Page 1 of 3

Good governance is everyone’s responsibility.  International Financial Institutions (IFIs) and donors should support the emerging global framework for good governance, encourage country participation, strengthen their own anticorruption controls, and provide assistance in ways that strengthen transparency and country systems.

Corruption is an outcome of the governance system and has many forms; it can happen in any of the parts of the governance system. It can reflect the failure of any number of accountability relationships—for instance, political failure leading to state capture, bureaucratic failure, or a failure of checks and balances. Reducing it is a long-term, multifaceted, never-ending challenge.

Donors, IFIs and developing countries are broadly accountable for strengthening the checks and balances needed for development financing, through global and national systems. For developing countries, well-functioning and transparent budgetary, administrative and procurement systems, a political process responsive to the country’s citizenry, and strong checks and balance systems, are essential to a functioning governance system. They also provide a straightforward basis for support.

Improving governance is not simply a matter for aid recipients. The global milieu has powerful influences on governance systems in developing countries. Global markets can be a source of corruption or a powerful disciplining device. Donors and IFIs can impose practices and reporting requirements that fragment and overwhelm already fragile country systems, or they can provide support in ways that help strengthen governance. Global mechanisms can help poor countries strengthen governance to meet the MDGs, including promoting standards and codes to provide sources of good practice for all countries. For this reason, the establishment of global checks and balances is another priority for strengthening governance.

Next page