|
|
| Sample Letter to the Editor
The turnover of the Canal and the Canal areas provides a unique opportunity for Panama—an opportunity that could springboard Panama into a period of unprecedented growth and development. But this development won’t take off without foreign investment, and foreign investors won’t come to Panama if they expect to be confronted by corruption when they arrive. Panama needs to implement and enforce an anti-corruption code that ensures investment attraction and gives the country a chance to develop its full growth potential. Failure to take action against corruption will not only perpetuate Panama’s problems but also could drag Panama even closer to the backwaters of developing nations. Just as the Communist countries deluded themselves in the 80s, we too can delude ourselves that conditions will improve even if we don’t make the tough choices necessary to rid Panama of the damaging effects of corruption. Alternatively, we can take action to curb corruption and move toward sustainable development. Stopping corruption will require the support and commitment of the general population, as well as full participation of the public and private sectors. Without this widespread support, anti-corruption efforts would be in vain. The solution lies in changing the general population’s apathy and tolerance toward corruption. Private citizens need to participate actively in the democratic process and insist upon a system of sound governance that holds officials accountable for their actions. Panamanians need to work together to create a transparent and sound business environment for both foreign and domestic corporations. Businesses must feel confident that they will be able to function within a fully transparent legal and regulatory framework that reduces investment risk and cost. This involves implementing policies that curb bribery and corruption, assuring compliance with and adherence to international conventions that criminalize such practices, and creating enforcement and watchdog agencies. In the 1960s, when Singapore inherited valuable assets from the British, it wasted no time in taking measures that would ensure a stable political environment. Most importantly, the country made civil service employees accountable for their actions. The rest is history. Singapore is a model of civil society and one of the best examples of sustainable development in the last 30 years. Like Singapore, Panama can gain momentum from the enormous opportunity presented by the reversion of the Canal areas. Panama can make the decision to attract foreign investment and to pursue outward development. Transparency International is leading the Panama Anti-Corruption Coalition (PACC) to make sure that Panama has good governance and an appropriate business climate to help attract the investment needed to succeed and flourish into the New Millenium. Citizens, the choice is yours! Sample Press Release #1 Panama
Adopts OECD Agreement on Combating Bribery Panama has taken a major step in its fight against corruption by adopting the OECD Agreement on Combating Bribery of Foreign Public Officials. The Panamanian president will make the official announcement at a news conference scheduled as a part of this weekend's media seminar on the OECD Anti-Bribery Agreement. The Agreement, which entered into force on 15 February 1999, outlaws the payment of bribes to foreign officials. Its goal is to level the playing field for companies that compete for business contracts outside their home countries. By contributing to a more efficient allocation of economic resources, it will also benefit private citizens in countries where contracts are issued. Will the treaty work? How will it be monitored? What more needs to be done to ensure enforcement and effective international cooperation in the fight against corruption? To pursue these and other questions, you are invited to attend a media seminar at Transparency International’s offices at 2.30 p.m. on November 10, 1999. The
seminar will include a two-and-a-half day session with the chairman
of Transparency International, Peter Eigen, OECD and Panamanian officials,
and other internationally noted authorities on corruption. For more information and to register for the seminar, please contact the Media Relations Division of Transparency International. Sample Press Release #2 Latin
American Governments and Foreign Firms PANAMA CITY.-- The presidents of Panama, Mexico, Argentina, Brazil and Chile, and former World Bank President Robert McNamara, announced the initiation of a regional coalition to firmly fight corruption in Latin America. In the first presidential meeting to address corruption, the heads of state, McNamara and TI representatives announced the creation of the Global Coalition on Latin America, which is an extension of McNamara's efforts against corruption in other continents. McNamara urged the presidents to take strong measures in the fight against corruption and appealed to the private sector to focus on the supply side of corruption. During his visit to Panama to launch the new Global Coalition on Latin America, McNamara and TI representatives discussed the prospects for turning the Integrity Pact concept into practice in Latin America. McNamara and TI representatives stressed the need for Latin American governments to implement the necessary anti-corruption measures in order to obtain concrete results sooner rather than later. Sample Letter to Send to Potential PACC Members Dear Trade Association President: We are writing to seek your support for corruption reforms as proposed by the Panama Anti-Corruption Coalition (PACC). Panama’s continued failure to eliminate corruption impedes foreign investment in the Canal areas, the foremost pillar of our economic strategy to achieving high-rate economic growth. Investment is the only means of revitalizing Panama’s already sluggish economy and offsetting the $360 million (five percent of GDP) and 