How to Address Corruption in ODA

Allocation

Map of Corruption

What is Corruption

According to Transparency International- Corruption: The abuse of entrusted power for private

gain. It can be classified as grand, petty and political, depending on the

amounts of money lost and the sector where it occurs.

How does Corruption Impact the Efficiency of ODA? According to several impact evaluations, ODA does not make the

desired impact to the recipient country. ODA is provided by donor countries to address issues of poverty,

infrastructure, economy, health, and overall development. Unfortunately according to impact evaluations, some recipient

countries have not witnessed the scale of reduced poverty that the ODA should address.

What are the Costs of Corruption

Political Freedoms Lack of domestic public resources Neglect to country infrastructure Continued poverty Waste of resources

Why Is This Happening?

Lack of institutional accountability Lack of institutions all together Organizational culture Political Environment Historical Precedent Perception of corruption

How Can We Solve Corruption Through Financial Measures Donor countries must monitor the flows and use of ODA. Donor countries should have mechanisms in place that allow them to

halt funding if there are allocation discrepancies. Provide ODA directly to local grassroots organizations who can have a

greater impact. The donor country receives an agreement from the recipient country

allowing the donor country to provide staff that manages the funds and the projects they are used towards.

THANK YOU!