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COLLECTIVE ACTION AGAINST CORRUPTION
4TH CARIBBEAN PUBLIC PROCUREMENT CONFERENCE
2 DECEMBER 2014
Dr. Sope Williams-ElegbeDeputy Director, African Public Procurement Regulation Research Unit & Research Fellow,
Stellenbosch University, South Africa.Senior Lecturer in Law, University of Lagos, Nigeria.
OVERVIEW OF PRESENTATION
IntroductionThe Scale of the ProblemWhat is Collective Action?Why Collective Action?What Should Collective Action Achieve?Examples of Collective Action in ActionHow do we Implement in the Caribbean?What will the Future Look Like With Collective Action?
Conclusion 2
1960s
1990s
Scholarly study of
corruption
Most work consisted of single –
case studies
Linkage between
corruption, GDP &
Investment
1995
Corruption
perceptions index
created & other
indicators
INTRODUCTION
19992000s
Collective action (UNGC)
THE SCALE OF THE PROBLEM (1)
There have been different causes attributed to the low level of economic development in the Caribbean
These include:Dependency theory; Cultural and social history; Unfair world trading system;Political and other forms of corruption;Underdeveloped democracies;The absence of adherence to the rule of lawThe effects of the illegal trade in drugs
4
Country 2013 Rank
2012 Rank GDI per capita 2013 Classification
Barbados 15 15 $15, 080 (2012) High income
Bahamas 22 22 $20,600 (2012) High income
St Lucia 22 22 $7,090 Upper middle income
Puerto Rico 33 33 $19, 210 High income
St Vincent & The Grenadines
33 36 $6,580 Upper middle income
Dominica 41 41 $6,760 Upper middle income
Cuba 63 58 $5,890 Upper middle income
Jamaica 83 83 $5,220 Upper middle income
Trinidad 83 80 $15,760 High income
Suriname 94 88 $9,260 Upper middle income
Dominican Republic
123 118 $5,620 Upper middle income
Guyana 136 NA $3,750 Low middle income
Haiti 163 165 $810 Low income
5
THE SCALE OF THE PROBLEM: CORRUPTION PERCEPTIONS INDEX
Country 2013 Rank
2012 Rank GDI per capita 2013 Classification
St Kitts NA NA $13, 460 High income
Antigua NA NA $12, 910 High income
Belize NA NA $4,660 Upper middle income
Grenada NA NA $7,460 Upper middle income
Montserrat
NA NA NA NA
5
THE SCALE OF THE PROBLEM: CORRUPTION PERCEPTIONS INDEX
Low income is $1,045 or lessMiddle income is $1,045 to $12,746Lower-middle income is $1,045 to $4,125Upper middle income is $4125 to $12,746High income is above $12,746.
WHAT IS COLLECTIVE ACTION? (1)
According to Olson (1965): it is any action which provides a collective good. Does not exclude individual actions but focuses on collective behaviour.
• Olson felt collective action was irrational and the tendency is to free-ride so incentives are required.
It modern times it is a strategic approach which mobilises the private sector to fight corruption
Theory has been criticised and issue is whether self-interested persons can make a difference in providing a collective good• The answer is YES!
WHAT IS COLLECTIVE ACTION? (2)
Collective action is a coordinated sustained process of cooperation amongst private firms and other stakeholders. It amplifies the impact of company efforts, brings vulnerable and individual players into a supportive alliance and levels the playing field.
~ World Bank Institute
WHAT IS COLLECTIVE ACTION? (3)
9
COMMON OBJECTIVE
RESULTS AND OUTCOMES
Ind
ivid
ual
ch
oic
es
Colle
ctiv
e
acto
rs
Colle
ctiv
e
decis
ion
s
WHAT IS COLLECTIVE ACTION? (4)
10
Conscious, Voluntary, Active, Lasting
Credible leadershi
p
Compelling focus
Incentives for
participation
Alliances & Coalition building
Sustainable
WHY DO WE NEED COLLECTIVE ACTION?
• Research (Persson 2012) shows that anti-corruption measures can’t be left to public sector
• The principal-agent paradigm is faulty
• Corruption is a collective problem and requires a collective effort
• Corruption is an institutional problem and the underlying institutional framework must be addressed
• If supply stops- this will affect demand
• Businesses and civil society have a compelling incentive to reduce corruption
WHAT SHOULD COLLECTIVE ACTION ACHIEVE?
Acceptance
Engagement
Change behavior
HOW DOES COLLECTIVE ACTION WORK?
Define message
Create awareness
Build coalition/tract
ion
Celebrate change
Enforcement
HOW DOES COLECTIVE ACTION WORK (2)
Collective action External Internal
TYPES OF COLLECTIVE ACTION MEASURES
Enrollment Mobilization
Education/advocacy
Transaction specific pacts
COLLECTIVE ACTION IN ACTION: UNGC
Aim: To get businesses involved in work of UN. Launched 2000
Method: Enrollment program & awareness building
Outcome: 12,000 participants in 145 countries. Largest voluntary initiative
COLLECTIVE ACTION IN ACTION: NIGERIA
Convention on Business Integrity
(Enrollment)
Corporate Governance
Rating System(Enrollment)
Enough is Enough
(Mobilization)
Generational Voices
(Mobilization)
BudgIT(Data &
Information)
COLLECTIVE ACTION IN ACTION: THAILAND
Aim: To get businesses committed to ethical conduct and fighting corruption. Champion – IOD. Launched 2010
Method: Enrollment- Signature to Collective action declaration & company measures . Evaluation
Outcome: 325 companies; 25% of listed companies, 50% of market capitalization, 20% of GDP
COLLECTIVE ACTION IN ACTION: RUSSIA
Aim: Reduce barriers to business for SMEs. Corruption noted as biggest barrier.
Method: Mobilization: 225 coalitions of SMEs created. Coalitions developed regional agendas for reform.
Outcome: 138 legislative changes on corruption, taxation, administration etc. coalitions dialogue with public sector and share information.
HOW DO WE IMPLEMENT IN THE CARIBBEAN?
• Build a coalition of businesses genuinely tired of the status quo.
• Who will lead this?
• Three-pronged approach may be necessary:
1. Enrollment- a commitment to internal ethics
2. Mobilization and advocacy
3. Information sharing and training
IF NOT NOW, WHEN?IF NOT YOU, WHO?
HOW DO WE ENSURE IT IS SUSTAINABLE?
What is the goal?
Organization to
manage the
initiative
How will it be
funded ?
WHAT WILL THE FUTURE LOOK LIKE WITH COLLECTIVE ACTION
23
GOOD GOVERNANCE
Economic developm
ent
Increased trade &
investment
Better service delivery
Rule of law
Improved HDI
Democratic
stability
Stronger institutio
ns
CHALLENGES TO COLLECTIVE ACTION
24
Is it a priority?
Funding
Which model works best?
Critical mass/defaulters
Leadership & Ownership. Who will champion?
SOME LESSONS FROM OTHER JURISDICTIONS
25
Top-Down
Approach
i.e. through the largest business
association/chamber of commerce
Bottom-Up
Approach
i.e. through smaller city
based orgsnisation
s
Collaborative Engagement
Support from all sectors
Enhance Capacity
Transparent advocacy
CONCLUSION
Collective action against corruption is necessary and it works
It increases the impact of action, is sustainable and
scalable
Good for reputation and business
Assists in operational implementation of ethics
Addresses institutional weaknesses and behavior
