World Bank IMF and Dev Agencies | |
World Bank IMF and Dev Agencies | |
2160 VIEWS | |
![]() |
Sunday, January 10, 2021 12:03 AM / by Vitor Gaspar, Martin Muhleisen and Rhoda Weeks-Brown, IMFBlog/ Header Image Credit: ACGC
Corruption,
the abuse of public office for private gain, is about more than wasted money:
it erodes the social contract and corrodes the government's ability to help
grow the economy in a way that benefits all citizens. Corruption was a
problem before the crisis, but the COVID-19 pandemic has heightened the
importance of stronger governance for three reasons.
First, governments around the world are playing
a bigger role in the economy to combat the pandemic and provide economic
lifelines to people and firms. This expanded role is crucial but it also increases opportunities for corruption. To
help ensure the money and measures are helping the people who need it most,
governments need timely and transparent reporting, ex-post audits and
accountability procedures, and close cooperation with civil society and the
private sector.
Second, as public finances worsen, countries
need to prevent tax evasion and the waste and loss of funds caused by corruption in public spending.
Third, crises test people's trust in government
and institutions, and ethical behavior becomes more salient when medical
services are in such high demand. Evidence of corruption could undermine a country's
ability to respond effectively to the crisis, deepening the economic impact,
and threatening a loss of political and social cohesion.
During this crisis the IMF hasn't taken its eye off
the ball of our governance and anti-corruption work. Our message to all
governments has been clear: spend whatever you need but keep the receipts,
because we don't want accountability to be lost in the process.
In our lending work, we have provided quick
disbursements to meet urgent needs. At the same time, enhanced governance
measures to track COVID-19 related spending have been
part of the emergency financing for countries to fight the pandemic.
Borrowing countries have committed to (i) undertake
and publish independent ex-post audits of crisis-related spending and (ii)
publish crisis-related procurement contracts on the government's website,
including identifying the companies awarded the contract and their beneficial owners.
The IMF also ensured that emergency resources are subject to the IMF's Safeguards Assessment policy.
Long-term reform beyond the crisis
Governance safeguards for emergency assistance related
to COVID-19 are part of a more comprehensive effort by the IMF to improve its
member countries good governance and efforts to tackle corruption.
The IMF has significantly increased its focus on
governance and corruption over the last few years. We adopted in 2018 an
enhanced framework designed to make our work with
countries more candid, evenhanded, and effective. This laid the foundation for
our COVID-19 policy and lending response, where stronger governance matters
even more.
We recently assessed our progress in recent years and
published the findings in a staff analysis. Here are the key highlights:
Curbing
corruption requires government ownership of reforms, international cooperation,
and a joint effort with civil society and the private sector. It also involves
political will and the assiduous implementation of reforms over months and
years.
This crisis will sharpen our focus on governance in
the years ahead because of the pandemic's devastating effects and costs for
people and economies. Countries can't afford to lose precious resources at the
best of times, and even less so during and after the pandemic. If ever there
was a time for anti-corruption reforms, it is now.
Related News
1.
Global Output
Expected to Expand by 4% in 2021, Still Below Pre-Pandemic Trend
2.
AfDB Takes Steps
to Accelerate the Circular Economy in Africa
3.
African
Development Bank's Board of Directors Approves the Bank's Borrowing Program for
2021
4.
Glaciers of
Global Finance: The Currency Composition of Central Banks' Reserve Holdings
5.
What to do When
Low-for-Long Interest Rates are Lower and for Longer
6.
World Bank Group
to Boost Nigeria's Efforts to Reduce Poverty
7.
IMF Staff
Completes 2020 Article IV Mission to Nigeria
8.
Open Trade and
Economic Inclusion Key to Post-COVID Recovery
9.
AfDB's AgriPitch
Competition Awards $120,000 in Prizes to African Youth Agripreneurs
10. Bridging the
Digital Divide to Scale Up the COVID-19 Recovery
11.
AfDB, AIF
Founding Partners Announce Postponement of the Africa Investment Forum to 2021
12. Remittance Flows
to Shrink 14% by 2021 Due to COVID-19
13. How COVID-19
Will Increase Inequality in Emerging Markets and Developing Economies
14. SSA October 2020
Regional Economic Outlook: A Difficult Road to Recovery
15. Communique of
the 42nd Meeting of the IMFC Chaired by Mr. Lesetja Kganyago
16. WEO: A Long and
Difficult Ascent - Global Growth Projected at -4.4% in 2020
17. IMF Executive
Board Approves the Extension of Increased Access Limits Under the RCF and RFI
18. IMF Extends
Immediate Debt Service Relief for 28 Eligible Low-Income Countries for 6-months
19. Reform of the
International Debt Architecture is Urgently Needed
20. African
Development Bank Named to the Board of World Business Angels Investment Forum