TI's yearly Annual Report looks back on 1999 and summarises the organisations achievements in building an international coalition against corruption, mobilising a support base for the movement, as well as progress made in monitoring the fight against corruption.
A U pon my election as president of Nigeria, I have had to resign the Chairmanship of the Transparency International Advisory Council. My involvement with TI was indeed a great and wonderful opportunity to assist in fashioning an enduring framework for tackling with vigour the often time corrosive, deleterious and debilitating scourge that corruption has become. It was without doubt a fulfilling time to have fellowshipped with TI supporters in the promotion of a culture of integrity built on transparency, openness and accountability in governance. For us in the developing world it was indeed a welcome relief and a pointer to greater possibilities in our multifarious struggle to find enduring solutions to our various developmental challenges. Let me also commend the energy, enthusiasm and tireless devotion with which the tasks of propagating TI across the globe has been pursued. Looking back at its rather short existence, it is amazing to note the magnitude and vastness of its spread. The bush fire like spread is an attestation to the timeliness, relevance and quality of TI. I believe that I have a well spring of ideas to draw on as we also attempt to confront headlong the erection of an integrity system in Nigeria. I will be counting on TI’s support in seeking to leave an enduring legacy of zero tolerance to corruption. I do realise that the load is heavy and the task difficult, if not intimidating, but with TI’s support it is clearly surmountable. The kind understanding and goodwill of all our friends within the international community is crucial as we bend down to work. Once again, I am grateful for the honour of having been of service to humanity through TI and I wish to all at TI and in particular to my successor on the Advisory Council, Kamal Hossain, the best luck and success in the years ahead. Olusegun Obasanjo Outgoing Chairman, Advisory Council 1 t the dawn of the Third Millenium, there is good reason to indulge in a touch of optimism. For much of the last century, talking about the evils of corruption was a bold endeavour and it did feel a little like preaching in the desert. But looking at the landscape now, one can’t avoid noticing blooms dotting what appeared to be inhospitable terrain just a short while ago. We have always been fully aware that rooting out corruption would take time and we certainly cannot yet claim victory over practices, which continue to exact a very high price particularly from the poorest people of this world. It is a process that will span many years. We can, however, feel satisfaction in the knowledge that our goals are now shared by partners and allies whose numbers are increasing by the day. The new legal framework set by the OECD convention and other recent international agreements in Europe and in the Americas have begun to set the stage for a radically different environment for international commerce. What is even more remarkable and hopeful is that corporate and political players, in partnership with civil society, now display a growing commitment to notions of social responsibility to which our ideal of transparency rightly belongs. Speaking last February at the World Economic Forum, in Davos, Switzerland, Kofi Annan, the United Nations Secretary- General appealed to the private sector to lend its help in ”creating a compact of shared values and principles“. It has always been our strongly-held belief that civil society can and must contribute to the development of common standards. The current strength of the TI coalition is proof that business and government are beginning to believe it as well. Peter Eigen Chairman of the Board
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AU pon my election as president of Nigeria, Ihave had to resign the Chairmanship of theTransparency International Advisory Council.My involvement with TI was indeed a greatand wonderful opportunity to assist infashioning an enduring framework fortackling with vigour the often time corrosive,deleterious and debilitating scourge thatcorruption has become. It was without doubta fulfilling time to have fellowshipped withTI supporters in the promotion of a culture ofintegrity built on transparency, openness andaccountability in governance. For us in thedeveloping world it was indeed a welcomerelief and a pointer to greater possibilities inour multifarious struggle to find enduringsolutions to our various developmentalchallenges. Let me also commend the energy,enthusiasm and tireless devotion with whichthe tasks of propagating TI across the globehas been pursued. Looking back at its rathershort existence, it is amazing to note themagnitude and vastness of its spread. Thebush fire like spread is an attestation to thetimeliness, relevance and quality of TI.
I believe that I have a well spring of ideas todraw on as we also attempt to confrontheadlong the erection of an integrity systemin Nigeria. I will be counting on TI’s supportin seeking to leave an enduring legacy ofzero tolerance to corruption. I do realise thatthe load is heavy and the task difficult, if notintimidating, but with TI’s support it isclearly surmountable. The kind understandingand goodwill of all our friends within theinternational community is crucial as webend down to work.
Once again, I am grateful for the honour ofhaving been of service to humanity throughTI and I wish to all at TI and in particular tomy successor on the Advisory Council, KamalHossain, the best luck and success in theyears ahead.
Olusegun ObasanjoOutgoing Chairman, Advisory Council
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t the dawn of the Third Millenium, there isgood reason to indulge in a touch ofoptimism. For much of the last century,talking about the evils of corruption was abold endeavour and it did feel a little likepreaching in the desert. But looking at thelandscape now, one can’t avoid noticingblooms dotting what appeared to beinhospitable terrain just a short while ago.
We have always been fully aware thatrooting out corruption would take time andwe certainly cannot yet claim victory over practices, which continue to exact a veryhigh price particularly from the poorestpeople of this world. It is a process that willspan many years. We can, however, feelsatisfaction in the knowledge that our goalsare now shared by partners and allies whosenumbers are increasing by the day.
The new legal framework set by the OECDconvention and other recent internationalagreements in Europe and in the Americas have begun to set the stage for a radically different environment for international commerce.
What is even more remarkable and hopeful is that corporate and political players, inpartnership with civil society, now display a growing commitment tonotions of social responsibility to which our ideal of transparency rightly belongs.
Speaking last February at the WorldEconomic Forum, in Davos, Switzerland, Kofi Annan, the United Nations Secretary-General appealed to the private sector tolend its help in ”creating a compact ofshared values and principles“. It has alwaysbeen our strongly-held belief that civilsociety can and must contribute to thedevelopment of common standards. Thecurrent strength of the TI coalition is proofthat business and government are beginningto believe it as well.
Peter EigenChairman of the Board
I n Peru, in 1997, over a thousandparticipants from over 90 countries joined inthe historic Lima Declaration, which markedthe creation of a global coalition united inthe fight against corruption. Barely a coupleof years later it is rewarding to see how thiscoalition has continued to grow in strength,resolve and impact.
After initial reluctance, TI now enjoys afull and productive partnership with theWorld Bank, which has become a mostvalued promoter of the anti-corruptionagenda. Regional banks and major grant-giving institutions such as the UNDP arealso actively lending their support inpromoting good governance, by tighteningtheir own lending requirements. A lot ofpress has been given of late to the growingmovement in favour of debt relief for thedeveloping world. We welcome the fact thatin this debate accountability andtransparency are recognised as a necessarypart of the platform for an agreement tostart wiping out third world debt.
The past year has seen the entry intoforce of a number of very significantinternational conventions, which arecreating the basis of a legal framework,which will contribute to strengthen thetransparency of global commerce. These
significant advances in the pursuit ofcorruption-free international businesstransactions, we owe in large part to therelentless work of the TI National Chapters,which have kept pressing on for change.
If the 1997 ratification of the landmarkOECD Convention against the Bribery ofForeign Public Officials was indeed a”triumph“ for Transparency International, ourchapters in OECD countries have not spenttoo much time basking in the glory of thisconsiderable achievement. They’ve kept theirshoulder to the wheel monitoring theimplementation of the Convention andpressuring their governments to produceeffective national legislation. TheConvention came into effect in February1999 and although most of theindustrialised countries have now fullyratified the agreement, many of the 34signatory countries have not yet done so.Much more remains to be done if theConvention is to have the claws and scope itis intended to have.
On the European front, the Council ofEurope Criminal Law Convention onCorruption signed seeks to set commonminimum standards for criminal legislationand mutual legal assistance in Council ofEurope member states. TI has been granted
observer status at the Council. Monitoringthe convention and its implementation willbe a crucial part of TI’s work in the years tocome. Our chapter in Brussels supported thepreparation of a key report, whichformulates the European Parliament’sposition on the European Commission’spolicy paper on corruption of May 1997.While supporting the initiative, it calls formore concrete actions for legislativeproposals and for the early ratification ofthe EU Convention criminalising trans-border corruption.
With the advice of the TI Brusselschapter, the EU is now negotiating asuccessor agreement to the LoméConvention governing EU relations with 71 developing countries, which will give aprominent place to the issue of transparencyand accountability. Within this agreementthe notion of ”good governance" is likely tobecome key, defined as the transparent andaccountable management of a country’sresources. In what would represent abreakthrough development, the agreement isexpected to confer to the notion of ”goodgovernance”, including democratic principlesand the rule of the law, the same politicaland legal weight as human rights.
After having won the battle tocriminalise the bribery of foreign publicofficials, TI is now focusing its attention onto other commercial mechanisms whichcontain incentives to bribe. TI has presentedconcrete suggestions on how to modify thecurrent provisions of Export CreditInsurance, which currently cover bribesinsured under the cover of commissions. Theanti-bribery measures which are beingapplied to international business are nowbeginning to trickle down to the privatesector. Private-to-private corruption is a
Building the International Coalition
The anti-corruption bandwagon is now clearly rolling.The OECD Convention against bribery has rewritten therules of international business. Other recentinternational agreements are also tightening the legalframework of global commerce and support for thesechanges is now coming from all camps.
