Civil service corruption

Faster Together: A One-Stop Shop for Business Registration in Senegal, 2006–2015

Author
Maya Gainer, Stefanie Chan, and Laura Skoet
Country of Reform
Abstract

In 2007, Senegal opened a Business Creation Support Office that vastly reduced the time required to register a business from two months to 48 hours. Before the creation of the office, foreign investors as well as local entrepreneurs had to deal with six different government agencies, each of which had its own requirements and procedures. The onerous undertaking discouraged business investment, kept significant revenue sources off government tax rolls, and created fertile ground for corruption. In 2006, President Abdoulaye Wade decided to change the situation. Wade assigned the Agency for Investment Promotion and Major Works, or APIX, the task of making it possible to register a business in just two days. A small team from the agency examined the options and decided that a one-stop shop would best meet Senegal’s needs. The model required no legislative changes, and it allowed agencies to retain control over their procedures—while reducing red tape and letting APIX supervise the entire process. APIX leaders worked hard to win the cooperation of institutions and individual agents, and the Business Creation Support Office opened in downtown Dakar in November 2007. The institutions involved in registration sent representatives to work in the office, and APIX staff collected applications, supervised the office, and coordinated gradual improvements in procedures. After the office opened, entrepreneurs could complete the registration process at a single location and be done within 48 hours. By 2016, the office had further reduced the time required to a single day.

Maya Gainer, ISS Research Specialist, and Stefanie Chan and Laura Skoet of Sciences Po’s Paris School of International Affairs drafted this case study based on interviews conducted in Dakar, Senegal, and Abidjan, Côte d’Ivoire, in January 2016. This case study was funded by the French Development Agency. Case published ­­­­­­­­­­­­­­­May 2016.

Changing a Civil Service Culture: Reforming Indonesia's Ministry of Finance, 2006-2010

Author
Gordon LaForge
Country of Reform
Abstract

By the mid-2000s, Indonesia had recovered from a devastating economic crisis and made significant progress in transitioning from a dictatorship to a democracy. However, the country's vast state bureaucracy continued to resist pressure to improve operations. In 2006, President Susilo Bambang Yudhoyono tapped economist Sri Mulyani Indrawati to transform Indonesia's massive Ministry of Finance, which was responsible not only for economic policy making but also for taxes and customs. During four years as minister, Mulyani introduced new standard operating procedures, raised civil servant salaries, created a new performance management system, and cracked down on malfeasance. Her reforms turned what had once been a dysfunctional institution into a high performer. But ongoing resistance illustrated the difficulties and perils of ambitious bureaucratic reform in Indonesia.

This case study was drafted by Gordon LaForge based on research by Rachel Jackson, Drew McDonald, Matt Devlin, and Andrew Schalkwyk and on interviews conducted by ISS staff members from 2009 to 2015. Case published May 2016. Other ISS case studies provide additional detail about certain aspects of the reforms discussed in this case or about related initiatives. For example, see Instilling Order and Accountability: Standard Operating Procedures at Indonesia's Ministry of Finance, 2006-2007.

Battling a Cancer: Tackling Corruption in Peru, 2011–2014

Author
Blair Cameron
Country of Reform
Abstract

From 2000 to 2009, Peru’s justice system successfully prosecuted former president Alberto Fujimori and other high-level public officials for acts of corruption committed during the previous decade. But the country’s judicial institutions struggled to curb newer corruption networks that were operating with impunity throughout the country. Because the networks had penetrated the justice system itself, it was increasingly difficult to prosecute—let alone convict—people who had participated in briberies, kickbacks, or other schemes. In the 2011 presidential election, Ollanta Humala, whose slogan was “Honesty Makes a Difference,” captured 51% of the vote and gave a boost to reformers within the country’s legal institutions. Humala joined the Open Government Partnership, strengthened Peru’s anticorruption commission, and brought together top leaders from the country’s judicial and legal institutions to improve the government’s response to corruption. In 2012, the comptroller general, the public prosecutor (attorney general), and the president of the judiciary created a new subsystem to bring to trial those officials accused of corruption. They created a new prosecutorial team and designated a specialized chamber to hear the most-complex corruption cases. At the same time, the Ministry of Justice and Human Rights strengthened its capacity to investigate and bring to trial cases involving the misuse of public resources. By 2015, several cases were in preparation, nearing trial. The fight against corruption in Peru continued to face many obstacles, however, including the perception that anticorruption efforts had lost top-level support.

