TI Position

• Whether EU’s development funds reach disadvantaged populations or not is crucially dependent on the effectiveness of the EU’s anti-corruption measures. Corruption is a major obstacle to development as it leads to considerable waste and misallocation of scarce resources. Most importantly, corruption creates unequal opportunities for citizens to participate in society.
• To be a credible partner to other countries in the fight against corruption, the EU must make sure that its own house is in order. It must secure the highest standards of integrity of its own officials and contractors that are executing EU-funded projects. It must demonstrate that it is willing to debar corrupt companies and prosecute European firms found guilty of bribing foreign officials, as well as assist in the repatriation of stolen assets. It must ensure that it demands high standards of integrity and accountability from those institutions that receive EU funding, including the IMF, WB, UN agencies and Regional Banks.
• The EU’s development policy should be governed by the definition of ‘Good Governance’ as laid down in the Cotonou Agreement (Art 9): “Good Governance is the transparent and accountable management of human, natural, economic and financial resources for the purpose of equitable and sustainable development”.
• Development funds are particularly vulnerable to the quality of governance of partner countries. An assessment of the corruption risk and the anti-corruption theme must be mainstreamed in the EU’s development operations. In designing partnerships, a first step must be an assessment of governance quality undertaken in full partnership with affected stakeholders (parliaments, citizens and civil society) in partner countries.
• The EU must also pro-actively support specific anti-corruption measures that help countries in their efforts to strengthen the integrity of their institutions, legal and regulatory frameworks. Its assistance should include: strengthening institutions critical for domestic oversight (parliaments, audit authorities, anti-corruption agencies etc.). Support to public financial management systems, including procurement, needs to be complemented by support to parliaments to exercise oversight over budget execution and to civil society to access information and demand accountability on the use of development funds.
• The EU needs to meet its commitments laid down in the Paris Declaration and the 2008 Accra Agenda for Action, both requiring a much stronger investment in democratic ownership and domestic accountability. They are central to the fight against corruption and must be monitored to ensure the principles are respected by donor and partner countries.
• The EU’s support to civil society must be proportionate to its support to government institutions. An independent media and active civil society are an integral aspect of ensuring public accountability, preventing corruption and achieving development effectiveness. This is particularly important with regard to budget support operations where a strong domestic oversight is essential.
• The EU’s sector policy programs should capitalise on the opportunities for combining support to participatory policy and budget formulation with support to public involvement in advising anti-corruption measures.
• The EU must lead by example and drive forward initiatives at international level that help to tackle the issue of corruption. In the case of development cooperation and apart from the UNCAC, these include the International Aid Transparency Initiative (IATI) that aims at introducing more transparency into aid flows and will help civil society – in donor and beneficiary countries – to hold their governments accountable. The Extractive Industries Transparency Initiative (EITI) that aims to strengthen governance by improving transparency and accountability in the extractives sector. Similarly important initiatives are the International Tax Compact.

Agenda

• 22-24 October 2009: EU Development Days in Stockholm with TI Chairwoman Huguette Labelle delivering a speech in the opening ceremony.

Written contributions

• 31 March 2009: TI contribution to the EC consultation on environment integration in development cooperation. Click here to read the contribution.
• 11 July 2008: TI contribution to EC consultation on mainstreaming of cross-cutting themes. Click here to read the contribution.
• 16 June 2008: TI contribution to EC consultation on EU approach to democratic local governance, decentralisation and territorial development. Click here to read the contribution.