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Freedom PrizeTransparency International washonoured with the prestigiousFreedom Award by the Max-Schmidheiney Foundation basedin Switzerland. The SF200000prize was shared between TI andThe Economist magazine. Thisaward comes as recognition ofTransparency International’ssuccess in placing the fightagainst corruption on the agendaof governments, internationalorganisations and privatebusinesses throughout the world.This is the second major honourto be bestowed uponTransparency International. TIChairman Peter Eigen was earlierawarded Germany's TheodorHeuss Medal for outstandingachievements in fosteringdemocracy and strengtheningcivil society.
relatively new area of concern, but one thatis likely to garner increasing attention onthe part of our chapters.
In the Americas, a regional TI initiativeled to the Inter-American Conventionagainst Corruption, signed by twenty-threeOAS members in March 1996, the firstregional agreement to address the issue.Arising out of the 1994 Miami Summit ofthe Americas’ call for a ”hemisphericapproach" to corruption, the Conventionprovides for the criminalisation oftransnational bribery and illicit enrichment,mutual cooperation on criminalinvestigations, judicial assistance andextradition. It also urges ”preventivemeasures" such as strengtheningprocurement and establishing oversightbodies, declaration of assets, whistleblowerprotection, codes of conduct and conflict ofinterest standards. At the 1998 SantiagoSummit, leaders called for ratification andimplementation and committed to ”a second
generation” of reforms to strengthendemocratic institutions such as the press,civil society, and the judiciary. Whilecorruption remains high on the politicalagenda, making concrete progress at thecountry level remains a challenge. To date,16 of the 25 current signatories haveratified and there are few signs ofimplementation legal, or practical.
TI chapters in the Americas continue tomobilise support for the Convention and itsimplementation. They issued the first TIProgress Report on the Convention at theNovember 1998 OAS Symposium onStrengthening Public Ethics. The meeting,called for by the 1998 Summit, broughttogether the region’s national ethicsauthorities. TI’s recommendations to ratifyby 31 December 1999, and to create an OASpeer review mechanism to monitor andpromote progress, influenced the Symposiumrecommendations. Chapters continued topress for the establishment of an effective
OAS monitoring process. Chapters inVenezuela, Costa Rica, and Colombiaparticipated in OAS-sponsored meetings onConvention implementation. In 1998, the
OAS and IDB invited TI to participate in 12 national seminars to promoteimplementation of the Convention’s criminallaw provisions.
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9th International Anti-Corruption ConferenceTransparency International is once again a major contributor to theInternational Anti-Corruption Conference through its role as secretariat to
the IACC Council, which oversees the conference series. The 9th IACC will take place inDurban, South Africa on October 10-15, 1999. Hosted by the South African Justice Minister,Penuell Maduna, the conference’s theme is ”Global Integrity: 2000 and Beyond –Developing Effective Anti-Corruption Strategies in a Changing World". Former South African president Nelson Mandela, his successor Thabo Mbeki and thePresident of Nigeria, Olusegun Olasanjo will be addressing the Conference and lending theirweight to this anti-corruption forum. The conference will bring together participants fromaround the globe to discuss the anti-corruption agenda for the year 2000. This cutting-edgeconference creates a unique forum for the international exchange of practices and ideasbetween public officials, political leaders, the private sector, academics, the media andNGOs on topics that cover the wide spectrum of anti-corruption and governance issues.
The TI Integrity Pact Many governments and business leaders now acknowledge the high risk andcost of bribery and extortion in public transactions and seek ways to eliminateit. Businesses will often express the desire to stop paying bribes but are heldback by the fear of losing orders if their competitors continue to use bribery towin contracts. For companies operating in major exporting countries, the issueis no longer just one of goodwill or ethical behaviour. The coming into force ofthe OECD Convention against the Bribery of Foreign Public Officials now makesit a criminal act to pay bribes to foreign officials.
TI continues to promote the use of its Integrity Pact, an agreement which bindscompanies bidding for a public contract to refrain from bribing or face severesanctions. The Integrity Pact reassures participating companies that competitorswill not bribe and that government agencies are actively preventing corruptionand extortion. It also helps governments reduce the high costs and economicdistortions that result from corruption in public procurement. The Integrity Pact can be used for selected procurement contracts, privatisationof public assets or the granting of licenses.
Considerable energy was spent in the past year to refine the Integrity Pactconcept and to work on concrete projects to operationalise it. The Bhaktapurprogramme mentioned in these pages is only one example of its application. InWest Africa, TI Benin’s efforts to clean up public procurement have led to thesubmission of a draft decree to the Council of ministers outlining a code ofethics and integrity in public procurement. This code contains many of the keyelements included in the Integrity Pact itself, including written commitmentfrom bidders, loss of security deposit and blacklisting of offenders, as well asthe participation of civil society in the evaluation of bids and the award ofcontracts and monitoring of implementation.
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he growing recognition of the relevance ofour work has been providing us with astream of support that has become steadierand more generous than previously. As amovement which is tackling a governanceissue in every country where we have anational chapter, the conventional”membership dues“ approach is neitherappropriate nor sufficient to sustain theinternational aspects of our operation. As arule, National Chapters need to retain all themoney they can raise for their ownprogrammes and activities.
We must therefore rely on a blend ofthree sources – development agencies,foundations and private sector contributions.Ideally we would like to see each contributeapproximately one third of our internationalsecretariat’s core and programme needs, andwe have grown steadily towards this target,one which would ensure that no particularcommunity of interest had adisproportionate voice in our movement’sdecision-making processes. Currently, ourmain donors are the Open Society Institute,US Agency for International Development,Ford Foundation, MacArthur Foundation andthe Finnish Ministry of Foreign Affairs.
Our financial supporters in 1998 are setout in detail on page 15. There is only roomhere to acknowledge the roles of our majorbenefactors.
Among the development agencies,USAID has been funding a four-yearprogramme, now in its second year. Eightcountries have been selected for theimplementation of programmes of reform orin some cases to conceive programmes forchange in the longer term. It includesstrengthening our headquarters’ office overthe life of the programme.
The role played by Foundations hasbecome more important. The FordFoundation, one of our earliest backers, hasdeepened and broadened its support as wedevelop aspects of our intellectual propertyin the form of the Source Book and itsderivatives. The John D. and Katherine T.MacArthur Foundation have become a majorsupporter, with assistance in particular instrengthening the Corruption PerceptionsIndex and developing the new Bribe PayersIndex. A group of Swiss Foundationsrepresented by the Volkart Vision Stiftungare making a crucial contribution to thestrengthening of our National Chapters. TheOpen Society Institute has also come to playa key role in our development, with itssupport for our activities in Central andEastern Europe, of which the Transparency inLocal Government programme is a majorinitiative.
Among the private sector, increasinglyinternational corporations have come torealise that TI can, in fact, help to make adifference and to improve the environmentin which they operate. We now numbersome 70 multinational corporations amongour financial supporters. Just as important,of course, has been their willingness tobecome personally involved in activitiesaddressing the TI agenda.
Conscious that civil society cannot playits proper and independent role on theinternational level so long as its membersare cherry-picked by internationalgovernmental organisations and used ashired consultants, we have been exploringthe feasibility of establishing a PartnershipFund. This would seek donations fromgovernments supportive of work in thegovernance area and would enable leadingcivil society activists to participate inmissions retaining their full independencerather than being looked upon as a contracted ”part“ of official missions.Initial response to this initiative has beenfavourable and we will be pursuing itthrough the coming months.
Above all, we have been conscious ofthe fragility of many of our chapters,especially those in countries with little or notradition of civil society activity, and wherethe legal and administrative environment inwhich they work is perhaps even hostile. Toaddress the need for institutional capacity
Mobilising the TI Support Base
The deep relevance of our work has now provided uswith a broad base of support. More secure funding isallowing us to be increasingly ambitious and tacklelarge and complex projects.
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building, TI commissioned PACT, an NGOspecialising in civil society capacity building,to produce a Handbook and a trainers’manual dealing with establishing andrunning a TI chapter. PACT has carried outtwo workshops using this material: the firstfor Eastern and Southern African chapters inMalawi, the second for English- and French-speaking West Africa as well as participantsfrom the Caribbean, in Ghana. Thisprogramme is funded by the MacArthurFoundation. The main purpose of theseworkshops was to give the chapters theadministrative skills needed to operate anNGO.
A strategic discussion took placesimultaneously on whether the traditionalmode of NGO work is indeed the mostsuccessful one for TI Chapters. In manycases, Chapters may prefer to associate withpartners in joint efforts, particularly withthose who have experience in using thetools of civil society.
Whichever model is chosen by thechapters, in their core functions –assessment, advocacy and monitoring of corruption related issues in their country – chapters will be offered trainingby TI. Through a grant by the Swiss VolkardVision Foundation a limited number ofchapters will also receive seed funding, toenable them to build a sustainableorganisational base.
