Further supplementary memorandum submitted
by the Department for International Development
1. The collaborative plan agreed by the
Utstein partners is below. It should be noted that this is a working
document, subject to change in consultation with our Utstein partners.
The dates cited in the action plan are approximate and are for
planning purposes only.
2. The Declaration on Anti-Corruption issued
by Utstein Development Ministers in May 2000, to which reference
is made in the plan, also follows.
1. International Development Ministers of
the Utstein Group, meeting in The Hague in May 2000, declared
their commitment to concerted action to reduce the damaging effects
of corruption on development, and their readiness to collaborate
with those who share this commitment, in governments, civil society
and the private sector, and other development agencies, both multilateral
2. This action plan has been developed to
turn this commitment into practice. The detailed actions it contains
are intended to contribute to four strategic objectives:
To strengthen the international framework for
3. The Utstein group (U4) strongly supports
the international framework established by the OECD Anti-Bribery
Convention to combat corruption in business transactions. We want
to see effective implementation of the Convention leading to a
reduction in international business-related corruption. To contribute
to this, we will work domestically to ensure that the Convention's
provisions are fully known to the business community. Internationally,
we want to encourage the replication of the principles of the
Convention in other regions, by promoting regional approaches.
The Secretariat of the OECD also needs to be strengthened to support
further analysis of "horizontal" issues, and outreach
4. The U4 also strongly supports, and wants
to see strengthened, the regime created by the Financial Action
Task Force to deter money laundering. We want to encourage further
efforts at regional level to build on this achievement. Better
corporate governance and regulation of financial sectors, particularly
in transitional and middle income countries, are also vital elements
of the battle against corruption. We want to contribute to international
efforts to improve corporate standards.
5. The planned UN Convention on Corruption
offers the opportunity to create an overarching international
framework for all anti-corruption efforts. We aim to play an active
role in the negotiating process.
To support developing countries committed to combating
6. The U4 are pledged to strengthen partnerships
with those developing countries which are committed to combating
corruption. We will increase bilateral financial support and work
with other bilateral and multilateral agencies to increase the
quantum of resources applied to anti-corruption work.
7. The U4 recognise the burden which uncoordinated
donor activity imposes on developing countries. We want to develop
better ways of working. Where practicable, we want to develop
programmes jointly, pool resources and harmonise procedural requirements.
This includes encouraging collaborative working with other bilateral
and multilateral agencies.
8. We also want to help to strengthen developing
countries' own systems, for example in financial management, procurement,
accounting and audit, and contribute to increasing the momentum
for reform by fostering parliamentary, civil society and private
sector efforts. Helping to ensure that anti-corruption is embedded
within poverty reduction strategies will be a major objective.
To strengthen development agencies' systems
9. The U4 development agencies recognise
the need to strengthen their internal systems, both to respond
to the changing forms of development assistance and to build better
defences against corruption in development assistance programmes.
10. We envisage a number of specific areas
of action: to strengthen financial oversight of through joint
approaches; to develop new forms of financial control appropriate
to emerging budgetary and sector-wide approaches; to deal more
vigorously with corruption in procurement; to increase transparency;
and to improve our own technical capacity to assist in developing
anti-corruption programmes, including regular reviews of the quality
of our anti-corruption contributions.
To learn from experience and communicate those
lessons more widely
11. The U4 believe that an important outcome
of their collaboration should be a better drawing together of
past experiences and a pooling of knowledge and expertise. To
this end, they will establish a joint resource centre on anti-corruption,
organised on-line to maximise external access. We will look to
encourage and bind into similar regional initiatives to develop
a global network of knowledge. We want also to explore avenues
to broaden and give better structure to collaboration between
donors. The governance network of the OECD Development Assistance
Committee may be a suitable forum.
12. We believe that measuring and tracking
corruption is an essential component of anti-corruption strategies,
especially to monitor progress, demonstrate success and understand
trends. Capacity for monitoring corruption needs to be institutionalised
within national authorities. We want to support such efforts.
We also want to support efforts to synthesise, on a global basis,
experiences, successes and trends, both as a contribution to the
knowledge stock and as an advocacy tool to sustain momentum for
Turning the Plan into Action
13. This action plan will determine the
priorities of the Utstein partners in anti-corruption work. Central
contact points in each partner HQ will co-ordinate regularly to
oversee implementation, and commitments will be reviewed and updated
regularly. Programme managers in developing countries where Utstein
partners are present will also collaborate in line with the objectives
of this plan. Progress will be reviewed regularly by the Utstein
A STATEMENT BY
We, the International Development Ministers
of the Netherlands, Germany, Norway and the United Kingdom, are
committed to reducing the damaging effects of corruption on development.
We are ready to work with those who share our commitment, in governments,
civil society and the private sector, and the other development
agencies, both multilateral and bilateral.
2. Corruption occurs in all regions of the
world but it is particularly harmful to developing countries because
they are already the most vulnerable. Corruption diverts scarce
resources from development, deters investment and retards economic
growth. Corruption undermines democratic political systems and
is a barrier to the delivery of basic services and the provision
of security to the poor.
3. These consequences of corruption are
no longer disputed. There is a widening recognition that effective
action against corruption is required if the world is to make
progress in the urgent task of eradicating poverty and, in particular,
if the International Development Targets for 2015 are to be achieved.
