Managing Conflict of Interest in the Public Service: Oecd Guidelines and Country Experiences

Foreword......Page 5
Table of Contents......Page 6
Preface......Page 12
Executive Summary......Page 14
Part I. OECD Guidelines for Managing Conflict of Interest in the Public Service......Page 22
A. A growing public concern......Page 23
Aims of the guidelines......Page 24
Defining a “conflict of interest”......Page 25
Serving the public interest......Page 26
Promoting individual responsibility and personal example......Page 27
D. Developing the policy framework......Page 28
Identify relevant conflict-of-interest situations......Page 29
Establish procedures for identifying, managing and resolving conflictof-interest situations......Page 30
Demonstrate leadership commitment......Page 32
Create a partnership with employees: awareness, anticipation and prevention......Page 33
Enforce the conflict-of-interest policy......Page 36
Initiate a new partnership with the business and non-profit sectors......Page 37
F. Recommendation of the OECD Council on Guidelines for Managing Conflict of Interest in the Public Service......Page 39
Part II. Managing Conflict of Interest. A Comparative Overview of OECD Countries......Page 40
A. Introduction......Page 41
B. Scope of the OECD survey......Page 42
Figure 1. Developing specific conflict-of-interest policy for particular categories of officials......Page 43
Box 1. Exemplary restrictions for the most senior positions in Germany......Page 45
C. Formal sources of conflict-of-interest policy......Page 46
Figure 2. Documents stating the principles and rules of conflict-of-interest policy......Page 47
Box 2. Conflict-of-interest regulations in Italy......Page 49
Box 3. Implementing policy in decentralised systems......Page 53
D. Managing conflict of interest: Approach and definition......Page 54
Box 4. Tailored approach to define conflict of interest: New Zealand......Page 55
Box 5. Definition of conflict of interest in Europe......Page 58
Box 6. The definitional approach of the OECD Guidelines......Page 59
Box 7. Policy review and revision: The case of extra-occupational activities in Sweden......Page 61
E. Identifying and resolving conflicting situations......Page 63
Box 8. Evolution of conflicts of interest: Three stages......Page 64
Figure 4. External activities and situations holding potential for conflicts of interest......Page 65
Figure 5. Business interests and activities holding potential for conflicts of interest......Page 66
F. Incompatibility: Restricting unavoidable, serious and pervasive conflicts......Page 67
Box 9. Incompatible political activities for specific groups......Page 69
Box 10. Incompatible activities for municipal councillors in Portugal......Page 70
G. The need for positive management......Page 71
Box 11. Requesting annual written statements in Ireland......Page 72
Box 12. Setting standards for public office holders at the supra-national level: European Union......Page 74
Figure 6. Measures for resolving conflict-of-interest situations......Page 75
Figure 7. Sanctions for breaching the conflict-of-interest policy......Page 76
Box 13. Setting proportional sanctions......Page 77
Box 14. Disciplinary sanctions in France......Page 78
I. Putting policy into practice: Information, consultation and monitoring compliance......Page 79
Figure 8. Informing officials on the conflict-of-interest policy......Page 81
Box 15. Providing information on the policy: Germany......Page 82
Box 16. Providing examples of conflict-of-interest situations......Page 83
Figure 9. Sources available for consultation in case of doubt......Page 84
Figure 10. Providing official information about the enforcement of the conflict-of-interest policy......Page 85
J. Assessing policy implementation: Procedures and driving forces......Page 86
Box 18. External assessment in the Executive Branch of the United States......Page 88
Figure 11. Factors influencing the conflict-of-interest policy in the past decade......Page 89
Table 1. The impact of new technology in processing financial disclosure forms: Argentina......Page 90
Box 19. Holistic approach to develop an open administrative culture: Finland......Page 91
The emerging fields of lobbying, political-administrative interface, sponsoring and whistle-blowing......Page 92
Recent developments......Page 94
Notes......Page 96
Bibliography......Page 99
Part III. The Experiences of OECD Countries......Page 100
A Principle-based Approach in Devolved Management: The Australian Experience......Page 102
Relevant aspects of the APS Values and Code of Conduct......Page 103
Responsibilities of APS employees......Page 104
Particular areas of sensitivity......Page 106
Legal restrictions......Page 108
C. Application of the measures to manage conflicts of interest......Page 109
Notes......Page 110
Annex 1. Australian Public Service Values......Page 111
Annex 2. Australian Public Service Code of Conduct......Page 113
