Opening Plenary, 19th International Anti-Corruption Conference

IMF News, December 1, 2020

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Opening Statement by Kristalina Georgieva, IMF Managing Director, December 1, 2020.
Tribute to James Wolfensohn and reference to his 1996 speech describing corruption as a “cancer” that “diverts resources from the poor to the rich, increases the cost of running businesses, distorts public expenditures, and deters foreign investors... it erodes the constituency for aid programs and humanitarian relief. And we all know that it is a major barrier to sound and equitable development.”
Emphasis that corruption remains a critical issue during “the worst health and economic crisis of our lifetimes.”
Central premise: corruption undermines trust in government, weakens policy effectiveness and public spending, and disproportionately harms the poorest and most vulnerable.

The IMF has provided financial lifelines to 78 countries through emergency lending.
Operational balance sought: rapid disbursement for urgent needs (e.g., paying doctors and nurses, protecting the most vulnerable) while maintaining accountability and transparency.
Guiding maxim communicated: “spend what you need but keep the receipts. Accountability cannot take a back seat in this crisis.”
Specific measures required of countries receiving emergency financing:
- Accept a safeguards assessment of the central bank (an IMF assessment of a central bank’s governance and control framework to ensure it can manage IMF resources properly).
- Commit to specific anti-corruption measures, such as publishing crisis-related procurement contracts and information about the beneficial owners of winning companies.
- Commit to enhanced monitoring of COVID-related spending and to conduct an audit of crisis-related spending.
Examples of implementation:
- Guatemala, Honduras and Rwanda are using Financial Management Information Systems to track COVID-related expenditure.
- In Sierra Leone, the Supreme Audit Institution is undertaking an interim audit of COVID-19 funds.

In regular policy consultations with all members, the IMF recommends special attention to transparency and accountability of exceptional measures undertaken during the crisis and disseminates good practice examples.
Long-term governance work is guided by the 2018 Framework for Enhanced Fund Engagement on Governance.
The IMF helps members strengthen anti-corruption efforts in six key areas:
- fiscal governance
- financial sector oversight
- central bank governance
- market regulation
- rule of law
- anti-money laundering
Transnational aspects addressed via assessments of national frameworks to limit opportunities for corruption through foreign bribery or laundering of proceeds of corruption.
- Ten countries – the G7 plus Austria, Czech Republic, and Switzerland – have volunteered so far; others are urged to join.

Evidence cited: among low-income countries, the share of the budget dedicated to education and health is one-third lower in highly corrupt countries.
Quotation: In the words of Pope Francis – “corruption is paid by the poor.”
The IMF urges data transparency so citizens can track how public money is spent.
Civil society is highlighted as having an “incredibly important role” including helping hold actors accountable and improving collective outcomes.

During crises, pair rapid emergency financing with safeguards assessments, procurement transparency, beneficial ownership disclosure, enhanced monitoring, and audits.
Use Financial Management Information Systems and empower Supreme Audit Institutions to track and audit crisis spending.
Integrate attention to transparency and accountability into regular policy dialogues and disseminate good practice examples across countries.
Continue sustained, long-term engagement on governance reforms across the six key areas identified in the IMF’s 2018 Framework for Enhanced Fund Engagement on Governance.
Expand participation in transnational anti-corruption assessments to cover more countries beyond the initial ten volunteers.
Promote data transparency to enable citizen oversight and strengthen the role of civil society in combating corruption.

Opening Statement by Kristalina Georgieva, IMF Managing Director, December 1, 2020.