Corruption Feb. 1 2010Olaf Kellerhoff

Olaf KellerhoffResident Representative Pakistan

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

Missions & Experiences abroadSomaliaMaroccoTurkeyKosovo (3x)Afghanistan (3x)Lebanon

Apprenticeship as photographer


Overview

1. Few on FNF

2.What is corruption

3. Paradise Germany?

4.Ways to go

Published under Xiaming


1. Few on FNF


Friedrich-Naumann-Stiftung für die Freiheit

Founded 1958: civic education for Germansregional offices in the provincesLiberal Institute (LI)think tank Scholarship departmentInternational Academy for Leadership (IAF)since 1963 abroadHeadquarters in Potsdam (Germany), Jan. 2009

©FNF


Regional approach

Worldwide: in over 60 countries


FNF in PakistanSharing thefate withPakistan…

working for Freedom in Pakistan since 1986

objectives: liberal democracy

civic education

human rights

free market economy

peaceful conflict resolution©FNF

… and consequently working for betterment


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


2. What is corruption?


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


Definition

Lat. corrumpere – to destroy

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

Transparency International

Published under lynac


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


Worldwide Corruption

Wikimedia Commons


TI-Ranking

Existing in every country - more or less…

Published under eli867


Germany Place 14

Pakistan 139

Out of 180

New Zealand place 1

Somalia 180


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

Corruption and Capital inflow

Year

ly n

et c

apit

al in

flow

, 197

0–19

95

High corruption low corruptionCorruption index 2002

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


Grand corruptionRisk of detection rises by quantity and duration – but not by amount=> high end corruption almost not discoveredHard to detect, damage hard to assess:Cleptocracy – greek: to steel & to reignExample 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


Affecting other sectors

Encompassing interest: cleptokrate remarks other sectors affected (most likely Suhoarto’sother 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

alst

ock)

, 200

0

High corruption low corruptionCorruption index 2002


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


3. Paradise Germany?


Paradise Germany?

Until 1999 possible for enterprises to get tax reduction for bribes

Only since 2002 bribing foreign companies employees forbidden

Proper image: almost no low-level corruption but web of corporate sector, parties and bureaucrats


German Scandals

Flick corporate group in 1984 => loss of people’s trust in politics

Siemens Nov. 2006 – 2009: established system of black costs 2,5 bn Euro (fines, lawyers etc.)

M.A.N. in court

soccer manipulationPublished under Kenny Miller


Academia

Published under 96dpi

20.000 € for Dr. title

3,5 years prison and 75.000€ fine

Lawyers and advocates among illegal clients

Easy buying or hard working?


SiemensTrialed 2006–2009

Long established, institutionalized web of bribery to receive contracts world wide

Costs: 2.5 bn Euro

But: did not break upLost not on value on long termDisclosure & stop

Published under Teacher Dude’s BBQSiemens Manager taken into custody in Greece.


M.A.N.

2000-2006 payments of 1.4 bn Euro worldwide

Strong hand in anti-corruption:

ombusdman

200-300 employees use specially initiated amnesty law: keep job if not private advantage of corruption

Published under 111 emergencyM.A.N. – truck and automotive manufacturer


Soccer Manipulation

Published under baumpaul

Manipulation of resultsIn some cases the whole team has been boughtTrainer would inform the team which result has to be achievedInvolved: Clubs, Gamblers, Trainer, Manager, players


New legislation – still dangers

Published under JBracken…and Germany, too.

Laws only in recent years

Publicly highlighted cases

Approach by amnesty lawombudsmanharsh punishment of culprits

On risk area health care: federal set-up and intransparent linkages between

pharmacy industryhospitals / doctorsbureaucrats insurance companies



Founded by Peter Eigen, former director World bank East Africa in 1993HQ in BerlinApproach consensual not confrontBesides private funds: BMZPublications & Tool kits


Peter EigenBorn 1938 in Augsburg

Law studies in Erlangen and Frankfurt a.M.

Lawyer Worldbank in HQ, West Africa,, Latin America and East Africa

Corruption in daily work, analyzing mechanism

Left 1993 and founded TI Peter Eigen, lawyer and founder of TI


4. Way to go


Transparency

Support of local GovernmentTrust buildingIncreasing tax revenuesReduce citizens’ apathyPress to deliverRaise ethical standards –professionalization of politiciansMeasuring Transparency

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


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 RiversHold accountable & be a vigilant citizen!


You have the right to know!

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

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!


Extending FoI in 2010FoI Study (engl.) in print

Urdu booklet in preparation

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


Property & PrivatisationPrivatisation destroys monopolies which enable power positions

Publicly known and clear property rights with tracking system

Property Rights Book(6–8 contributors) prepared

Book on Privatization launched in May

Study Transparency in Privatisation in drafting

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


TI Tool kit

www.transparency.org


Thank you! Keep in touch!

www.southasia.fnst.orgwww.mynameise.com/LiberalFriendsofPAK

2010-02-01 FNF PAK - Corruption

Education

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