Annex 3. The Bowen Code......Page 115
Annex 4. Principles and Procedures for Business Appointments......Page 117
Annex 5. Procedures to Deal with Conflict of Interest in Market Testing and Outsourcing Situations......Page 120
Annex 6. Criminal Provisions......Page 122
Annex 7. Department of Health and Ageing Policy on Managing Conflict of Interest in Committees......Page 124
Principles and Prevention: Meeting Canadians’ Expectations.........Page 128
The public office holders subject to the Conflict of Interest Code......Page 129
Box 20. Summary of ethics initiatives between 1973 and 1993 in Canada......Page 130
Box 21. The Canadian Conflict of Interest and PostEmployment Code for Public Office Holders......Page 131
The Code’s disclosure requirements......Page 132
Controlled assets......Page 133
Gifts, hospitality and other benefits......Page 134
Dealings with judicial and quasi-judicial tribunals......Page 135
Ministers and activities for personal political purposes......Page 136
Box 22. The Values and Ethics Code for the Public Service in Canada......Page 137
C. The roles and responsibilities of the Office of the Ethics Counsellor......Page 138
Initial compliance......Page 139
Annual review and ongoing reporting......Page 140
Representing constituents: advice to Ministers, Secretaries of State and exempt staff......Page 141
Members of Parliament and Senators......Page 142
Dealings with judicial tribunals, quasi-judicial tribunals......Page 143
Private interest and outside activities......Page 144
Preferential treatment......Page 145
D. Conclusion – A continually rising standard......Page 146
Bibliography......Page 147
Prevention Through Updated Regulations and Sanctions: The French Experience......Page 148
A. Summary......Page 149
Nature and characteristics of the offence......Page 150
Regulations regarding elections: ineligibility and incompatibility......Page 153
Financial transparency in politics......Page 154
Statutory rules......Page 156
Specific rules......Page 158
Movement of public servants to the private sector (“pantouflage”): a risk factor......Page 159
Membership and procedure......Page 162
Precedents......Page 166
Public sector research......Page 168
E. Conclusions......Page 169
Bibliography......Page 170
Building a Coherent Framework at the Federal Level: The German Experience......Page 172
Civil servants......Page 173
Public employees......Page 174
Civil servants......Page 175
Members of the Government......Page 176
At-risk area: private activities......Page 177
D. Putting laws into practice......Page 178
E. Recent developments and emerging issues......Page 182
Notes......Page 183
Managing Conflict of Interest in a Decentralised System: The New Zealand Experience......Page 184
B. The legal framework......Page 185
Transparent appointment processes......Page 186
Disclosure of serious wrongdoing......Page 187
Identifying conflicts of interest......Page 188
Avoidance and disclosure......Page 189
Resolving conflicts of interest......Page 190
E. Responsibilities and penalties......Page 192
Legal penalties......Page 193
F. Future work......Page 194
Notes......Page 195
Managing Conflicts of Interest in Transition Economies: The Polish Experience......Page 196
A. Emerging challenges in the transition period: Historical context of the conflict-of-interest policy......Page 197
B. Definitions and core principles......Page 198
C. Specific policies for particular categories......Page 199
D. Incompatibility and potential conflict-of-interest situations......Page 200
Disclosure of private interests......Page 202
E. Implementation measures and their assessment......Page 203
F. Recent developments and emerging areas......Page 206
G. Conclusions......Page 207
Notes......Page 208
Annex 1. The Definition of Conflict of Interest......Page 209
Annex 2. Documents Stating the Principles and Rules of the Conflict-of-Interest Policy......Page 213
Annex 3. The Order 114 of the Prime Minister of 11th October 2002......Page 215
The Exclusiveness Principle in Practice: The Portuguese Experience......Page 220
B. Constructing a comprehensive legal framework......Page 221
C. Putting the exclusiveness principle into practice......Page 223
D. Disclosure: An effective supporting mechanism......Page 227
E. Strong enforcement......Page 229
Notes......Page 230
Managing Conflict of Interest in the Executive Branch.........Page 232
B. Introduction......Page 233
C. Building frameworks: Shifting the emphasis from prosecution to prevention......Page 234
Enforceable standards......Page 237
Box 23. General principles for the United States Executive Branch......Page 239
Publicly available and confidential financial disclosure reports......Page 243
Systematic training and counselling......Page 246
Effective enforcement mechanisms......Page 247
E. Recent developments: Challenges and directions......Page 249
Notes......Page 250