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CORRUPTIONWomen Media Center (WMC), Karachi, Feb. 2010
Olaf KellerhoffResident Representative Pakistan
Corruption Feb. 1 2010Olaf Kellerhoff
Olaf KellerhoffResident Representative Pakistan
Islamic History + International Relations (MA) at Hamburg Univ.
Missions & Experiences abroadSomaliaMaroccoTurkeyKosovo (3x)Afghanistan (3x)Lebanon
Apprenticeship as photographer
Corruption Feb. 1 2010Olaf Kellerhoff
Overview
1. Few on FNF
2.What is corruption
3. Paradise Germany?
4.Ways to go
Published under Xiaming
Corruption Feb. 1 2010Olaf Kellerhoff
1. Few on FNF
Corruption Feb. 1 2010Olaf Kellerhoff
Friedrich-Naumann-Stiftung für die Freiheit
Founded 1958: civic education for Germansregional offices in the provincesLiberal Institute (LI)think tank Scholarship departmentInternational Academy for Leadership (IAF)since 1963 abroadHeadquarters in Potsdam (Germany), Jan. 2009
©FNF
Corruption Feb. 1 2010Olaf Kellerhoff
Regional approach
Worldwide: in over 60 countries
Corruption Feb. 1 2010Olaf Kellerhoff
FNF in PakistanSharing thefate withPakistan…
working for Freedom in Pakistan since 1986
objectives: liberal democracy
civic education
human rights
free market economy
peaceful conflict resolution©FNF
… and consequently working for betterment
Corruption Feb. 1 2010Olaf Kellerhoff
Sustainable work through partnersCrucial Element is the self-responsible programme work of our partners. FNF trains, consults, interlinks and funds.
Corruption Feb. 1 2010Olaf Kellerhoff
2. What is corruption?
Corruption Feb. 1 2010Olaf Kellerhoff
Historical Examples
Around 1300 in Egypt death penalty for priests
1372 in Basel: on year exile +lifelong exclusion from all political activities
In MA mayors of Augsburg and Zürich executed
Preaching water, drinking wine…Published under Tom
Corruption Feb. 1 2010Olaf Kellerhoff
Definition
Lat. corrumpere – to destroy
Corruption is operationally defined as the misuse of entrusted power for private gain.
Transparency International
Published under lynac
Corruption Feb. 1 2010Olaf Kellerhoff
CPI
Corruption Perception Index (CPI) Scale 0–10
Estimate of corruption of different institutes in a country + interviewing different sources
Empirical data analyzed at University of Passau (Germany)
www.tranparency.org
Corruption Feb. 1 2010Olaf Kellerhoff
Worldwide Corruption
Wikimedia Commons
Corruption Feb. 1 2010Olaf Kellerhoff
TI-Ranking
Existing in every country - more or less…
Published under eli867
Transparency International
Germany Place 14
Pakistan 139
Out of 180
New Zealand place 1
Somalia 180
Corruption Feb. 1 2010Olaf Kellerhoff
Damage of Countries
Manager more time with bureaucrats in corrupt countries
Prices are indicators for economic activities =>not reliable =>wrong decisions
Less inflow of FDI& net capital inflow
Corruption and Capital inflow
Year
ly n
et c
apit
al in
flow
, 197
0–19
95
High corruption low corruptionCorruption index 2002
Aus Politik und Zeitgeschichte, 3-4/2009, p. 24.
Corruption Feb. 1 2010Olaf Kellerhoff
Grand corruptionRisk of detection rises by quantity and duration – but not by amount=> high end corruption almost not discoveredHard to detect, damage hard to assess:Cleptocracy – greek: to steel & to reignExample from Indonesia:Nephew of President Suharto got benefit from beer taxes – collected by private company =>rising of beer prises – reduction of tourism
Published under To2BoRnI
Corruption Feb. 1 2010Olaf Kellerhoff
Affecting other sectors
Encompassing interest: cleptokrate remarks other sectors affected (most likely Suhoarto’sother relative in hotel business => beer tax withdrawn
If CPI up by 1 point, then:- Net capital import by 0,5%- productivity by 2% up, - GDP raises by 4%
Aus Politik und Zeitgeschichte, 3-4/2009, p. 23.
Corruption and Productivity
Prod
ucti
vity
(GD
P : c
apit
alst
ock)
, 200
0
High corruption low corruptionCorruption index 2002
Corruption Feb. 1 2010Olaf Kellerhoff
Actors: Men are more corrupt*Higher number in leadership positions
No previous conflict with law
due to competencies in respective field high trust
High living standard
Decision equal other successful management actions
Persuasion of external control (the other’s fault)
Denial of immoral action
Readiness for high risk
Machiavellian
Pathologic narcism
* Anaylsis of actors in Germany
Corruption Feb. 1 2010Olaf Kellerhoff
3. Paradise Germany?
Corruption Feb. 1 2010Olaf Kellerhoff
Paradise Germany?
