2. • Reforms towards anti-
corruption
• Institutional Reforms
• Accountability
• Reinventing the
bureaucracy
• Civil Society Anti-
Corruption Efforts

3. Challenges
• graft and corruption
• failure or reorganization processes
• lack of people participation
• citizens apathy
• lack of trust in government

4. Prof. Klitgaard:
Corruption= Monopoly+Discretion-Accountability

6. The decline on trust in government has been
brought about by many factors including the
inefficient and ineffective delivery of services,
waste of public resources, graft and
corruption, lack of integrity in government,
poor leadership, excessive red tape, ineffective
reorganization and structural changes, too
much centralization, among other things.

7. Institutions defined
• Habits of a group or the customs of a people
(Hamilton 1932)
• Conventions, rules of action, embedded in social
structure, locally specific (Krätke1999)
• Settled habits of thought common to the
generality of men (Veblen 1919)
• Collective action exercised by different types of
organization (family, corporation, trade union,
state in control of individual action (Commons
1924)

8. Institutions defined
• Convenient term for the more important among
the widely prevalent, highly standardized social
habits (Mitchell 1950)
• Sets of rules of the game or codes of conduct
defining social practices (Young 1994)
• Formal organizations, patterns of behaviour,
negative norms and constraints (Coriat and Dosi
1998)
• Mental constructs (Neale 1987)

9. Institutions defined
• Rules of the game (North 1990)
• How the game is played (Nelson and Sampat 2001)
• A set of socially prescribed patterns of correlated behaviour
(Bush 1986)
• Prescribed or proscribed patterns of correlated behaviour (Tool
1993)
• Constitutional rule systems for society, collective choice rules
governing
• different kinds of organization, operational rules of
organizations (Ostrom 1999)
• Norms that regulate relations among individuals (Parsons
1990)
Source: Parto (2005)

11. “CHANGE”

12. Institutional Reform Areas
• Public Expenditure and Financial Management
• Public Enterprise Reform
• Tax Policy and Administration
• Civil Service Reform
• Legal and Judicial Reform
• Regulation of the Private Sector
• Decentralization

13. Institutional Reforms
• Redefining the role of the state
Stabilizing the macroeconomic situation
Reducing the size of the public sector
• Role of civil society
• Role of the Private Sector
• Regional Integration

14. Good Governance
• Transparency of government. Citizens must be kept informed
of the decisions of the state and their justification.
• Simplicity of procedures. Whether in fiscal matters,
investment, or other areas, administrative procedures need to
be as simple as possible, with the number of participants
reduced to a minimum.
• Responsibility. Public officials must be held accountable and, if
necessary, penalized for offenses.

15. Good Governance
• Fight against corruption. Eradication of this scourge is imperative
for promoting healthy competition, eliminating surcharges, and
strengthening the efficiency of economic management.
• Individual freedom and collective expression. A free and responsible
press, in particular, is an important pillar of democracy.
• Independence of the legal system. The legal system must be free
from pressure and intervention from political forces or any other
organization, to ensure that its decisions are independent and
impartial.

16. Key Institutional Reform Measures
• PFM Reform Roadmap
• RA 9485 (ARTA)
• RA 6713 (Code of Ethics for Public Officials)
• RA 9184(Procurement)
• Election Automation Law
• Rationalization Plan
• RA 7160 (Local Government Code)
• Transparency Seal
• Salary Standardization Law