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AGENDA & BACKGROUND DOCUMENTPLANET INTEGRITY: BUILDING A FAIRER SOCIETY 27-28 March 2018 - Paris, France

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Tuesday 27 March

Opening Remarks

Leaders Panel: Integrity for Fairer Globalisation: Challenges & Trends

08:00

09:30-10:00

10:00-11:30

11:30-12:00

12:00-13:30

14:30-16:00

16:30-18:00

13:30-14:30

16:00-16:30

18:00-20:00

Settling Foreign Bribery Cases with Non-Trial Resolutions

Integrity in Public Procurement: Data Analytics & Supplier Exclusion

Public Infrastructure: Building the Foundations for Integrity

Integrity & Trade: No Need to Grease the Wheels

Open Government & Open Data for Integrity

Integrity in Local Governance

Combating Corruption: The Importance of Investigate Journalism

New Perspectives on Integrity [1/2]

Ethical Superhumans? Behavioural Insights for Integrity

Young ResearchEdge Pitch [1/2]

Networking Break

Registration and Welcome Coffee

Lunch Break & Youth ResearchEdge Poster Market

Networking Break

Cocktail - Buffet du Parc

Room 1

Room 1

Room 2

Room 1

Room 1

Room 4

Room 2

Room 7

Room 4

Auditorium

Room 7

Room 2

Full agenda with speakers available on the Forum website – oe.cd/IF2018 and via Swapcard app – event code: OECDACI2018

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Wednesday 28 March

Special Session: Intergovernmental Organisations’ Role & Vision in the Fight against Corruption

Leaders Panel: Integrity for Fairer Globalisation: Strategy, Action, Impact

Concluding Remarks

08:00

09:15-09:30

16:00-17:30

17:30-17:45

14:00-15:30

09:30-11:00

11:00-11:30

13:00-14:00

15:30-16:00

Enhancing Co-operation between Tax & Anti-Corruption Authorities

Young ResearchEdge Pitch [2/2]

Welcome Coffee

Networking Break

Lunch Break & Youth ResearchEdge Poster Market

Networking Break

Room 1

Room 1

Room 1

Shedding Light on a Dark Matter: Governance Gaps, Corruption & Illicit Trade

Room 2

Room 1

The Kids are Alright: Educating for Public Integrity

Room 4

Managing Corruption Risks in Contexts of Fragility

Room 7

New Perspectives on Integrity [2/2]

Auditorium

Room 2

11:30-13:00 Integrity in Sports

Towards Anti-Corruption & Integrity Guidelines for State-Owned Enterprises

Asymmetric Influences on Policy-Making

Room 2 Room 4 Room 7

Full agenda with speakers available on the Forum website – oe.cd/IF2018 and via Swapcard app – event code: OECDACI2018

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Youth ResearchEdge Poster Pitch & MarketThe Youth ResearchEdge bridges the gap between academic research and policy making. The OECD held a competition for young researchers to submit their proposals that would provide new insights and evidence on anti-corruption & integrity.

Poster Pitch: Room 2 Tuesday 16:30-18:00 Wednesday 09:30-11:00

The winners are presenting their findings in individual 5 min. research pitches, “TED-talk’’ style, during the ResearchEdge Pitch in Room 2.

Poster Market: Middle of the Conference Centre Tuesday 13:30-14:30 Wednesday 13:00-14:00

They will also present in front of their posters at the Poster Market in the middle of the Conference Centre during lunch breaks – ready for your questions!

New Perspectives on Integrity (Auditorium)

27/03 12:00-13:30

• Centre for Public Impact “Finding a More Human Government”

• Alina Mungiu-Pippidi “Transitions to Good Governance. Creating Virtuous Circles of Anti-corruption”

• Transnational Alliance to Combat Illicit Trade (TRACIT) “The Economist’s Global Illicit Trade Environment Index”

28/03 14:00-15:30

• Andrew B. Spalding “An Olympic Anti-Corruption Legacy”

• Fredrik Eriksson “U4 Trial – Facilitating Innovative Approaches to Anti-Corruption in Development”

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Have your say on the OECD Anti-Corruption & Integrity HubJoin us at the Conference Centre outside Room 1 and sign up in one of our workshops to exchange how the Hub can support the global anti-corruption & integrity community.

Your Forum with SwapcardMake the most out of the 2018 OECD Global Anti-Corruption & Integrity Forum: Download our event app, personalise your schedule and make valuable connections.

Download Swapcard - event code OECDACI2018

Lunch Options• A coffee bar in the heart of the Conference Centre

is open all day from 08:30 to 17:00 for coffee and sandwiches.

• Exki café is open from 08:00 to 17:00 offers breakfast, lunch, salads, sandwiches and snacks throughout the day.

• A self-service cafeteria, is open from 11:45 until 14:15 on the entrance level floor.

• A restaurant with waiter service offering simple and refined dishes is open from 12:00 until 14:00. For reservations or questions, please email: restaurantdesnations@elior.com.

• A variety of restaurants and bakeries outside the OECD around the metro station La Muette (5-10 minute walk).

