Presentation by Peter Larmour, Crawford School The Australian National University, Corruption in REDD schemes:A Framework for Analysis The 14th International Anti-Corruption Conference, Thursday, 11 November 2010, Queen Sirikit National Convention Center, Bangkok, Thailand

1. Peter Larmour
Crawford School
The Australian National University

2.  Corruption regular feature of forestry
◦ Hard to supervise remote areas (The Forest
Ranger)
◦ Local political support for land clearance
◦ Windfall profits fund corruption
 Some REDD host countries have poor
reputations for corruption
◦ TI’s Corruption Perceptions Index
 So do companies from some regional
countries
◦ TI’s Bribe Payers Index
 How design a system to reduce corruption?

3.  multiple meanings of corruption
 several distinct types
 diagnoses imply cures (theory to practice)
 three broad types of theory about
corruption
◦ behavioral/individual
◦ structural/organisational
◦ political

4.  Standard ‘use of public office for private
gain’, but
◦ private to private corruption?
◦ other family, party or regional gains?
 better use principal/agent framework
◦ ‘unauthorised receipt of benefits’ in Hong Kong
◦ in ‘secret commissions’ laws eg in Samoa
◦ in UK proposals to reform corruption legislation
 But popular conceptions suspicious of elites
◦ TI focus group research in PNG
◦ Mistrust and corruption accusations (Uslaner)

5. Type Visible Legal Example
petty YES NO Small payment to
local forestry official
grand NO NO Large payment to
HQ official
policy NO YES Change law to suit
political leaders’
business interests

6.  Expectancy
◦ rational choice to commit crimes
◦ motivation, opportunity, risk of detection
 Equity
◦ sense of unfairness justifies corrupt behaviour
◦ perceptions of corruption in unequal societies
 Social Acceptance
◦ power of norms/organisational culture
◦ culture of existing vs new institutions in REDD
◦ Source: Waldersee

7.  Firm Structure/Boundaries
◦ C= Monopoly + Discretion - Accountability (Klitgaard)
◦ impact of boundary changes in privatization
◦ Exit or Voice as response to corruption
 Internal Structures
◦ complexity and confusion creates opportunity
◦ informal system bypasses formal
 Process
◦ risks at each point in value chain
◦ US Sarbanes Oxley law sets audit requirements
◦ risks involved in cash payments
◦ Source: Waldersee

8.  Constitutional
◦ post hoc checks and balances
◦ ‘system better than individuals in it’ (Euben)
◦ guarding the guards (police, forestry inspectorate)
◦ capacity of existing ‘National integrity system’ (TI)
 Democratic
◦ perceptions independent of experience of
corruption
◦ Norm of inclusion of those affected by decisions
◦ Corruption = ‘duplicitous exclusion’ (Warren)
 Government/Business relations
◦ dependence on private initiative in mixed economy
◦ government anticipation of business needs
◦ place of ‘politician-businessmen’ in REDD system

9.  Diagnoses imply cures (implicit or explicit)
 Risks of certain types of corruption seem
high
 Popular definitions matter in democracies
 Three frameworks are ideal types
◦ actual policies combine and mix
◦ broad menu
 Some measures already in place/available
◦ Integrate REDD with national and international
systems
 No single solution/discipline sufficient