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Media Mentions Archive: 2005

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We regularly gather news articles and other media mentions of governance and anti-corruption issues in the news. Whilst we hope this is a useful reference for you, the World Bank is not responsible for the views expressed in non-World Bank publications/articles. Nor is the World Bank specifically endorsing one publication over another. Furthermore, not all of the articles below are available for download due to copyright restrictions. If you would like a full copy of articles that are not available for download on our website, please contact the respective news sources.

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Relative Corruption
The Wall Street Journal, New York, 9 December 2005

"Don't let the headline confuse you. We are not referring to the relationship between U.N. Secretary General Kofi Annan and his enterprising son, Kojo. Instead, we refer to the latest strategy from that famous economist and other-people's-money philanthropist, Jeffrey Sachs...The contradiction between a pledge to increase aid to poor countries and a promise to cut off corrupt governments was immediately obvious, even to Mr. Sachs. Most of Africa would be automatically disqualified under any system that screens for corruption, as both the World Bank's governance indicators and Transparency International's annual index demonstrate."

Transparency and Accountability Newsletter
USAID's Anti-Corruption Newsletter, Volume 1 Issue 3, December 2005

"World Bank Identifies Governance Indicators for 209 Countries, reports Transparency and Accountability. "In a recently released report, Daniel Kaufmann, Director of Global Governance at the World Bank Institute, and Aart Kraay, Lead Economist in the Bank’s Research Group, provide an expanded and updated set of worldwide governance indicators, which cover 209 countries between 1996 and 2004." Other articles are on TI Corruption Perception Index and on issues around governance in Latin American countries."

Arab MPs meet to draft handbook against corruption, by B. Izzak & Agencies
Kuwait Times, Kuwait, 01 December 2005
(similarly found in the Khaleej Times, United Arab Emirates; The Daily Telegraph, Australia; The Irish Independent, Ireland; and, The Dow Jones International Newswire, USA)

"Lawmakers from 10 Arab nations and World Bank experts opened a two-day meeting yesterday with the aim to draw up a strategy for fighting corruption that has been on the rise in the Arab world...Executive Director of GOPAC Martin Ulrich and senior World Bank experts are attending the meeting. About 30 current and former MPs from Arab world are also attending. Daniel Kaufmann, director of global programmes and governance at the World Bank Institute, said in a report on the organisation's website that bribery was only part of the problem. A "comprehensive estimate of worldwide corruption would exceed the estimate of bribery alone," Kaufmann said."

The Boat and the Water, by Qinglian He
Epoch Times International, Taiwan News Weekly, 28 November 2005

"The Golden Key to the Chinese Market - Why do foreign companies have to pay bribes to Chinese government officials to do business in China? This is entirely attributable to China's peculiar political landscape during this period of transformation. Cheryl W. Gray and Daniel Kaufmann have identified five objectives that multinational companies operating in Russia, Brazil and China accomplish through bribing government officials..."

Corrupt perception?, by Asher Meir
(The Jerusalem Post, 25 November 2005)

"A survey presented this week at the Sderot conference indicates that the majority of Israelis think corruption here is getting worse. The majority are in good company: two prestigious international indices - the Corruption Index of Transparency International and the Governance Index of the World Bank - also claim that government in Israel is going downhill...Right now I am convinced that the decline is a statistical artifact due to the addition of components to the indices. For example, the World Bank's six governance indicators are made up of dozens of components, and since 1996 over 20 new surveys have been conducted! My impression is that the new surveys are simply less Israel-friendly than the old ones. This doesn't mean they are less accurate; it could be that our current, lower ranking is more accurate than our more favorable 1996 standing."

