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54 Diagnosing Corruption in Ethiopia<br />

Finally, some informants mentioned that the influx of donor funding<br />

has contributed to the high turnover of public sector employees—in particular,<br />

the staff involved in the monitoring and reporting on financial<br />

flows—and the diversion of staff for travel and training purposes. Many<br />

interviewees cited the high turnover as the main reason for a lack of<br />

capacity in the financial management process.<br />

In the Tigray region, regional health officials have limited the per<br />

diems that can be paid by government or outside agencies to keep some<br />

control over their employees. However, per diems from HIV/AIDS organizations<br />

have been exempted from this practice, and those we interviewed<br />

could not explain why. Donor organizations should be encouraged<br />

to abide by local standards where possible, avoid excessive recruitment of<br />

technically trained employees, and provide stronger justification for such<br />

workshops and training.<br />

Next Steps<br />

The weakness of Ethiopia’s health care system appears to have more to<br />

do with limited resources and inefficiency than with corruption.<br />

Ethiopians do not generally have good or equitable access to health care,<br />

but this is largely due to constraints on financial and human resources.<br />

Fortunately, Ethiopia is receiving increasing resources to strengthen its<br />

health sector and expand service provision. The government is also<br />

undertaking many reforms and programs to improve the efficiency and<br />

integrity of public health care provision. Many of these reforms will<br />

simultaneously curtail corruption, though some also present risks.<br />

Public sector modernization is advancing on a number of fronts that<br />

could substantially reduce opportunities for corruption. These advances<br />

include the following reforms:<br />

• Public procurement reforms. Application of the PPA to all public procurement<br />

is improving procurement practices and transparency.<br />

• Pharmaceutical Fund and Supply Agency. The PFSA is assuming responsibility<br />

for the procurement, management, distribution, and control of<br />

all pharmaceuticals and supplies used in the public sector.<br />

• Business process reengineering. BPR is being implemented in federal<br />

and regional public administrations responsible for health care provision<br />

to improve personnel management, performance, and<br />

accountability.

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