6,000 high paying jobs that we will lose when the United States withdraws from the Canal areas. If we fail to provide a transparent business climate, we could unwittingly be engineering the transformation of the Canal areas into a depressed region rich in facilities but lacking the necessary investment to overcome Panama’s high unemployment and low economic growth. The reversion of the Canal areas and the transfer of the Canal to Panamanian control offer an opportunity for Panama to regain control of its own political and economic future. However, widespread corruption clouds the realization of this goal. We wish to introduce to you the Panama Anti-Corruption Coalition, an initiative recently undertaken by Transparency International, the UNDP and the General Comptroller’s Office. PACC seeks to accelerate economic and social advances in Panama by bringing together all sectors of society in the fight against corruption. PACC will: · Assist the government in establishing and implementing effective anti-corruption laws, policies, and programs. · Organize and enhance public support and understanding of anti-corruption programs. · Enhance public sensitivity to the need for transparency and accountability among government officials. · Encourage all parties in business and related areas of national interest to follow the highest levels of integrity and adhere to certain standards of conduct. · Veto public appointments of corrupt officials through lobbying or by providing information to the appointing body. · Hold integrity seminars for the president, cabinet, and legislators following the elections to promote the issue of corruption as a state priority. We believe that endorsement of this Panamanian initiative and a commitment to its provisions by companies such as yours will send a strong signal that the international business community will no longer tolerate corruption. Panama is at a critical time in its history. It is crucial that all member of society participate in achieving the common national goal of becoming a model of sustainable development in Latin America. If you or your associates have questions on any of these issues, please let us know. We will be happy to answer in writing or in person. Sincerely,
Sample Letter to Send to Potential NGO Members Dear NGO President: We are writing to seek your support for corruption reforms proposed by the Panama Anti-Corruption Coalition (PACC). As Panama moves toward gaining greater control of its own economic destiny, corruption stands as a major impediment to attracting foreign investment needed for privatizing and developing the Canal areas. Failure to address the corruption issue threatens the Canal’s economic viability, reduces Panama’s ability to replace income we will lose as a result of the United States’ withdrawal from Panama (five percent or more of GDP), and risks further weakening our already sluggish economy. Investment attraction is the only means of revitalizing Panama’s economy. If we fail to provide a transparent business climate, we could unwittingly be engineering the transformation of the Canal areas into a depressed region rich in facilities but lacking the necessary investment to overcome Panama’s high unemployment and low economic growth. I wish to inform you of and solicit your support for the Panama Anti-Corruption Coalition, an initiative recently undertaken by Transparency International, the UNDP and the General Comptroller’s Office. PACC seeks to accelerate economic and social advances in Panama by bringing together all sectors of society in the fight against corruption. PACC will: · Assist the government in establishing and implementing effective anti-corruption laws, policies, and programs. · Organize and enhance public support and understanding of anti-corruption programs. · Enhance public sensitivity to the need for transparency and accountability among government officials. · Encourage all parties in business and related areas of national interest to follow the highest levels of integrity and adhere to certain standards of conduct. · Veto public appointments of corrupt officials through lobbying or by providing information to the appointing body. · Hold integrity seminars for the president, cabinet, and legislators following the elections to promote the issue of corruption as a state priority. We believe that endorsement of this Panamanian initiative and a commitment to its provisions by organizations such as yours will send a strong signal that corruption will no longer be tolerated. Panama is at a critical time in its history. It is crucial that all members of society participate in achieving the common national goal of becoming a model of sustainable development in Latin America. If you or your associates have questions on any of these issues, please let us know. We will be happy to answer in writing or in person. Sincerely, Sample Letter to Send to Legislators Dear Fellow Legislator: I am writing to seek your support for corruption reforms as proposed by the Panama Anti-Corruption Coalition (PACC). Panama needs to implement and enforce an anti-corruption code that provides a transparent investment climate and enables the country to capitalize on the reversion of the Canal. Taking advantage of this opportunity could springboard Panama into a period of unprecedented growth and development. Failure to take action against corruption, however, will not only impede this endeavor but also could drag Panama even closer to the backwaters of developing nations. Just as the Communist countries deluded themselves in the 80s, we can delude ourselves that conditions will improve even if we don’t make the tough choices necessary to rid Panama of the damaging effects of corruption. Alternatively, we can take action to wipe out corruption and move toward achieving sustainable development. To revitalize our sluggish economy, develop the Canal Zone and offset the impact of the United States’ withdrawal (which amounts