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At the request of His Excellency the President of the Republic and Head of State, the Legal (LEG) and Fiscal Affairs (FAD) Departments of the IMF conducted an assessment of governance and corruption mission in Kinshasa, Democratic Republic of the Congo (DRC) from December 9 to 20, 2019 (the “mission”).1 The objectives of the mission were to discuss with the authorities (i) a diagnostic of governance issues in the DRC; and (ii) to articulate measures to help improve governance and the fight against corruption.
Democratic Republic of the Congo: Technical Assistance Report-Governance and Anti-Corruption Assessment
The new government in the DRC is starting to implement its governance programme and planning to revisit the national anti-corruption strategy. The temptation is high to move fast on all fronts but it is important to assess the immediate past and, especially, the transition period from 2003 to 2006, so that lessons which could inform policy decisions can be drawn. This monograph makes a useful contribution to a review of the transition period. It assesses the strengths and weaknesses of the anti-corruption institutions and laws which were in force, evaluating their success or failure and identifying factors that supported or inhibited their effectiveness. It further identifies gaps in national laws and regulations that could be prioritised to make them compliant with international legal instruments. Finally, it makes recommendations about what measures should be prioritised with a view to improving the legal framework and the relevant institutions.
This Selected Issues paper focuses on macro-critical issues related to governance and corruption in Democratic Republic of the Congo (DRC). Third-party indicators suggest that governance has been poor and corruption widespread in the country. Conducting an audit of the civil service and improving the transparency of its remuneration system, simplifying tax payment processes, and merging the activities of the numerous revenue agencies would boost public efficiency and improve the business environment. Contract enforcement and protection of property rights could be enhanced by insulating the courts from external influence. Limited information on the budget annexes and special accounts and little or no oversight by the central government, Parliament, and civil society, create scope for corruption. The multiplicity of special taxes and fees, some accruing to special accounts outside the Treasury, generate opportunities for corruption and informalization of economic activity. Despite some progress in strengthening public financial management, budget execution remains deficient. The government has formalized the four stages of the expenditure chain and introduced budget commitment plans to align expenditures with revenues.
More knowledge, of and about Corruption, is useful for better policy orientation.This book covers theoretical aspects and dimensions of Corruption; it studies the dynamics of Corruption in the contextual framework of public management. It suggests how high levels of Corruption limit investment and growth; and how Corruption, in any form, can lead to ineffective government. Developing countries and those making a transition from socialism are particularly at risk, but Corruption is a worldwide phenomenon. Corruption creates economic inefficiencies and inequities, but reforms are possible to reduce the material benefits from payoffs. However, Corruption is not just an economic problem; it is also intertwined with politics and culture. Reform may require changes in both constitutional structures, the underlying relationship of the market and the state, and the moral campaign for behaviour change. Effective reform cannot occur unless both the international community and domestic political leaders support change.
John Hatchard considers the need for good governance, accountability and integrity in both the public and private sector. He studies how these issues are reflected in both the African Union Convention on Preventing and Combating Corruption and the Unit
This paper argues that oil revenue management and public investment in Congo are vulnerable to corruption as a result of limited transparency and accountability. Corruption has potentially contributed to poor macro-fiscal outcomes. The paper acknowledges the authorities’ anti-corruption efforts made so far and proposes further critical reforms to reduce remaining vulnerabilities. Using a dynamic stochastic general equilibrium model results show that, depending on the reforms adopted, the potential additional growth can range between 0.8 to 1.8 percent per year over the next 10 years, and debt can decline by 2.25 to 3 percent of GDP per year over the same period. These results suggest that macrofiscal gains from anti-corruption reforms could be substantial even under conservative reform scenarios.
If international policymakers are to have a real impact in helping Congolese reformers actually reform the system, they need to shift lenses. They should view the current situation in Congo as the latest iteration of a longer pattern of violence and corruption, and respond accordingly. Policies should focus on creating significant consequences for those most responsible for the system of violence, corruption, and undermining of democracy. This can be done by creating new leverage using tools of financial pressure normally reserved for countering nuclear proliferation and terrorism aimed at isolating certain leaders from the international financial system, and increasing support for Congolese civil society organizations and journalists to hold the government accountable. Policy goals should be two-fold: to create accountability for financial and human rights crimes; and to create new leverage for peace, human rights, and governance reforms. The West has as-yet unrealized and unutilized leverage with the regime, as Congo’s officials and international commercial partners use U.S. dollars for transactions, thus touching the western banking system.
