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Group IV: Role and Agenda of

the Private Sector
Facilitator: Ms. Srey Chan Phallara
President, OUTREACH
Co- Facilitator: Mr. Ear Sophal
ADB Consultant & UC Berkeley
August 23, 2001
Inviting In The Private
Sector* (1)
Corruption does not just involve
government.
Business people and lawyers and
citizens pay the bribes, even as they
condemn bribery.
They (you) should be invited to become
part of the solution. But how?
*Klitgaard (2000)
Inviting In The Private
Sector* (2)
Business people and citizens know
where corruption exists and how corrupt
systems work.
Citizens understand how bribery shapes
the services they receive or dont
receive.
Accountants know the illicit games
played with audits and taxes.
*Klitgaard (2000)
Inviting In The Private
Sector* (3)
Lawyers understand corrupt legal practices.
Business people know all about corrupt
systems of procurement and contracting.
But there is a second point: you know, but
you cant say, at least not publicly.
In many countries, if an individual stands up
to denounce a corrupt system, he or she will
be attacked by it.
*Klitgaard (2000)
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Inviting In The Private
Sector* (4)
So, the trick is how to learn what you know
about corruption without asking you to
commit suicide!
How does the (corrupt) system work? No
need to name names, please!
What is the informal process, how extensive
is the corruption, how does it work?
How do perpetrators avoid detection or
prosecution?
*Klitgaard (2000)
Contribution To The Fight
Against Corruption
How can formal systems be
strengthened?
How can corrupt systems be subverted?
What do you perceive as threats in the
fight against corruption?
Can you identify some ways in which
your sector can cooperate with others to
fight corruption?
Competition and Procurement
Is procurement a dirty business?
Is there a 10% rule?
Small versus big businesseswhat
difference do you see in the field?
Best business practices and lessons
learned, what can we do?
Code of Ethics for Business
Why should businesses not be corrupt?
In France, until last year, bribes (aka
donations) were tax-deductible.
The OECD convention on bribery finally
made that illegal.
In the United States, bribing foreign
firms has been illegal since the late
1970s.