Blair Cameron drafted this case study based on interviews conducted in Lima in August 2015. Case published December 2015.

Sri Mulyani Indrawati

Ref Batch
EX
Focus Area(s)
Ref Batch Number
1
Critical Tasks
Country of Reform
Interviewers
Jennifer Widner and Gabriel Kuris
Name
Sri Mulyani Indrawati
Interviewee's Position
Managing Director, World Bank
Language
English
Town/City
Washington, DC
Country
Date of Interview
Reform Profile
No
Abstract

As a follow up to her 2009 interview, Sri Mulyani Indrawati revisits her years as Indonesia’s minister of finance to discuss the challenges of building her economic reform team and institutionalizing performance management at the ministry.  She describes how she worked closely with key members of the KPK (Corruption Eradication Commission) to cultivate motivation and teamwork among government employees.  With the support of her reform team, she established institutional mechanisms to reduce corruption and raise the credibility of the government.  And although Indonesia’s bureaucracy proved to challenge the reform team at times, she explains how performance indicators and standard operating procedures were instrumental to identify and overcome weaknesses in the Ministry of Finance.  In conclusion, Sri Mulyani reflects on the more personal attributes required to move sustainable reform forward: a strong vision along with the trust and commitment of her fellow reformers.   She describes the practice of public asset disclosure as one of the most sustainable reforms her team implemented at the ministry. 

Profile

At the time of this interview, Sri Mulyani Indrawati was managing director at the World Bank.  She has extensive experience in financial reforms to reduce corruption and strengthen economic growth.

Calling Citizens, Improving the State: Pakistan’s Citizen Feedback Monitoring Program, 2008 – 2014

Author
Mohammad Omar Masud
Core Challenge
Country of Reform
Abstract

In early 2008, Zubair Bhatti, administrative head of the Jhang district in Pakistan’s Punjab province, recognized the need to reduce petty corruption in the local civil service—a problem that plagued not only Punjab but also all of Pakistan. He began to contact citizens on their cell phones to learn about the quality of the service they had received. Those spot checks became the basis for a social audit system that spanned all 36 districts in Punjab by 2014. The provincial government outsourced much of the work to a call center, which surveyed citizens about their experiences with 16 different public services. The data from that call center helped district coordination officers identify poorly performing employees and branches, thereby enhancing the capability of the government to improve service delivery. By early 2014, the province was sending about 12,000 text messages daily to check on service quality. More than 400,000 citizens provided information between the beginning of the initiative and 2014. Known as the Citizen Feedback Monitoring Program, the Punjab’s social audit system became the template for similar innovations in other provinces and federal agencies in Pakistan.

Mohammad Omar Masud drafted this case based on interviews conducted in Punjab, Pakistan, in January and March 2014. Case published February 2015.

Note: This case study was previously titled "Calling the Public to Empower the State: Pakistan's Citizen Feedback Monitoring Program, 2008-2014."

Cleaning the Civil Service Payroll: Post-Conflict Liberia, 2008-2011

Author
Jonathan (Yoni) Friedman
Focus Area(s)
Country of Reform
Abstract
Shadi Baki and Alfred Drosaye confronted a civil service in disarray in 2008, following a devastating 14-year civil war during which 250,000 people were killed, Liberia’s infrastructure was all but destroyed and government services collapsed. Despite the disintegration of the government, the civil service payroll more than doubled to 44,000 from 20,000 before the war, saddling the government with an unaffordable wage bill. Furthermore, the government had little sense of who was actually on the payroll and who should have been on the payroll. Rebel groups and interim governments put their partisans on the payroll even though they were unqualified or performed no state function. An unknown number of civil servants died or fled during the war but remained on the payroll. After delays due to an ineffective transitional government and moderately successful but scattered attempts to clean the payroll, Baki and Drosaye at Liberia’s Civil Service Agency set out in 2008 to clean the payroll of ghost workers, establish a centralized, automated civil service personnel database, and issue biometric identification cards to all civil servants. Cleaning the payroll would bring order to the civil service, save the government money and facilitate pay and pension reforms and new training initiatives. This case chronicles Liberia’s successful effort to clean up its payroll following a protracted civil war and lay the foundation for organized civil service management.
 
