European Commission Directorate-General Enlargement DOES E-GOVERNMENT REDUCE THE RISK FOR CORRUPTION? Mose Apelblat, DG ELARG/D4 TAIEX SEMINAR Mose Apelblat, DG ELARG/D4 TAIEX SEMINAR

European Commission Directorate-General Enlargement Conceptual framework

European Commission Directorate-General Enlargement Principles of good governance Openness and transparency Legal predictability Accountability Efficency Effectiveness

European Commission Directorate-General Enlargement Definitions of corruption “The abuse of public office for private gain” (WB). “The misuse of entrusted power for private gain” (TI) The misuse of public power, office or authority for private benefit – through bribery, extortion, influence peddling, nepotism, fraud, speed money or embezzlement” (UNDP).

Two main types of corruption State capture or grand corruption (”driven by greed”) Administrative or petty corruption (”driven by need”)

% of people who reported paying bribes by public service

Drivers for administrative corruption High taxation/complex tax structure Complex administrative procedures Unclear legislation with loopholes Discretionary powers of officials Inadequate internal controls Weak accountability mechanisms Politicization of civil service

Anti-corruption measures De-politicization of civil service Independence of judiciary Legislation and enforcement E-governance Publication of laws and budgets Delivery of services on- line Payments on-line E-procurement

Anti-corruption theories Crime theory Principal – agent theory Transaction cost theory

Statistical analysis

Principal-agent model

Enhanced transparency Can citizens freely use the internet? Do citizens have a right of access to public information? Is there an established institutional mechanism through which citizens can request government records? Basic government records? Financing of political party financing? Asset disclosure records of the heads of state, government, and senior civil servants? Legislative processes and the national budgetary process? Reports of the ombudsman and the state audit?

Public services on-line for citizens 1. Income Taxes 2. Job Search 3. Social Security Benefits 4. Personal Documents 5. Car Registration 6. Application for Building Permission 7. Declaration to the Police 8. Public Libraries 9. Birth and Marriage Certificates 10. Enrolment in Higher Education 11. Announcement of Moving 12. Health-related services

Public services on-line for businesees 13. Social Contribution for Employees 14. Corporate Tax 15. VAT 16. Registration of a New Company 17. Submission of Data to the Statistical Office 18. Custom Declaration 19. Environment-related Permits 20. Public Procurement

Success stories Seoul, South-Korea Kartanaka, India Skopje, former Yugoslav Republic of Macedonia Permits, registrations, contracts Land records Cross-border truck licenses

The way forward Review public services procedures From simplification to transformation Political support and commitment E-governance on the political agenda More research on e-governance