Managing Conflict of Interest - Organisation for Economic Co ...
Managing Conflict of Interest - Organisation for Economic Co ... Managing Conflict of Interest - Organisation for Economic Co ...
Conflict of interest: A historical andcomparative perspectiveSir Tim LankesterPresident, Corpus Christi College, Oxford University, United KingdomIntroductionConflict of interest among political leaders and public officials,as we understand it today, has existed as long as there has beenpublic administration. 1 In most premodern societies, the very conceptof conflict of interest would not have been recognized. Therewere a few societies, such as Sasanian Iran and early Tang China,where public officials were expected to administer purely in theinterests of the state or of the supreme ruler. Whether they did sois another matter. But in most societies, whether it was 17th centuryEngland or 18th century Java, it was automatically assumed thatpolitical leaders and officials would take advantage of public officeto advance their own personal interests.It is really only since the advent of the modern industrializingstate that the notion has taken hold that public officials and theirpolitical masters should be expected to act exclusively in the interestsof the state. States with large military ambitions, such as Englandin the 18th century and Bismarck’s and Hitler’s Germany, needed anefficient and relatively incorrupt civil service if their ambitions wereto be fulfilled. The Soviet Union needed officials who were dedicatedwholly to the social and economic transformation envisagedby Lenin and Stalin. When countries in Western Europe and elsewheredemocratized and their governments became accountableto their publics, the people as “sovereign” began to insist via theballot box that politicians and officials should act in the public, asopposed to their own personal, interest.In most countries, expectations as to the proper duties ofpoliticians and officials have changed over time in the directionof greater transparency and clearer division between their public1This paper deals only with conflict of interest in respect of politicians and nonelectedofficials. It does not address conflict of interest in the private sector.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Defining Conflict of Interest 11duties and private aims. But in countries that have yet to achieveany great measure of democratic control, expectations in thisregard remain low; and the same applies to countries that haveonly recently democratized which have a previous history of corruptionand abuse of power. 2The next section offers some definitions and an analyticalframework for considering the issues. This is followed by an examinationof various countries’ experiences, starting with Great Britainover the last few hundred years, and continuing with a brief commentaryon the more recent experience of six other countries: US,Russia, People’s Republic of China, India, Indonesia, and Singapore.Table 1 provides a snapshot of how Great Britain and these sixother countries ranked in terms of how the control of corruptionwas perceived in 2006 (and ipso facto how they ranked in termsof their control of conflicts of interest). Table 2 shows the data forthese countries going back to 1996. The data are taken from theWorld Bank Institute’s recently published Worldwide GovernanceIndicators (WGIs) and are based on surveys undertaken inside andoutside each country.Table 1: Control of Corruption in Selected CountriesCountry Year PercentileRank(0–100)GovernanceScore(–2.5 to +2.5)StandardErrorSingapore 2006 98.1 2.3 0.14United Kingdom 2006 93.7 1.86 0.15United States 2006 89.3 1.3 0.15India 2006 52.9 –0.21 0.13P.R. China 2006 37.9 –0.53 0.14Russia 2006 24.3 –0.76 0.12Indonesia 2006 23.3 –0.77 0.132For example, although the Transparency International Corruption PerceptionIndex for 2006 ranked the United Kingdom about 100 places above Russia,according to the TI Global Corruption Barometer 2006 the proportion of Britishand Russian respondents who felt that their governments’ actions againstcorruption were ineffective was about the same.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
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Defining <strong><strong>Co</strong>nflict</strong> <strong>of</strong> <strong>Interest</strong> 11duties and private aims. But in countries that have yet to achieveany great measure <strong>of</strong> democratic control, expectations in thisregard remain low; and the same applies to countries that haveonly recently democratized which have a previous history <strong>of</strong> corruptionand abuse <strong>of</strong> power. 2The next section <strong>of</strong>fers some definitions and an analyticalframework <strong>for</strong> considering the issues. This is followed by an examination<strong>of</strong> various countries’ experiences, starting with Great Britainover the last few hundred years, and continuing with a brief commentaryon the more recent experience <strong>of</strong> six other countries: US,Russia, People’s Republic <strong>of</strong> China, India, Indonesia, and Singapore.Table 1 provides a snapshot <strong>of</strong> how Great Britain and these sixother countries ranked in terms <strong>of</strong> how the control <strong>of</strong> corruptionwas perceived in 2006 (and ipso facto how they ranked in terms<strong>of</strong> their control <strong>of</strong> conflicts <strong>of</strong> interest). Table 2 shows the data <strong>for</strong>these countries going back to 1996. The data are taken from theWorld Bank Institute’s recently published Worldwide GovernanceIndicators (WGIs) and are based on surveys undertaken inside andoutside each country.Table 1: <strong>Co</strong>ntrol <strong>of</strong> <strong>Co</strong>rruption in Selected <strong>Co</strong>untries<strong>Co</strong>untry Year PercentileRank(0–100)GovernanceScore(–2.5 to +2.5)StandardErrorSingapore 2006 98.1 2.3 0.14United Kingdom 2006 93.7 1.86 0.15United States 2006 89.3 1.3 0.15India 2006 52.9 –0.21 0.13P.R. China 2006 37.9 –0.53 0.14Russia 2006 24.3 –0.76 0.12Indonesia 2006 23.3 –0.77 0.132For example, although the Transparency International <strong>Co</strong>rruption PerceptionIndex <strong>for</strong> 2006 ranked the United Kingdom about 100 places above Russia,according to the TI Global <strong>Co</strong>rruption Barometer 2006 the proportion <strong>of</strong> Britishand Russian respondents who felt that their governments’ actions againstcorruption were ineffective was about the same.ADB/OECD Anti-<strong>Co</strong>rruption Initiative <strong>for</strong> Asia and the Pacific