ICGFM Promotes Knowledge Transfer Among Public Financial Management Experts

Working globally with governments, organizations, and individuals, the International Consortium on Governmental Financial Management is dedicated to improving financial management by providing opportunities for professional development and information exchange.

Tuesday, May 20, 2008

The World is out of Balance

Djordjija Petkoski of the World Bank Institute says that the annual cost of corruption is over $1 Tillion. Mr. Pekoski put a human face on the effects of corruption at the ICGFM conference explaining that the world is out of balance. "It is not a transaction."

Over 2.6 billion people or 40% of the world lives on less than 1$ day. "Should we be sorry," he asks. "It is more about opportunities."

Mr. Petkoski (left) was joined by Eugenio Marulanda Gomez, President Confecemas Colombia (center) and John Sullivan from the Center for International Private Enterprise. Mr. Gomez spoke about the need for measurement to determine how effective programs are working.

Statistics show that the amount of net flows from the private sector to developing nations is far more than official donor and government funding. Therefore, the private sector must play a larger role in reducing corruption. The private sector can work for collective action to motivate the reduction of corruption. The World Bank and partner organizations are setting up a portal to assist the private sector to reduce corruption.

John Sullivan described how important the OECD Convention on Anti-Bribery has been to break the taboo about talking about corruption. Mr. Sullivan does not believe that corruption is based on culture. He recommends reading the book, The Logic of Collective Action, by Mancur Olson to show how collective action can work to reduce corruption.

Copies of Development Outreach was provided to attendees.

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