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Access to Information and Transparency

Tackling corruption in oil rich countries: the role of transparency

Can transparency root out corruption in oil rich developing countries?

Authors: I. Kolstad; A. Wiig; A. Williams
Publisher: U4 Anti-Corruption Resource Centre, 2008

Many oil or resource-rich developing countries are prone to corruption, which hinders socio-economic development. These countries tend to grow slower than countries lacking in natural resources, a phenomenon commonly referred to as the ‘resource curse’ - a complex set of political, economic and social factors found in many resource rich countries. This paper argues that accessibility to timely and reliable information may mitigate some corruption risks.

The paper reviews the current state of knowledge on the relationship between transparency and corruption, with a particular emphasis on oil rich countries. Taking the case of Angola, the paper examines the role that access to information plays in improving development outcomes in such countries.

The paper finds that transparency does have an impact on corruption by:

  • making bureaucratic corruption more risky
  • making it easier to provide good incentives to public officials and easing selection of honest and efficient individuals for the public service.
  • reducing political corruption by increasing overall public accountability.
  • facilitating cooperative behaviour instead of opportunistic rent-seeking
  • helping to maintain norms of integrity and trust
The paper suggests however that transparency has an effect on corruption only in certain circumstances, and its impact depends on the ability of individuals to process and act on the information provided. It adds that transparency is only one of several policy options to address corruption, and may need to be complemented by other reform initiatives.