The document discusses using political economy analysis to assess corruption at the sector level. It defines political economy analysis and governance, and explains why addressing governance is important for sectors. A four-step methodology is provided for analyzing sector governance: 1) assessing the context, 2) mapping actors and their interests/power, 3) assessing governance and accountability relations between actors, and 4) determining reform readiness. Guiding principles are to build on existing analyses and make findings public.
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Assessing corruption in sectors using political economy analysis
1. EuropeAid
Assessing corruption : Using political economy
approaches (in sectors)
EuropeAid Anti-corruption seminar
24-26 June, Brussels
Jean Bossuyt (ECDPM)
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2. What is political economy analysis? EuropeAid
• Political economy analysis is concerned with the interaction
of political and economic processes in a society: the
distribution of power and wealth between different groups
and individuals and the processes that create, sustain and
transform these relationships over time (OECD/DAC)
• Can promote development effectiveness by contributing to
an increased understanding of contextual factors into
account
• Is an essential tool for capturing informal realities “behind
the façade” in governance matters (such as corruption)
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3. What do we mean by Governance? EuropeAid
• State’s ability to serve its people
• Public functions carried out
Refers to:
• rules, processes, behaviour:
• interests are articulated
• resources managed
• power exercised
(Communication on Governance and Development 615/2003)
(Communication on Governance in the European Consenus on
Development 421/2006)
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4. The different dimensions of governance EuropeAid
• Governance clusters:
Governance democratisation, human
clusters
rights, decentralisation, rule
of law,…
Governance
principles
• Governance principles:
transparency, accountability,
Core participation, inclusion
governance
concerns
• Core governance concerns:
rules, interests, power,
resources
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5. EuropeAid
WHY ADDRESSSING
GOVERNANCE AT SECTOR LEVEL?
USING POLITICAL ECONOMY ANALYSIS
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6. The challenge of
weak governance
in sectors: EuropeAid
state
o Leakage of funds
o Sub-optimal spending
o Accountability
o Lack of demand
o Political tool
o Power
o Institutional capacities
citizens
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7. Governance for better procurement EuropeAid
procedures....
Doctor’s surgery 7
in Central Africa
10. The methodology – analyzing sector governance EuropeAid
1. Some guiding principles
2. The analysis framework
3. Four practical steps to move forward
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11. 1. Guiding principles EuropeAid
• The purpose of the governance analysis must drive the
choices, hence must be defined – cfr GOVNET
o Donor decisions and concerns
o General partner-donor cooperation
o Support partner country governance reforms
• Build on what is available – and try not to burden the
existing consultative mechanisms at sector level
• Make public more than you think
• It’s a continuous process
• Combine governance and sector expertise
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12. 2. The governance analysis framework EuropeAid
Political
system/government
Rule making and
executive actors at
Context different levels
Checks and balances Non-state actors
organisations Citizens, voters, Core public agencies
Supervise sector consumers, user groups Sector ministries,
organisations or handle economic agents, elites, agencies with regulatory
complaints (auditors, media…
or supporting roles, …
judiciary, ombudsmen,…)
Frontline service
providers Donors,
Public and private international
providers delivering organisations
services Influence on sector
governance and
Governance
accountability relations
Accountability
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13. 3. Four steps to analyse sector governance: the EuropeAid
methodology
• Step 1:
Assessing the Context of Sector Governance
• Step 2:
Mapping the Actors – Their Interests, Power and Incentives
• Step 3:
Assessing Governance and Accountability Relations
• Step 4:
• Summing up: analysing governance reform readiness
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15. STEP 1 – typical questions include: EuropeAid
• What is the degree of political attention a particular sector
receives?
• Are there ongoing public sector reforms?
• Is there a strong judiciary at national level?
• What are the features of public service performance and
management?
• Are studies available on the political economy of
corruption?
• How is decentralisation pursued at national level?
• Are there international obstacles that affect sector
governance negatively?
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16. STEP 2 EuropeAid
ACTORS Political
system/government
Rule making and
executive actors at
Context different levels
Checks and balances Non-state actors
organisations Citizens, voters, Core public agencies
Supervise sector consumers, user groups Sector ministries,
organisations or handle economic agents, elites, agencies with regulatory
complaints (auditors, media…
or supporting roles, …
judiciary, ombudsmen,…)
Frontline service
providers Donors,
Public and private international
providers delivering organisations
services Influence on sector
governance and
accountability relations
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17. STEP 2: points of attention EuropeAid
• Six clusters of actors:
o Non-state actors
o Checks and balances organisations (e.g. Anti-corruption
bureau’s)
o Political system/government
o Core public agencies
o Frontline service providers
o Donors, regional and international organisations
• How to go about it?
o Avoid the summing up –long list and little insight
o Focus on interests, power and incentives
o Key linkages
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18. STEP 3 EuropeAid
GOVERNANCE AND ACCOUNTABILITY RELATIONS
Political
system/government
Rule making and
executive actors at
Context different levels
Checks and balances Non-state actors
organisations Citizens, voters, Core public agencies
Supervise sector consumers, user groups Sector ministries,
organisations or handle economic agents, elites, agencies with regulatory
complaints (auditors, media…
or supporting roles, …
judiciary, ombudsmen,…)
Frontline service
providers Donors,
Public and private international
providers delivering organisations
services Influence on sector
governance and
Governance accountability relations
Accountability 18
19. Step 3: Analyzing governance and accountability EuropeAid
relations between actors
Mix of governance mechanisms:
Hierarchy
Patrimonialism
Market
Networks
Four other aspects:
Information about and clarity of governance?
Responsiveness of governance?
Accountability set-up and responsibility?
Capacity for governance and accountability?
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20. Governance mechanisms - patrimonialism EuropeAid
Hierarchies Markets Networks
Patrimonial
Basis of Employment Contracts and Resource
Loyalty
relationships relationship property rights exchange
Degree of
Dependence Dependent Independent Interdependent
dependence
Formal financial
Informal Horizontal Complex and
Type of and
between patron through market blurred
Accountability administrative
and client mechanism accountability
accountability
Medium of
Patronage Authority Prices Trust
exchange
Means of
conflict Submission or Rules &
Haggling, courts Diplomacy
resolution & Exit commands
coordination
Culture Custom Subordination Competition Reciprocity
Bound only by Bound by Bound by degree
Limitations of Bound by
other persons; institutions, of consensus
governance efficiency
arbitrariness predictability achieved
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21. Example: Transport sector in “Assima” EuropeAid
• Sector objective: reduce cost of transport
• Main obstacle: monopoly of transport sector
• Quantity of CSP in transport
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22. New openings in context EuropeAid
* Using windows of opportunity given by new
players: HoD, Ministers, new management
* Coordination amongst actors (consensus
on way forward)
*Audit
*Investment funds frozen
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23. EuropeAid
Mapping the actors
Non-state actors state actors:
ACTOR Power / Interest Driver of change
National Transport Powerful; Keep Resistance to change
Federation monopoly; collusion
with police; political
links
Other transport Liberalise market; no Driver of change
organisations weight; tension with
Administration
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24. EuropeAid
GOVERNANCE AND ACCOUNTABILITY RELATIONS
Political
system/government
Rule making and
executive actors at
Context different levels
Checks and balances Non-state actors
organisations Citizens, voters, Core public gncies
Supervise sector consumers, user groups Sector ministries,
organisations or handle economic agents, elites, agencies with regulatory
complaints (auditors, media…
or supporting roles, …
judiciary, ombudsmen,…)
Frontline service
providers Donors,
Public and private international
providers delivering organisations
services Influence on sector
governance and
Governance accountability relations
Accountability
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