But our support base rests not just on
funding but also on a strong strand ofvolunteers. Much of our work could noteven be contemplated were it not for thosewho willingly and selflessly give of theirtime and energy to pursue our programmesand their members are constantly increasing.It is invidious to ”name names“ (here as inother aspects of our work!) but a token fewshould be mentioned: Mike Lippe, Peter Richardson, DanielRitchie, Gabriel Gedvila, CharlesMorse, Neville Linton, Roslyn Hees.
Many of our chapters operate in countrieswhere civil society may be weak and lacking in the skills they need to function optimally.Through grants from the Volkart VisionFoundation and the MacArthur Foundation we are now able to provide capacitybuilding support to those chapters whichexpress a need.
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T ransparency International now boastsNational Chapters in close to 70 countriesaround the world, forging a wide coalition of people from the public sector, the privatesector and civil society. Their continuedgrowth points to the inroads TI has made inbringing the issue of corruption to the foreand to the creative means being used to fight it. On all continents, these groups ofcivic-minded citizens are working togetherwith an aim to making a difference, andindeed they are.
The task is daunting but the wideningscope of our National Chapter programmes isproof of our chapters’ dynamism andcommitment. Many are still small and fragileand lead an uphill battle to secure thefunding they need to carry on while othersenjoy adequate support and can successfullytap into available expertise and resources.Supporting and strengthening NationalChapters is more important than ever beforefor TI because their work on the ground liesat the core of our global strategy. Theexperience of the last six years has taught usthat to be meaningful and hold promise ofreal change, the debate on corruption mustbe held internally, within the community inwhich it is taking place. Driven by theoutside, any debate will have less impact andis far less likely to lead to lasting change.
Although TI directs a lot of its efforts toachieving change within the internationallegal framework, we are firmly convincedthat informed home-grown strategies havethe best chance of success. The programmesand approaches our National Chapters havedevised are as varied as the problems theyattempt to solve, but all share an emphasison prevention and designing systems toachieve lasting reform.
Monitoring theprivatisation of public assets
Barely beyond its first anniversary, ourchapter in Bulgaria is playing a keymonitoring role in a flagship privatisationfor the Bulgarian economy, the sale of astrategic holding in the BulgarianTelecommunication Company. An expertgroup formed by TI Bulgaria evaluatedwhether the process has been taking placein accordance with the law and assessed thetransparency of the procedures. Bound by apledge of confidentiality, the expert groupwas provided with all the informationdealing with the privatisation process.Members of the expert group were alsogiven the opportunity to sit in as observerson most meetings with participatingcompanies and to discuss with them theirperception of the process both before andafter the final adjudication. The expert groupwas also present at the submission andopening of the bids and is now sitting in onsome selected meetings taking placebetween the Bulgarian Privatisation Agencyand the winning bidder.
Ognyan Minchev, Chairman of TIBulgaria, sums up the aim of such aninvolvement in the following terms: ”This isthe biggest privatisation exercise within theframework of Bulgarian economic structuralreforms. If it is done according to the rules,it will point to the success of reforms andthe potential for integration withininternational economic structures.“ There isno doubt in Minchev’s mind that thepublication of the expert group’s finalevaluation of the process and its adherenceto legal requirements will go a long way in
informing the public about governmentimpartiality in choosing a buyer for thephone company.
In this initiative, TI Bulgaria has taken apage from the book of its sister chapter inPanama. In 1996, TI Panama, whichpioneered such exercises within the TImovement, successfully monitored theprivatisation process of Panama’s phonecompany, which was sold to UK’s Cable andWireless for more than US$600 million.
Educating for changeWhen it was established in 1997, thefounders of the TI chapter in Papua NewGuinea decided early on that to develop acorruption-free culture, it was essential tobegin with the nation’s children.Consequently, TI PNG decided to develop aschool-based initiative as a central elementof its action plan.
The chapter approached the NationalDepartment of Education and theInternational Education Agency to work on a joint project. As the project developed, itbecame clear to all those involved that inorder to send children the right messagesabout corruption and why it is wrong, thefirst focus had to be on teachers. If teachersthemselves did not understand their ownvalues and their impact as role models, how could they pass on ethical values to their pupils?
A two-day workshop brought togetherexperts in curriculum development, teachersand school administrators to discuss theapproach, contents and strategies involvedin training secondary school teachers on thesubject of ethics and values. At the end of
National Chapters in Action
National Chapters lie atthe very core of ourstrategy. Theirprogrammes may differin scope and purpose,but all focus onachieving lasting reformsthrough strategies whichemphasise prevention.
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those two days a small group had producedthe basic outline of a training handbook onvalues and ethics, which is intended to helpteachers to confront their own values andattitudes towards corruption. When completed, the handbook will bemade available in schools throughout PapuaNew Guinea.
A People’s OmbudsmanTI India and a sister NGO, Lok Sevang
Sangh, have taken the bold step ofestablishing an independent People’sOmbudsman’s Commission. Frustrated by 30years of empty promises, TI India and LokSevang Sangh were driven to thisunprecedented move in response tosuccessive Indian Governments’ lack ofpolitical will to establish institutions vestedwith the power to investigate charges ofcorruption against elected public officials.
The Commission, which is independentfrom the two founding NGOs, is formed ofthree senior retired judges who will bebacked by a Citizens’ Vigilance Committeeconsisting of seven lawyers. Complaintsdirected against members of Parliament,Ministers or the Governor on the part ofindividuals or institutions will have to besupported by sworn affidavits before theyare processed by the Vigilance Committee.The Committee will then pass on findings tothe Ombudsman Commission, which will inturn render a verdict on the evidencepresented. If the Ombudsman Commissionfinds the allegations to have substance, theVigilance Committee will then seek to file apublic interest petition before the HighCourt or the Supreme Court for furthercriminal investigation. This radical decisioncame at the end of a long pressure
campaign to make Government andParliament enact legislation that wouldrespond to the list of demands drawn up byTI India and Lok Sevang Sangh to ensuretransparency, moral integrity andaccountability in government. In the face ofwhat appears to it to be willful obstructionon the part of successive governments,Indian civil society could not be expected tostand idly by. The TI India initiative has beendesigned to provide protection forindividuals against malicious and falseaccusations of corruption.
A city becomes an island
Bhaktapur is a town of 35,000inhabitants in landlocked Nepal. Thismedieval town has just recently become anisland, an island of integrity that is. TheMunicipality of Bhaktapur has signed anagreement with TI Nepal in the hope ofincreasing transparency and accountabilityin all municipal contracts. The agreementincludes elements of the TI Integrity Pact,which is intended to protect public contractsfrom bribery (see page 3) and is closelymodeled after TI’s principles of transparencyand openness. The agreement includes suchprovisions as the simplification of thedecision-making process at the municipallevel, more comprehensive information onthe municipality’s budget, complaint boxes,name tags for municipal employees,billboards on constructions sites withinformation on the completion date of theproject and last but not least, thecommitment of suppliers and themunicipality not to pay or demand bribes.The Mayor of Bhaktapur is strongly behindthis project and looks forward to increased
participation on the part of the citizens. Theoptimism is such that there is even the hopethat some of the savings achieved through a more efficient process for the constructionof small houses, sanitation and drainage willbe used to raise salaries for the 100 or somunicipal employees of Bhaktapur. A monitoring committee, including three TI Nepal representatives, three municipalrepresentatives and an advisor will oversee the implementation of this unique agreement.
Monitoring politicalparty fundingTI’s National Chapter in Argentina sees itsprimary mission as ”unblocking“ access toinformation. It is with that purpose in mind,that during the 1997 national election,Poder Ciudadano took a close look atpolitical party spending as a means ofassessing the extent of the private fundingreceived by the leading political parties.Argentina’s laws pertaining to party fundingdo not require political parties to reveal thesources of their private funding. Publicfunding figures are fully disclosed however.Assessing party spending over the amountwhich is granted from public funds couldindicate the extent of private funding. PoderCiudadano estimates that the leading partyhad spent over US $10 million above andbeyond its share of public funding.According to Christian Gruenberg of PoderCiudadano, simply lobbying for changes inthe law at Congress level would have pushedthe issue in an arena that is rife withinterests that may have hindered reform. Inthe hands of the public, however, suchinformation creates powerful pressure forchange. In the absence of public controls,
There can be no issue in today’s world that sounites large multinationalsand the poorest peasantsin India. Corruptionthreatens and diminisheseveryone of us.
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Poder Ciudadano attempts to developinformal controls within civil society bymaking information available to all citizens.There are strong signs that this approach isbeing successful. In the latest electioncampaign, corruption issues are makingnewspaper headlines and the three leadingparties are expected to sign an agreementwhereby they will disclose the full amountof private party funding.