Why governance matters, by Maricar Paz M. Garde
Manila Bulletin, Intramuros, Manila, 31 October 2005

"Economists recognize the crucial role of good governance in economic growth. The literature reveals that significant improvements in governance can triple a country’s income per capita in the long run and decrease mortality and illiteracy. Countries with good governance encourage their citizens to participate in productive rather than diversionary activities (bribery, thievery, piracy). Large increases in productivity, in turn, lead to high growth rates... Since 1996 the World Bank has provided measures of governance for countries worldwide. The aggregate governance indicators are updated every other year by economists Daniel Kaufmann, Art Kraay, and Massimo Mastruzzi through their paper entitled 'Governance Matters'."

Upping the Ante Against Corruption, by Oke Epia
The Financial Times Limited, Asia Africa Intelligence Wire (AAIW), Abuja, Nigeria, 16 October 2005
(full text can be found at This Day)

"Notwithstanding what critics and skeptics of the anti-corruption crusade of the President Olusegun OBASANJO administration say, the onslaught is getting intensified by the day...nay-sayers may have their point, but what cannot objectively be denied is that the war on corruption is picking up steam daily... Last Thursday in Abuja, Daniel Kaufmann, Director, Governance and Anti-Corruption of the World Bank Institute (WBI), reinforced this position when he gave credit to the Obasanjo administration for its efforts against corruption. "Nigeria is changing for the better, in fact, if the current momentum is maintained and deepened, the progress made in the fight against corruption could become irreversible," Kaufmann said while meeting members of the economic team of the Federal Government."

Foreign Firms Aid Corruption, by Kunle Aderinokun
The Financial Times Limited, Asia Africa Intelligence Wire (AAIW), Abuja, Nigeria, 14 October 2005
(full text can be found at allAfrica.com)

"The World Bank yesterday said multinational companies from the European and latin American countries were still giving bribes to officials in Nigeria and several other African countries where they operate... Also, the bank said the war against corruption by President Olusegun Obasanjo's administration was paying off and predicted that 2006 could be a historical year... Kaufmann said it was evident that the "resolute reforms" embarked upon by the administration in the past one year and a half was beginning to pay off... According to him, "it is becoming evident that the resolute reforms undertaken by the Nigerian leadership and government over the past a year and a half are beginning to pay off already, even though we know that there is always some delays in any measure."

Nigeria winning corruption war
News24, South Africa, 14 October 2005

"Nigeria's government under President Olusegun Obasanjo is making progress in fighting corruption, a senior World Bank official said on Thursday... Daniel Kaufmann, head of global programmes at the World Bank Institute (WBI), made his remarks after a meeting with members of Obasanjo's economic team..."Nigeria is changing for the better. In fact, if the current momentum is maintained and deepened, the progress made in the fight against corruption could become irreversible," Kaufmann said."

Jordan Meeting Told Media Essential for Global Development
Red Nova, BBC Monitoring Media, UK, 13 October 2005

"Over 400 media experts from more than 100 countries gathered in Amman, Jordan, on 1-3 October, to explore the relationship between independent media and economic and political development. Participants at the conference discussed the role of communications and media in conflict prevention, reconstruction, and national and international emergencies... Among the key speakers... Daniel Kaufmann, director of Global Programmes at the World Bank Institute, who spoke on the lessons from a decade's work developing and measuring governance worldwide. He also assisted the conference's workshops to quantitatively measure the role of the independent media sector in economic development."

WEF ignores Lebanon while assessing investment climates worldwide
The Daily Star, Lebanon, 8 October 2005

"BEIRUT: This...was one of the many observations that Chilean director of Global Programs at the World Bank (WB) Daniel Kaufmann made on Friday during his lecture on governance and corruption at the American University of Beirut...Quoting research in a recent article found on the WB Web site Kaufmann suggested that corruption "is equivalent to a major tax on foreign investors." ...He added levels of governance have nothing to do with levels of wealth. "Botswana and Slovenia are doing pretty well while not being part of the high-income countries," said Kaufmann. While Zimbabwe is on the verge of total collapse, Chile for example showed impressive records in governance levels....Furthermore, Kaufmann insisted that it is good governance that can create income and "not vice versa." Pointing out the common myths about corruption, the WB director said it was measurable."

