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Improving Transparency, Integrity, and …

Improving transparency , integrity , and accountability in water supply and Sanitation Action, Learning, Experiences Mar a Gonz lez de As s Donal O'Leary Per Ljung John Butterworth Improving transparency , integrity , and accountability in water supply and Sanitation Improving transparency , integrity , and accountability in water supply and Sanitation Action, Learning, Experiences Mar a Gonz lez de As s Donal O'Leary Per Ljung John Butterworth The World Bank Institute and transparency International 2009 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW. Washington DC 20433. Telephone: 202-473-1000. Internet: E-mail: All rights reserved 1 2 3 4 12 11 10 09. This volume is a product of the staff of the International Bank for Reconstruction and Develop- ment / The World Bank.

Improving Transparency, Integrity, and Accountability in Water Supply and Sanitation Action, Learning, Experiences María González de Asís Donal O’Leary

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1 Improving transparency , integrity , and accountability in water supply and Sanitation Action, Learning, Experiences Mar a Gonz lez de As s Donal O'Leary Per Ljung John Butterworth Improving transparency , integrity , and accountability in water supply and Sanitation Improving transparency , integrity , and accountability in water supply and Sanitation Action, Learning, Experiences Mar a Gonz lez de As s Donal O'Leary Per Ljung John Butterworth The World Bank Institute and transparency International 2009 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW. Washington DC 20433. Telephone: 202-473-1000. Internet: E-mail: All rights reserved 1 2 3 4 12 11 10 09. This volume is a product of the staff of the International Bank for Reconstruction and Develop- ment / The World Bank.

2 The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the govern- ments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly.

3 For permission to photocopy or reprint any part of this work, please send a request with com- plete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA. 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: ISBN: 978-0-8213-7892-2. eISBN: 978-0-8213-7867-0. DOI: Improving transparency , integrity , and accountability in water supply and sanitation / Mar a Gonz lez de As s .. [et al.]. p. cm. Includes bibliographical references and index. ISBN 978-0-8213-7892-2 ISBN 978-0-8213-7867-0 (electronic).

4 1. Municipal water supply Government policy. 2. Municipal water supply Corrupt practices. 3. Sanitation Government policy. I. As s, Mar a Gonz lez de, 1969 . 2009. '1 dc22. 2009000085. Cover photograph: Young woman fetching water from a well in Taroudant Province, Morocco;. Julio Etchart, World Bank, 2002. Cover design: Critical Stages Contents Preface ..xv About the Authors ..xix Module 1 The Nature of Corruption in the water 1 Introduction ..3. 2 Context ..6. 3 What Is Corruption?..12. 4 Case Study: Corruption in the water Sector in South 5 A Framework for Analyzing Corruption ..28. 6 Impact of 7 Sector Restructuring and Corruption ..39. 8 Concluding Activity ..43. Notes ..44. Module 2 Diagnosing Corruption in the water Sector: Tools and Impact 1 Introduction.

5 47. v Contents 2 Overview of Tools and 3 External Diagnostic 4 Internal Diagnostic Tools ..63. 5 The Role of Regulatory Authorities ..77. 6 Concluding Activity ..80. Notes ..81. Module 3 Tools for Addressing Corruption in the water and Sanitation 1 Introduction ..85. 2 Identifying the Right Tools ..87. 3 Selected Tools ..90. 4 Concluding Activity ..119. Notes ..120. Module 4 Case Studies in Addressing Corruption in the water and Sanitation 1 Introduction ..123. 2 Phnom water supply Authority: Cambodia ..126. 3 Promoting transparency in the Panama Canal Authority, the Largest water Company in Panama ..131. 4 The Public Utilities Board in Singapore ..135. Notes ..140. Module 5 Action Planning to Address Corruption and Improve transparency , accountability , and Access to Information in the water Sector.

6 141. 1 Introduction ..143. 2 Context ..145. 3 Developing an Action Plan ..151. 4 Concluding Activity ..158. Notes ..159. vi Contents References ..161. Boxes Common Forms of Klitgaard's Corruption Is Petty Corruption Really Petty ? An Illustration from the Power Sector in Bangladesh ..22. The Use of Citizen Report Cards in Bangalore, India ..57. Participatory Corruption Appraisal in Indonesia ..59. Examples of Questions Covered in a Utility Checklist ..64. Examples of Questions Covered in a Vulnerability Assessment ..67. Benchmarking: Service and Performance Indicators ..69. Benchmarking: Efficiency and Financial Indicators ..70. Benchmarking: Process Using India's Right to Information Act to Enforce Rights to water and Sanitation.

7 93. Example: The Importance of Site Selection and Targeting as a Tool in Malawi ..98. Example: Improving transparency at Large Facilities, Kerala, India ..99. Examples: Results of Citizens' Action Promoted by WaterAid in Asia ..102. Example: Citizens' Voice in South Participatory Budgeting in Brazil ..105. Example: Money Diverted from Education in Uganda ..108. vii Contents Example: Selling Pipes with integrity in Colombia ..109. Example: Using Social Witnesses in integrity Pacts in Mexico ..111. Example: Anticorruption Conventions in the Americas ..113. Example: transparency in Public Procurement, Figures Demons, Saints, and the Honest But Individual Systemic Employees per 1,000 Connections (170 Latin American water Utilities).

8 73. Nonrevenue water in Percent (120 Latin American water Utilities)..74. Regulatory Employee Information Published by the ACP ..132. Tables Share of Population with Access to water and Sanitation Services in Latin America, Indicators of Corruption in Honduras and Nicaragua ..10. Corruption in Public Utilities in Honduras ..11. A Framework for Analyzing Corruption ..29. Issues Covered in a Corruption Survey ..55. Matching Utility Benchmarks and Customer Surveys ..78. Potential Uses of Participatory Methods ..96. viii Contents Summary of Case Studies Included in This Module ..125. Performance of the Phnom Penh water supply Authority, 1993 and 2006 ..126. Share of Population with Access to water and Sanitation Services in Latin America, Indicators of Corruption in Honduras and Nicaragua.

9 149. Corruption in Public Utilities in Honduras ..150. ix Foreword This manual on Improving transparency , integrity , and accountability in water supply and Sanitation is the result of a partnership between the World Bank Institute (WBI) and transparency International (TI). It was developed under the Open and Participatory Government Program at the Municipal Level (known by its Spanish acronym as the GAP Municipal Program). The GAP Municipal Program, managed by WBI since 2000, supports institutional change in local government by helping to design tools to combat corruption. It provides a platform for disseminating knowledge on anticorruption strategies that can be adapted and used by national agencies and municipalities worldwide.

10 Over the years, GAP has supported many training initiatives in Latin America and the Caribbean and in Anglophone and Francophone Africa. Nowhere do citizens, particularly the poor, feel the effects of corruption more directly than at the municipal level. Corruption calls into question the social con- tract between citizens and public officials whose duty is to provide vital services. TI's Global Corruption Barometer 2006, a survey of the general public conducted in 62 countries, found that bribery in poor and transitional countries is still a major impediment to development. In Africa, for example, corruption in public services, including utilities, affected more than a third of respondents. Tackling corruption in municipal water supply and sanitation services requires a holistic approach, focusing on governance reform and particularly on developing and implementing anticorruption strategies at the sectoral and institutional levels.


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