29/03

upon invitation Workshop of the Network for Integrity (HATVP)

upon invitation Workshop of the Network for Integrity (HATVP)

10:00-12:00 Side event on the High Level Reporting Mechanism Château - Room C

30/03

09:00-17:15 European Symposium on Business Ethics and Governance (University of Cergy-Pontoise)

Room 4

13:30-15:30 OECD Latin America and the Caribbean Regional Programme Side Event

Room 9

09:00-18:00 Meeting of the MENA-OECD Business Integrity Network Room 9

28/03

08:00-09:15 Breakfast Roundtable Open Government Partnership (OGP) Room 16

09:00-18:00European Symposium on Business Ethics and Governance (University of Cergy-Pontoise)

Room 4

14:30-16:0027/03Youth and integrity in the public sector: What works in OECD and MENA countries?

Room 16

OECD Integrity Week side events

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Globalisation - the increasing integration of economies in terms of flows of goods, services, capital, people and ideas - has transformed the world.2 While it has brought immense benefits, lifting hundreds of millions out of poverty, creating economic growth and increasing the range and affordability of goods and services worldwide, it has not benefited everyone equally and certain countries and individuals remain vulnerable.

PLANET INTEGRITY: BUILDING A FAIRER SOCIETY

“The question we must ask ourselves today is what kind of globalisation we want.” 1

- Angel Gurría

BACKGROUND DOCUMENT 2018 OECD GLOBAL ANTI-CORRUPTION & INTEGRITY FORUM

The 2018 OECD Anti-Corruption & Integrity Forum will debate how integrity creates a level playing field for business, reduces socio-economic inequalities, and makes public policies more effective - enhancing the benefits of globalisation for all. This is our challenge for the future: Planet Integrity. Ahead of the 2018 Ministerial Council Meeting, the debates will focus on the governance of globalisation and will reflect on the importance of international cooperation and multilateralism to curb corruption and unethical practices in areas such as trade, competition, infrastructure, development cooperation, and revenue collection.

1 OECD (2017) Globalisation calls for radical change, by Angel Gurría, www.efe.com

2 OECD (2017) Making Globalisation Work for All: An OECD Perspective, Remarks by Angel Gurría, http://www.oecd.org/trade/making-globalisation-work-for-all-an-oecd-perspective.htm

3 OECD (2017) Foreign direct investment, corruption and the OECD Anti-Bribery Convention, http://dx.doi.org/10.1787/9cb3690c-en

4 OECD (2014) The rationale for fighting corruption, https://www.oecd.org/cleangovbiz/49693613.pdf

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The benefits of globalisation are at stake, as corruption distorts markets and creates unfair competition, discourages foreign direct investment (FDI),3 and undermines public policies.

Companies may pay bribes or rig bids to win public procurement contracts, penalizing companies that act clean. Similarly, foreign investors may face competitive disadvantages when corruption or regulatory burdens hinder access to markets or government contracts. At the same time, cartels that artificially raise prices for goods and services destroy the integrity of market competition. Corruption, bribery and undue influence can also affect the effectiveness of regulators, as some companies or private interest groups seek to influence decision-making and capture public policy.

Investment is undermined when corruption affects the granting of business licenses or environmental permits, the passing of goods through customs or the protection of intellectual property. Investment in corrupt countries is almost 5% less than in countries that are relatively

Figure 1:

% of people who believe politicians are «likely» to engage in high-level corruption

Figure 2:

Potential increase in trust if all people believe politicians «unlikely» to behave in high-level corruption

corruption-free, and it is estimated that corruption increases the cost of doing business by up to 10% on average.4 Corruption has an impact on the composition of capital inflows, diverting them from more stable FDI and towards less stable bank borrowing. FDIs not only enhance integration of the world economy, they are also a channel for transferring technology and managerial skills, stimulating domestic private sector development, including SMEs, and creating jobs. Thus corruption also undermines innovation and the worldwide diffusion of new technologies.

Corruption affects citizens’ well-being and the distribution of income, undermining their ability to participate equally in social, economic and political life. Evidence from Trustlab - the OECD platform measuring trust - shows that a majority of people believe that it is likely that politicians in their country could engage in high-level corruption (figure 1); and that reducing such a share could significantly raise people’s trust in public institutions (figure 2).

Corruption reduces the benefits of globalisation

Source: OECD Trustlab

Source: OECD Trustlab

Germany

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

United States Slovenia Italy Germany

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gov

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0.0

1.0

2.0

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Italy

Current level of trust in government

With low perceived corruption

SloveniaUnited States

Moreover, according to the 2017 Eurobarometer5, a quarter of Europeans (25%) say that they are personally affected by corruption in their daily lives. Corruption has contributed to the sharp rise in income and wealth inequality observed in recent decades6, and corruption also undermines sustainable development goals in many areas, from health to environment, education, and human rights.

Public policy is affected, too. Governments lose substantial corporate tax revenue because of international tax planning designed to shift profits to locations where they are taxed at lower rates, a practice widely recognised as legal but unethical.7 In addition, illegal tax evasion results not only in less government revenue, but also distorts competition since it puts tax-compliant companies at a disadvantage. Furthermore, domestic corruption, for example in public procurement or service delivery, reduces the effectiveness of public spending and resource allocation, perpetuating inequality and poverty.