RP competitiveness drops anewby VG Cabuag
Malaya - The National Newspaper, Philippines, 1 October 2005

"The Philippines dropped a notch to 77th place in the World Economic Forum’s Global Competitiveness Report...On governance and corruption, Daniel Kaufmann said it was a myth that governance and anti-corruption are synonymous. "Corruption is not limited to those who govern, but implicates the private sector as well" ..."To those who say that governance and corruption cannot be measured, the variety and scale of impressive and comprehensive measures, have become available, and are in wide use for monitoring performance," he added."

Commentary: Myths About Governance And Corruption
World Bank News & Broadcast, 30 September 2005

"In a commentary published in the Business Recorder ( Pakistan), Daniel Kaufmann, Director of Global Programs at the World Bank Institute, writes that governance is now being given a higher priority in development circles. A few donors and International Financial Institutions (IFIs) have begun to work with some emerging economies to help reduce corruption, and encourage citizen voice, gender equality, and accountability. Kaufmann discusses if good governance and controlling corruption are really so fundamental for development."

Media Experts from 100 Countries to Gather to Discuss Media Development
Internews, Amman, Jordan, 27 September 2005

"An estimated 400 media experts from 100 countries are gathering in Amman, Jordan October 1 – 3 to explore the relationship between independent media and economic and political development...Daniel Kaufmann, Director of Global Programs at the World Bank Institute, will present lessons from a decade’s work developing and measuring governance worldwide; Kaufmann will be leading efforts at the conference to help quantitatively measure the role of the independent media sector in economic development."

China’s rise need not bring conflictby Martin Wolf
The Financial Times, UK, 14 September 2005
(Subscription required for full access)

"Ours is the second era of economic globalisation... Today, China's standard of living is still about one-quarter of South Korea's. Yet suppose that China were to attain South Korea's gross domestic product per head... Then its economy would be almost twice as large as that of the US... Even so, China is still far from possessing a law-governed, market economy...The World Bank's comprehensive governance indicators flesh out this..."

[Also, the governance indicator charts for China and other comparator countries are prominently displayed in this full feature page article.]

For access to any chart on governance indicators visit WBI's Governance Indicators website.

New models point the way out of povertyby Robert Davies and Kemal Dervis
The Financial Times, UK, 13 September 2005
(Subscription required for full access)

"A series of fortuitous politics and events has placed an unprecedented focus on the fight against global poverty and the progress being made towards achieving the United Nations' Millennium Development Goals...Good governance, good domestic policies and partnerships with a wide range of stakeholders are also increasingly being recognised as vital for development success...Governments also need to take a tough stance against corruption and other forms of rent seeking. A recent World Bank study reveals that corruption is seen by business as one of the most severe obstacles in developing countries."

Korean Gov't Drops in World Bank Ranking
The Chosun Ilbo, Korea, 06 September 2005

"World Bank 'governance indicators'...gave the Korean government an average 3.66 points out of 15 in six categories, including political stability and regulatory quality, placing it 60th out of 209 surveyed nations. In 2002, during the Kim Dae-jung administration, the country recorded 4.07, coming 50th...The World Bank has evaluated the competitiveness of 209 states and autonomous governments every two years since 1996."

Where a Cuddle With Your Baby Requires a Bribe by Celia Dugger
Front Page, The New York Times, 30 August 2005
(similarly found in the International Herald Tribune, Chicago Tribune, Edmonton Journal, and Folha de Sao Paulo)

"Such petty bribery acts as a hidden regressive tax, according to research financed by the World Bank Institute, the bank's educational and research arm. In Zambia, for example, poor people paid 17 percent of their incomes in bribes for medical care, while the middle class paid only 3 percent. The comparable figures for Paraguay were 7 percent for the poor and only 1 percent for the middle class.

The poor not only are paying much more of their incomes to get the same medical services as the middle and richer classes, but they are also discouraged from seeking basic medical care because they can't afford it," said Daniel Kaufmann, director of global programs at the institute."

