Corruption impedes development

Corruption impedes development. It impairs the effectiveness and predictability of public institutions and leads to public funds being diverted for personal use, instead of being employed for sustainable and socially inclusive development. Pervasive corruption also spells danger for the development of democratic processes. In the private sector, corruption creates legal uncertainty, increases costs and distorts competition. Bribery and mismanagement of resources, for example in the education and health systems, jeopardize the achievement of fundamental goals. Thus, it is particularly the poor in a society who bear the brunt of corruption.
Corruption diminishes the impact of development cooperation. It undermines the achievement of reform objectives and constrains review and control mechanisms. Corruption is a risk factor especially in fragile states when external resources are embezzled and used to influence the distribution of power.

Corruption impedes development

Corruption impedes development. It impairs the effectiveness and predictability of public institutions and leads to public funds being diverted for personal use, instead of being employed for sustainable and socially inclusive development.  Pervasive corruption also spells danger for the development of democratic processes. In the private sector, corruption creates legal uncertainty, increases costs and distorts competition. Bribery and mismanagement of resources, for example in the education and health systems, jeopardize the achievement of fundamental goals. Thus, it is particularly the poor in a society who bear the brunt of corruption.
Corruption diminishes the impact of development cooperation. It undermines the achievement of reform objectives and constrains review and control mechanisms. Corruption is a risk factor especially in fragile states when external resources are embezzled and used to influence the distribution of power.

Anti-corruption as an international priority

A strong consensus on anti-corruption principles has been built up internationally. The United Nations Convention against Corruption (UNCAC) is the first global und universal agreement on combating corruption. The OECD Anti-Bribery Convention and regional commitments are also a clear indication of the importance accorded to this issue on an international level. Germany has also made a commitment to apply anti-corruption measures in its international development cooperation and to observe integrity standards in the implementation of its work (e.g. those laid down in UNCAC, the Paris Declaration and the Accra Agenda for Action).

Anti-corruption in German development cooperation

The significance of anti-corruption measures for German development cooperation is spelled out in the anti-corruption strategy of 2002 and also in the good governance strategy of 2009. Thus, German development cooperation supports partner institutions in introducing institutional reforms designed to prevent corruption. Such reforms may begin with regulations for the public sector and with encouraging civil society to play an active role in controlling public services and reporting corrupt practices.
The German Federal Ministry for Economic Cooperation and Development (BMZ) also sees corruption as an important factor for assessing political frameworks in partner countries.
Due to an increased awareness of the problem, institutions in partner countries and German development cooperation have an intense interest in approaches to preventing corruption. The GIZ Anti-corruption and Integrity Programme offers advisory services to BMZ based on its expertise in this area, and develops approaches and instruments to fight corruption and promote integrity in partner countries.

• Preventing corruption - promoting transparency: What is German development policy doing?
  Flyer, BMZ, 2009
  www.bmz.de/en/.../FlyerKorruption.pdf