Integrity in localgovernment
Corruption at the local level touchesordinary people in their daily lives. Itundermines the delivery of basic servicesand weakens fledgling efforts to entrenchdemocracy in countries in transition. Locallevel involvement is an ideal starting pointfor civil society in the pursuit of open andresponsive government. It is for this reasonthat TI National Chapters have becomeincreasingly interested in corruption issuesrelating to local government. In order toprovide them with support in dealing withthese issues TI has collaborated with theOpen Society Institute on a workshop whichfocused on corruption and local governmentin Eastern Europe and Central Asia. Ameeting of TI chapters in Eastern Europeand another in Khazakstan helped set theagenda for initiatives in individual countries.A number of countries, such as Bulgaria,Poland, Hungary are beginning to dealdirectly with corruption at the localgovernment level. Local-level initiatives will be focused on improved service delivery as well as diagnosing and rootingout corruption.
Cleaning up LagosAirport
Bolstered by the new government’scommitment to fighting corruption inNigeria, TI Nigeria is planning a newinitiative to address the problem of rampant corruption at Lagos Airport. With the support of the airport manager, TI Nigeria will oversee the development andanalysis of passenger surveys intended tokeep track of the experience of airport userswith petty bribery. Another component ofthe TI Nigeria initiative will be monitoring ofprocurement costs for the airport, which ishandled by the Federal Aviation Authority ofNigeria. Transparency will help the reform-minded airport CEO to ward off those withinthe bureaucracy who previously haveinflated procurement costs by nearly 400%and to protect ”his“ passengers from illegaldemands by customs, immigration andsecurity officials.
Planning for the new millenium in Bangladesh
The TI Chapter in Bangladesh isapproaching the new millenium with anindigenous strategic plan that it will use asthe guiding parameter of its activities forseveral years to come. This strategic plan isinspired by the many deep concerns voicedby the participants of workshops and focusgroup led by TI Bangladesh on the issues ofaccountability and transparency. The resultsof these consultations, which are collated in a report entitled ”Corruption as PeopleSee It“, poignantly sets out the challenges of
fighting corruption in a country where”police officers are forced to be dishonestbecause they can’t survive on their meagresalaries and truck owners would rather bribethe police when they put defective vehicleson the road, rather than spend money onregular maintenance in order to competeand survive“.
Given the extent of the governancecrisis in Bangladesh, any effort to stamp outcorruption must be seen in the long-termbut one of the major thrusts of TIBangladesh’s activities will focus on settingup Committees of Concerned Citizens. Withthe support of TI Bangladesh, these self-sustaining groups of individuals willcampaign locally against corruption byseeking improved local service delivery using”report cards“ (see Box) or by mobilisingsufficient pressure within the localpopulation to bring about improvements in governance.
Another major thrust will be thecreation of Advice and Information Centres.Closely related to the Committees ofConcerned Citizens, their role will be tocompile and manage the informationgathered in the Concerned Citizens’ Centresthroughout the country, as well asinformation from other sources such asnewspapers, magazines and researchjournals. They will co-ordinate thereplication of corruption surveys at regularintervals and co-ordinate the findings ofreport cards across regions in order to fosterhealthy competition, particularly in theservice delivery sector.
Building bridges to the private sector
Major changes in the regulatoryenvironment with regard to bribery andcorruption have created the need for apermanent dialogue between TI and theprivate sector. In the course of the past year,TI Brussels has significantly deepened itscooperation with corporations in order tocontribute to the development of a cultureof transparency in the corporate world. Thestrong support of the heads of major Belgiancompanies who sit on TI Brussels advisoryboard has been instrumental in broadeningthe scope of the TI Brussels’ co-operationand with the private sector. A conferenceorganised jointly with a major Belgiancorporate partner stressed the need for self-regulation and coherent anti-corruptionstrategies and regulations both at theEuropean and international level. Anotherexample of the expanding private sector co-operation is the invitation Shell Belgiumextended TI Brussels to a seminar oncorruption it was organising for itsmanagement employees. TI Brussels wasgiven an opportunity to brief Shell managerson the latest international developments inthe area of anti-corruption.
Also seeking to strengthen its ties to theprivate sector is our TI chapter in the UnitedKingdom, which has been successfullyworking towards establishing a CorporateSupporter’s Forum. The forum is intended toprovide TI UK and member companies theopportunity of an interactive discussion onissues of common interest. The forum, whichwill involve two meetings a year, will enablecorporate business to take advantage of TIUK’s knowledge and expertise of anti-corruption policy and to have direct input in
National Chapters in Action
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an ongoing discussion which is of vitalinterest to it. TI UK also hopes to gain fromregular discussion with the private sector bybeing kept abreast of justifiable concernsbusiness may have as to the growth of illicitpractices and ensure that anyrepresentations it makes to authorities arewell-informed from a business perspective.The idea of the forum has been met withconsiderable enthusiasm on the part ofbusiness. Meetings of the Forum areexpected to begin next fall.
Auditing citiesWhen it was discovered that municipal
government employees had accepted bribes,the Lord Mayor of Budapest called upon TIHungary for help. The Hungarian Chapterwas to conduct a novel study of the Mayor’soffice and make recommendations on howto avoid any further occurrences ofcorruption. The report created considerablepublic debate and lessons were learned as to how this type of activity can be mosteffectively carried out.
Teaming upTI chapters in Latin America are
harnessing the powerful strength they candraw from the 17 TI National Chaptersactive in the region by putting together aregional working programme focusing onareas of strategic importance. In addition to the efforts deployed in their respectivecountries, the Latin American Chapters will co-ordinate regional workingprogrammes in the areas of justice,education, OAS Convention monitoring,media, anti-corruption tools, institutionalstrengthening, a well as economicassessment and diagnosis.
Spreading the wordTI is expanding its activities in
French-speaking countries, particularly insub-Saharan Africa. As part of this newthrust, our chapter in France has undertakenthe publication of a French-language editionof TI’s quarterly Newsletter. La Lettre deTransparence is broadly structured along thelines of the TI Newsletter but also providesinformation of particular relevance tocountries which have inherited the Frenchlanguage and legal traditions. TheNewsletter is written in Paris with the co-operation of our network of NationalChapters in French-speaking countries.
Raising awarenessAwareness-raising was the goal when
our Chapter-in-Formation in the DominicanRepublic organised a National Anti-Corruption Week. The event featured theparticipation of six international expertswho spoke at universities, gave newspapersinterviews and also appeared on televisiontalk shows and radio programmes. One ofthe highlights of the week-long eventbrought together representatives of allpolitical parties, government and a broadsegment of civil society from across theDominican Republic. The aim of theseactivities was to increase the publicunderstanding of the high cost of corruptionto Dominican society. The Chapter-in-Formation intends to pursue this goalthroughout the coming year by initiating ajournalist-training programme. The TIChapter in Morocco runs a very similarannual one-day event and has been lobbyingUNESCO for the designation of aninternational anti-corruption day.
Shaping public opinionThe media can be a powerful ally in the
fight against corruption. Many of ourchapters use newspaper columns, radio andtelevision programmes as an opportunity toshape public opinion and widen theirsupport base. Our chapter in Venezuelareports that its very active mediaprogramme has involved the airing ofnumerous radio spots along with nine hours of solid radio programming on
anti- corruption and civic values. Theprogrammes, which were aired through aregular programme called ”En Familia“wasvery well received.
During the same period, the chapter alsoproduced a set of twelve, three-minute radiomicro-programmes dealing with strategiesto control corruption. These programmeswere developed with the ultimate aim ofairing them on the 500-radio stationnetwork of the Latin American public serviceradio network.
Report cards: lending citizens a voice
Poor and inefficient delivery of public services, whether it is water or electricitysupply, health care or even rubbish collection, is a main concern in many societies.However, concerned citizens’ groups often lack the ammunition they need tosupport demands for more transparency and government accountability inproviding these services. Unsubstantiated claims of inefficiency and corruptionleave proponents of change in a weakened position to express dissatisfaction andto demand more responsiveness on the part of their public institutions.
As part of an effort to equip a number of our chapters with tools that can bolstertheir initiatives and make them more effective, ten of our national chapterstraveled to India last November to learn about the Report Card methodologypioneered by the Bangalore-based Public Affairs Centre. During their visit to theCentre, TI National Chapter representatives from Africa, Eastern Europe and theAsia-Pacific region, were introduced to the report card methodology, which usesmarket research techniques common in the private sector to study the perceptionof users of various public services through surveys, focus groups and mini casestudies. Results are recorded on a report card, sent to relevant authorities andpublicised via press conferences, thus becoming a powerful tool for change.
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E fforts to tackle corruption must be informedby a sound analysis of the root causes ofcorruption and its potential remedies. From its inception, TI has been engaged inanalysing the weaknesses and deficiencies of national integrity systems and this efforthas been supported by the continuousdevelopment of our National IntegritySource Book.
This unique tool continues to attractwide attention and our compendium of”success stories“ in the field of anti-corruption and government accountabilityhas itself become somewhat of a successstory over the years. Its reputation as aleading-edge tool in the furtherance of good government and transparency is nowwell established, as shown by the growingnumber of translated versions and theadaptation workshops begun in LatinAmerica and now starting in Central Europeand Africa. The Source Book is now availablein more than ten languages, the latest of which being Bahasa Indonesiaand Portuguese.
