2 October 2012 OSF strategy meeting: Combating and Preventing Corruption in Medicine Procurement - What can Civil Society Do? Tackling Corruption in Defence The TI Defence and Security Programme Anne-Christine Wegener

2 How big a problem?

Characteristics of corruption in defence Corruption risks: Huge contracts Secrecy Technical areas: agents, offsets Corruption risks: Huge contracts Secrecy Technical areas: agents, offsets Close relation between governments and industry A few companies from 10 countries make 90% of international arms sales USD 500 billion defence revenue annually Few exporting countries, many importing countries Political involvement is extensive Close relation between governments and industry A few companies from 10 countries make 90% of international arms sales USD 500 billion defence revenue annually Few exporting countries, many importing countries Political involvement is extensive Situation in 2004 Defence corruption not on the agenda of companies and governments No scrutiny bodies Little NGO engagement Situation in 2004 Defence corruption not on the agenda of companies and governments No scrutiny bodies Little NGO engagement

TI-DSP Approach National defence & security forces Civil Society incl media Defence Industry Inside: Facilitate leadership discussion Reframe the problem Analysis/action plan Training Collaborate on research Build and share expertise Build confidence that defence corruption can be tackled Direct engagement Measure performance (Index) Establish global forum for a-c standards Research, publicise high risk areas Outside: Research External oversight Work with IGOs (NATO, UN) Public Surveys

5 POLITICAL Contracts Secret budgets Collusive bidders Technical requirements / specifications Single sourcing Offsets Disregard of corruption in country Agents/brokers Financing packages PROCUREMENT Values & Standards Salary chain Payroll, promotions, appointments, rewards Conscription PERSONNEL OPERATIONS Seller influence Contract award, delivery Asset disposals Military-owned businesses Illegal private enterprisesPrivate Security Companies Corruption within mission Subcontractors Leadership Behaviour Small Bribes FINANCE Defence & security policy Control of intelligence services Export controls Organised crime Nexus of defence & national assets Defence budgets Mapping the risks Breaking the corruption risks into smaller, more concrete areas has helped us explain the issue and build confidence that it can be tackled, as well as demonstrating expertise

Building integrity - training Leadership day in Kabul, Nov 2009 A training course helps build up knowledge and momentum for tackling corruption. It is seen as a constructive tool even for less reform-minded governments Leadership days bring the top management of a ministry of defence and/or the armed forces together to discuss what defence corruption is and how to build integrity

7 Research Research, especially when done collaboratively with others or involving the industry or government brings in-depth knowledge and enables us to constructively engage with governments; often done with research interns or externals;

Measuring defence corruption – example: Government Index What is our Government Index? A global Index to measure levels of corruption risk in national defence and security establishments worldwide (note: we have a sister index for companies, too) Comparison between 83 countries A means to monitor the success of anti-corruption mechanisms over time Creating a tool to measure corruption enables comparison over time and give feedback to governments who want to know how they perform. It also serves as an advocacy tool for civil society organisations pushing for change. We have done one each for the supply and demand side

Civil society having an impact Our overall “philosophy” 1.Engage directly 2.Have deep expertise in the team, e.g. part-time senior people 3.Develop practical tools 4.Constructive and critical is effective Media helps carrying our message to the public and policymakers

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