Corruption indicators in Performance Assessment Frameworks for budget support

Abstract

Corruption indicators have been used in budget support Performance Assessment Frameworks (PAFs) for a variety of purposes, including to control for misappropriation of funds, assess Government performance on fighting corruption, and in some cases act as an aid disbursement trigger. This literature- and interview-based study maps PAF corruption indicators and examines their role and effectiveness in monitoring corruption. The study finds that if corruption-related indicators are to be used in PAFs, it is important to: identify clearly budget support objectives and corruption indicator purpose; develop better outcome, rather than output, indicators; support partner country capacity to develop indicators; and work towards a comprehensive diagnostic framework for corruption. In general, the key message is to clarify the objectives of budget support and the purpose of including corruption indicators, and then select indicators that match. Where possible, exploit existing anticorruption processes and align PAFs with national anti-corruption processes, if they exist.