By-Liner
A Partnership against Corruption
October 24, 2008
By: Karl Fickenscher
If Tanzania’s political leadership is seriously committed to reducing poverty and promoting sustainable economic growth, then it must also show its clear commitment to fighting corruption. The American people, through the Millennium Challenge Corporation (MCC), are proud to join with Tanzanians who believe that controlling corruption is an essential prerequisite to building long-term prosperity.
We know all too well how corruption can undermine poverty reduction and cripple economic growth. It drains funds away from health and education, discourages investment and business development, and reduces confidence in public institutions. Corruption harms development, diverting monies away from much-needed schools, roads, and health clinics. Businesses bear extra costs, undermining their profitability and limiting the number of jobs they can create.
No society is free of corruption, including the United States. Consider a number of corruption cases currently being investigated and prosecuted in America involving high-level public figures. Indeed, the true test of a country’s support for good governance, openness, and transparency is demonstrated by what it actually chooses to do about corruption. Is it tolerated and left to fester, or is everything possible done to fight corruption?
At MCC, we work with countries that elect to fight corruption.
We believe that MCC funding can be most effective in delivering results for the poor in countries where corruption is not tolerated. This explains the strong anti-corruption mechanisms we have in place throughout every stage of our process. To be selected for an MCC grant, partner countries must pass a control of corruption indicator. Civil society, the private sector, and other non-governmental organizations must participate in prioritizing goals and monitoring project progress to ensure transparency and accountability. Procurements during compact implementation must be awarded through an open, fair, and competitive bidding process.
By helping to raise the profile of corruption as an obstacle to sustainable development, MCC supports what visionary countries already know: they must constantly battle corruption. To live up to its commitments under the compact and to continue to qualify for MCC funds, compact countries must adopt tough anti-corruption laws, strengthen oversight institutions, engage the public in the policy-making process, and prosecute corruption-related acts. These measures improve the delivery of essential public services, engage the private sector, and renew the public’s trust in government.
As Tanzania transitions from its MCC threshold program focused directly on anti-corruption activities to implementation of the $698 million compact focused on improving infrastructure, the commitment to controlling corruption must be maintained and even strengthened. Not only will this allow Tanzania to wisely use MCC funds but also, more important, to create strong and enduring roots for economic growth.
Fighting corruption requires constant vigilance. By reducing corruption’s grip, Tanzania can increase the standard of living and quality of life for its citizens in meaningful and lasting ways. Tanzanians are embracing this hope; and, their partnership with the American people through MCC gives them another tool for transforming this hope into reality.
Karl Fickenscher is the Millennium Challenge Corporation’s Resident Country Director, assigned to work with MCA-Tanzania to implement the MCC compact.