blogs.worldbank.org

Code against corruption: How GovTech is reshaping the fight against corruption

Corruption is a drain on development. It disproportionately impacts the poor and most vulnerable, increasing costs and reducing access to basic services. The World Bank has been fighting corruption for nearly three decades.

Since President Wolfensohn's 1996 "Cancer of Corruption" address, the World Bank has led initiatives to combat corruption and strengthen institutions. We are using GovTech solutions or digital innovations to enhance transparency and accountability. This focus is driven by client countries’ demand for efficiency, the need to safeguard climate-related investments which are projected to reach $100 billion annually by 2030, intensified asset recovery efforts, and increasing public demands for accountability.

GovTech as a catalyst for systemic reform

GovTech is a transformative approach that addresses institutional weaknesses that foster corruption. By integrating digital solutions with broader governance reforms, GovTech can dismantle systemic corruption when tailored to local contexts and implemented within a supportive ecosystem.

Digital solutions enhance public service delivery by improving coverage, accessibility, and efficiency. GovTech also reduces corruption risks. For example, digitizing permit and license processing through government portals minimizes opportunities for bribery and favoritism.

How GovTech solutions address corruption

Here’s an overview of how specific digital solutions target various causes of corruption. The detailed table can be accessed here.

Institutional System Causes of Corruption Types of Corruption GovTech Solutions Example Case Study

Information Control Information asymmetry Insider trading, Influence trafficking E-Government portals, Open data initiatives, Digital transparency platforms Nigeria: The State Employment and Expenditure for Results Project introduced an online public financial management portal, enhancing expenditure monitoring and reducing corruption risks.

Transparency & Process Lack of transparency, Complex procedures Bribery, Collusion, Illegal commissions Public decision-making platforms, Process digitization, Digital workflows Moldova: Digitalization of government services simplified regulatory processes, reducing corruption and business compliance costs.

Abuse of Power High discretion, Political interference Patronage, Nepotism, Illicit enrichment Blockchain, AI/ML-based monitoring, Digital audit trails, Merit-based recruitment India: Online Teacher Eligibility Tests (TET) streamlined accreditation, eliminating intermediaries and reducing corruption.

Service Delivery Gaps High demand, Cost barriers Bribery, Partiality, Favoritism Online service portals, Cost transparency tools, Mobile service apps India: Direct Benefit Transfers (DBT) in Agricultural Insurance ensured direct payouts to farmers, bypassing intermediaries and minimizing corruption risks.

Accountability & Capacity Weak oversight, Inadequate salaries Embezzlement, Bribery, Integrity violations Real-time monitoring dashboards, Transparent payroll systems, Citizen engagement platforms Zambia: Financial Management Information Systems (FMIS) improved health sector expenditure tracking and payroll transparency.

Real-world impact: Analytical case studies

GovTech solutions have delivered measurable results in various regions. We share some examples below:

Digitizing regulatory procedures in Moldova minimized opportunities for bribery.

In Pakistan, an online examination system eliminated intermediaries in teacher accreditation.

The direct benefit transfers initiative in India ensured direct and transparent insurance payouts to farmers.

In the Philippines, electronic record-keeping and digital identification systems improved verification processes and ensured that aid reached the intended beneficiaries.

The GovTech-Anticorruption ecosystem

We think the following four foundational elements must be in place in order for GovTech to be effective.

Technological Infrastructure: Reliable internet and electricity are essential.

Digital Literacy: Both officials and citizens must be equipped to use digital systems effectively.

Legal Frameworks: Digital processes need legal recognition to ensure compliance and legitimacy.

Institutional Culture: Governments must embrace transparency and accountability.

Implementing GovTech is not without risks. Privacy concerns, digital exclusion of marginalized populations, and reliance on external technology providers pose significant challenges. The World Bank seeks to mitigate these risks by ensuring solutions are inclusive, context-sensitive, and integrated with broader governance reforms.

A call to action: Shaping the future of anticorruption through GovTech

To combat corruption effectively, GovTech must be implemented within a comprehensive reform ecosystem. Solutions should be tailored to local conditions, integrated with institutional reforms, and designed inclusively to serve all citizens.

At our upcoming Partnerships for Anticorruption Global Forum on April 8–9, 2025, we will delve deeper into these topics, exploring ecosystem-based approaches to fighting corruption. Policymakers, donors, technologists, and citizens are invited to join this critical conversation.

Let’s work together to build transparent, accountable governance structures that empower citizens and drive sustainable development.

Read full news in source page