Cover -- Title Page -- Contents -- Foreword -- Preface -- Contributors -- Acknowledgments -- Abbreviations -- Introduction: Tackling a Social Pandemic -- Introduction -- Background and Rationale for this Book -- Objective of the Volume -- Tracking Vulnerabilities -- Defining Corruption -- The Structure of the Volume -- Emerging Implications for Reforms -- One Size Does Not Fit All -- Combating Corruption Is Fundamentally about Addressing Poor Governance Rather than about Catching Crooks -- Strengthening Electoral Institutions Is Critically Important to Sectoral Reforms -- The Long-Term Sustainability of Sector Reforms Depends on Improving the Legal and Judicial System -- Reducing Opportunities for Corruption in Sectors Requires Substantial Reforms in Public Management -- Corruption in "High-Rent" Sectors May Have Huge Negative Spillover Effects on Overall Governance -- To Be Effective, Governance Reforms Have to Be Incentive Compatible -- Leadership -- Windows of Opportunity -- Capacity Matters -- Accounting Is Not Accountability: Supply-Side Interventions May Be More Effective When Matched with Demand-Side Mechanisms -- Corollary: A Transparent and Monitorable Results Framework Provides a Foundation for Increased Accountability -- International Cooperation, Particularly Involving Multinational Corporations and Developed-Country Governments, May Be Necessary to Combat Corruption in Sectors Where Scarcity Rents Are Inordinately High and Supply and Demand Are Split Clearly along North-South Lines -- Endnotes -- References -- PART 1 Combating Corruption: Sectoral Explorations -- 1 Corruption and Pharmaceuticals: Strengthening Good Governance to Improve Access -- Introduction -- Why is the Pharmaceutical System Vulnerable to Corruption? -- Framework for Identifying Corruption -- Anatomy of Corruption: Six Core Decision Points.

Decision Point One: Manufacturing -- Decision Point Two: Registration and Market Authorization -- Decision Point Three: Selection -- Decision Point Four: Procurement -- Decision Point Five: Distribution -- Decision Point Six: Drug Prescribing and Dispensing -- Assessing Corruption Risks in Pharmaceutical Systems -- Application of the Methodology in Costa Rica -- Drug Registration -- Selection -- Procurement -- Distribution -- Reform Strategies and Conclusions -- Endnotes -- References -- 2 Maximizing the Performance of Education Systems: The Case of Teacher Absenteeism -- Introduction -- Corruption and Education -- A Corruption Framework for Education -- A Focus on Teachers and Absenteeism -- Is Teacher Absenteeism Corruption? -- Incidence and Correlates of Teacher Absenteeism -- Combating Teacher Absenteeism -- Reforms at the National Level -- Political Leadership -- Policy and Civil Service Reform -- Public Expenditure and Financial Management -- Public Information Campaigns -- Systematic Monitoring -- Incentives -- Bringing in the Private Sector -- Reforms at the Local Level -- Beneficiary Participation and Control Strategies -- Conclusions -- Notes -- References -- 3 Crime and Justice in the Garden of Eden: Improving Governance and Reducing Corruption in the Forestry Sector -- Introduction -- The Costs and Consequences of Forest Corruption -- Forest Sector Characteristics that Enable Corruption -- Drivers of Forest Corruption: A Typology -- State Capture: Institutional Erosion and Rent Seizing -- Grand Corruption and Rent Seeking -- Corruption and Illegal Commercial Logging -- Petty Corruption and Extortion Related to Need-Based Illegal Logging -- Containing the Cancer: a Search for Answers -- Demand-Side Interventions -- Increasing Timber Supplies -- Rent Capture -- Transparency and Detection -- Accountability.

Streamlining, Simplifying, and Reforming Forest Legislation -- Institutional Reforms and Incentive Compatibility -- The Forest Law Enforcement and Governance Ministerial Processes -- Concluding Remarks -- Annex 3A: Examples of Illegal Logging and Associated Illegal Practices in Forestry -- Illegal logging -- Illegal timber transport, trade, and timber smuggling -- Transfer pricing and other illegal accounting practices -- Illegal forest processing -- Endnotes -- References -- 4 Corruption in the Electricity Sector: A Pervasive Scourge -- Introduction -- Corruption: a Pervasive Scourge -- Corruption Vulnerabilities -- Key Areas of Vulnerability: Identification, Magnitude, and Beneficiaries -- Government Policies -- Investment Decisions -- Customer-Interfacing Activities -- Commercial Operations: Theft of Electricity -- Procurement -- Human Resources -- Diagnosis: The Causes of Corruption -- Combating Corruption -- Conditions Precedent for Launching an Anticorruption Strategy -- Committed Leadership at the Top -- Establishing Good Governance -- Design and Implementation of an Anticorruption Strategy -- From Denial to Acceptance -- Building Coalitions -- Improving Utility Business Processes -- Strengthening Institutional Mechanisms for Accountability -- Separation of Regulatory and Commercial Functions -- Independent Regulatory Regime -- Consumers' Charters -- Regular Financial Audits -- Norms and Standards -- Penalties for Offenders -- Confiscation of Assets -- Regular Energy Audits -- Institutionalize User Surveys -- Customer Grievance Redressal Mechanisms -- Integrity Units -- Independent Monitoring -- Encouraging Public Participation -- Role of Donors and Multilateral Agencies -- Annex 4A: Two Case Studies -- Andhra Pradesh, India: Controlling Electricity Theft in Electricity Distribution Companies -- The Context -- The Plan.

