At the Anti-corruption Initiative (ACI) for Asia and the Pacific Regional seminar held from 25-27 September, 2024 on Government Incentives for Corporation Anti-Corruption Compliance (ACC), international participants emphasized that Bhutan need a multi-stakeholder approach in improving business integrity.
Representative from the Asian Development Bank (ADB) and the organization for Economic Cooperation and Development (OECD) reaffirmed their commitment to fostering a clean business environment through partnership.
During the discussion, key topics included the importance of incentivizing anti-corruption compliance and business integrity; granting incentives in public contracts or other public advantages to promote business integrity; reputational incentives; providing guidance to the private sector.
The discussion included the use of public contracts and other public benefits such as subsides, licenses, tax breaks, and development assistance to incentivize integrity in the private sector.
The session emphasized the importance of these incentives as a tool not only for fostering a culture of integrity with businesses but also for ensuring transparency and accountability in the use of public resources. The session also explored the use of reputational incentives, such as public recognition for businesses that uphold integrity besides discussing the role of government in providing training and guidance to enhance ethical behavior within the private sector.
The seminar highlighted collaboration efforts between the government and private sector to combat corruption, with businesses investing in anti-corruption programs and government creating supportive environments.
Lyonpo Namgyal Dorji, Ministry of Industry, Commerce, and Employment (MOICE), emphasized the pivotal role of the business sector in Bhutan’s development. Lyonpo highlighted the importance of reinforcing ethical business practices alongside fostering a business-friendly regulatory environment as key strategies for building robust economy in Bhutan and globally.
As Bhutan transforms His Majesty The Druk Gyalpo’s vision of Gelephu Mindfulness City, Lyonpo called for collective “Whole of Society” solution to corruption aiming to position Bhutan among the top five nations in Transparency International’s Corruption Perception Index. Lyonpo said, within the next 10 years, “Let’s make Bhutan in the top. Let’s achieve that.”
The chairperson of the Anti-Corruption Commission (ACC) of Bhutan, along with representatives from OECD and ADB, echoed the need for enhanced collaboration to strengthen anti-corruption frameworks in the public and private sectors, for whole society solutions to corruption.
On the second day of the seminar, Finance Minister Lekey Dorji shared Bhutan’s goal of becoming a high income Gross National Happiness Economy by 2034. Lyonpo underscored the importance of business integrity, not just as a regulatory requirement, but as a cornerstone of sustainable economic development.
While the Royal Government of Bhutan offers a variety of incentives to empower the private sector’s role in socio-economic development, Lyonpo called the attendees of the Regional Seminar to identify an appropriate mix of sanctions and incentives to further encourage business integrity for the members of the ACI as well as global economics.
Julio Bacio Terracino, Head of Anti-Corruption and Integrity in Government Division, OECD, said that since companies in Asia are still particularly affected by the emergence of new supply chain to digital standards, there is growing demand for integrity globally, escalating pressure from customers, employees and investors, making ethical business practices the norm, both within companies and throughout the supply chains.
The leader emphasized that incorporating ethical considerations into corporate practices is increasingly important as there is a growing awareness of the connections between national corruption, corporate governance, business integrity, and the complexities of the global economy. These elements are interrelated rather than isolated; together, they foster trust, manage integrated risks, and ultimately enhance overall business performance.
Key highlights included International Framework, Regional Gaps, Government Guidance, Bhutan’s Initiatives, Compliance Measures and Global Initiatives.
The sessions covered the OECD Anti-Bribery Convention and its 2021 Recommendation, as well as the United Nations Convention Against Corruption (UNCAC) standards relevant to business integrity. Discussions identified gaps in anti-corruption efforts within the region, as highlighted by the United Nations Office on Drugs and Crime (UNODC).
A panel emphasized the importance of government guidance in mitigating corruption risks in the private sector, along with the application of General Principles for Business Integrity Programmes. Insights were shared on recent developments in Bhutan’s business integrity initiatives, focusing on new laws and policies aimed at enhancing anti-corruption efforts. The seminar addressed critical compliance measures needed to mitigate corruption risks, particularly in high-risk sectors.
Discussions included effective global strategies for developing business integrity framework, specifically within the construction sectors.
Overall, the seminar underscored the necessity for stronger collaboration and comprehensive strategies to address corruption and promote integrity in business practices. The three-day seminar brings together 57 international anti-corruption experts and practitioners from 18 member economies, alongside 96 national stakeholders, including government officials and representatives from the international organizations, civil society and the private sector.
Bhutan is co-hosting a significant seminar as part of its commitment to combat corruption and enhance collaboration with regional and international partners, being one of the 34 member economies in the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific.
Since joining the Initiatives in September 2007, Bhutan has engaged actively in policy dialogue, capacity building, and knowledge sharing. The country previously hosted an annual ACI event in 2016, demonstrating its dedication to strong anti-corruption measures.
The 2024 Regional Seminar provided an important opportunity to exchange best practices, enhance capacities, and foster strategic collaborations aimed at embedding integrity and fighting corruption across all sectors.
By Sangay Rabten, Thimphu