4. Developed countries have also acknowledged
that it is not only social, institutional and economic conditions
in the developing countries that facilitate corruption, but also
much grand corruption in developing countries has its origin in
trade with developed countries and is facilitated by the laundering
through the international financial systems of money obtained
through corruption. Globalisation and increasing interdependence
mean that all countries need to bear down on corruption worldwide.
5. Primary responsibility for combating
corruption belongs to the government, civil society and the private
sector of the countries concerned. We attach a high priority to
supporting those in developing and transitional countries who
are committed to action and to encouraging them to work collaboratively.
6. In providing our support, the Utstein
partners will accordingly adopt a collaborative style in order
to reduce the administrative burden on developing countries and
to increase the effectiveness of their efforts. We are working
towards supporting common policies, and jointly harmonising our
procedures and to working towards providing joint funding and
shared programme management. These efforts can be extended to
include other like-minded donor countries.
7. Our aim is also to join with other like-minded
development agencies in pursuing the objective of combating corruption.
We wish to work with the United Nations system, regional development
banks and our fellow bilateral development agencies. We attach
particular importance to working with the IMF and the World Bank,
whose President, James Wolfensohn, has given a lead in mobilising
development efforts against corruption. The Comprehensive Development
Framework and the Poverty Reduction Strategy Papers provide a
policy framework within which anti-corruption efforts can be effectively
8. In our own countries, we will work to
promote development objectives in international trade and financial
policy. We will collaborate with our private sectors to promote
responsible business practices and partnerships with the other
stakeholders. We will encourage mutually supportive links between
civil society on a North/South and South/South basis.
9. In order to improve our understanding
of anti-corruption policies and to define our vision of the way
ahead, the Government of the Netherlands organised a Working Conference
on Combating Corruption in Maastricht between 25 and 27 April
2000. Attached is the organiser's report of the expert conference
including the working groups' recommendations. The next step in
our efforts should be to further elaborate the Plan of Action.
10. Having considered these proposals, we,
the International Development Ministers, plan to take the following
Priorities for Action
11. We will provide programmes of support
to governments in developing countries and to those in transition,
committed to reform and combating corruption. The objective will
be to help these countries generate political support for reform,
develop technical capability and secure financial resources for
governance so that they can develop and implement anti-corruption
policies. We will provide this support on a collaborative basis
with one Utstein partner taking the lead in each country on behalf
of the other partners. We will work wherever possible in collaboration
with the World Bank and other like-minded agencies. Plans for
such collaboration are now in hand.
12. This will include support for the system
of checks and balances provided by civil society, the media, the
judiciary and legislatures as well as support for achieving high
standards of corporate governance in the private sector. All these
actors are especially important for building a constituency for
reform where governments lack commitment. We will continue to
provide support to these actors therefore, even where we feel
unable to operate through government because of its lack of commitment.
13. To reinforce our cooperation and learning,
we will establish a virtual expert centre. Its function will be
to co-ordinate our anti-corruption activities, to develop networks
of non-governmental actors committed to combating corruption,
to identify sources of expertise in our countries, to exchange
expert information and to undertake research.
14. We will encourage developing country
governments to ensure that all Poverty Reduction Strategies Papers
(PRSP) address governance and corruption issues. We welcome the
inclusion of governance in the World Bank's guidelines for PRSPs.
We are ready to collaborate with all concerned to include a clear
focus on anti-corruption policies and plans within PRSP guidance
15. We will work within our own Governments
to ensure that the legal requirements of the OECD Convention on
the bribery of foreign officials are implemented fully. We will
seek ways to strengthen the capacity of the OECD Secretariat to
monitor implementation of the Convention and to raise awareness
of the Convention in the business community so that they adopt
effective codes of corporate conduct. We will support, where necessary,
for the efforts of the OECD Financial Action Task Force, to extend
anti money-laundering networks to Africa and Asia.
16. We are ready to support the strengthening
of financial management and procurement systems in developing
countries where several Utstein partners are engaged and to harmonise
our own approaches to procurement. This harmonisation can be expanded
to other like-minded donor countries. There will be many cases
where such strengthening of financial and procurement systems
is a prerequisite for channeling more development assistance on
a sectoral or budgetary basis in support of developing country
policies. In order to support action by multilateral development
agencies to combat corruption in their procurement processes,
we are also ready to consider action in accordance with our laws,
against our national companies that have been blacklisted by the
multilateral agencies because of corrupt activities. This presupposes
however, transparent processes and the possibility of legal protection
for the companies concerned.
17. We believe that a commitment to combating
corruption is a necessary basis for an effective development relationship.
We have adopted the measures outlined above to help us fulfil
our responsibilities for combating corruption in development.
We welcome the views of our partners and peers on our plans. We
repeat our invitation to governments, civil society and the private
sector and to other development agencies to join us in a collaborative
approach to this vital enterprise which will best serve the interests
of all of us.
1. DFID is not currently involved in work
with the judiciary in Cambodia. At present, the Royal Government
of Cambodia is not inclined to release executive authority over
the judiciary. In these circumstances, DFID, along with other
donors, are unable to engage in meaningful ways. The World Bank
has conducted diagnostic studies, and identified areas for reform.
We, along with our donor partners, will continue to seek opportunities
to assist as and when the environment allows.
Department for International Development