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GV Pesquisa<br />

Centro de Estudos em<br />

Tecnologia de Informação para Governo<br />

• "Collusion" is a private agreement between two or more parts, with the intention to disapoint or to cause<br />

<strong>da</strong>mages to a person or entity, or to get an illicit end.<br />

Bhatnagar defines three types of corruption in Government to Citizen Contact and quotes examples and<br />

applications of ICT use with impact on corruption:<br />

• Administrative corruption (bribe)<br />

‣ Service is denied unless bribe is paid<br />

‣ Service is delayed unless bribe is paid<br />

• Collusion (both parties gain at the expense of Government)<br />

‣ Favored allocation when mismatch between supply and demand<br />

‣ Lower valuation by Tax collection agencies<br />

‣ Waiving of penalties and fines<br />

‣ Tempering government records to provide unfair advantage<br />

• Extortion<br />

‣ Law enforcers, tax collectors make patently unreasonable demands to extort a bribe<br />

Bannon states that “corruption is widespread in many developing and transition economies, not because their<br />

people are different from people elsewhere, but because conditions are ripe for it. The motivation to earn income<br />

through corrupt practices is extremely strong, exacerbated by poverty and by low and declining civil service<br />

salaries. Coupled with a strong motivation is the fact that there are ample opportunities available to engage in<br />

corruption.”<br />

The World Bank settled on a straightforward definition of corruption: the abuse of public office for private gain,<br />

which occurs when “an official accepts, solicits, or extorts a bribe. It is also abused when private agents actively<br />

offer bribes to circumvent public policies and processes for competitive advantage and profit. Public office can<br />

also be abused for personal benefit even if bribery does not occur, through patronage and nepotism, the theft of<br />

state assets, or the diversion of state revenues” (Bannon).<br />

In many countris, corruption is systemic in the public sector, which makes it almost impossible for to do business<br />

with government without participating in bribery. Unfortunately, Brazil has had one of the most systemic curruption<br />

in the world, mainly in recent years ou Luis Inácio Lula <strong>da</strong> Silva government. This makes e-government yet more<br />

important in a country like ours.<br />

Bannon also states that “while it is important to control fraud and corruption in the private sector, public sector<br />

corruption is arguably a more serious problem in developing countries, and controlling it may be a prerequisite for<br />

addressing private sector corruption. … Adverse effects of corruption quantified in recent studies include:<br />

• Reducing investment and hence growth, by increasing costs and uncertainty;<br />

• Reducing spending on health and education, because these expenditures do not lend themselves easily to<br />

corrupt practices on the part of those who control the budget strings;<br />

• Reducing spending on operations and maintenance for reasons similar to the point above;<br />

• Increasing public investment because public projects are easier to manipulate by public officials and private<br />

bidders;<br />

• Reducing the productivity of public investment and infrastructure;<br />

EAESP/FGV<br />

Av. Nove de Julho 2029 -CEP 01313-000 São Paulo, SP<br />

Tel. (011) 32817755 - tecgov@fgvsp.br - Acesse site do TecGov em www.fgvsp.br área Pesquisas e Publicações 142

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