Tackling Corruption
Corruption amounts to an additional tax on the many not benefitting from it and is paid for ultimately by suppliers, consumers, employees and taxpayers – in short, everyone. Corruption, if left unchecked, can be an existential threat to the state, depriving the state of funds needed for defense and public services.
Recognition of this fact can often escape the attention of the top political leadership until it becomes clear that large sums of money are being stolen audaciously and significant volumes of tax revenues are needed to finance borrowing debts.
However, corruption rarely escapes the attention of the tax-paying public who see members of the elite living far beyond their obvious means. Tax compliance suffers when there is a lack of confidence that tax revenues will be used for their stated purpose. Many countries understand the importance of effectively collecting tax, but even well designed and well implemented tax reform strategies will fail if the surrounding environment is one of tolerance of corruption.
Corruption can be effectively tackled but it requires strong and determined action from the top political leadership. This is not to say that other actors have no role to play – they most certainly do – but absent the strong political will and leadership from the top of society all other efforts are likely to fail. In essence fighting corruption is very much a top-down process.
What would a top-down process involve?
A head of state champion: The head of state should visibly lead this strategy, demonstrating unwavering commitment to fighting corruption and building an inclusive formal economy. Simply having an anti-corruption strategy in place is not enough – the strategy must be backed up with swift action being taken, and being seen to be taken, against corrupt officials.
A dedicated task force: A task force directly under the President's or Prime Minister’s Office should be established to coordinate and drive implementation, ensuring clear goals, timelines, and adequate resources.
Public commitment: All top political leaders must publicly support this strategy, highlighting the benefits of a corruption-free, formalized economy for all citizens.
A much more detailed, ongoing, and evolving strategy is needed of course, and it will be vital to actively involve the private sector, civil society, and the country’s development partners. I will deal with this in more detail in later pieces.
In the meantime, what is your view? Is this the correct place to start when countering corruption or would you recommend another strategy?
