Complete Book PDF (4.12MB) - World Bank eLibrary

82 Diagnosing Corruption in Ethiopia
Table 3.3
Summary of Corruption Risks in Policy Development
Form of corruption
Policy capture
Regulatory capture
Bribery or extortion over licensing
Source: Author.
Perceived risk of corruption
Low Medium High
o
o
o
Summary of policy development risks. In light of the above, the perceived
risk of corruption in each of the three aspects of policy development is,
as tabulated below, considered to be low (table 3.3).
Planning and budgeting
Distortions in decision making by politicians—risk: medium. Planning and
budgeting can also be subject to corruption as decision-making officials
try to influence how established policies and procedures are implemented
in practice. Typically, these attempts involve skewing the process of allocating
scarce resources, either in return for favors from other political
appointees or as a result of more overt bribery or collusion.
In Ethiopia, responsibility for the delivery of most basic services,
including education, has been assigned to subnational government as part
of the country’s decentralization process. At these subnational levels,
regions and especially woredas have primary responsibility in the allocation
of treasury resources, decision making, management, and delivery of
educational services. The fiscal decentralization strategy includes the procedures
that govern intergovernmental fiscal transfers, through the
regional block grant mechanism.
Survey responses received during this study generated a mixed message
regarding this form of corruption. A strong majority of respondents
considered the following:
• Budget administrative decisions are made transparently.
• Budgets are announced and made available to the public.
• Budgets are subject to regular audits (though these are often not
independent).
• Internal control systems are in place to protect the resources against
inappropriate use or loss.
• Budgets are based on specific criteria.
• Budgets are not influenced by illegal payments.