Governance without borders by Asher Meir
The Jerusalem Post, 5 August 2005
(full text can be found at Ethics@Work)

"It never rains but it pours. This week a number of very important economic-ethics stories surfaced, including the continuing saga of Clubmarket and new figures on income distribution.

But I want to give priority to the recent story on the deterioration of the level of governance in Israel. A number of papers carried the story this week because of an announcement by Israeli firm BDI which analyzed the figures, but the figures are actually part of an annual report by the World Bank which came out a few months ago. The World Bank governance figures are well- respected and I have often used them in teaching courses."

Bank indicators rank government quality
Oxford Analytica, 21 June 2005

"The latest version of the World Bank's indicators of governance provides new data sources and an expanded timeframe. Although the indicators are based on perceptions-based survey data, the methodology allows explicit estimates of margins of error. The results provide a reminder of the distance separating quality of governance in the OECD and the rest of the world."

Brazilians expect heads to roll in bribe scandal by Andrew Hay
Reuters News, Brasilia, Brazil, 11 June 2005

"'President Luiz Inacio Lula da Silva vowed to ax ministers if necessary to fight government graft allegations but his inaction has Brazilians wondering if he has lost control of a damaging scandal...Accusations of bribery in state companies and the ruling party have sparked Lula's worst political crisis, but not a single high-ranking government official has been fired or suspended nearly a month after the first allegations surfaced...Worried financial markets fell for most of the week...Finance Minister Antonio Palocci, one of the ministers accused of knowing of the scheme, said on Friday scandals had not hit the economy but created a "a climate of concern...'

For Daniel Kaufmann, who works on anti-corruption issues at the World Bank, the government's response to the scandals would decide how markets react...'Today's globalized markets are unforgiving if a country slips in governance and control of corruption," said Kaufmann on the sidelines of an anti-corruption conference in Brasilia.'"

A Regime Changes
From The Economist print edition, UK, 2 June 2005

"The World Bank's new president is famous for his commitment to 'regime change'. The Bank is committed to a peaceful version of the same thing

The Bank which Mr Wolfowitz now heads has as many sides as the Pentagon he has left. Speaking on May 31st he said he would be willing to listen and experiment, but it will take him some time to get to grips with a complex organisation…Mr Wolfowitz may, in fact, discover much that is familiar to him at the Bank. It is first and foremost a formidable technocracy. But in its own bloodless idiom, the Bank now talks increasingly about politics, even if it does so in euphemisms such as 'good governance', 'capacity building', 'voice' and 'empowerment'. It is committed to understanding the political institutions of the countries in which it operates…Dani Kaufmann, at the World Bank, notes an explosion of indicators of good government, most based on business surveys or expert perceptions, that offer measures of accountability, bureaucratic competence, the rule of law, and so on…Mr Kaufmann believes he and his colleagues can demonstrate a strong causal link between his indices of sound government and prosperity."

Remarks By E. Anthony Wayne, Assistant Secretary of State For Economic and Business Affairs at the Broader Middle East and North Africa Trade and Development Finance Conference: Part II 
Federal News Service, Moscow, Russia, 18 May 2005
(Subscription required for full access)

"This is an ideal moment to gather for this kind of discussion, because the momentum for change is critical, and yet many challenges remain. The World Bank's latest governance report shows the overall governance environment has deteriorated across the BMENA region between 2000 and 2004 -- including business and regulatory reform, public accountability and control of corruption."

Financial Express: Governance Gripes
Financial Express, Mumbai, India, 17 May 2005

"At a time when most of us are in despair at the abysmal state of governance in the country, the World Bank finding that this has improved in India continuously since 1996 brings some much-needed cheer. We score much higher on rule of law, citizens' voice and state accountability. On the other hand, we score fairly low on matters such as the ability of government to frame and implement policies and on the 'regulatory quality' of those on various, especially business-related, matters."

