THE WORLD BANK GROUP A World Free of Poverty

Helping Countries Combat Corruption:
The Role of the World Bank

Poverty Reduction and Economic Management
The World Bank
September 1997

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1. Key Messages

2. Corruption and Economic Development

How do we define corruption?
What are the causes of corruption?
What do economics and political science tell us?
What is the Bank's experience?
3. A Bank Strategy for Tackling Corruption

The Bank's legal mandate
The Bank's fiduciary responsibility
Helping countries combat corruption
Contributing to international efforts
4. Controlling Corruption in Bank-financed Projects

Codes, pacts, and pledges
Loan disbursement
5. Helping Countries Reform Economic and Sector Policies

Deregulation and the expansion of markets
Policy advice when government continues to play a role
6. Helping Countries Strengthen Institutions

Public management reform
Legal and judicial reform
Civil society and the media
7. Mainstreaming a Concern for Corruption in Bank Activities

Economic work
Country assistance strategies and the country dialogue
Lending program
Procurement and financial management
External agency practices and public sector management
Staffing implications
8. International Efforts

Current international initiatives
Bank actions at the international level
9. Concluding Thoughts

The International Finance Institution's approach to combating fraud and corruption in project finance
The Multilateral Investment Guarantee Agency's approach to combat-ing fraud and corruption in guarantees