In view of the rapid changes in the fieldof governance and accountability, the SourceBook remains a work in progress. A fully revised and expanded edition wasundertaken in the past year and itscompletion is planned for early 1999. A newand substantial second volume is now wellunder way. This new volume will focus largelyon concrete sectoral anti-corruptioninitiatives. The new volume will provide ouraudience - policy makers, those who areentrusted with the implementation of publicpolicy and the strand of civil society with aninterest in these issues – with a new crop ofcase studies and initiatives which have beensuccessful in achieving their aim of furtheringfair, honest and transparent government.
Alongside the revision of the currentvolume and the publication of a new one, a substantial revision of the ”companionvolume“ of best practices was alsoundertaken during the year under review.Further plans of mirror web sites which arecurrently being explored by TI USA and TIAustralia will greatly ease access for users ofthe material in the Americas and in the Asia-Pacific region.
TI’s presence on the Web
TI devotes considerable energy todeveloping and sustaining its intellectualproperty, as well as to providing easy andbroad access to it. The leadership role that TInow plays in the area of anti-corruption hasheightened expectations of the expertiseand knowledge it can provide. Twoinstruments of vital importance in thiscontext are the TI web site(www.transparency.de) and its on-linelibrary, which is being developed at the TISecretariat in Berlin.
TI first became present on the WorldWide Web in 1995. Ever since, our web sitehas been continuously expanded anddeveloped. In a major effort to make ourweb presence more user-friendly andinformative, the TI internet site wascompletely overhauled during the course of1998. Its structure was modified toaccommodate the steadily growing volumeof information that is being made availableon-line and the graphics of the web sitewere given a complete facelift which nowmakes the site consistent with our newly-developed standards. Our web site is nowconsistent with the overall corporate designdeveloped in 1998 in order to give TI a morecoherent visual image. The new structure ofthe TI web site offers improved navigation
ease both for the one-time and repeatvisitor. Its success has been beyondexpectation. Since 1997, monthly figures forvisitors have trebled to 200,000 monthly.The web site has not only developed interms of numbers and access but also interms of quality and content. It provides up-to-date information on TI’s activities,internal structure, programmes and comingevents, but most importantly it has growninto a significant source of information onTI’s main purpose, which is the fight against corruption.
This is especially true of the web versionof the TI Source Book. This electronic versionis supplemented by a uniquely rich source ofcarefully screened and reviewed bestpractice documents from all over the world,which cover a broad range of sectors.
Parallel to the Source Book, a newworking paper series was launched in thesummer of 1998, which has now become amajor forum for the anti-corruption debate.While Country and Regions Papers deal withcorruption issues on a national basis, theIssues Papers take a look at more generalquestions, such as the role of the media inmaintaining integrity and accountability orthe vital link between human rights andcorruption. There are now more than 30papers available on the Internet and thenumber is steadily growing.
On-line catalogue
The TI web site, the Source Book and thenew Working Papers series are part of ourefforts to provide intellectual support to thediscussion on corruption and efforts to curbit. There is now a wealth of information onevery conceivable aspect of corruptionwhich can be tapped into, including
Building the Knowledge Base
The leading role that TI now plays in the field ofanti-corruption hasheightened expectations ofthe expertise andknowledge that we arecalled upon to provide.
newspaper articles, conference papers, draftlegislation, monographs, as well asgovernment reports and journal articles. A great number of these documents areavailable in our library. TI is indeed in anunique position to serve as a clearinghousefor this material as it receives a steadystream of documentation via academics and anti-corruption practitioners, to nameonly a few.
The essential, but time-consuming, taskof composing a list of keywords for use inindexing papers and documents wascompleted in the course of the year and the20,000 or so documents in the TI archive arenow being indexed with the use of a rangeof keywords which span the entire field ofcorruption, economic crime and governance.
This task is expected to be finished bythe end of 1999 and at that stage our On-Line Source for Information andResearch of Integrity Systems bibliographicaldatabase will go online making this uniquepool of information even more readilyavailable to researchers, practitioners andjournalists and all those with an interest incorruption and corruption issues. This servicewill most be provided as a joint venture withThe Economist. The weekly magazine hasoffered to pool its part of the MaxSmidtheiny Freedom Prize into a joint effortwith TI. The Smidtheiny Foundation willsupport this project with another100 000 Swiss Francs.
The Rule of Law Project
The approaches to formulating anti-corruption strategies can vary quitedramatically from country to country andmany are carried out without regard to theRule of Law. In Vietnam and China, trial andconviction for corruption have beenfollowed by summary execution. Experiencehas shown, however, that corruption can beeffectively and systematically contained onlywhen anti-corruption strategies areconsistent with the Rule of Law. Moreover,these strategies must command the respectand support of the public at large. If theyare seen to be arbitrary and unfair, they willfail to win support. At the same time,corrupt judiciaries can be an impediment toapproaches based on the Rule of Law.
To address this particular problem andto provide our National Chapters with theintellectual support to participate activelyand in a constructive manner in the processof legal and institutional reform, TI willundertake a four-year project to formulatestrategies to strengthen national integritysystems within the framework of the Rule of Law. These strategies will target the legalsystem and will be formulated as draft laws,guidelines, codes of conduct or discussion papers.
These concrete strategies will draw uponnational experiences and involve the activeparticipation of TI National Chapters inselected countries. The knowledge of
problem areas identified via service deliverysurveys and national integrity workshopswill serve as a basis for more focused andsystematic studies of practical response inareas such as corruption in the judiciary,corruption in the police and in the legalprofession, the simplification of legalprovisions relating to offenses andprocedures, access to information andprotection of whistleblowers. Theinformation gathered in the initial stages ofthe Rule of Law project will be passed on toour national chapters via a series ofworkshops. Findings will be disseminated asthe project proceeds.
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It is the weakest membersof society who bear theconsequences of corruptionwhen they are deniedhealthcare, education andaccess to justice.
O
12
ur 1998 Corruption Perceptions Index (CPI)was the most comprehensive ever publishedto date with a record of 85 countriesincluded in the rankings, 33 more than in1997. Transparency International firstpublished its CPI in 1995 as part of itsdiagnostic and monitoring work. Thispowerful and often controversial toolcontinues to attract the world media’sattention in order to raise the standard ofthe global debate on corruption and put theissue on the front pages of newspapers incountries where reform is needed.
The impact of the CPI now reaches farbeyond the awareness-raising goal it hadhoped to achieve at its inception. In manycountries, the CPI has served theconstructive purpose of stimulating publicdebate on corruption, acting as a catalystfor change and meaningful reforms. Many ofthe world’s poorest nations are perceived asbeing among the world’s most corrupt andthe CPI has been instrumental in drawingattention to this link. While corruptioncertainly is also a symptom ofunderdevelopment, aid agencies increasinglysee it as a major cause, making the fightagainst corruption a key priority. It alsoaffords regular opportunities to address the role that ill-advised regulations like tax-deductibility of bribes and corruptinternational business have played increating and sustaining those countries'problems and the misery of billions of people.
Intense concern for the controversialimpact of the CPI motivated our efforts towiden its scope and increase the number ofcountries included in the index. After an in-depth review of alternatives to the CPImethodology, TI remains assured that themeans used to compile the CPI keep it free
of individual subjective perspectives onindividual countries and maintain thestrength it derives from the combination ofsources into a single index.
The international experts who sit on TI'sIndex Steering Committee have focusedtheir efforts on further strengthening themethodology of the CPI and beyond.
Developing a bribe payers index
TI has always believed that bribery is a two-way street. If there are those whoaccept bribes, there are also those, equallyinvolved, who pay bribes. It is a shared viewwithin TI and its network of chapters andsupporters that the CPI reflects only oneside of a very complex picture – that ofreceiving governments and their officials.The CPI does not rank countries from whichthe givers of bribes are most likely tooriginate and the current development of abribe payers index is meant to redress thebalance of perceptions created by the CPI.
The widely-acknowledged need for amore complete portrayal of the phenomenonof bribery and corruption has motivated ourwork throughout 1998 in laying thefoundations for a new bribe payers index.We anticipate that such an index will havepotent political and private sectorimplications. The CPI has been effective in placing pressure on governments of theSouth and in countries in transition tomobilise effective anti-corruption efforts.The development of an index whichmeasures the propensity of rich countries togive bribes will apply corresponding pressureto the countries from which many of thebribe givers originate.
With the help of a bribe payers index,those exporters with the lowest standard of ethics will be more effectively monitoredand pressured into improving their legalframework. This new index will considerablystrengthen the case for the monitoringcapacity of international mechanisms suchas the OECD Convention for CombatingBribery of Foreign Public Officials. Inaddition, the BPI will strengthen the case forrebuilding the institutional framework ofpoor countries which have been blighted bydistorted international competition andcorrupt public institutions.