Until 1999 possible for enterprises to get tax reduction for bribes
Only since 2002 bribing foreign companies employees forbidden
Proper image: almost no low-level corruption but web of corporate sector, parties and bureaucrats
Corruption Feb. 1 2010Olaf Kellerhoff
German Scandals
Flick corporate group in 1984 => loss of people’s trust in politics
Siemens Nov. 2006 – 2009: established system of black costs 2,5 bn Euro (fines, lawyers etc.)
M.A.N. in court
soccer manipulationPublished under Kenny Miller
Corruption Feb. 1 2010Olaf Kellerhoff
Academia
Published under 96dpi
20.000 € for Dr. title
3,5 years prison and 75.000€ fine
Lawyers and advocates among illegal clients
Easy buying or hard working?
Corruption Feb. 1 2010Olaf Kellerhoff
SiemensTrialed 2006–2009
Long established, institutionalized web of bribery to receive contracts world wide
Costs: 2.5 bn Euro
But: did not break upLost not on value on long termDisclosure & stop
Published under Teacher Dude’s BBQSiemens Manager taken into custody in Greece.
Corruption Feb. 1 2010Olaf Kellerhoff
M.A.N.
2000-2006 payments of 1.4 bn Euro worldwide
Strong hand in anti-corruption:
ombusdman
200-300 employees use specially initiated amnesty law: keep job if not private advantage of corruption
Published under 111 emergencyM.A.N. – truck and automotive manufacturer
Corruption Feb. 1 2010Olaf Kellerhoff
Soccer Manipulation
Published under baumpaul
Manipulation of resultsIn some cases the whole team has been boughtTrainer would inform the team which result has to be achievedInvolved: Clubs, Gamblers, Trainer, Manager, players
Corruption Feb. 1 2010Olaf Kellerhoff
New legislation – still dangers
Published under JBracken…and Germany, too.
Laws only in recent years
Publicly highlighted cases
Approach by amnesty lawombudsmanharsh punishment of culprits
On risk area health care: federal set-up and intransparent linkages between
pharmacy industryhospitals / doctorsbureaucrats insurance companies
Corruption Feb. 1 2010Olaf Kellerhoff
Transparency International
Founded by Peter Eigen, former director World bank East Africa in 1993HQ in BerlinApproach consensual not confrontBesides private funds: BMZPublications & Tool kits
Corruption Feb. 1 2010Olaf Kellerhoff
Peter EigenBorn 1938 in Augsburg
Law studies in Erlangen and Frankfurt a.M.
Lawyer Worldbank in HQ, West Africa,, Latin America and East Africa
Corruption in daily work, analyzing mechanism
Left 1993 and founded TI Peter Eigen, lawyer and founder of TI
Corruption Feb. 1 2010Olaf Kellerhoff
4. Way to go
Corruption Feb. 1 2010Olaf Kellerhoff
Transparency
Support of local GovernmentTrust buildingIncreasing tax revenuesReduce citizens’ apathyPress to deliverRaise ethical standards –professionalization of politiciansMeasuring Transparency
Deputy City Nazim Karachi, Nasreen Jalil, Nov. 2009 ©FNF
Corruption Feb. 1 2010Olaf Kellerhoff
Rule of Law & Good Governance
Media Election Monitoring
Monitoring Parliamentary / City Councils Work
Courts decision – judicial support
Manual for SME
Publishing Surveys
Published under International RiversHold accountable & be a vigilant citizen!
Corruption Feb. 1 2010Olaf Kellerhoff
You have the right to know!
FoI Workshop at CIIM, Karachi,Nov. 2009 ©FNF
Freedom of information (FoI) Ordinance, 2002
well intended by Musharraf and ahead in South Asia
but diluted in policy process
All in all: we are glad to have it
Request this information!Hold accountable!
Corruption Feb. 1 2010Olaf Kellerhoff
Extending FoI in 2010FoI Study (engl.) in print
Urdu booklet in preparation
Poster and illustrated booklets for illiterates arranged
FNF cooperation partner CPDI drafts new law
Get actors on one table
FoI Workshop by CHRI, LFP, Shehri, in Regent Plaza Karachi, Aug. 2009
©FNF
Corruption Feb. 1 2010Olaf Kellerhoff
Property & PrivatisationPrivatisation destroys monopolies which enable power positions
Publicly known and clear property rights with tracking system
Property Rights Book(6–8 contributors) prepared
Book on Privatization launched in May
Study Transparency in Privatisation in drafting
Download Property Rights Index at our German homepage www.freiheit.org.
Corruption Feb. 1 2010Olaf Kellerhoff
TI Tool kit
www.transparency.org
Corruption Feb. 1 2010Olaf Kellerhoff
Thank you! Keep in touch!
www.southasia.fnst.orgwww.mynameise.com/LiberalFriendsofPAK