One particular risk area is infrastructure. Quality infrastructure - roads, railroads, airports, maritime ports and digital infrastructure - helps attract international trade and investment. Yet, infrastructure projects are notoriously vulnerable to corruption, collusion and mismanagement. The large sums of money involved, the complexity of the projects in terms of stages and stakeholders, and the amount of discretion politicians and public officials have over investment decisions make these projects susceptible to undue influence. Pressure

by vested interests may result in negative productivity or excessive infrastructure.8 State-owned enterprises (SOEs) are particularly exposed to integrity risks, due to their proximity to the centres of political power. Many SOEs also operate in industries with particularly large infrastructure investments and thus a high corruption risk, such as hydrocarbons, electricity, transportation and telecommunications. Corruption in infrastructure can cause environmental, safety and health risks related to flawed or ill-placed infrastructure. Moreover, corruption has a significant opportunity cost: at a global level, a country with high levels of corruption tends to invest less in education and health systems and more in prestigious infrastructure projects that do not always have obvious benefits for society.9

Another risk area in the intersection between globalisation and integrity is modern slavery, which includes human trafficking and the exploitation of forced labour. These malpractices could not exist on its current scale without corruption. Addressing corruption as a facilitator of human trafficking, forced labour and household exploitation therefore contributes to the achievement of Target 8.7 of the Sustainable Development Goals on the eradication of modern slavery.

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To ensure that all of society reaps the benefits of globalisation, it is crucial to create an environment that fosters integrity in transactions among government, businesses and citizens.

Since corruption is increasingly globalised, complex, and multi-dimensional, international co-operation is essential for its prevention, investigation and prosecution. Given the interdependency of policies undertaken at the subnational, national and international levels, tackling corruption requires integrated approaches that take into account spill-over effects and potential synergies. The erosion of trust in our institutions is often a response to the inability of different levels of governance to work together and to recognise that common challenges can be addressed more effectively through co-operation.

The OECD Anti-Bribery Convention illustrates the critical role played by multilateralism and cooperation in the global fight against corruption. Since its entry into force nearly twenty years ago, 443 individuals and 158 entities have been sanctioned under criminal proceedings for foreign bribery10. However, bringing wrongdoers to justice remains the number one challenge and demands that cooperation between domestic jurisdictions, and horizontally between authorities of a same country, be taken to the next level.

Achieving fair globalisation also requires addressing market failures and promoting public policies that uphold fair competition. Moreover, credible corporate governance arrangements, including for internationally active SOEs, are necessary for inclusive growth. Good corporate governance helps create market confidence and business integrity, which, in turn, is essential for companies that need access to equity capital for long-term investment.11 Tax policy and administration also need to be fair to prevent tax evasion and negative impacts on trade and investment. International efforts to promote fair taxation are also crucial for fairer globalisation.12

As we set the course for Planet Integrity, what are the values that will underpin the governance of globalisation? The call for more ethical action, social responsibility and accountability is louder than ever, and many initiatives to promote integrity in government action, business transactions and in society are spreading around the world. Creating the conditions for fairer globalisation requires commitment, co-operation and action across all sectors of society. Given the international dimension of corruption, it also needs stronger international co-operation to confront global integrity challenges in an integrated and co-ordinated way. The 2018 Global Anti-Corruption & Integrity Forum will debate the role of integrity in shaping globalisation and will reflect on the importance of international cooperation and multilateralism to curb corruption and mainstream integrity.

Integrity – driver for fairer globalisation

5 European Commission (2017) Special Eurobarometer 470 – Corruption, http://ec.europa.eu/commfrontoffice/publicopinion/index.cfm/Survey/getSurveyDetail/instruments/SPECIAL/surveyKy/2176

6 OECD (2016) Putting an end to Corruption, https://www.oecd.org/corruption/putting-an-end-to-corruption.pdf

7 OECD (2013) MCM Update: Base Erosion and Profit Shifting, https://www.oecd.org/mcm/C-MIN(2013)7-ENG.pdf

8 OECD (2016), Integrity Framework for Public Investment, OECD Public Governance Reviews, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264251762-en

9 Vargas and Sommer (2014) Corruption and the Losses on Government Bonds, Risk Management Edition 3.3

10 OECD (2016) Data on Enforcement of the Anti-Bribery Convention: http://www.oecd.org/daf/anti-bribery/Anti-Bribery-Convention-Enforcement-Data-2016.pdf

11 OECD (2015) G20/OECD Principles of Corporate Governance https://www.oecd.org/daf/ca/Corporate-Governance-Principles-ENG.pdf

12 OECD (2013) Joint Action for Efficient and Fair Taxation, Remarks by Angel Gurría, http://www.oecd.org/about/secretary-general/joint-action-efficient-fair-taxation.htm

oe.cd/IF2018

IntegrityForum@oecd.org

#OECDintegrity

Knowledge Partners

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