Jonathan Friedman drafted this case study on the basis of interviews conducted in Monrovia, Liberia during December 2010 and on the basis of interviews conducted by Summer Lopez in Monrovia, Liberia during June 2008. Case published October 2011.
 
Associated Interview(s):  Shadi Baki, Alfred Drosaye

Sri Mulyani Indrawati

Ref Batch
C
Focus Area(s)
Ref Batch Number
4
Critical Tasks
Country of Reform
Interviewers
Matthew Devlin, Andrew Schalkwyk
Name
Sri Mulyani Indrawati
Interviewee's Position
Minister of Finance
Interviewee's Organization
Indonesia
Language
English
Nationality of Interviewee
Indonesia
Town/City
Jakarta
Country
Date of Interview
Reform Profile
Yes
Abstract

Sri Mulyani Indrawati talks about the sweeping reforms she introduced in the Ministry of Finance in Indonesia.  She talks about how she took over the Ministry of Finance and built a team that was capable of pushing through challenging reforms. She reflects on the crucial support of Indonesia's president, who backed the tough decisions she needed to make in order to make the Ministry of Finance more effective.  She also talks about the complicated relationship between the Ministry of Finance and Parliament, whose members generally supported reform in the abstract but sometimes balked at the steps she felt needed to be taken, such as raising salaries.  She notes that the reforms maintained the support of the president and other high-level officials because she kept a close eye on costs and benefits; in fact, tax revenue increased sharply after the beginning of the reforms.  In some detail, Mulyani describes the steps she took to tackle corruption.  She made it clear that corruption would not be tolerated, and she fired whole departments where corruption occurred, to send the message that she was serious. She was able to contain patronage pressures by securing the president’s backing for decisions that were expected to draw a backlash from powerful people.  She also made the tough decision to go against cultural norms and the strong bureaucratic esprit de corps, removing poorly performing bureaucrats rather than relocating them or waiting for them to retire.  Throughout these changes, she built a strong and productive relationship with the media, encouraging them to hold her accountable and monitor the activities of her ministry.  She ends with reflections on the importance of building coalitions through consultations, and why authority should be exercised only as a last resort.

Case Study:  Instilling Order and Accountability: Standard Operating Procedures at Indonesia's Ministry of Finance, 2006-2007 

Profile

Sri  Mulyani Indrawati received her doctorate in economics from the University of Illinois at Urbana-Champaign.  She served as an executive director of the International Monetary Fund, representing 12 economies in Southeast Asia.  She worked for the U.S. Agency for International Development and lectured on the Indonesian economy at the University of Georgia, in the U.S.   At the time of this interview, she was head of Indonesia's Ministry of Finance, where she build a reputation for integrity and was credited with reducing corruption and increasing efficiency.  In August 2008, she was ranked by Forbes Magazine as the 23rd most powerful woman in the world, and the most powerful in Indonesia.

Full Audio File Size
34 MB
Audio Subsections
Size
1.6Mb
Title
Getting The Word Out
Full Audio Title
Sri Mulyani Indrawati - Full Interview

Marcílio Marques Moreira

Ref Batch
U
Focus Area(s)
Ref Batch Number
5
Critical Tasks
Country of Reform
Interviewers
Deepa Iyer
Name
Marcílio Marques Moreira
Interviewee's Position
Member
Interviewee's Organization
Brazilian Public Ethics Commission
Language
English
Nationality of Interviewee
Brazil
Place (Building/Street)
Princeton Club of New York
Town/City
New York City
Country
Date of Interview
Reform Profile
Yes
Abstract

Marcílio Moreira of the Brazilian Public Ethics Commission details the nature of public ethics in 20th century Brazil and discusses the commission's structure and functionality.  Moreira describes the commission as a sort of consulting board that works in the service of the president, with its unpaid members probing only ethical problems rather than addressing or investigating criminal matters.  Moreira contends that the central obstacle that practically any government struggles to overcome is the tendency for private or special interests to overshadow those of the common good.  In an attempt to curtail the level of influence that companies can have on members of government, particularly the legislature, the commission set up a well-enforced system of clear and robust rules to clarify and define ethical standards of behavior.

