Friday, December 5, 2008

Special Message from Daniel Kaufmann

Dear friends, partners,

As some of you may already know, I announced internally over a month ago that I was moving on from the World Bank. I wanted to write to you directly to give you my new coordinates, to briefly share a thought, and to thank you for your continued collaboration.Over many years, I have been privileged to work with many of you, inside and outside the World Bank, in many countries and regions, and on many aspects of development -- including the macro, finance and regulation, trade and industry, labor and poverty, and economies in transition. For the past dozen years, my work has focused on governance, corruption and development. I will continue this work at the Brookings Institution, where, as a senior fellow, I will engage in writing, research and advisory initiatives in these fields, with intellectual independence.In moving on, under normal circumstances, as is customary, I would mention that I am satisfied by leaving behind a respected governance program at the World Bank Institute, consisting in a great team of people, delivering innovative products. As I am passing the baton, I would state that I expect that these initiatives will continue and expand, and I would continue to emphasize the importance of full disclosure of governance data and analysis, and of providing straightforward evidence-based policy advice -- devoid of any self-censorship or spin. However, we do not face ‘normal circumstances’ nowadays, so allow me also to add a thought. While some inroads were made in comparison to the pre-1990's 'taboo' era on corruption work at the Bank and other international organizations, reality has changed so much faster than aid institutions. A new world order is afoot. The Bank and the IFI/donor community, and more broadly the anticorruption movement, may have to revamp their strategies and policies so to delve deeply, concretely, and transparently into the relevant challenges of governance and corruption of today and tomorrow. In many respects, the governance and anticorruption field, and movement, are in a silent crisis nowadays, due to reasons I will expand on elsewhere. Overall, there has been a lack of resolve by many governments and institutions to focus on what really matters, while wasting efforts on sideshows. By contrast, amidst the current crisis it is commendable the way some citizens, smaller indigenous NGOs, and a few leaders are involved in innovative and courageous initiatives in some countries.Crisis often brings up unique opportunities. The current global economic turmoil could trigger a wake-up call forceful enough to the governance and anticorruption field. The alarm bell is ringing loudly, even if the awakening has yet to take place. It is not too late. Failures in governance, corruption and capture did play a role in the financial crisis; understanding these is a priority to strengthen the global financial system.As importantly, we now also need to consider the implications of the ongoing consequences of the crisis: a seismic shift resulting in an unprecedented increase in the role and scope of government in 'market economies’. These present a whole new set of challenges in governance, capture and corruption, which have been largely ignored so far. This is not the venue to expand on this. I will continue to work on these challenges, providing candid views and hopefully useful advice, and writing about these issues (including in the blog listed below). And I have been asked to share my reflections in a farewell presentation at the World Bank on December 9th. You will receive details in a separate invitation.At the end of the day, it is not so much writing about an issue that actually makes the difference. It is people, leaders, agents of change, scholars, citizens – teaming together and engaging in collective action for a better world, often courageously taking real risks. The younger generation is a powerful force for change that gives further hope for the next stage, and that tends to be less risk averse. A generational shift is afoot, already taking place at some of the higher echelons in the UK and the US. Contagion of such shift, empowering a new cadre of citizens and agents of change in many countries and institutions, should be warmly welcomed. Thank you. Daniel KaufmannAt Brookings InstitutionTel:+1-202-797-6257email: mailto:dkaufmann@brookings.edu_blank blog: http://thekaufmannpost.net/

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