The Organisation for Economic Co-operation and Development (OECD) recently released the second edition of its Anti-Corruption and Integrity Outlook during a session at the 2026 OECD Global Anti-Corruption & Integrity Forum, held from 23-27 March. The organisation said the publication aims to show how, in the face of evolving corruption risks, countries can better harness the integrity advantage to enable prosperous economies and resilient, trusted public institutions.
Research focused on performance in seven key areas of 37 OECD member and 25 partner countries’ integrity systems. South Africa is neither a member nor a partner country of the OECD, but the information in the report is no less useful for us, as we continue to struggle with a noticeable lack of integrity in the public, private, and societal sectors and the resulting deterioration in economic growth, public trust, service delivery standards, and funding intended to improve residents’ lives.
“Countries recognise the importance of seizing the integrity advantage,” said session moderator Elsa Pilichowski. “This is evidenced by the reforms many countries are taking throughout the world, and by the demand for support that countries are asking from the OECD and other international organisations.”
Governments are trying to deliver better policies and better services in a compact of tightening fiscal space, added Pilichowski. “Corruption in that context, remains a significant and evolving threat.”
In terms of expenditure, the OECD report noted, weak integrity systems result in significant financial losses and countries lose a significant share of GDP to fraud, corruption, and waste. In its 2024 report on the cost of occupational fraud, the Association of Certified Fraud Examiners estimated that public, private, and non-profit organisations lose up to 5% of revenue to occupational fraud each year globally (approximately US$5-trillion in losses), while between 8-25% of global public investment may be lost to mismanagement of fraud in procurement operations each year.
The International Monetary Fund estimates that developed countries with lower levels of corruption collect 4.5% more of their GDP in tax, while the gap in revenue collection for emerging economies is 2.75% of GDP, and 4% of GDP among low-income countries.
Accordingly, the report focuses on three particularly vulnerable areas – fraud prevention, public procurement, and organised crime and corruption. It shows how corruption risks related to these three areas continue to evolve, saying: “Countries should therefore step up integrity efforts in these areas, by building strategic, evidence-based, preventative approaches which use resources more effectively and protect public funds and institutions better than relying on enforcement alone.”
The integrity advantage
It might seem counter-intuitive to think that corruption could be an obstacle to growth – the assumption would be that it provides an advantage over competitors – but this is proven inaccurate not only by the OECD report but also by other research, including a recent study from the U4 Anti-Corruption Resource Centre, which reviews and presents evidence and findings from 1995 to 2025.
The U4 report delves into the relationship between business integrity and commercial success, and the conclusion is clear – corruption is bad for business. The gains will typically be short-term and in the long run, corruption will almost inevitably lead to higher costs, reduced productivity, and slower growth over time.
“Stronger business integrity is associated with fewer incidents of corruption, lower compliance risks, and lower operational costs,” said U4. “Integrity also can drive innovation and operational efficiency.”
Not only is profitability positively affected, but public reputation and the corporate environmental performance are also enhanced.
“Integrity is a strategic asset for governments and businesses,” said the OECD. “When well designed and effectively implemented, public integrity systems protect democracies from corruption, strengthen trust in public institutions, and support the conditions for growth and fair competition.”
Better investment prospects through integrity
Countries that seize this integrity advantage are better positioned to attract investment, manage corruption risks, and respond credibly to citizens’ expectations, said the organisation. “The now outdated view that corruption ‘greases the wheels’ of the economy by circumventing inefficient regulations has little empirical backing. Rather, the evidence shows that corruption stifles innovation, entrepreneurship, and investment, adds cost and inefficiency, and diverts resources away from intended uses, particularly in countries with low-quality governance.”
Meanwhile, integrity pays off as companies prefer to invest in stable and predictable political and regulatory environments. According to the World Bank’s ongoing enterprise surveys, businesses view corruption as a significant challenge, with 22.7% of firms worldwide singling out corruption as “a major or very severe constraint”.
For countries like South Africa, which struggle with deflated economies and less than ideal levels of foreign investment, it is imperative that an integrity culture be embedded into society as a whole, including government, business, communities, and the public at large, to combat widespread corruption, restore trust in public and private governance, and foster economic growth including job creation.
In short, said the OECD, citizens and businesses want governments to uphold and prioritise integrity. “Governments must table bold action and invest in risk-based, results-oriented integrity reforms that address the challenges raised by investors, consumers, and voters, use new technologies for greater impact, and be able to showcase the benefits and work together across jurisdictions.”
To address challenges such as outdated approaches, inefficient governance processes, or poor implementation, governments can:
- Adopt a risk-based, results-oriented approach to anti-corruption – this will focus efforts on the highest corruption risks and most vulnerable areas, use data and resources more effectively, and improve implementation.
- Build resilience in high corruption risk areas – these include the private sector, state-owned enterprises, public-private partnerships, and other high-risk areas such as healthcare or defence. Efforts to enhance fraud prevention, public procurement integrity, and protection from organised crime should be stepped up.
- Increase the uptake of digital tools and improve data quality – improving dataflows and integrating digital tools, such as AI and analytics, in day-to-day integrity functions could boost implementation and increase impact.
- Strengthen practice measures to improve integrity in the justice system – these include the submission of declarations of interests, focus on merit and objectivity in selection and promotion procedures for judges and prosecutors, implementation of standards of conduct, and the strengthening of whistle-blowing mechanisms.
