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Government Financial Software as Anti-Corruption Tool


May 18, 2014

There was an interesting blog post at the Anti-Corruption Internet Database (ACID) this past week on ‘Six Strategies to Fight Corruption.’ The article describes an “underlying philosophy … of eliminating the opportunity for corruption by changing incentives.” We’ve talked about how Government Resource Planning (GRP) software enables anti-corruption efforts in the past. Here’s how budget and financial software can help these six strategies:

  1. Paying civil servants well: GRP doesn’t ensure paying civil servants well, but can be used for planning and control. GRP software includes salary forecasting and management. Salary scales can be analyzed to create more equality within the public service. And, salaries can be paid directly to bank accounts to eliminate issues related to cash payment.
  2. Creating transparency and openness in government spending: GRP is ideal for spending transparency. Back-office budget, accounting and procurement systems can automatically drive transparency portals with expenditure breakdowns as operated in Timor-Leste. This unified front-office/back-office approach means that published data has not been manipulated. Documents such as budget plans and statutory reports can also be automatically published.
  3. Cutting red tape: FreeBalance software does not magically change government processes, but can make workflow more efficient. For example, e-procurement portals can accelerate the tendering process helping governments and the private sector.
  4. Replacing regressive and distorting subsidies with targeted cash transfers: GRP software helps automate all payments and track results. Of course, GRP can’t change policy, but it can generate the data necessary to consider reform.
  5. Establishing international conventions: GRP software does not have the agility to establish conventions. Flexible GRP software can adjust when these conventions impose reporting and processes changes.
  6. Deploying smart technology: We see GRP as smart technology. E-procurement is one of the domains suggested in the article that is supported by FreeBalance software.
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Doug Hadden

Doug Hadden

Executive Vice President, Innovation at FreeBalance
Doug is responsible for identifying new global markets, new technologies and trends, and new and enhanced internal processes. Doug leads a cross-functional international team that is responsible for developing product prototypes and innovative go-to-market strategies.

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