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The Fiscal Cost of Weak Governance: Evidence from Teacher Absence in India Karthik Muralidharan, Jishnu Das, Alaka Holla, and Aakash Mohpal NBER Working Paper No. 20299 July 2014 ABSTRACT We construct a new nationally-representative panel dataset of schools across 1297 villages in India and find that the large investments in public primary education over the past decade have led to substantial improvements in input-based measures of school quality, including infrastructure, pupil-teacher ratios, and monitoring. However, teacher absence continues to be high, with 23.6 percent of teachers in public schools across rural India being absent during unannounced visits to schools. Improvements in school infrastructure and service conditions are not correlated with lower teacher absence. We find two robust correlations in the nationally-representative panel data that corroborate findings from smaller-scale experiments. First, reductions in pupil-teacher ratios are correlated ...

More than 1.2 trillion Lao kip (149.40 million U.S. dollars) has been misappropriated from 2012 to the present day through corruption, according to state-run daily Vientiane Times. The announcement was made by Head of the Government Inspection Authority Bounthong Chitmany during his report to the National Assembly (NA) on the status of inspection and anti-corruption activities. According to Bounthong, the authority inspected more than 300 targets since 2012. The main forms of corrupt activity were personal abuse of power for personal benefit, bribery, forgery of documents, illegally modifying technical standards and designs, and delaying document approval for personal gain. Read the story by Xinhua in Shanghai Daily.

[Facilitator's note: Thank you to Tony Prescott, Annika Wythes, Isikeli Valemei, Luisa Senibulu, and Samita Singh of the joint UNDP-UNODC Pacific Regional Anti-Corruption Project, for sending these updates.] SOLOMON ISLANDS: Concerns over vote buying in Solomon Islands Transparency Solomon Islands wants the Electoral Commission and government to help stamp out vote buying ahead of this year's elections. http://www.radioaustralia.net.au/international/radio/program/pacific-beat/concerns-over-vote-buying-in-solomon-islands/1348331 Tubi log case returns to court The case involving a Taiwanese national will return to court on August 13. http://www.solomonstarnews.com/news/national/3083-tubi-log-case-returns-to-court Solomons police boss under scrutiny The Solomon Islands police force has come under criticism for the appointment of a man accused of manufacturing a riot at an Australian offshore detention centre. http://www.radionz.co.nz/international/pacific-n...

The Ethical Alliance Daily - 24, 25, and 26 July 2014 United States: Boeing Procurement Officer Pleads Guilty To Fraud China: Luxury-Car Makers Attract Scrutiny in China South Korea: S Korea ferry boss Yoo Byung-eun death confirmed United Kingdom: Corrupt police could face new secret investigations, says Theresa May Italy: Italy parliament waives immunity for ex minister over Venice bribes Japan: Japan to set up special sports corruption unit ahead of Tokyo 2020 India: India to investigate corruption in healthcare after TV sting operation Ireland: Redmond wins in Tribunal appeal Bangladesh: ACC sues ex-RHD chief engineer’s son for graft Liberia: Pres. Sirleaf’s Buddy in Corruption Web – Forwarded to Justice Ministry for Prosecution United States: Wal-Mart loses bid to keep documents on bribery probe from shareholder United Kingdom: Witness in collapsed Dahdaleh trial sentenced to UK jail China: UK fraud office liaising with China on GSK bribery case Italy: Italian fo...

[Facilitator's note: Thank you to Shervin Majlessi, Regional Anti-Corruption Adviser, UNODC, 
Regional Office for Southeast Asia and the Pacific
, for sharing this information.] Last week the Myanmar Centre for Responsible Business (MCRB) launched the first TiME/Pwint Thit Sa report looking at the transparency of Myanmar company websites relating to information on responsible business practices.  The ground-breaking report, which draws on established methodology from Transparency International, analyses how much information company websites provide on anti-corruption, organizational transparency, and human rights, health, safety and the environment (HSE). The aim of the report is to encourage increased transparency by Myanmar businesses in these areas. Access the report in Myanmar Centre for Responsible Business.

