Open governance - Newspaper - DAWN.

COM 7/17/20, 3:14 AM

TODAY'S PAPER | JULY 17, 2020

Open governance
Muhammad Yar Lak | 16 Jul, 2020

The writer is a lawyer.

BACK in 2016, the PML-N government expressed its willingness to sign the
Organisation for Economic Cooperation and Development Anti-Bribery Convention to
fortify Pakistan’s efforts to combat corruption. But when OECD invited Pakistan to
accede to the convention, the government began to dither. Four years have passed, and
Pakistan is yet to demonstrate any effort towards signing it. Now that the PTI is in
power, the government may reconsider ratifying the OECD convention.

A transparent and accountable governing structure in Pakistan requires international cooperation.

The OECD Anti-Bribery Convention and the UN Convention Against Corruption are legally binding
multilateral instruments that facilitate state parties in their fight against corruption by improving

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Open governance - Newspaper - DAWN.COM 7/17/20, 3:14 AM

international cooperation and assistance. Pakistan is not a signatory to the OECD convention but has
signed and ratified the UNCAC.

The OECD convention is the first global initiative agreed between 34 nations to target the ‘supply-side’
of bribery, ie the person or entity who offers, promises or gives a bribe. Today, 44 countries have
ratified it to prohibit foreign bribery on an extraterritorial basis. By contrast, the UNCAC provides the
most extensive coverage of all international anti-corruption instruments. The OECD convention and
UNCAC are mutually supportive and complementary; hence accomplishing effective international
cooperation requires the ratification and implementation of both.

Although the UNCAC is a political tool used for dialogue between countries and between governments
and citizens, it is prone to certain weaknesses and challenges. UNCAC ratification does not constitute
political will in itself. Most state parties ratify it to use it as a ‘fig leaf’ to deflect criticism from donors
or political opponents. The UNCAC is no blueprint for anti-corruption reform; it is a compilation of
key measures that lack prioritisation or sequencing. The review process under it is voluntary, with no
formal follow-up process on the findings and recommendations made under the implementation
review cycles. In addition, the UNCAC publishes only the executive summary of the report at the end
of the review process. The full country review report remains confidential unless allowed by the
reviewed country. The mechanisms of the UNCAC are also unsatisfactory and call for reforms to
address country-specific forms of corruption designed to fit into the country’s institutional
arrangements and procedures.

ARTICLE CONTINUES AFTER AD

Pakistan should consider ratifying the OECD

convention.

To this end, the OECD Anti-Bribery Convention has proven to be more efficient and effective in the
implementation of a robust anti-corruption system for a country. Unlike the UNCAC, the convention
is a complete guide; the OECD Working Group on Bribery monitors its implementation and
enforcement in several phases through a rigorous peer-review monitoring system, tailored to country-
specific needs. Transparency International (TI) has repeatedly recognised this rigorous peer-review
monitoring system as a ‘gold standard’. In addition, this monitoring process is compulsory, requiring
the highest level of compliance without providing any right to veto the final report and
recommendations, which are mandatorily made ‘public’ after every review.

There is another reason that merits attention. The notion behind the OECD convention is to induce
signatories to reduce their investment in corrupt countries, and the empirical analysis has proved the
same. Several countries, including the US, UK, and numerous states in Europe that are Pakistan’s top
trading partners, have ratified the OECD convention. Their ratification, however, is correlated to
reduced investment in Pakistan. Accor​d​ing to TI’s 2018 report, the lack of robust anti-corruption
mechanisms has resulted in the loss of trade and business opportunities in Pakistan. To stabilise the
economy in the era of globalisation requires increased trade at reduced costs with the developed

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world, which necessitates Pakistan to ratify the OECD convention. Pakistan, by signing and ratifying
the convention will send a clear message that its companies will invest ethically and not engage in
corrupt activities. Resultantly, it will ensure a more stable and attractive investment climate for
foreign investors.

The OECD convention is contingent upon four main conditions: (i) fiscal transparency; (ii) access to
government data; (iii) public officials’ asset disclosure; and (iv) citizens’ engagement in policymaking
and governance. These conditions are challenging and de​​manding but acceding to the convention will
provide the government with an international framework for exchanging information with other states
on the monies obtained illegally and laundered by Pakistani nationals. The rigorous monitoring
process under the OECD convention will also compel the go​​vernment to create a transparent and
ac​​countable governing structure in Pakistan.

The writer is a lawyer.

Muhammadylak@gmail.com

Published in Dawn, July 16th, 2020

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