Olaf Kellerhoff is the Resident Representative of the Center for International Private Enterprise (CIPE) in Pakistan. He has worked abroad in several countries. The Friedrich Naumann Foundation (FNF), where he works, is a German nonprofit organization established in 1958 that works in over 60 countries to promote liberal democracy, human rights, and free markets. In Pakistan specifically, FNF has worked since 1986 on civic education and peaceful conflict resolution. Corruption is a major problem worldwide and in Pakistan, where it damages economic development. Transparency and upholding the rule of law are important ways to reduce corruption.

1. CORRUPTION
Center for International Private Enterprise (CIPE)
Islamabad, Oct. 25, 2012
Olaf Kellerhoff, Resident Representative Pakistan

2. Olaf Kellerhoff Corruption July 19, 2012
Olaf Kellerhoff Resident Representative Pakistan
Islamic History + International
Relations (MA) at Hamburg Univ.
Missions & Experiences abroad
! Somalia
! Marocco
! Turkey
! Kosovo (3x)
! Afghanistan (3x)
! Lebanon
Apprenticeship as photographer

3. Olaf Kellerhoff Corruption July 19, 2012
Overview
1. Few on FNF
2. What is
corruption
3. Ways to go

4. Olaf Kellerhoff Corruption July 19, 2012
1. Few on FNF

5. Olaf Kellerhoff Corruption July 19, 2012
Friedrich Naumann Foundation (FNF)
established by the first President of the Federal Republic of
Germany Theodor Heuss 1958
German non-profit org.
civic education
roots in philosophy of liberalism
One leading think tanks of the
world, place 20 in Europe
FNF Head Office in Potsdam

6. Olaf Kellerhoff Corruption July 19, 2012
FNF worldwide: in over 60 countries
Regional
approach

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Sharing the
FNF in Pakistan
fate with
Pakistan…
working for Freedom in Pakistan
since 1986
objectives:
" liberal democracy
" civic education
" human rights
" free market economy
©FNF
" peaceful conflict resolution
… and consequently working for betterment

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Sustainable work through partners
Crucial Element is the self-responsible programme work of
our partners. FNF trains, consults, interlinks and funds.

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2. What is corruption?

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Historical Examples
Around 1300 in Egypt death
penalty for priests
1372 in Basel: on year exile +
lifelong exclusion from all
political activities
In MA mayors of Augsburg and
Zürich executed
Preaching water, drinking wine…
Published under Tom

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Definition
Lat. corrumpere – to destroy
Corruption is operationally
defined as the misuse of
entrusted power for private
gain.
Transparency International
Published under lynac

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CPI
" Corruption Perception Index
(CPI) Scale 0–10
" Estimate of corruption of
different institutes in a
country + interviewing
different sources
" Empirical data analyzed at
University of Passau
(Germany)
www.tranparency.org

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Worldwide Corruption
Wikimedia Commons

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TI-Ranking
" Transparency
International (2011)
" Germany Place 14
" Pakistan 134 (of 183)
" New Zealand place 1
Existing in every country
- more or less…
Published under eli867

15. Olaf Kellerhoff Corruption July 19, 2012
Damage of Countries
" Manager more time with
Yearly net capital inflow, 1970–1995
bureaucrats in corrupt Corruption and Capital inflow
countries
" Prices are indicators for
economic activities
=>not reliable =>wrong
decisions
" Less inflow of FDI
& net capital inflow
High corruption low corruption
Corruption index 2002
Aus Politik und Zeitgeschichte, 3-4/2009, p. 24.

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Grand corruption
" Risk of detection rises by quantity and
duration – but not by amount
=> high end corruption almost not
discovered
" Hard to detect, damage hard to assess:
" Cleptocracy – greek:
to steel & to reign
" Example from Indonesia:
Nephew of President Suharto got benefit
from beer taxes – collected by private
company
=>rising of beer prises – reduction of
tourism
Published under To2BoRnI

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Affecting other sectors
Corruption and Productivity " Encompassing interest:
cleptokrate remarks
other sectors affected
Productivity (GDP : capital
(most likely Suhoarto’s
other relative in hotel
business
=> beer tax withdrawn
stock), 2000
If CPI up by 1 point, then:
- Net capital import by 0,5%
High corruption low corruption - productivity by 2% up,
Corruption index 2002
- GDP raises by 4%
Aus Politik und Zeitgeschichte, 3-4/2009, p. 23.

18. Olaf Kellerhoff Corruption July 19, 2012
Actors: Men are more corrupt*
" Higher number in " Persuasion of external
leadership positions control (the other’s fault)
" No previous conflict with " Denial of immoral action
law
" Readiness for high risk
" due to competencies in
respective field high trust " Machiavellian
" High living standard " Pathologic narcism
" Decision equal other
successful management
actions * Anaylsis of actors in Germany

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4. Way to go

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Transparency
" Support of local Government
" Trust building
" Increasing tax revenues
" Reduce citizens’ apathy
" Press to deliver
" Raise ethical standards –
professionalization of politicians
" Measuring Transparency
Deputy City Nazim Karachi,
Nasreen Jalil, Nov. 2009 ©FNF

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Rule of Law & Good Governance
" Media Election Monitoring
" Monitoring Parliamentary /
City Councils Work
" Courts decision – judicial
support
" Manual for SME
" Publishing Surveys
Hold accountable & be a vigilant citizen!
Published under International Rivers

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You have the right to know!
" Freedom of information (FoI)
Ordinance, 2002
" well intended by Musharraf and
ahead in South Asia
" but diluted in policy process
" All in all: we are glad to have it
" Request this information!
Hold accountable!
FoI Workshop at CIIM, Karachi,
Nov. 2009 ©FNF

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Extending FoI in 2012
" FoI Study (engl.)
" Poster and illustrated booklets
for illiterates arranged
" FNF cooperation partner CPDI
drafts new law
" Get actors on one table
FoI Workshop by CHRI, LFP, Shehri,
in Regent Plaza Karachi, Aug. 2009
©FNF

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Property & Privatisation
" Privatisation destroys monopolies which
enable power positions
" Publicly known and clear property
rights with tracking system
" Property Rights Book
" Book on Privatization
" Study Transparency in Privatisation in
drafting
Download Property Rights Index at our German homepage www.freiheit.org.

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CPDI – Waste Collection

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for a peaceful and progressive Pakistan
www.southasia.fnst.org