[Facilitator's note: Thank you to Adhi Setyo Tamtomo, International Cooperation Specialist, Corruption Eradication Commission (KPK), Indonesia, for sharing this information.] Two days after Indonesia's General Election Commission announced Joko Widodo as winner of the July 9 presidential election, focus has shifted to whom the next president will select for his cabinet. Observers and analysts have urged the president-elect to appoint individuals detached from vested interest for both corporations and political parties to ministerial posts in order to create a strong and stable government. KPK deputy chairman Busyro Muqqodas has warned Joko not to include politicians implicated in graft cases in his cabinet. “Please avoid appointing dirty politicians or dirty business owners,” he said. Read the story by Dessy Sagita in The Jakarta Globe.

"The defense industry is certainly vulnerable to corruption. Yet, the recent case in which seven people, including retired and serving military officers, were indicted for trading military secrets is truly upsetting. State and military prosecutors said earlier this week that after a joint investigation, they indicted three active military officers and four others on charges of violating the Military Secrets Protection Act." Read the editorial in The Korea Herald.

The European media today is covering the story of how Maria Putin, the daughter of Vladimir Putin, allegedly abandoned a $3.3 million apartment she owns in the Netherlands and returned to Russia following the downing of Malaysia Flight MH17. Maria Putin is a politically exposed person in anti-money laundering law, as is her father, mother, sister and boyfriend Jorrit Faassen, and each of their close personal and business associates. She is also apparently not employed. Read the article by Christine Duhaime in  Duhaime's Anti-Money Laundering Law in Canada.

The President of the State Inspection Authority of Laos says the Lao government pays close attention to addressing corruption around the country. Responding to questions from members of the National Assembly, Dr Bounthong Chitmany said corruption poses a threat to the stability of the Party and the Government and affects the socio-economic development of the country. "Laos is implementing an anti-corruption strategic plan until 2020 including four action plans and 16 projects," he said. "One newly enacted measure requires civil servants and officers to declare their properties and incomes. This is expected to be completed by the end of this year." Read the story in Thai PBS.

Over a hundred residents staged a protest against staff and doctors from Myaungmya Township General Hospital who they say took bribes on top of normal hospital fees. The protests were sparked after a patient committed suicide because he could not afford the hospital fees after hospital officials requested bribes to carry out treatment. Read the story in Eleven.

A demand to improve management of Vietnam's natural resources to stop its depletion and degradation was made at a seminar on boosting transparency in natural resources management. Participants at the seminar agreed on the necessity to fight corruption and strengthen the transparency in managing natural resources. Read the story in VietNamNet Bridge.

July 24, 2014 by Sanja Bojanic More than 2,500 people are now using the “Be Responsible” grey economy-tracking mobile app in Montenegro Whenever I discuss the governance challenges in South Eastern Europe, the discussion quickly boils down to one issue: (anti) corruption. At the recently organized SELDI policy advocacy workshop, we went back to the basic principles of “good governance.” This opened up a wider debate indicating that now may be the time to both reframe the issue and bring in some new approaches. Both of these were featured in a presentation I recently produced on how citizen participation can contribute to addressing the governance challenge. My goal is to unpack three broader concepts: good governance, innovation, and collaboration. 1. Good governance – An honest and responsive government was at the top of the list in the global  post-2015 consultations . Talking about the good governance challenge is diff...

The former dean of the University of Hong Kong's faculty of law is alarmed at the erosion of the city's core values. Professor Johannes Chan Man-mun said the erosion was evident despite higher awareness of the importance of a sound legal system. "Corruption has grown more serious," he said. "It's not even about people breaking the law; what is scarier is how corruption is seen as socially acceptable." Read the story by Jennifer Ngo, in South China Morning Post.

"Several retailers found themselves in a jam last year after fires decimated many clothing factories in Bangladesh. In those cases, the fires were caused by a number of clear compliance violations. They were over packed, exits were blocked and the buildings had also undergone a number of structural changes that inspectors were paid to approve or overlook. For example, extra floors were built, a helipad was installed and electrical cables were exposed throughout these facilities. The Bangladesh fires are an example of corruption being a major catastrophe in nearly every sense, ranging from financial drawbacks to social losses to loss of life to reputation damage. " Read the commentary by Steve Taylor in Resolver.