Corruption is a serious concern, one which can undermine state legitimacy, exacerbate inequality, and affect trust between social groups. Such effects are particularly problematic in societies that have gone through violent conflict, and are struggling to rebuild institutions, restore social trust, and recover economically. While anti-corruption measures are increasingly integrated into post-conflict programs, war-time structures and practices of corruption often prevail. This book explores corruption in post-war societies by focusing on the important issues of power, inequality and trust. To understand post-war power structures, and the extent to which they engrain, challenge, or transform corrupt practices, we need to study what kind of peace has emerged. The empirical cases in this book offer a variety of post-conflict situations, demonstrating how corruption is played out in, depending on the type and extent of international intervention, and in the case of a victor’s peace, a contested peace, a partial peace etc. The chapters illustrate the experiences and perceptions of people on the ground in post-conflict societies, and by giving much space to local dynamics, the book shifts the focus from external intervention and actors to local contexts, striving for greater understanding of the interplay between corruption, power, inequality, and trust in post-war societies. This book was originally published as a special issue of Third World Quarterly.
Corruption, as a social science, has been mystified and even ignored for many generations. Not many people would like to talk about this subject, openly and transparently. Now, it is becoming a subject of great concern, not only in the developing nations but also in the developed world. The subject has impacted so negatively in our social, economic and political life, that we can no longer keep quiet about it. Corruption is eroding the moral values of many nations and consigning many people to perpetual poverty and deprivation. To me this is a subject that is becoming more important and critical than even civics and geography in schools. It is a subject that touches and affects the morality of nations. I have a passionate concern, that, if we in Africa want to make Africa a better place to live in, then we must address this subject with the seriousness it deserves. Like any other social science, this subject should be introduced in our schools, and colleges, so that our young people, could be made acutely aware of the evils of this vice, and how it could be eradicated from our society. If this is done, our future generations will live in a much better society than we are today. There should also be programmes in place, organized by the civil society, and other agencies to educate the masses about the consequences of corruption in society. I do, however, appreciate that without available materials, my propositions could not be feasible. This book therefore, is intended to form a good source of Civic Education Material into Corruption in Africa and more specifically, in Kenya. The book has been written with those educational objectives, specifically in mind. It is the intention of this book to show that corruption poses a serious challenge in terms of the economic, political and social development in the AfricanContinent. Corruption undermines democratic institutions and good governance in the political landscape. It reduces accountability and negates representation and policymaking in the electoral process. It abrogates the rule of law in the judiciary. Corruption also encourages nepotism resulting into unequal provision of resources to the population in the public sector. The book further endeavours to show, that corruption undermines the legitimacy of government, and such democratic values as human rights, respect for therule of law, trust and tolerance. Corruption also does undermine economic development by advancing narrow and selfish economic policies and incompetence, in the delivery of services to the people. This book seeks to analyze, how corruption in public institutions, has squandered the national wealth, and impoverished the people. There is also a critical analysis on bureaucratic corruption, and how the public officers achieve their objectives, by diverting public investment away from social and people friendly projects, such as poverty reduction, education, health and housing, into capital projects, simply to attract bribes for individual benefits. The book examines institutional corruption in various departments of government, including the Police, Judiciary, Public Works, Immigration, Revenue Authority, Lands, Local Government and many other public institutions. The book also examines corruption in the public and private sectors, including public corporations, political banks, educational institutions and how the general public, have also contributed to the vice. The book further, examines corruption in other African countries, and makes, useful comparisons. It goes on to deal with measures that are being put in place,both in Kenya, and other African countries to fight corruption nationally, and internationally. The Anti-Corruption and Economic Crimes Act, and the Public Servants Ethics Act that the Kenya Government, has put in place are discussed in some detail. The role of civil society and other organizations like Transparency International, and the media in the fight against corr