Work on developing the new bribepayers index is well under way. Acommissioned international poll is targetingelites of the South and the largest exportingcountries. Focus groups have been held inParis, Brussels, Buenos Aires, Washingtonand Cambridge in order to test and fine-tune the questions included in the poll. A small-scale pilot has been held inArgentina and a second one is also due totake place in the Philippines. The large-scalesurvey is slotted for mid-1999 and it is ourexpectation that the rankings will bepublished by the end of the year.
Monitoring of OECD Convention
1998 ended with the removal of the lasthurdle preventing the entry into force of theOECD Convention against the Bribery ofForeign Public Officials. The Conventionentered into force, making at long last, thebribing of foreign public officials to win orretain business, a criminal offence.
Similar criminal penalties now apply asif a bribe were extended to a public officialat home. The Convention has radically
Monitoring the Fight Against Corruption
Bribery is a two-waystreet. We can blamethose who take bribes,but we must not forgetthat there are alsothose, equally involved,who pay bribes. Toolswhich shed light on allfacets of corruption willgo a long a way inhelping us devisesolutions to it.
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modified the legal framework under whichcompanies from the industrialised world dobusiness abroad. The Convention binds OECDcountries and a growing number of others.Although there is ground for rejoicing aftermany years of relentless work in attemptingto bring about this treaty, we are aware ofits limitations.
But, the Convention will only achievelasting impact if it is properly implementedand supported by effective nationallegislation. First, national legislatures willhave to adopt legislation that takes intoaccount both the letter and the spirit of theConvention. Second, transgressions will have to be enforced rigourously andconsistently and thirdly, companies will have to introduce corporate complianceprogrammes.
We are playing an active role in themonitoring process which is unfolding at theOECD. At the heart of this process is a peerreview of national legislation. Our chaptersin OECD member states have played acrucial role in pressing their governments toswiftly ratify the Convention and they willcontinue to press for strict and coherentapplication. But the success of theConvention will not be achieved without theactive support of the corporate sector. Wehave already launched a dialogue withcompanies and the business ethicscommunity throughout the OECD to assist inthe development of compliance mechanisms.This dialogue may eventually lead to aninternationally accepted integrity standardwhich would be used as a benchmark forISO-type certification.
1998 Standard SurveysRank Country CPI Score Deviation Used
1 Denmark 10.0 0.7 9
2 Finland 9.6 0.5 9
3 Sweden 9.5 0.5 9
4 New Zealand 9.4 0.7 8
5 Iceland 9.3 0.9 6
6 Canada 9.2 0.5 9
7 Singapore 9.1 1.0 10
8 Netherlands 9.0 0.7 9
Norway 9.0 0.7 9
10 Switzerland 8.9 0.6 10
11 Australia 8.7 0.7 8
Luxembourg 8.7 0.9 7
United Kingdom 8.7 0.5 10
14 Ireland 8.2 1.4 10
15 Germany 7.9 0.4 10
16 Hong Kong 7.8 1.1 12
17 Austria 7.5 0.8 9
United States 7.5 0.9 8
19 Israel 7.1 1.4 9
20 Chile 6.8 0.9 9
21 France 6.7 0.6 9
22 Portugal 6.5 1.0 10
23 Botswana 6.1 2.2 3
Spain 6.1 1.3 10
25 Japan 5.8 1.6 11
26 Estonia 5.7 0.5 3
27 Costa Rica 5.6 1.6 5
28 Belgium 5.4 1.4 9
1998 Standard SurveysRank Country CPI Score Deviation Used
29 Malaysia 5.3 0.4 11
Namibia 5.3 1.0 3
Taiwan 5.3 0.7 11
32 South Africa 5.2 0.8 10
33 Hungary 5.0 1.2 9
Mauritius 5.0 0.8 3
Tunisia 5.0 2.1 3
36 Greece 4.9 1.7 9
37 Czech Republic 4.8 0.8 9
38 Jordan 4.7 1.1 6
39 Italy 4.6 0.8 10
Poland 4.6 1.6 8
41 Peru 4.5 0.8 6
42 Uruguay 4.3 0.9 3
43 South Korea 4.2 1.2 12
Zimbabwe 4.2 2.2 6
45 Malawi 4.1 0.6 4
46 Brazil 4.0 0.4 9
47 Belarus 3.9 1.9 3
Slovak Republic 3.9 1.6 5
49 Jamaica 3.8 0.4 3
50 Morocco 3.7 1.8 3
51 El Salvador 3.6 2.3 3
52 China 3.5 0.7 10
Zambia 3.5 1.6 4
54 Turkey 3.4 1.0 10
55 Ghana 3.3 1.0 4
Mexico 3.3 0.6 9
Philippines 3.3 1.1 10
Senegal 3.3 0.8 3
1998 Standard SurveysRank Country CPI Score Deviation Used
59 Ivory Coast 3.1 1.7 4
Guatemala 3.1 2.5 3
61 Argentina 3.0 0.6 9
Nicaragua 3.0 2.5 3
Romania 3.0 1.5 3
Thailand 3.0 0.7 11
Yugoslavia 3.0 1.5 3
66 Bulgaria 2.9 2.3 4
Egypt 2.9 0.6 3
India 2.9 0.6 12
69 Bolivia 2.8 1.2 4
Ukraine 2.8 1.6 6
71 Latvia 2.7 1.9 3
Pakistan 2.7 1.4 3
73 Uganda 2.6 0.8 4
74 Kenya 2.5 0.6 4
Vietnam 2.5 0.5 6
76 Russia 2.4 0.9 10
77 Ecuador 2.3 1.5 3
Venezuela 2.3 0.8 9
79 Colombia 2.2 0.8 9
80 Indonesia 2.0 0.9 10
81 Nigeria 1.9 0.5 5
Tanzania 1.9 1.1 4
83 Honduras 1.7 0.5 3
84 Paraguay 1.5 0.5 3
85 Cameroon 1.4 0.5 4
The Transparency International 1998 Corruption Perceptions Index
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Financial Statements
Funding1998US$
Main Activities *Government development agencies 931,557Foundations 1,005,326Private Sector 81,038International organisations 8,250National Chapter contributions 53,706Miscellaneous Income 124,184Subtotal Main Activities 2,204,060
Costa Rica mFundación AmbioMs Roxana Salazar Carretera a San Pedro de la Pulperia la Luz 100metros sur y cien oesteApartamentos La CaliforniaNumero 8a Tel +506 253 5027Fax +506 296 [email protected]@hotmail.com
Czech Republic lDr Marie Bohata, ChairpersonMr Michal Burian, DirectorTI Czech Republic (TIC)Krocínova 1110 00 Prague 1Tel +420 2 2422 2658
Egypt lDr Hassan Eissa, ChairmanDr Saad Eddin Ibrahim TI EgyptFor Development Studies c/o Ibn Khaldoun Center17, Street 12, Mokattam, P.O.Box 13, Cairo Tel +202 506 1617
Indonesia uTri HandoyoIndonesia Anti-CorruptionForumJ1. Pegangsaan Timur no. 21Biro Oktroi RoosenoKomplek MegariaJakarta 1030Email [email protected]
Israel lShkifut Beinle’umit(SHVIL)-Israel Prof Dove Izraeli, ChairmanTel Aviv University, Faculty ofManagement, Ramat Aviv 69978 Tel Aviv Tel +972 3 640 9176Fax +972 3 641 4215Email [email protected]:81/~shvil/ (In Hebrew)www.tau.ac.il:81/~shvil/english.html (In English)
Italy lMs Maria Teresa BrassioloTransparency International Italia, Via Zamagna 19,20148 Milano Tel +39 02 4009 3560Fax +39 02 406829Email [email protected]/
Jamaica lMs Beth AubTI JamaicaDepartment of Mathematics,UWI Mona, Kingston 7 c/o Dr. Martin Aub Tel +1 876 944 8219Email [email protected]
Jordan mMr Zuhair KhayedDirector General Jordanian Institute ofPublic AdministrationP.O. Box 960 383Tla Alali 11953, Amman Tel +962 6 664 111Fax +962 6 680 731Email [email protected]
Kenya mMr Joe Githongo, ChairmanGithongo & CompanyP.O. Box 47089Nairobi Tel +254 2 228 206Fax +254 2 331 068Email [email protected]
Malawi lRt Rev J.P. BvumbweTI Malawi, Public AffairsCommittee (PAC)P.O.Box 650, Lilongwe 3 Tel +265 833 283Fax +265 741 549
Malaysia mTunku Abdul AzizTI Malaysia 10 E-02-04-001 SriKinabalu 2, Bukit WangsaWangsa Maju 10Kuala LumpurTel +603 411 4596Fax +603 411 4596Email [email protected]
Mali uCheibane CoulibalyN’TominkorobougouRue 659 Porte 632BP 3041BamakoTel/Fax +223 22 59 99 Email [email protected]
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Mauritius lMr Jacques Dinan, DirectorPROSI Plantation House, Port Louis Tel +230 212 3302Fax +230 212 8710Email [email protected]
Mexico mMr Federico Reyes HerolesDirector ”Este País“ Dulce Olivia 71Col. Villa Coyoacán Apartado Postal 70-488Mexico 04000, DF Tel +52 5 658 2326
Mongolia uMr Tumur-Ochir ErdenebilegMember of the State Great Hural (Parliament)State House, Ulaanbaatar 13,P.O. Box 1085 Tel +976 1 321 345Fax +976 1 322 866Email [email protected]
Morocco lM. Sion AssidonTransparency Maroc 24 et 26 Bd de KhouribgaCasablanca 20 000 Tel +212 2 306 615