Antibribery efforts fail to stop executives from greasing palms
The International Herald Tribune, Neuilly Cedex, France, 17 May 2005

"Daniel Kaufmann of the World Bank, a veteran dispenser of third world loans to government officials who are frequently on the take, estimates that illegal 'transactions' cost the world economy about $1 trillion a year. The bank publishes a blacklist of corrupt companies, now numbering 281."

Shaking Hands, Greasing Palms
The New York Times, 17 May 2005
(Subscription required for full access)

"Daniel Kaufmann of the World Bank, a veteran dispenser of third world loans, estimates that illegal transactions cost the world economy some $1 trillion a year. The Sarbanes-Oxley Act of 2002, which was enacted to attack accounting fraud, like off-the-books bribes, is a new weapon in the anti-corruption battle."

S'pore fares well in global survey of govts
Singapore Straits Times, 11 May 2005

"The report, which is based overall on 37 sources of data provided by 31 organisations, does not, however, draw conclusions or comment on the countries and territories surveyed."

Room for improvement on governance
South China Morning Post, 11 May 2005

"Hong Kong 's score for 'accountability' was markedly lower than for the other indicators. The emphasis placed by the study on public participation in politics and democratic elections explains why. But the score has improved since 2002, perhaps because of the public's increased political awareness and activism."

Philippine scores on governance go down
Philippine Daily Enquirer, 11 May 2005

"The Philippines is bracketed with a group of mostly developing countries that have experienced large changes in governance scores during the past eight years from 1996 to 2004. A World Bank study released on Monday shows that the quality of governance in the Philippines has deteriorated from 1996 to 2004."

Martin Wolf: Russia needs help to be 'normal'
The Financial Times, UK, 10 May 2005

"Vladimir Putin's recent remark that the dissolution of the Soviet Union was 'the greatest geopolitical catastrophe of the century' reminds us that Russia is not just another country in transition from the communist past....Yet Russia will only be a normal country when its people welcome their freedom rather than regret their power... The recent governance indicators from the World Bank show...Russia now resides between Venezuela and Egypt on voice and accountability....On all the World Bank's indicators of governance - accountability, stability and lack of violence, government effectiveness, regulatory quality, rule of law and control of corruption...Russia is not a "normal" middle-income developing country."

World Bank Releases New Governance Indicators
China.org.cn, 10 May 2005

"In spite of improvements in some countries, there have been at least as many countries where deterioration has taken place in many dimensions of governance, and many more where no significant change is apparent yet. Thus, on average the quality of governance around the world has remained stagnant, highlighting the urgent need for more determined progress in this area in order to accelerate poverty reduction."

World Bank gives Denmark top ratings
Xinhua News Agency, 10 May 2005

"The rankings make Denmark and the other Nordic countries appearas a shining example for the rest of the world, according to Daniel Kaufmann, who was in charge of the World Bank investigation. '"To create the Nordic countries' system of excellent public administration requires a long process, and one has to be realistic. But our study shows that in just five to six years, good results can be achieved,' Kaufmann said."

SA Earns 'Less Stable' Rank in Bank Study
Business Day - South Africa, 10 May 2005

"While the bank said that some of its more than 350 data sources on more than 209 countries were based on perceptions, they constituted important sources of information. The bank did not rank countries for the study, saying the margin of error could be too large."

S'pore slips, but still high in political governance
Business Times - Singapore, 10 May 2005
(Available on page seven of the Pacific Star, Singaporein PDF, 786 kb)

"The political governance ratings of Singapore have slipped somewhat over the past decade or so, according to a World Bank study. But few among the 209 countries covered in the research have made good progress, and Singapore probably remains among the top ten for good governance."

Quality of governance has stagnated - World Bank
Agencia Internacional de Noticias, 10 May 2005

"Daniel Kaufmann, director of governance at the World Bank Institute and co-author of the report, said the study showed that good governance was not a luxury that only wealthy countries could afford. Emerging countries like Botswana, Chile, Slovenia and Baltic nations had also shown high quality of governance."

