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	Table of Contents
p. 2 of 10 BACK | NEXT I. Introduction II. ADB'S Response III. Definitions of Corruption IV. The Costs of Corruption V. ADB's Position on Anticorruption Issues VI. Conclusions and Recommendations VII. Appendixes

Anticorruption

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II. ADB'S Response

13. As a major multilateral development institution and one of the leading sources of development funding in Asia, ADB welcomes this emphasis on combating corruption as part of its broader work on issues of governance and capacity building. ADB’s Board paper, Governance: Sound Development Management, recognizes the importance of accountability for public officials, and transparency and predictability in government operations—critical principles in the fight against corruption.⁴ The policy’s emphasis upon strengthening the essential prerequisites for effective public administration is designed to ensure that the fundamental building blocks for transparent, predictable, and accountable administration are in place. These building blocks include an appropriate legal framework and effective enforcement mechanisms; a professional, competent, motivated, and meritocratic civil service; transparent procurement practices; effective internal control systems; and a well-functioning independent audit office. Participation, the fourth major principle in the ADB’s governance policy, is also of relevance. The experience of Hong Kong, China, and Singapore demonstrates that public support is a critical asset in the long-term struggle against official malfeasance.

14. At the broadest level, ADB’s stance on anticorruption issues is intended to reduce the burden that widespread, systemic corruption exacts upon the governments and economies of the region. More specifically, ADB’s approach is centered upon three objectives:

1. supporting competitive markets and efficient, effective, accountable, and transparent public administration as part of ADB’s broader work on good governance and capacity building;

2. supporting promising anticorruption efforts on a case-by-case basis and improving the quality of our dialogue with the DMCs on a range of governance issues, including corruption; and

3. ensuring that ADB projects and staff adhere to the highest ethical standards.

15. The third and fourth sections will set the stage for the discussion of these objectives by addressing the definitional questions that have surrounded the topic and the costs that corruption imposes upon development. The remainder of the paper will consider the nature of ADB’s response. The fifth section outlines ADB’s position on anticorruption issues and describes the current ADB programs with significant anticorruption components. It also highlights the implications of the ADB’s anticorruption policy for current ADB operations. The last section concludes by highlighting specific next steps for ADB to take in implementing this policy.

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