to the loss of both 6,000 jobs and an annual capital inflow of $360 million—five percent of GDP), Panama needs to establish a transparent business climate that encourages investment. The reversion of the Canal areas and the transfer of the Canal to Panamanian control offer an opportunity for Panama to mold its own political and economic future. If we fail to provide a transparent business climate, however, we could unwittingly be engineering the transformation of the Canal areas into a depressed region rich in facilities but lacking the necessary investment to overcome Panama’s high unemployment and low economic growth. Panama must provide guarantees that all government transactions are equitable, fully transparent, and broadly supported by government officials. This will require implementing policies that curb bribery and corruption, assuring compliance with and adherence to international conventions that criminalize such practices, and establishing strong enforcement and watchdog agencies. I wish to introduce to you the Anti-Corruption bill, which seeks to accelerate economic and social advancement in Panama by introducing the necessary laws and regulation to fight corruption. As you are already aware, the President has declared the fight against corruption a top priority of the government. Your endorsement of this national effort and your commitment to pass the necessary reforms will help springboard us into long-term sustainable growth as we enter the new millennium. Most important, it will help create jobs for hundreds of thousands of Panamanians. If you have questions on any of these issues, please let me know. I will be happy to answer in writing or in person. Sincerely, Juan
Transparente Sample Letter for McNamara to Send to CEOs[1] Dear Mr. X: As a former president of Ford Motor Company and the World Bank and as a director of several international corporations, I have seen corruption related to business transactions increase throughout the developing world. Corruption has now reached levels where it not only diverts scare public resources into private pockets, but it literally undermines effective governance, endangering democracy and eroding the social and moral fabric of relations. I wish to inform you of and solicit your support for an initiative recently undertaken by the Global Coalition for Africa (CGA) related to this problem. The Global Coalition seeks to accelerate economic and social advance in Africa by bringing together African political leaders and development assistance administrators of the OECD nations. It is co-chaired by President Masire of Botwswana, President Konare of Mali, Prime Ministers Meles of Ethiopia, Dr. Ginwala of SouthAfrica, Minister Pronk of the Netherlands, Minister Marleau of Canada and myself. Several heads of state of African counties asked the Coalition for assistance in combating corruption within their own countries. I volunteered to help them and suggested that we begin by introducing anti-bribery clauses into all major procurement contracts, whether with domestic or international suppliers. The governments would commit themselves to instruct their officials that they were prohibited from requesting or accepting bribes. And the governments would require that the chief executive officers of all companies that bid on such contracts certify that their employees and agents have been forbidden to offer or pay bribes. In the event that bribery occurred, both public officials who accepted bribes and the companies involved would face stiff penalties. Six countries—Malawi, Benin, Tanzania, Uganda, Ethiopia and Mali—asked for my assistance in introducing the new terms into their procurement procedure. Along with Ambassador Ould-Abdallah, Executive Secretary of GCA, and a representative of Transparency International, I visited the President or Prime Minister of each of the six. They are all rewriting their procurement regulations to introduce the new terms into all major procurement contracts beginning early next year. I am sending this letter to you because your company may be interested in bidding on such contracts. Before undertaking my visits, I discussed my proposal with James Wolfensohn, President of the World Bank. He endorsed it fully, promising support not only in relation to contracts financed by the World Bank, but also more generally, in the effort to reduce fraud and corruption throughout the developing world. You may have noticed that he referred to the subject in an extraordinarily powerful speech at the annual meeting of the World Bank and IMF in Hong Kong on September 23, 1997. He said: "Last year, I highlighted the importance of tackling the cancer of corruption. Since then, we have issued new guidelines to staff for dealing with corruption—and for ensuring that our own procedures meet the highest standards for transparency and prosperity. We have also begun working with a half dozen of our member countries (these are the six I visited) to develop anti-corruption programs." At the annual meeting of the Global Coalition for Africa in Maputo, Mozambique, on November 1-2 1997, the subject of corruption was the main item on the agenda. I chaired the session on the means to combat it and attach my summary of that debate. I know that the International Chamber of Commerce is concerned about the costs and consequences of corruption and that many individual companies have developed their own codes of conduct to combat bribery. I believe that endorsement of this African initiative, and a commitment to its provisions by companies such as yours, will send a strong signal that corruption will not be tolerated by the international business community. If you or your associates have questions on any of these issues, please let me know. I will be happy to try to answer them in writing or in person. Sincerely, Robert S. McNamara [1] As provided by the World Bank. Lyrics: Anne Williams USAID I
find I have a problem Chorus: I've