WB: Quality of RP governance is poor
The Manila Times, 10 May 2005

"Government reformers, citizens, domestic enterprises and foreign investors see governance as the key ingredient for sustainable development and a sound investment climate."

World Bank: Good governance key to growth
Washington Times, 9 May 2005

"The report said domestic as well as foreign investments flow more freely when a steady, reliable government is in place."

World Bank Indicators Measure Good Governance
Voice of America, Washington, DC, 9 May 2005

"At stake is the fundamental issue of socio-economic development and poverty alleviation first and foremost. One of the findings that we have and others have very similar findings is what we called the 'development dividend' of good governance, which on average we have found it to be 300 percent. A country that has today $2,000 per capita income per year can attain $6,000 per capita income per year in the long term if it improves its rule of law, control corruption and government effectiveness."

World Bank Says Corruption Hurts World Economies
Voice of America, Washington, DC, 9 May 2005

"The bank's anti-corruption director, Daniel Kaufmann, says that corruption can be found everywhere, but the countries deemed the least corrupt, led by the five Nordic states and New Zealand, have several traits in common. These include a high regard for human rights, political stability, an effective, accountable government bureaucracy, market-friendly policies, and a strong rule of law."

World Bank Says Openness Aids Investment
InterPress Service News Agency, Washington, DC, 9 May 2005

"'In spite of a number of shining examples, the fact is that, on average, neither the rich nor the poor worlds have improved in their standards on governance over the past eight years,' said Daniel Kaufmann, report co-author and director of global governance at the World Bank Institute, the lending agency's think tank. 'This sobering reality ought to motivate collective action in the next stage.'"

Iraq 'facing corruption threat'
BBC News, UK, 16 March 2005

"'The diversion of funds from publicly financed projects represents an unacceptable tax on the poor," said World Bank president James Wolfensohn. "In the construction sector, it represents a deplorable opportunity lost for the delivery of essential services and it undermines citizen trust in government."

World Bank Hails Transparency International's Annual Report
World Bank Press Release, 16 March 2005

"World Bank President James D. Wolfensohn today hailed Transparency International’s 2005 report as another important and practical contribution in curbing corruption. 'TI has once again shown its ability to combine research and policy analysis not just to shine a light on the deeply embedded problems of corruption in the international construction industry, but to propose progressive solutions to safeguard public monies and public trust,' said Wolfensohn."

TI welcomes World Bank report detailing corruption investigations Transparency International, Berlin, Germany, 24 February 2005

"The World Bank’s Annual Report on investigations into fraud and corruption allegationssets an example for other development banks and international institutions including the UN to follow, says Transparency International."

World Bank Warns Corruption Could Destroy Cambodian Economy Voice of America, Phnom Penh, 11 February 2005

""The World Bank called on Cambodia this week to drastically curb corruption, or face isolation from the world's free trade markets. World Bank President James Wolfensohn says the three greatest obstacles to Cambodia's growth are corruption, corruption, corruption."

Lenders Mull Cambodia's Economic Future
Noticias.info, Phnom Penh, 10 February 2005

"The World Bank and International Monetary Fund blame corruption and a lack of law enforcement for a reduction in investor confidence here."

Kenya, funding and corruption
Khaleej Times Online, 10 February 2005

"According to World Bank, widespread corruption can cause the growth rate of a country to be one half to one percentage point lower than that of a similar country with less corruption."

Training to improve municipal governance
The East African, Nairobi, Kenya, 1 February 2005

"The World Bank Institute and the Municipal Development Programme for Eastern and Southern Africa (MDP-ESA) have launched a programme to improve governance in municipalities in Ghana, Kenya, Malawi, Tanzania and Uganda."

Corruption besets Kenya business
BBC News, UK, 25 January 2005

"Companies in Kenya say corruption is still the biggest obstacle to doing business in the country, according to a new survey involving the World Bank."

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