Panama lMr L. Roberto Eisenmann,President Lina Vega Abad, VicePresidentFundación para el Desarrollode las Libertad CiudadanaApartado 6-4586, El Dorado Tel +507 2 217 222or +507 2 294 213Fax +507 2 290 294Email [email protected]
Papua New Guinea lHon. Anthony SiaguruChairman TI Papua New GuineaP.O. Box 591Port Moresby Tel +675 320 2188Fax +675 321 7223Email [email protected]
Paraguay lMr José Antonio BerguesTransparencia Paraguay Anteguera 611ler Pisa, Oficina 4Asunción Tel +595 21 442 108Fax +595 21 445 490Email [email protected]@uninet.com.py
Peru mRafael VillegasCarlos Morelli Presidente Integridad PerúorAv Central 671, g 701San Isidro, Lima Tel +51 1 442 9119
Portugal mDr Artur VictoriaAssociation Ethics andTransparencyRua Julio Dinis 67-74150 Porto Tel +351 2 933 330 (9213)Fax +351 2 351 338 [email protected]
Romania mMr Dragos Calitoiu ChairmanMr Adrian Baboi StroeEx. DirectorEmail [email protected]
Russia mDmitry MakarovTI Russia ”World AgainstCorruption”6 Nikoloyamska St. Room 20,109189 MoscowTel/Fax +7 095 937 4895Email [email protected]
South Africa lStiaan van der Merwe,Executive OfficerBridgette Oliphant, AssistantTransparency InternationalSouth Africa7th Floor (West Wing)Auckland House185 Smit StreetJohannesburg 2001 Tel 27 11 339 7253Fax 27 11 403 4332Email [email protected] www.tisa.org.za
Spain mMr Carlos M. TomásConsejero de RelacionesPúblicas AbogadoBailén, 32 Pral. 1º08010 Barcelona Tel +34 93 265 2216or: +34 93 265 1089Fax +34 93 265 2347 Email [email protected]
Sri Lanka uMr Arittha WikramanayakeCentre for Policy Alternatives32/3 Flower RoadColombo 7 Tel +94 1 565 305Fax +94 1 74 714 460Email [email protected]
Sweden uMr Peter GisleKammakargatan 9 a 2tr. 11140 StockholmTel +46 8 240 050 Fax +46 8 211 [email protected]
Tanzania lMr Ibrahim SeushiTI Tanzania c/o Coopers & LybrandSukari HouseOhio StreetP.O. Box 45 Dar es Salaam Tel +255 51 111 919 Fax +255 51 112 978 Email [email protected]
Thailand mDr Juree Vichit-VadakanDirector, Center forPhilanthropy and CivilSociety, National Institute ofDevelopment, AdministrationBangkapi, Bangkok 10240 Tel +662 377 7206Fax +662 374 7399Email [email protected]
United Kingdom lMr George Moody-Stuart,ChairmanTI UKSt Nicholas HouseSt Nicholas RoadSuttonSurrey SM 1 ELTel +44 181 643 9288Fax +44 181 710 [email protected]
Uruguay lUruguay TransparenteJacinta Balbela Calle José Scoseriá 2915, Ap 501Montevideo Tel +598 2 710 8411 Fax +598 2 710 [email protected]
USA lMr Fritz Heimann, ChairmanMrs Nancy Zucker Boswell, Managing DirectorTI USA, 1615 L Street NW, Suite 700WashingtonDC 20036 Tel +1 202 682 7048Fax +1 202 682 7086Email [email protected]
Zimbabwe mDr John MW MakumbeChairman, TI ZimbabweCausewayP. O. Box CY 434Harare Tel +263 4 729 982Fax +263 4 729 982Email [email protected]
Information on contacts inthe following countries isavailable through the TIInternational SecretariatAlbaniaBosnia and HerzegovinaCameroonCroatiaFinlandGeorgiaJapanKazakhstanLebanonLiberiaLithuaniaRomaniaSloveniaSouth Korea Yugoslavia
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Peter EigenChairman, Germany Dr Peter Eigen is a lawyerby training. He has workedin economic developmentfor 25 years, mainly as aWorld Bank manager ofprogrammes in Africa andLatin America. Under FordFoundation sponsorship, heprovided legal and technicalassistance to thegovernments of Botswanaand Namibia, and taughtlaw at the universities ofFrankfurt and Georgetown.From1988 to 1991 he wasthe Director of the RegionalMission for Eastern Africaof the World Bank.
Tunku Abdul AzizVice-Chairman, MalaysiaTunku Abdul Aziz has heldsenior managementpositions in large privatesector concerns in Malaysiaand overseas.He has servedon the Asean US and EECBusiness Councils and wasChairman for two years ofthat organisation’scommittee responsible formaking recommendationsfor developing a motorindustry in Asean. Then heldthe position of advisor atthe Malaysian Central Bank.After a return to privateindustry, his lastappointment was asDirector of Administration
at the CommonwealthSecretariat in London.
Frank Vogl Vice-Chairman, USA Frank Vogl is President ofVogl Communications inc., astrategic managementconsulting firm based inWashington D.C. Mr. Vogl isVice-Chairman and co-founder of TransparencyInternational. After a careerin journalism spanning closeto fifteen years, Mr. Voglbecame Director of PublicAffairs at the World Bank in1981and held this positionuntil 1990. Mr. Vogl is afrequent contributor topublications on the topic ofbusiness ethics and has alsoco-authored a book oninsights for creating wealthin the 21st century. He actsas an advisor to the EthicsResource centre of theUnited States and is amember of the BrookingInstitution Council and atrustee of the Arthur W.Page Society.
Ibrahim Seushi TanzaniaIbrahim Seushi is aneconomist with over 20years' experience inmanagement consulting. Heis a director inPriceWaterhouseCoopersConsultants Limited, AfricaCentral, which includes
Tanzania, Kenya, Uganda,Zambia, Ghana, Nigeria andMauritius. He has advisedgovernments in Africa onpublic sector reformsincluding governance. Hehas organised public-civilsociety partnerships to raisethe profile of the corruptionin Tanzania throughnational integrityworkshops. He is also theChairman of Transparencyinternational Tanzania.
Laurence CockcroftUnited KingdomLaurence Cockcroft is aneconomist with 30 years’experience in thedeveloping world. He is nowan independent consultantworking closely with aBritish Foundation whichfinances projects in Africa,particularly in the fields ofmicro enterprise andagricultural research. Mr.Cockcroft has written abook on Africandevelopment issues and wasa parliamentary candidatefor the Social DemocraticParty in the 1983 and 1987UK general elections. He hasparticipated in several radioand TV programmes dealingwith corruption and assecretary of TI UK hasorganised several mediainitiatives on the 1994OECD recommendation.
Oby K. EzekwesiliNigeriaOby K. Ezekwesili has aMaters Degree ofInternational Law andDiplomacy and is achartered accountant. Shehas held several positionswith accounting andconsultancy firms. In 1996,she became the ManagingConsultant of KatrynBenjamin Associates. She isa member of severalprofessional bodies both inNigeria and the UK. She isalso a member of the AfricaLeadership Forum andserves on the board ofseveral other national andinternational NGOsincluding SoroptimistInternational and the Centerfor Development ofDemocracy in the UK. Shecurrently lives in the USwhere she serves on theboard of FUND, an NGOdealing with economicempowerment.
Fritz F. HeimannUSAFritz F. Heimann has been alawyer with General Electricfor more than four decades.He served as AssociateGeneral Counsel for 20years and is now Counselorto the General Counsel. Heis one of the founders ofTransparency International
and the Chairman of TI USA.Mr. Heimann chairs theWorking Group on Briberyand Corruption of the USCouncil for InternationalBusiness and is a member ofthe International Chamberof Commerce Committee onExtortion and Bribery. Hehas been actively involvedin the work on the OECDconvention on CombatingBribery of Foreign PublicOfficials and on the ICC’sRules of Conduct to CombatExtortion and Bribery.
Valeria Merino DiraniEcuadorValeria Merino is a founderand executive director ofthe Latin American Corpo-ration for Development(CDL) . This NGO focuses ondevelopment andenvironmental issuesthrough legal andinstitutional analysis. CLDhas worked with the WorldBank and USAID. Ms.Merino has been an ActiveMember of TI since 1994and is the TI coordinator forthe Andean region. She is amember of the Board ofDirectors of the Universityof the United Nations inTokyo and is Co-SecretaryGeneral of the Law Schoolat the Catholic University of Ecuador.
