[Assam] World Bank: Corruption reforms & analysis - East Europe's

[umesh sharma]

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/0,,contentMDK:20989777~pagePK:146736~piPK:146830~theSitePK:258599,00.html
   
  Lead Authors: James Anderson and Cheryl Gray
July 2006
In the 16 years since the start of transition in the former socialist economies of Europe and Central Asia, corruption has been a pivotal issue. This report is the third in a series of studies examining the patterns and trends in corruption in the region. The findings are promising: The extensive reforms in the region in cutting red tape, simplifying taxes, and strengthening audits, among others, are reducing the opportunities for corruption and showing real results on the ground in many countries, with firms reporting bribery to be less frequent and in smaller amounts. There remain, however, important reasons to reinforce and accelerate reforms. Corruption is not falling in all countries or all sectors, and even the most successful reformers still tend to have higher levels of corruption than in Western Europe. Corruption continues to weigh most heavily on new private firms that are the engine of growth and employment in the region     1 & 2. Introduction and Patterns of
 Corruption, 2002-2005  Chapter 2 examines recent patterns and trends in broad indicators of corruption and focuses on four measures: the extent to which firms see corruption as a problem for business; the frequency of bribery; the amount paid in bribes; and the impact of state capture on firms. While several countries have made marked improvements, bribery and perceived problems for firms caused by corruption have not changed significantly.
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    3. What Influences the Extent of Corruption?  Factors that influence trends in corruption include growth, institutions, and politics. The greater likelihood of new, private firms to pay bribes than foreign-owned or large firms bodes ill for the growth of small and medium enterprises and for private-sector development more generally. Although richer countries tend to be less corrupt, rapid growth can actually exacerbate corruption. Finally, corruption declines when liberalization is paired with greater accountability and constraints on power.
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    4. Policies and Corruption Outcomes  A look at specific types of corruption and how they are influenced by public policies and institutions, using some best practice examples from the region. Extensive policy reforms in certain areas have had a positive impact, but there is less progress in judicial reform and public procurement. Implementation is also key, but fundamental changes tend to occur gradually as incomes and institutional capacity improve.
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    5. Closing Thoughts  Anti-corruption efforts succeed when rules and regulations are simplified, interactions between firms and public officials are limited, and burdens on the private sector are reduced. As countries open up, corruption tends to decline, but even advanced countries need to be alert to the problem. Finally, although the policies themselves must be sound, there must also be tireless political advocates who will push them through.



Umesh Sharma
5121 Lackawanna ST
College Park, MD 20740

 1-202-215-4328 [Cell Phone]

Ed.M. - International Education Policy
Harvard Graduate School of Education,
Harvard University,
Class of 2005

weblog: http://jaipurschool.bihu.in/
 		
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