A story in Want China Times alleges that programs offered by higher education institutions in China for business and industry professionals are attracting a growing number of government officials and such programs are being used by politicians and entrepreneurs alike for networking to further their interests. Chinese Academy of Governance professor Zhu Lijia said such courses can spawn corruption and a loss of public resources and suggested the party's Central Commission for Discipline Inspection should look into them. Read the story in Want China Times.

[Facilitator's note: Thank you to Diana Torres, Anti-Corruption Research Analyst, UNDP New York, for sharing this information.] The Case for an International Anti-Corruption Court By Judge Mark L. Wolf Public corruption is endemic at the highest levels of government in many nations.  Such "grand corruption" is costly, is closely correlated with the most serious abuses of human rights, and threatens the stability of many nations and the world.  Grand corruption depends on a culture of impunity that exists because of the unwillingness of leaders to permit the honest and able investigation of their friends, families, and, indeed, themselves. International efforts to combat grand corruption have been inadequate and ineffective.  Similar circumstances concerning genocide and other egregious abuses of human rights led to the creation of the International Criminal Court ("ICC") in 2002. An International Anti-Corruption Court ("IACC"), similar to the ICC or as...

Indian officials vowing to clamp down on police corruption have installed automated machines where people can file complaints about officers that are sent straight to the senior police chiefs. The pilot project is being first tested in India’s western Gujarat city of Ahmedabad where the automated complaint machines, which have been described as looking like ATM machines, been set up at the Sanand Police Station. Without any charge and completely without the need to speak to a local policeman, locals are able to file complaints about local officers. Read the story in Vancouver Desi.

"The  Tackling Tax and Saving Lives  report says half the countries in sub-Saharan Africa collect less than 17 per cent of their gross domestic product in tax revenue, whereas in rich countries the average is 35 per cent. If all developing countries were to mobilise 20 per cent of GDP in tax, 287,000 child deaths could be averted each year, and an additional 72 million people could have access to clean water. Often tax revenues provide far more financing than overseas development aid, particularly in middle-income countries. In sub-Saharan Africa only eight out of 34 countries receive more aid than they generate in tax revenues." Read the article by Matt Wade in The Sydney Morning Herald.

Judge Mark Wolf developed “The Case for an International Anti-Corruption Court” after presenting the concept at the 2014 World Forum on Governance , convened by the Brookings Institution and Czech nonprofit Zaostřeno in Prague, Czech Republic. To learn more about the WFG, read the Prague Declaration and the 2012 Conference Report . An op-ed by Judge Wolf on the need for an international anti-corruption court is also featured by the Washington Post. Public corruption is endemic at the highest levels of government in many nations.  Such "grand corruption" is costly, is closely correlated with the most serious abuses of human rights, and threatens the stability of many nations and the world.  Grand corruption depends on a culture of impunity that exists because of the unwillingness of leaders to permit the honest and able investigation of their friends, families, and, indeed, themselves. International efforts to combat grand corruption have been inadequate and ineffective....

As part of the follow-up to the recommendations developed through its Participatory Governance Assessments ( PGA ), with the goal to identify and mitigate inefficiencies and corrupt practices in the process of applying for and obtaining forest permits, Indonesia is undertaking, with UN-REDD targeted support , an evaluation of its online forest permit system. Interviews, based on a questionnaire agreed upon by the Ministry of Forestry, all members of the PGA Expert Panel and the Presidential Working Unit for Supervision and Management of Development (UKP4), are targetting both the supply side (40 people in all units within the Ministry of Foresty) and the demand side (over 127 individuals or companies who have previously applied for permits). In East Kalimantan, a focus group discussion was also organized with representatives of the private sector to discuss the systems challenges, shortcomings and proposals to solve them. The evaluation report is expected in October 2014. For more...

[Facilitator's note: Thank you to Charmaine Rodrigues, Crisis Governance Specialist (Inclusive Political Processes), UNDP New York, for sharing this information.] A Victorian public servant accepted cash, a white piano and a jet ski named Bazdawgs as he and a colleague improperly awarded $25m in contracts, an anti-corruption hearing has heard. Barry Wells and Albert Ooi allegedly gained $3m from giving Public Transport Victoria contracts to companies they owned and to other entities in exchange for cash and gifts. Read the story by the Australian Associated Press in The Guardian.

