CORRUPTION, FISCAL POLICY, AND FISCAL MANAGEMENT

2,41

MB

248

stron

4020

ID

U.S. Agency for International Development

2005

rok

TABLE OF CONTENTS

1. Corruption, Fiscal Policy, and Fiscal Management

1.1 Overview of this study

1.2 Defining corruption.

1.3 Corruption in the world.

1.4 Stakeholders in the fight against corruption.

1.5 Concluding Remarks.

2. The Economics of Corruption.

2.1 Motivation versus windows of opportunity

2.2 A conceptual model of corruption

2.3 The economics of corruption control

2.4 Quantifying corruption

2.4.1 Non- survey-based measurements.

2.4.2 Measuring corruption using perception-surveys

3. Fiscal Dimensions of Corruption

3.1 Corruption in Public Revenue Collections.

3.2.1 Revenue collections and corruption: motivations for corruption.

3.2.2 Revenue collections and corruption: Opportunities for corruption

3.2 Corruption on the Expenditure Side of the Budget.

3.2.1 Motivations for Corruption on the Expenditure Side of the Budget

3.2.2 Opportunities for Corruption: Administrative (Bureaucratic) Corruption in Government

Expenditures

3.2.3 Opportunities for Corruption: Political “capture” of government expenditures

3.3 Quasi - Fiscal Corruption

3.3.1 Privatization

3.3.2 Excessive Regulation of Markets.

3.3.3 Corruption in Pricing of Public Utilities

3.3.4 Corruption in Natural Resource Exploitation

3.4 Concluding Remarks.

4. Fiscal Responses to Reduce Corruption.

4.1 Reducing Corruption in the Collection of Revenues

4.1.1 Reducing Motivations for Corruption on the Revenue Side of the Budget.

4.1.2 Reducing opportunities for corruption on the revenue side of the budget

4.1.3 Programmatic responses to reducing corruption on the revenue side.

4.2 Reducing Corruption on the Expenditure Side of the Budget

4.2.1. Reducing Motivations for Corruption in Government Spending.

4.2.2 Reducing the Opportunities for Administrative Corruption in Government Expenditures

4.2.3 Reducing the opportunities for political corruption.

4.2.4 Programmatic responses to reducing corruption on the expenditure side .

4.3 Reducing Quasi-Fiscal Corruption.

4.3.1 Corruption and privatization

4.3.2 Market Regulation.

4.3.3 Pricing of Public Utilities and Natural Resource Exploitation

4.4 Decentralization as a Programmatic Response to Corruption

4.4.1 Expenditure decentralization

4.4.2 Revenue decentralization

4.4.3 Intergovernmental transfers system

4.5 Other Programmatic Responses to Corruption.

4.5.1 Anticorruption commissions or bureaus

4.5.2 Legislative and judicial responses.

4.5.3 Strengthening the role of civil society and the private sector

4.6 Concluding Remarks.

Annex 4.A - Peru: Tax Ratios.

Annex 4.B - Budget Institutions and Corruption

5. Regional Patterns of Corruption.

5.1 Regional differences in the extent and nature of corruption.

5.1.1 Sub-Saharan Africa

5.1.2 Latin America and the Caribbean

5.1.3 Western Europe

5.1.4 East Europe and Central Asia

5.1.4 South Asia

5.1.5 East Asia and Pacific.

5.1.6 Middle East and North Africa

5.1.7 North America.180

5.2 Concluding remarks.

Annex 5.A - Regional Patterns of Corruption

6. A Case Study in Corruption and Anti-Corruption Responses.

6. 1 Corruption and Anticorruption Responses in Tanzania

6.1.1 A Synopsis of Corruption in Tanzania.

6.1.2 Strengthening government revenue collections.

6.1.3 Reform of expenditure management

6.1.4 Local government reform

6.1.5 Others Responses - Strengthening of anti-corruption framework.

7. Summary, Policy Lessons, and Practical Guidelines.