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The G-8 must act decisively: Africa's future hangs in the balance

A powerful attack on corruption will ensure that increases in aid being debated by the Group of Eight (G-8) reach people who are most in need.

All eyes are on the leaders of the Group of Eight (G-8) as they convene in Gleneagles, Scotland. With the fight against poverty in Africa at the top of the agenda, the debate has focussed on strategies for increased prosperity on the continent. More and better aid is the oft heard refrain. And indeed, this will require immense resources. To muster these, Transparency International argues

that the fight against corruption must be paramount, to increase aid effectiveness and to stop the misuse of public resources.

TI Press releases:


A challenging picture

Corruption is not a victimless crime. Its most profound and deadly impact is on the poor, especially in Africa, where it is estimated that US $148 billion are lost every year to corruption. This figure is equivalent to half of Africa's external debt, which, according to the International Monetary Fund (IMF), reached US $284 billion in 2005.

By the year 2000, Africa accounted for half of the world's poor, compared with just 10 per cent in 1970. A total of 315 million Africans live on less than US $1 a day. Clean water is still a luxury throughout much of the continent. According to the World Health Organization (WHO), 1.1 billion people worldwide still do not have access to safe drinking water. In sub-Saharan Africa, 42 per cent of the population is still without clean water, promoting the transmission of malaria, which is responsible for the death of an African child every 30 seconds. Fighting corruption will release resources so that developing countries can finally cross the poverty line.

The poor: Hit hardest by corruption

Transparency International's 2004 Global Corruption Barometer, a survey of the general public that measures attitudes towards corruption, indicated that the poor are the group most affected by corruption. Half of low-income respondents believed petty corruption to be a very serious problem while only 38 per cent of high-income respondents agreed. The poor also reported the greatest impact of corruption on their personal and family lives.

How serious a problem is corruption globally?

Petty vs. Grand Corruption

Source: Transparency International Corruption Perceptions Index 2004

Corruption perceptions: World regions in comparison

Transparency International's annual Corruption Perceptions Index (CPI) shows that Africa is still the region most affected by corruption. In the 2004 CPI, a full 106 out of 146 countries scored less than 5 on a scale of 10, meaning that corruption was perceived as a serious problem.

Ranges between 10 (highly clean) and 0 (highly corrupt).

Source: Transparency International Corruption Perceptions Index 2004

"Corruption permeates the lives of Africa's poor and vulnerable, making it impossible for millions to earn an honest living." David Nussbaum, Chief Executive of Transparency International

How do African countries measure up?

Ranges between 10 (highly clean) and 0 (highly corrupt).

The corruption situation in developing countries is grave, but there are measures that can be taken to reverse this trend. The world's eight richest countries - the Group of Eight (G-8) - are meeting to discuss the future of Africa. Debt relief, as well more and better aid, have raised concerns about the risk of corruption. For this Transparency International proposes 6 key measures to combat corruption, while freeing vital resources for the most needed in Africa, as well as for all the developing countries:

1. One standard for everyone.
No G-8 country has yet ratified the United Nations Convention against Corruption, which was signed in December 2003. Ratification would send an unmistakable message that the G-8 lives by the rules it expects recipient countries to follow.

2. Stem the supply side.
Foreign companies are often the source of big-ticket bribe money in the developing world. G-8 countries have already ratified the OECD convention that criminalises this behaviour. Wealthy governments need to publicise and enforce their laws, to ensure that companies no longer view bribery as an acceptable way to win foreign contracts.

3. Tackling corruption hotspots.
The G-8 should develop provision for anonymous reporting of bribe requests, which could help identify hotspots where action to address corruption is urgently needed.

4. Publish details of aid given.
When the details of aid delivery are made public, civil society and independent investigators can follow the money trail to ensure fair usage. Aid packages should include funding for measures to fight corruption and build the capacity of local institutions.

5. Untie aid and follow rigorous procurement standards.
The conditions under which aid is given should encourage free and fair bidding. The aid process should include procurement standards that ensure transparent, quality-based bidding on public projects, not tied to vendors from a specific country.

6. Effective follow-up to Gleneagles.
The G-8 should report publicly on progress in implementing their anti-corruption commitments, on International Anti-Corruption Day, 9 December 2005.


9 DECEMBER
INTERNATIONAL ANTI-CORRUPTION DAY

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