[Facilitator's note: Thank you to Tony Prescott, Annika Wythes, Isikeli Valemei, Luisa Senibulu, and Samita Singh of the joint UNDP-UNODC Pacific Regional Anti-Corruption Project, for sharing this media release.] 21 July 2014 Today, I congratulate Mr Philip Moss as we farewell him from his post as Integrity Commissioner, and head of the Australian Commission for Law Enforcement Integrity (ACLEI). Mr Moss has served the Australian Government's law enforcement and integrity communities with distinction since July 2007, when he was appointed the inaugural Integrity Commissioner. His term as Integrity Commissioner ends tomorrow, 22 July 2014. As Integrity Commissioner, Mr Moss has provided invaluable leadership in the fight against corruption. He has led a number of significant anti-corruption investigations, including Operation Heritage, which concerned corrupt conduct at Sydney International Airport. These investigations have resulted in strengthened anti-corruption arrangements ...

The United Nations Development Programme (UNDP) and the European Union held a leadership course for youth leaders of Nigeria’s political parties. The aim of the training was to strength their capacity as they prepared to become key pillars of democratic policy. The training was held in Jos, the Plateau State capital, under UNDP’s Democratic Governance for Development Project. At the event, the UNDP resident representative to Nigeria, Daouda Toure, emphasised the importance of political parties as essential pillars for a vibrant democracy. He urged participants to embrace values of good governance with adequate consideration given to cultural values and traditional institutions. He also underscored the need for effective communication for sustainable democracy. Read the story in Channels TV.

The Ethical Alliance Daily – 22 & 23 July 2014 China: China Allows Open Trial for Two Glaxo Investigators United States: Corruption investigated in Kansas National Guard Indonesia: Former Indonesian minister gets 4 years for graft South Korea: Korea, U.S. seek joint probe of Yoo’s alleged tax evasion Turkey: Top judicial body launches inquiry into former graft prosecutor South Sudan: S. Sudan President Kiir Accuses Ex-VP of Graft Israel: Indictment for cop who allegedly sold intel to crime boss Thailand: Thailand anti-corruption commission recommends charging ousted PM Kenya: EACC probing corruption in police recruitment India: Indian Minister Says Health Industry  United States: Former Senior Executive of Qualcomm Pleads Guilty to Insider Trading and Money Laundering United Kingdom: Former Alba chief executive admits receiving £2.9m of corrupt payments Australia: IBAC probes alleged $25m corrupt Vic deals India: Parliament uproar over judiciary ‘corruption’ Romania...

The Japanese government has announced plans to set up a special policing unit to monitor and investigate corruption threats to its nations sporting bodies. Government officials confirmed that multiple government agencies would co-operate with the special unit in order to fight sports corruption in Japan and potential threats from abroad ahead of the Tokyo 2020 Olympics. Read the post by Ted Menmuir in SBC News.

In Iran’s latest corruption case, the administration of former President Mahmoud Ahmadinejad stands accused of overseeing the hiring of hundreds of thousands of unqualified ministerial staff members. The most severe hiring violations reportedly occurred at the Education Ministry. Iranian parliamentarian Gholamali Jaffarizadeh Imanabadi claims that of the 76,000 people hired by the ministry in the final two years of Ahmadinejad’s administration, approximately 2% were illiterate, 14% had only primary education, 19% had middle-school education and 1% graduated from high school. Read the story by Arash Karami in Al-Monitor.

[Facilitator's note: With thanks to Tony Prescott, Annika Wythes, Isikeli Valemei, Luisa Senibulu, and Samita Singh of the joint UNDP-UNODC Pacific Regional Anti-Corruption Project, for sharing these updates.] PNG: Police boss ordered back to court. The National Court in Papua New Guinea has ordered the new Police Commissioner, Geoffrey Vaki, to appear in court for contempt of court charges. http://www.radionz.co.nz/international/pacific-news/250317/png-police-boss-ordered-back-to-court Fiji: Former Principal Accountant gets three-month jail term. A former Principal Accountant at the Ministry of Industry and Trade received a three-month jail sentence by the Suva Magistrates Court. http://www.ficac.org.fj/index.php?option=com_content&view=article&id=1025&catid=20&Itemid=611 Fiji: Financial Intelligence Unit records 522 suspicious transaction reports in 2013. The total annual value of suspicious transactions that were reported to the Fiji Financial Int...