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Corruption in public health 111<br />

some cases, and it may apply in health care. However, business<br />

effectiveness studies in the FSU show how inspectors can undermine<br />

the system through bribes to certify acceptable performance,<br />

so it is important to ensure that such arrangements are working as<br />

intended if they are adopted.<br />

In a recent experiment, Leonard (2005) assesses the importance<br />

of training and incentives in determining physician performance in<br />

Tanzania across a sample of public and private providers. He concludes<br />

that while ability is important, institutional incentives, particularly<br />

the ability to hire and fire staff, are far more powerful than<br />

education or experience in explaining the quality of care provided<br />

patients, offering an empirical basis for the priority of putting in<br />

place incentives to foster improvements in health care.<br />

A fundamental initiative is the establishment of clear procurement<br />

and contracting rules. Evidence for Argentina and Colombia<br />

shows a potential role for effective oversight as discussed. To effectively<br />

achieve such results requires existence of clear rules, effective<br />

oversight to detect problems, enforcement of rules, and rewards and<br />

punishments for good and unacceptable behavior, respectively. The<br />

lack of minimal managerial order and oversight are fundamental<br />

weaknesses in many public health systems which permit such<br />

abuses. In fairness, however, battling these kinds of problems<br />

persist in even the wealthiest countries and relentless effort are<br />

required to control corrupt practices.<br />

In the Philippines multivariate analysis found that the frequency<br />

of audit by central government and autonomy of local government<br />

increased immunization coverage, suggesting that local governments<br />

can benefit from authority, and auditing will further<br />

encourage responsible public performance (Azfar and Gurgur, 2001).<br />

In Madagascar, sanctions for misuse of funds led to systematic following<br />

of financial procedures. Most important among sanctions<br />

was criticism from supervisors and transfer to less desirable locations.<br />

Though the effect of accountability is diluted by the fact that<br />

the most common reasons for transfer is displeasing local officials<br />

without discussion or vetting of the merits of the transfer, frequent

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