Challenges to Organization & Governance

• Reforms towards anti-corruption

• Institutional Reforms• Accountability• Reinventing the

bureaucracy• Civil Society Anti-

Corruption Efforts

Challenges

• graft and corruption • failure or reorganization processes • lack of people participation • citizens apathy• lack of trust in government

Prof. Klitgaard:

Corruption= Monopoly+Discretion-Accountability

The decline on trust in government has been brought about by many factors including the inefficient and ineffective delivery of services, waste of public resources, graft and corruption, lack of integrity in government, poor leadership, excessive red tape, ineffective reorganization and structural changes, too much centralization, among other things.

Institutions defined

• Habits of a group or the customs of a people (Hamilton 1932)

• Conventions, rules of action, embedded in social structure, locally specific (Krätke1999)

• Settled habits of thought common to the generality of men (Veblen 1919)

• Collective action exercised by different types of organization (family, corporation, trade union, state in control of individual action (Commons 1924)

Institutions defined

• Convenient term for the more important among the widely prevalent, highly standardized social habits (Mitchell 1950)

• Sets of rules of the game or codes of conduct defining social practices (Young 1994)

• Formal organizations, patterns of behaviour, negative norms and constraints (Coriat and Dosi 1998)

• Mental constructs (Neale 1987)

Institutions defined• Rules of the game (North 1990)• How the game is played (Nelson and Sampat 2001)• A set of socially prescribed patterns of correlated behaviour (Bush

1986)• Prescribed or proscribed patterns of correlated behaviour (Tool

1993)• Constitutional rule systems for society, collective choice rules

governing• different kinds of organization, operational rules of organizations

(Ostrom 1999)• Norms that regulate relations among individuals (Parsons 1990)

Source: Parto (2005)

“CHANGE”

Institutional Reform Areas

• Public Expenditure and Financial Management• Public Enterprise Reform• Tax Policy and Administration• Civil Service Reform• Legal and Judicial Reform• Regulation of the Private Sector• Decentralization

Institutional Reforms

• Redefining the role of the stateStabilizing the macroeconomic situationReducing the size of the public sector

• Role of civil society• Role of the Private Sector• Regional Integration

Good Governance• Transparency of government. Citizens must be kept informed

of the decisions of the state and their justification.

• Simplicity of procedures. Whether in fiscal matters, investment, or other areas, administrative procedures need to be as simple as possible, with the number of participants reduced to a minimum.

• Responsibility. Public officials must be held accountable and, if necessary, penalized for offenses.

Good Governance

• Fight against corruption. Eradication of this scourge is imperative for promoting healthy competition, eliminating surcharges, and strengthening the efficiency of economic management.

• Individual freedom and collective expression. A free and responsible press, in particular, is an important pillar of democracy.

• Independence of the legal system. The legal system must be free from pressure and intervention from political forces or any other organization, to ensure that its decisions are independent and impartial.

Key Institutional Reform Measures• PFM Reform Roadmap• RA 9485 (ARTA)• RA 6713 (Code of Ethics for Public Officials)• RA 9184(Procurement)• Election Automation Law• Rationalization Plan • RA 7160 (Local Government Code)• Transparency Seal• Salary Standardization Law