thought and thought First
you take a bowl To
this stirring mix Chorus (This song could be translated into Spanish) [1] TI Newsletter, The C-word rap song, September 1998, p.16. Example
of Surveys that Can Be Conducted
Questions and Answers from the World Bank[2]1. How Can the Bank Help a Country Develop an Anti-corruption Strategy? An initial step would be to 'map' the areas where corruption is most prevalent and economically costly. Although in a broad sense such surveys may not tell local policy makers much more than they know already, surveys can crystallize the debate by measuring how corruption is perceived and enabling comparisons to be made over time and between different parts of the economy. Based on the results of 'mapping,' a dialogue on priority steps to take can occur. 2. What Should Guide the Design of Anti-Corruption Programs? Anti-corruption is not an 'add-on,' satisfied by the strengthening of enforcement machinery, public campaigns and threats of punishment. Sustainable anti-corruption means identifying the underlying causes of corruption and addressing them. Thus one pillar of a successful anti-corruption program may be economic reforms that reduce rents by macroeconomic measures, simplifying tax and tariff regimes, and other liberalization and deregulation steps. A second pillar will be strengthening institutions: re-creating a professional civil service, building strong watchdog bodies, strengthening prosecutorial capacity and the judicial system, creating effective regulatory bodies, strengthening financial management, and making government at all levels more responsive to citizen needs. 3. What is a Realistic Objective in the Fight Against Corruption? Although a few countries (e.g., Singapore) have made rapid progress, it is unrealistic to expect a country facing extensive systemic corruption to move to the upper ranks of countries which control corruption in a few years. Making the transition from systemic to isolated corruption for most countries is a historical process, playing out over many decades and linked to education levels and the growth of politician accountability. What is realistic in a shorter time frame is to tackle the most egregious focal points of systemic corruption in a country, and thereby move it along the spectrum towards a situation where corruption still occurs but is an isolated event, and institutions are strong enough to control it. 4. The Costs of Corruption for Private Business ( Evidence from World Bank Surveys) One way to discover how corruption affects private business is to survey managers concerning their relations with government. The authors summarize the results of two particularly useful surveys of private enterprise in Ukraine and Pakistan. They find that first, despite some differences in patterns between countries, the smallest firms pay proportionally more in bribes than larger firms, implying that bribery may be both a barrier to entry and a drag on growth of micro- and small enterprise. Second, bribes buy relief from a few basic things: most commonly, relief from potential tax or customs obligations, relief from the burden of complying with regulatory or administrative procedures and relief from uncertainty arising either from changing and unclear rules or from arbitrary, discretionary behavior by bureaucrats. However, the relationship of bribes to the burden of taxes and regulation is starkly different between countries, suggesting that bribes buy different things in different places. In Pakistan, bribery is associated with a lesser perceived burden of taxes, while in Ukraine, the level of bribes and the burden of taxes are positively related. Third, bribes are higher in the commercial sector than in industry or services. This suggests two things -- first, “that extraction of rents or the complicitous sharing of the benefits of illegal behavior is easier or more attractive in trade, and second, that like any 'tax,' a disproportionate burden on one type of activity will distort investment decisions” (unless it is matched or exceeded by disproportionate benefits). Fourth, the variability of reported bribe payments across firms suggests that corruption increases economic uncertainty. Controlling for both size and activity categories of firms, bribe levels vary tremendously within groups of firms. This suggests that however much bribes may ameliorate harsh and unreasonable taxes and regulations, they are by no means uniform. Individual firms may perceive bribes as a way to deal with uncertainty, but the larger picture suggests bribery offers a poor substitute for a reformed, stable set of regulations that levels the playing field for all competitors and affords predictable costs of doing business. Anti-Corruption
reforms in
Civil Service Reform: Lessons from Advanced Industrialized Countries[5] Current civil service management (CSM) practices in advanced industrialized countries can help provide guidance for developing country governments that face the dilemma of recruiting, retaining, and motivating skilled staff at affordable costs. Industrialized countries are following two distinct paths to improving CSM. The United Kingdom, for instance, is engaged in sweeping managerial reforms that decentralize civil service functions and make them more responsive to the client public. By introducing complex financial reporting systems, the UK has been able to give managers increased autonomy, spinning them off into semi-autonomous agencies that operate on an increasingly commercial basis. By contrast, Singapore has retained more traditional, largely centralized civil service structures, pursuing only incremental improvements in specific aspects of CSM. According
to the World Bank, two functions—personnel establishment control and
staff recruitment—are essential for civil service performance and
should receive top priority. [1]
Based on survey studies by the World Bank Poverty Reduction and
Economic Management Network, October 1998. |