Approach
Making inroads against corruption often requires determined efforts to overcome vested interests. Transparency and open governance are typically part of the story, but rarely the whole story. When popular disaffection with corruption and cronyism reaches a boiling point, the political rewards to addressing corruption can exceed the costs of upsetting interests.
Short of sweeping reform efforts, progress can be achieved through better and more open processes, professional accountability systems, and the use of the latest advanced technologies to capture, analyze, and share data to prevent, detect, and deter corrupt behavior.
The World Bank Group leverages innovative technologies to strengthen public sector performance and productivity, confront corruption and to help foster greater trust and accountability, particularly in more fragile environments.
Much of the world's costliest forms of corruption could not happen without institutions in wealthy nations: the private sector firms that give large bribes, the financial institutions that accept corrupt proceeds, and the lawyers, bankers, and accountants who facilitate corrupt transactions. Data on international financial flows shows that money is moving from poor to wealthy countries in ways that fundamentally undermine development.
Corruption is a global problem that requires global solutions. The World Bank Group has been working to mitigate the pernicious effects of corruption in its client countries for more than 20 years. The World Bank is adopting a more integrative approach to anticorruption, seeking to reduce vulnerabilities in client countries and build capacity for prevention and deterrence while addressing the transnational nature of corruption and the illicit financial flows they generate. We are building on what has worked while deepening our emphasis in some areas to address new challenges and opportunities. We are deepening our emphasis in key areas: 1) strengthening beneficial ownership transparency and fighting illicit financial flows; 2) reducing corruption in public procurement and contract management; 3) strengthening accountability institutions and the rule of law; 4) and innovating in the use of data and technology . To support these goals, the Global Program on Anticorruption for Development (AC4D) has launched an Anticorruption Lab, is supporting results in countries, developing new knowledge, and leveraging partnerships to scale up innovations and results.
The Bank Group works at the country, regional, and global levels to help build capable, transparent, and accountable institutions and design and implement anticorruption programs relying on the latest tools and innovations. The World Bank Group’s work revolves around sustainability and changing outcomes by helping both state and non-state actors establish the competencies needed to implement policies and practices that improve results and strengthen public integrity.
Additionally, the World Bank Group works with the public and private sectors as well as civil society to support efforts to prevent corruption, improve remedies to address wrongdoing when it occurs as well as work towards improving behaviors, norms, and standards needed to sustain anticorruption efforts. The World Bank Group has included Governance and Institutions as a theme in IDA20 – its Fund for the Poorest Countries – in order to focus global attention on the issue.
Fighting corruption within World Bank Group-financed projects
The World Bank Group's approach to fighting corruption combines a proactive policy of anticipating and managing risks in its own projects. The Bank Group subjects all potential projects to rigorous scrutiny and works with clients to reduce possible corruption risks that have been identified. The Bank Group’s independent Sanctions System includes the Integrity Vice Presidency, which is responsible for investigating allegations of fraud and corruption in World Bank-funded projects. Public complaint mechanisms are built into projects to encourage and empower oversight, and projects are actively supervised during implementation.
When allegations of fraud and corruption are substantiated, companies involved in misconduct are debarred from engaging in any new World Bank Group-financed activity. Concerned governments receive the findings of World Bank Group investigations. The World Bank Group has publicly debarred or otherwise sanctioned more than 1,000 firms and individuals.
In fiscal year 2023, the World Bank Group debarred or otherwise sanctioned firms and individuals and recognized 49 cross-debarments from other multilateral development banks. At the end of fiscal year 2023, 412 entities have been sanctioned with conditional release, a process by which firms can improve their internal compliance programs as part of their sanction.