Peter Rooke Australia Peter Rooke is a businesslawyer by profession and forover 30 years advised oninternational trade andinvestment. He waschairman of theInternational BarAssociation’s Middle EastRegional Forum and hasserved as chairman or boardmember of other companiesand NGOs. Mr. Rooke helpedset up the AustralianNational Chapter in 1995and is now its chiefexecutive. He participates in TI work throughout Asiaand the Pacific. He has beenan Active Member of TIsince 1996.
Adam TertákHungaryAdam Terták is aneconomist specialised in thefield of planning andinformation systems withconsiderable expertise inthe field of privatisation. Hehas been the managingpartner of Ernst & YoungHungary since January1991. Since theestablishment of the Ernst
& Young practice in 1989,Adam has assisted with thefoundation and operation ofseveral joint ventures. Adamis chairman of TI Hungary.He is a member of theInternational Chamber ofcommerce in Hungary andsits on the board of severalorganisations such as theHungarian ManagementInstitute and the UnitedWay Budapest.
Michael WiehenGermanyMichael Wiehen studied lawin Germany and at Harvard.He served for more than 30years at the World Bank,first in the legal departmentand then in variousmanagement positions,among them as CountryDirector for South EasternEurope, South East Asia andfor Eastern and SouthernAfrica. Mr. Wiehen wasinstrumental in developingcooperation between theWorld Bank and the globalNGO community. Since hisretirement in 1995, he has,on a volunteer basis,devoted a large part of histime to TI activities on theinternational scene andwithin Germany. Mr. Wiehenis a member of the Bar inMunich and serves as aTrustee of the MountainInstitute, which is devotedto preserving and advancing
mountain environments andcultures.
AdvisoryCouncilKamal HossainChairman, BangladeshFormer member ofparliament, Chairman ofBangladesh Legal Aid &Services Trust
Ahmedou Ould-Abdallah Mauritania, Former Ministerof Foreign Affairs, Executive,Secretary of the GlobalCoalition for Africa
Abdulatif Y. Al-HamadKuwait DirectorGeneral/Chairman of theBoard of Directors Arab Fundfor Economic and SocialDevelopment
Oscar Arias SanchezCosta Rica Former President,Nobel Peace Prize Laureate,President of the AriasFoundation for Peace andHuman Progress
Paul Batchelor UK, Vice-Chairman, GlobalGeographies
Peter Berry UK, Managing Director ofthe Crown Agents
John Brademas USA, Former Member ofCongress, President Emeritusof New York University,Chairman of the NationalEndowment for Democracy
Directors and Secretariat
21
Jimmy Carter USA, Former President
Ugo Draetta Italy, Vice President andSenior Counsel of GeneralElectric
Dolores L. EspanõlPhilippines, Presiding Judgeof Regional Trial Court
Dieter Frisch Germany, Former DirectorGeneral for Development ofthe Commission of theEuropean Communities
Johan Galtung Norway, Peace Researcher,Alternative Nobel PeacePrize Laureate
Ekaterina GenievaRussia, Director General ofState Library for ForeignLiterature
Frene Ginwala South Africa, Speaker ofParliment
Ellen Johnson SirleafLiberia, AssistantAdministrator for Africa,United Nations DevelopmentProgramme
Ronald MacLeanAbaroaBolivia, Mayor of La Paz,Former Minister of ForeignAffairs
Nestor HumbertoMartinez Colombia, Former Ministerof Justice
Hans MatthöferGermany, Former Minister ofFinance, CEO,Beteiligungsgesellschaft fürGemeinwirtschaft
Ira Millstein USA, Partner of Weil,Gotshal & Manges Festus Mogae Botswana,President
Luis MorenoOcampoArgentina, Former PublicProsecutor and DistrictAttorney of Buenos Aires,Co-founder of PoderCiudadano
Miklós Németh Hungary, Former PrimeMinister, Vice President ofthe EBRD
John Noonan USA, Judge of the US FederalCourt of Appeals
Olusegun ObasanjoPresident of Nigeria
Wiktor OsiatynskiPoland, Open SocietyInstitute
Devendra Raj PandayNepal, Former Minister ofFinance
Jean-Claude Paye France, Former SecretaryGeneral of the OECD, SpecialAdviser to the Government
John Prescott Australia, Former CEO ofBHP
Hartmut RuppelNamibia, Former Attorney-General, Partner of Lorenz &Bone
Augustine RuzindanaUganda, Inspector Generalof Government
Soli J. Sorabjee India, Former Attorney-General, Senior AdvocateSupreme Court of India
Amadou ToumaniTouré Mali, Former Head of State
Jessica TuchmannMathews USA, President, CarnegieEndowment forInternational Peace
Joe Wanjui Kenya, Chairman, BawanRoses Ltd
Richard vonWeizsäcker Germany, Former President
Council onGovernanceResearch Members
Syed Hussein AlatasMalaysiaMads AndenasNorway, Director, Centre forEuropean Law, King’s CollegeLondonOmar AzzimanMorocco, Minister of JusticeJolanta Babiuch-Luxmoore Poland, Institute ofSociology, University ofWarsawPaolo BernasconiSwitzerland, Lawyer,Universities of St. Gallen &ZurichMarie BohatáCzech Republic, EconomicInstitute, Academy ofSciencesGerald CaidenUSA, Public Administration,University of SouthernCalifornia
Jean Cartier-BressonFrance, Economics,University of ParisHugh Corder South Africa, Public Law,University of Cape TownWesley CraggCanada,Business Ethics, YorkUniversityBertrand de SpevilleUK, Former Commissioner,Hong Kong IndependentCommission AgainstCorruption (ICAC)Michael JohnstonUSA, Political Science,Colgate UniversityJohann GrafLambsdorffGermany, Economics,Göttingen UniversitySir Tim LankesterUK, Director, School ofOriental & African StudiesKinhide MushakojiJapan, Meiji GakuinUniversityAshis Nandy India, Director, Centre forthe Study of DevelopingSocietiesWiktor OsiatynskiPoland, Open SocietyInstituteMarcello PalazziThe Netherlands, NewAcademy of BusinessJon S.T. Quah Singapore, Head, PoliticalScience, National UniversitySusan Rose-AckermanUSA, Law & Economics, YaleUniversityCharles SampfordDirector, Key Centre forEthics Law, Justice andGovernance, GriffithsUniversityVito TanziItaly, Director, Fiscal AffairsDepartment, IMFJosé María TortosaBlasco Spain, Social Sciences,
University of AlicanteAmmata Traoré Mali,President, Centre AmadouHampaté BâJakob von UexküllSweden & Germany,Chairman & Founder, RightLivelihood AwardFoundation, Member of theEuropean ParliamentPeter Waller Germany,German DevelopmentInstitute (DIE)
SecretaryFredrik Galtung Norway,Faculty of Social andPolitical Sciences, WolfsonCollege, CambridgeUniversity
SecretariatBerlinheadquarters
Peter EigenChairman, Germany
Hansjörg ElshorstManaging Director, Germany
Margit van Ham Executive Director, Germany
Miguel SchlossExecutive Director, Chile
Dieter Biallas Acting Executive Director,Germany
Programmes
Donald Bowser Canada
Marie Chene France
Sergei Chereikin Russia
Gillian Dell USA
Arwa Hassan UK/Egypt
Karen Hussmann Germany
Gladwell Otieno Kenya
Mercedes Meeden Cuba
Carel Mohn Germany
Sara Morante Italy
Tara Polzer Germany/USA
Andrew Theophilou UK
Folkard WohlgemuthGermany
Administration
Sylvia Fiebig Germany
Anke Goldammer Germany
Andrew Kelly USA
Nüket KılıclıGermany
Vanesa Kohl-Salazar Peru
Lene Møller Jensen Denmark
Kristina SpaarSwitzerland
London office
Jeremy Pope Executive Director, NewZealand
Nihal JayawickramaExecutive Director, Sri Lanka
Programmes
Susan Côté-FreemanCanada
Fredrik Galtung Norway
The work of the TISecretariat is assistedthroughout the year by anumber of interns whom wewish to thank warmly.
David Albregts Netherlands
Federico Bilder Argentina
Ariadne Bloomfield-NeiraGermany
Stanislas Cutzach France
Thomas Dantes Germany
ElzbietaGrudziewska-KlickPoland
Annette Naumann Germany
Louise Nyamu Kenya
Nadja Pohlmann Germany
Tara Polzer Germany/USA
Iseult Rea UK
Jiong-Shi Song China
Kristina Spaar Switzerland
Martha Susid Poland
Hennie Van Vuuren South Africa
Melanie von Groll Germany
Manuela WeiningerGermany
Yi-Wen Liu Taiwan
Table of Contents page
A message from Olusegun Obasanjo 1
A message from Peter Eigen 1
Building the International Coalition 2
Mobilising the Support Base 4
National Chapters in Action 6
Building the Knowledge Base 10
Monitoring the Fight against Corruption 12
Financial Statements 14
Offering our thanks 15
National Chapter List 16
Boards and Secretariat 20
Transparency InternationalAnnual Report 1999
Editors: Susan Côté-Freeman, Jeremy PopeContributing editors: Carel Mohn, Arwa Hassan
