Increasing Integrity in Development Assistance

Corruption is the single greatest barrier to aid effectiveness. It siphons off funds aimed at stimulating investment and economic growth and alleviating poverty, denying the poor essential public services, such as clean water, sound school construction and reliable medical care.


TI-USA promotes more effective development by heightening attention of multilateral development banks, U.S. bilateral aid agencies and private donors to comprehensive transparency and corruption-risk management in their operations and in projects and countries where they operate.



The World Bank & Regional Banks

The World Bank must be committed more than ever to improving its work on governance and anticorruption at all levels, as fighting corruption is critical to achieving its mission of overcoming poverty and encouraging sustained growth. President Zoellick welcoming the September 12, 2007 Volcker Report.

As the leader among multinational development banks, the World Bank’s approach to fighting corruption has a profound impact.  TI-USA, on behalf of the TI global network, has focused its advocacy efforts primarily on the World Bank, seeking changes in its operations, policies and lending to prevent, detect and address corruption risks, align incentives and increase fiscal transparency, private sector integrity and public oversight and participation.

A decade after former World Bank President James Wolfensohn’s groundbreaking call for action against the ‘cancer of corruption,’ the World Bank issued its Governance & Anti-Corruption Strategy. This comprehensive strategy includes commitments to work at the country, project and global levels to:

  1. “Help develop capable and accountable states and institutions that can devise and implement sound policies, provide public services, set the rules governing markets, and combat corruption, thereby helping to reduce poverty.” (GAC Strategy, p. ii, para. 5)
  2. “Ensure the highest fiduciary standards in Bank-financed operations, in large part by preventing opportunities for corruption through improved project design, greater disclosure, enhanced participation, and strengthened monitoring and supervision.” (GAC Strategy, p. v, para. 11)

TI-USA played a leading role in initiating and coordinating multi-stakeholder consultations on the GAC strategy and submitted extensive recommendations reflecting views of the TI movement.


Since the GAC, the Bank’s attention to operational integrity was heightened by (1) the Report of the Independent Panel of Experts chaired by Paul Volcker; (2) the Bank’s Internal Investigations Unit (INT) Review of corruption indicators in health sector projects in India and the resulting Action Plan; and (3) the External Advisory Group (EAG) Report on the first year of GAC implementation. TI and TI-USA board members participated in the Volcker panel and on the EAG, which TI-USA had strongly promoted.


TI-USA continues to monitor, provide expert advice and galvanize public interest in ensuring the recommendations and commitments are implemented.

Development Bank Representatives Attend Roundtable on Cross-Debarment Hosted by TI-USA

At a roundtable hosted by TI-USA, speakers from Multilateral Development Banks discussed an agreement to cross debar individuals and firms found to have engaged in wrongdoing on MDB-financed development projects. The World Bank expects to begin cross debarring in June 2010. TI-USA has spoken out on the ramifications of the agreement:

  1. TI-USA Hosts Cross-Debarment Event
  2. TI-USA Press Release
  3. Cross-Debarment Agreement

TI-USA Calls for Stronger World Bank Disclosure Policy


TI-USA teamed up with the Global Transparency Initiative (GTI) in a coordinated global TI response to the World Bank’s new Disclosure Policy. TI praised the Bank’s shift to a presumption of disclosure, but called for narrower exceptions and greàter borrower disclosure. TI-USA also signed on to BIC’s congressional testimony regarding the Bank’s policy and advised the committee on the Bank's anti-corruption work.

  1. Model World Bank Policy on Disclosure of Information. Produced by the Global Transparency Initiative. May 2009
  2. GTI Comments on the World Bank’s Approach Paper: “Toward Greater Transparency: Rethinking the World Bank’s Disclosure Policy”
  3. Transparency International Input to World Bank’s Approach Paper re: Disclosure Policy. June 4, 2009


World Bank Background Documents

Letters to World Bank Leadership

GAC Strategy

Volcker Report

INT Report and Follow-Up Action Plan

External Advisory Group


United Nations

TI-USA has monitored the follow-up to the Oil-for-Food Investigation conducted in 2005 by former Federal Reserve Chairman Paul Volcker, which has until 2008 featured a Procurement Task Force (PTF) to conduct investigations.

In 2009, the PTF was closed before investigations were finalized, and TI-USA is leading a TI effort to ensure that an independent, well-resourced unit addresses past and ongoing allegations of fraud and corruption in UN operations.

TI Letters to Regarding United Nations Anti-Corruption Efforts


Inter-American Development Bank

The Inter-American Development Bank (IDB), situated in Washington, DC, has developed its own approach to addressing corruption.  TI-USA has advised a recent, independent review by Dick Thornburgh of the IDB's Anti-Corruption Framework, and has called on the IDB president to follow up on recommendations to the report.


Millennium Challenge Corporation

The MCC administers a multi-billion dollar U.S. government assistance program that bases country eligibility on a demonstrated commitment to “policies that promote political and economic freedom, investments in education and health, the sustainable use of natural resources, control of corruption, and respect for civil liberties and the rule of law.”


Based on the premise that “long-term economic development and poverty reduction can best take root in countries where the policy conditions are conducive for growth, and governments themselves are committed to reform,” the MCC made fighting corruption one of its highest priorities.


MCC uses the World Bank Institute’s Control of Corruption indicator as part of its selection criteria to determine if a country is eligible to make a proposal for an MCA grant. Learn more about the component parts of the Control of Corruption Indicator.

In April 2007, MCC published a working paper on its anti-corruption efforts, to which TI-USA contributed recommendations.

In March 2009, TI-USA consulted with the MCC on the development of its Policy on Preventing, Detecting, and Remediating Corruption in MCC Operations. The Policy was published on March 18, 2009.  See TI Recommendations here.

MCC Anti-Corruption Policy