Curbing Corruption by Improving Economic Governance in the Middle East and Central Asia

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Curbing Corruption by Improving Economic Governance in the Middle East and Central Asia

Thursday, Apr 11, 2019 | 10:30 AM - 11:30 AM

Location: Meeting Halls A&B, HQ1-3-430A&B

Maps

Seminar Report

Opening Remarks:

Tao Zhang, Deputy Managing Director, International Monetary Fund

Moderator:

Minouche Shafik, Director, London School of Economics and Political Science

Speakers:

Aleksi Aleksishvili, former Minister of Finance, Georgia

Sawsan Gharaibeh, Co-Founder, Rasheed (Transparency International), Jordan

Zeine Zeidane, Deputy Director African Department, International Monetary Fund

The detrimental societal and economic effects of corruption are far reaching and finding effective and durable solutions is challenging. In particular, it can be politically difficult to tackle vested interests. Speakers shared their experiences of fighting corruption and discussed the reform priorities and frameworks that can help improve economic prospects and opportunities in the Middle East and Central Asia.

Key Points:

· Fiscal reform. Panelists agreed that fiscal reform is a priority in countries facing corruption. Aleksishvili shared the experience of Georgia, which implemented wide-ranging reforms to tackle corruption in 2004, and explained that fiscal reform was aimed at creating a system that was simple to understand, easy to implement, and as universal as possible. This was done by eliminating inefficient taxes and exemptions while also reducing tax rates. This simplification also helped to establish trust in the new government. Gharaibeh added that fiscal reform needs to cover local governments, extractive industries, and state-owned enterprises.

· Transparency, deregulation, and reducing bureaucracy. Improving transparency throughout government functions is key. Aleksishvili, Zeidane emphasized the need to reduce bureaucracy and the complexity of regulation and highlighted the usefulness of moving to e-systems to increase transparency. Zeidane gave the example of Mauritania, where a system of asset declarations was put in place throughout the government. He also highlighted the importance of establishing a strong and merit-based framework for civil servants.

· Public support and civil society. Aleksishvili underlined that public support is necessary to implement anti-corruption reforms. Therefore, it is important to communicate the steps taken and show the positive results of anti-corruption efforts. Despite a lot of work in the area and strengthening of anti-corruption agencies, Gharaibeh noted there has been very little improvement in corruption perception in the MENA region over the last five years. She urged civil society groups to rethink their anti-corruption interventions, underscoring that solutions need to be sustainable and persist despite the change of governments.

Quotes:

“Fighting corruption is about creating equal opportunities for all citizens.” Tao Zhang

“We cannot address the economic and social challenges we face without addressing governance and corruption” Zeine Zeidane

Corruption is damaging. It corrodes trust in government. It leeches money from citizens and taxpayers. It undermines growth and inclusiveness. Corruption may be difficult to detect and fight, but it is not impossible. With political will, it can be curbed, starting by improving economic governance. The seminar will identify key areas of economic governance weaknesses in countries in the Middle East and Central Asia and discuss policies to address them. It will also provide an opportunity to exchange experiences on efforts across the world to improve governance and fight corruption.

Join the conversation: #CurbingCorruption

Opening Remarks

Tao Zhang
Deputy Managing Director, IMF

Mr. Tao ZHANG assumed the role of Deputy Managing Director at the IMF on August 22, 2016. He brings extensive international economic expertise and experience in policymaking, including with international financial institutions, from his previous appointments as the Deputy Governor of the People’s Bank of China and IMF’s Executive Director for China from 2011 to 2015.

Prior to his position as the Deputy Governor, Mr. Zhang held a number of high-level positions in the People’s Bank of China: Director-General of the Legal Affairs Department; Director-General of the International Department; and, Director-General of Financial Survey and Statistics Department. Mr. Zhang also worked at the World Bank from 1995 to 1997 and at the Asian Development Bank from 1997 to 2004.

Mr. Zhang holds an M.A. and Ph.D. in International Economics from the University of California, Santa Cruz, as well as a B.S. in Electrical Engineering and an M.S. in Finance from Tsinghua University in Beijing.

Moderator

Minouche Shafik
Director, London School of Economics and Political Science

An economist by training, Minouche has spent most of her career straddling the worlds of public policy and academia. After completing her BSc in economics and politics at the University of Massachusetts in Amherst, she took an MSc in economics at LSE before completing a DPhil in economics at St Antony’s College, University of Oxford. She was appointed Director of LSE in September 2017.

During her extensive career, Minouche has worked in senior positions at the World Bank, the Department for International Development and the IMF before becoming Deputy Governor of the Bank of England in 2014. In this role, she sat on all of the Bank’s major policy committees and led the Fair and Effective Markets Review.

Minouche currently serves as a Trustee of the British Museum, the Council of the Institute for Fiscal Studies, Governor of the National Institute for Economic and Social Research, and is Honorary Fellow of St. Antony's College Oxford. She was made a Dame Commander of the British Empire in the Queen's New Year's Honours list in 2015.

Panelists

Aleksi Aleksishvili
former Minister of Finance, Georgia

While working as Minister of Finance of Georgia between 2005 and 2007, he successfully conducted a series of reforms in the domains of public finance, tax and customs policy and administration as well as economic deregulation and liberalization domains. Notably, Georgia was ranked by the World Bank “Doing Business” survey as the world’s top reformer country in 2005-10

Sawsan Gharaibeh
Co-Founder, Rasheed (Transparency International, Jordan)

Sawsan Gharaibeh, is the Co-Founder and Chairperson of Rasheed (Transparency International-Jordan), the leading civil society organization working on integrity and transparency in Jordan. She offers input into matters of transparency and integrity focusing on the Sustainable Development Goals, elections, health regulation, and the private sector. Ms. Gharaibeh is a recipient of the Fulbright Scholarship and the King Hussein Memorial Fulbright Scholarship. She also served on the board of the Virginia Journal for International Law and the review committee for American Fulbright scholars to Jordan for the years 2010, 2011 and 2016.

Zeine Zeidane
Deputy Director, African Department, IMF

Zeine Zeidane is a Deputy Director in the IMF African Department. He co-authored the Board paper on the new framework for enhanced engagement on governance. He served as a mission chief for the United Arab Emirates and Algeria. Before joining the IMF in March 2012, he held several positions in Mauritania notably Prime Minister, Governor of the Central Bank, and Economic Advisor to the President. He also worked with the World Bank and in the banking sector. He holds a PhD in Applied Mathematics and a Post-Graduate Degree in Macroeconomics from the University of Nice, France.

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