Consulting with Stakeholders -- Providing Adequate Resources -- Setting Priorities -- Building a Constituency for Change -- Monitoring Results -- The Results -- Bangladesh: A Participatory Approach -- Annex 4B: California Power Crisis: Corporate Fraud and Regulatory Failure? -- Endnotes -- References -- 5 Making Inroads on Corruption in the Transport Sector through Control and Prevention -- Introduction -- What Corruption Looks Like in the Transport Sector -- Typology of Governance Failure and Corruption in the Transport Sector -- Corruption in Transport at the Sector Level -- State Capture -- Discretionary Influence in Resource Allocation -- Role of Institutional Structures and Policies -- Corruption at the Agency Level -- Weak Business Processes and Controls -- Personnel Appointments -- Lack of Oversight, Monitoring, or Independence -- Mechanics of Transport Corruption at the Project and Transaction Level -- Preparation of Projects -- Bidding Phase -- Implementation Phase -- Payment to Firms -- A Proposed Remedial Framework -- Controls and Enforcement-Based Integrity Restoration Options -- Detection: Recognizing Red Flags -- Investigation: Gathering Actionable Evidence -- Enforcement of Sanctions: Legal Regime and Political Will -- Preventive Strategy for Enhancing Institutional Integrity -- Information Power -- Transparency Mechanism -- External Accountability Mechanism -- Incentives -- Roles of the Firm and the Elite -- National and Cross-Sectoral Factors -- International Drivers -- Measuring Progress: Relevant Indicators and Baseline Data -- Conclusion -- Endnotes -- References -- 6 Corruption in the Petroleum Sector -- Introduction -- The "Paradox of Plenty" -- Ominous Correlations -- Special Features of the Petroleum Industry -- Volume of Transactions -- Rents -- Concentration of Revenue Flows -- Complexity -- Natural Monopolies.

Strategic Significance -- Spillover Effects -- Corruption Typology -- Policy Corruption -- Administrative Corruption -- Commercial Corruption -- Grand Corruption -- Relevant Actors -- Government -- Oil Companies -- Big Men -- Banks -- The Oil Value Chain: Vulnerabilities to Corruption -- Exploration -- Development -- Production -- Trading -- Transport -- Refining and Marketing -- Corporate Accounting, Taxes, and Finance -- Remedies and Responses -- Summary and Conclusions -- Endnotes -- References -- 7 Tackling Corruption in the Water and Sanitation Sector in Africa: Starting the Dialogue -- Introduction -- Access, Corruption, and Reform in the WSS Sector -- Diagnosing Corruption in the WSS Sector in Africa -- Who Is Involved? -- What Are the Causes? -- Is the Water Sector Prone to Corruption? -- How Much Is Corruption Costing the WSS Sector? -- Promoting a Comprehensive View of Sector Corruption -- Developing A Corruption Interaction Framework -- Public-to-Public Interactions -- Public-to-Private Interactions -- Public-to-Consumer/Civil Society Interactions -- Identifying Concentrated Areas of Corruption -- Tackling Corruption in the WSS Sector in Africa -- Understanding and Addressing Incentives: A Key Starting Action -- Key Dimensions of Good Governance in WSS Sector Anticorruption Activity -- Diagnosis and Measurement -- Transparency and Access to Information -- Accountability -- Education and Advocacy -- Institutional and Policy Reform -- Leadership -- Integrity -- Enforcement and Regulation -- Aligning Potential Anticorruption Mechanisms to Corruption in the WSS Sector -- Tackling Corruption within Government (Public-to-Public Interactions) -- Tackling Corruption between the Government and the Private Sector -- Tackling Corrupt Interactions between Public Officials and Consumers -- A Cautionary Tale for the Water Sector -- Moving Forward.

Concluding Remarks.