Case Study:  Ingraining Honesty, Changing Norms: Government Ethics in Brazil, 1995-2004

Profile

At the time of this interview, Marcílio Moreira was a member of the Brazilian Public Ethics Commission.  After his appointment in 2002, he intermittently served as the commission’s president.  Moreira began his career in the foreign service in Washington.  He spent nearly two decades at the financial group UniBanco, after which he was Brazil's ambassador to the United States.  By 1991, he was appointed by President Collor as the minister of Economy, Finance and Planning.  Moreira subsequently served as an international adviser for Merrill Lynch and on the board of a number of prominent businesses in Brazil.

Full Audio File Size
103 MB
Full Audio Title
Marcílio Moreira Interview

Against the Odds: Attempting Reform in Suharto's Indonesia, 1967-1998

Author
Matthew Devlin
Keywords
Critical Tasks
Country of Reform
Abstract

President Suharto of Indonesia (1967-1998) presided over one of the most corrupt regimes of the 20th century.  For over three decades, the political and financial interests of Suharto's family, cronies and allies in the military dictated the policies of the Indonesian state.  Nevertheless, a handful of public officials attempted to rationalize, improve and clean up the way government worked.  Emil Salim and Sarwono Kusumaatmadja, both cabinet ministers under Suharto, were two such men.  The pair struggled to manage the influence of the military, motivate a moribund bureaucracy and confront Suharto's many cronies.  Lacking formal mechanisms through which to channel their efforts, Salim and Kusumaatmadja seized on passing targets of opportunity, structuring and adapting their initiatives on an ad hoc basis and relying on unconventional tactics.  Although their successes proved unsustainable, their story offers specific lessons in the often elusive tactics of how individual public officials can achieve modest change against institutional inertia and determined opposition from vested interests.

Matthew Devlin drafted this case study on the basis of interviews conducted inJakarta, Indonesia, in July 2009. 

Associated Interview(s): Sarwono Kusumaatmadja, Emil Salim

Zurab Nogaideli

Ref Batch
J
Focus Area(s)
Ref Batch Number
4
Country of Reform
Interviewers
Andrew Schalkwyk
Name
Zurab Nogaideli
Interviewee's Position
Former Prime Minister
Interviewee's Organization
Republic of Georgia
Language
English
Nationality of Interviewee
Georgia
Town/City
Tbilisi
Country
Date of Interview
Reform Profile
Yes
Abstract

Zurab Nogaideli, who was prime minister of Georgia from 2005 to 2007, details the country's experience of reform generally and civil service reform in particular.  He discusses the challenges that confronted the country after the Rose Revolution in 2003, and talks about efforts made to downsize the civil service and reduce corruption.  He emphasizes that simpler systems work better in developing countries, and that fewer people with better training and higher pay do a better job than a greater number of individuals who are poorly paid and poorly trained.  He favors simple regulations that do not foster interaction between mid-level bureaucrats and citizens, believing that frequent interaction encourages corruption.  Nogaideli believes that Georgia had four years of excellent reform from 2003 to 2007, but that gradually some successes were eroded.  He maintains this demonstrates the importance of continuing on a strong reform course even after early achievements.  He offers reasons for what he perceives as backsliding on reforms, and provides advice for countries that want to move forward.

Case Study:  Delivering on the Hope of the Rose Revolution: Public Sector Reform in Georgia, 2004-2009

Profile

Zurab Nogaideli was born in Georgia and educated at Moscow State University.  He was a deputy in Georgia's Parliament in 1992 and chaired the Parliamentary Committee on Environment Protection and Natural Resources from 1992 to 1995.  He was a member of Parliament from 1995 to 1999 and 1999 to 2000, and he chaired the Parliamentary Tax and Income Committee.  He joined the government of Eduard Shevardnadze as minister of finance in May 2000.  After leaving government work in 2002, he returned after Shevardnadze was ousted in the Rose Revolution of November 2003.  He was reappointed to his former post as minister of finance in February 2004 in the government of Prime Minister Zurab Zhvania.  Nogaideli served as prime minister from 2005 to 2007, when he resigned from government due to health reasons.
 

Full Audio File Size
27.7MB
Full Audio Title
Zurab Nogaideli- Full Interview