CFR Presents

Development Channel

Issues and innovations in global economic development

Posts by Category

Showing posts for "New From CFR"

This Week in Markets and Democracy: Honduras’ Anticorruption Fight, Freedom House Report, Conflict Minerals Setback

by Shannon K. O'Neil
A demonstrator holds a sign that reads "Out JOH", in a reference to Honduras' President Juan Orlando Hernandez, during a march to demand the resignation of Hernandez in Tegucigalpa, August 21, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Reuters/Jorge Cabrera). A demonstrator holds a sign that reads "Out JOH", in a reference to Honduras' President Juan Orlando Hernandez, during a march to demand the resignation of Hernandez in Tegucigalpa, August 21, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Reuters/Jorge Cabrera).

Honduras’ New Anticorruption Fighter Takes on the President
Last summer allegations that Honduran officials stole more than $200 million dollars from the social security system led to widespread public protests and calls for President Juan Orlando Hernández’s resignation. The scandal spurred the creation of the Mission Against Corruption and Impunity in Honduras (MACCIH), an anticorruption body backed by the Organization of American States (OAS) and modeled after the International Commission Against Impunity in Guatemala (CICIG). Now active, MACCIH officials say they will investigate the case. Given MACCIH’s more limited prosecutorial autonomy and much smaller budget, many wonder if it can match the impressive results of its Guatemalan counterpart, which—working with the attorney general—brought down former president Otto Pérez Molina.

Read more »

This Week in Markets and Democracy: Peru’s Elections, Corruption Arrests, and Panama Papers Response

by Shannon K. O'Neil
People walk past campaign electoral signs of Peru's presidential candidate Keiko Fujimori in Cuzco, Peru, April 11, 2016 (Reuters/Janine Costa). People walk past campaign electoral signs of Peru's presidential candidate Keiko Fujimori in Cuzco, Peru, April 11, 2016 (Reuters/Janine Costa).

Peru’s Presidential Candidates Head to Second Round
On June 5, Keiko Fujimori, the daughter of former president Alberto Fujimori, will face former finance minister Pedro Pablo Kuczynski in Peru’s presidential runoff election. Questionable decisions by Peru’s electoral board in the first round—disqualifying two competitive candidates and dismissing charges of vote-buying against Fujimori and Kuczynski—boosted Fujimori and clouded the vote’s legitimacy. Now the question will be the anti-Fujimori vote and whether Kuczynski (not a natural campaigner) can consolidate her opposition—much as current president Ollanta Humala did when he beat her in 2011’s second round. Although Fujimori is popular among the rural poor, many remember the corruption and human rights abuses of her father’s presidency, and fear that she could follow in his footsteps.

Read more »

Five Things Washington Should Do to Help Latin America Curb Corruption

by Guest Blogger for Matthew Taylor
Paraguayan prosecutors Hernan Galeano (C), Federico Espinoza (center, R) and Chief Prosecutor Roberto Zacarias hold a news conference in Asuncion, January 8, 2016. Paraguayan state prosecutors on Thursday raided the headquarters of South American soccer confederation CONMEBOL after a request for cooperation from U.S. justice officials probing corruption inside world soccer, the prosecution office said (Jorge Adorno/Reuters). Paraguayan prosecutors Hernan Galeano (C), Federico Espinoza (center, R) and Chief Prosecutor Roberto Zacarias hold a news conference in Asuncion, January 8, 2016. Paraguayan state prosecutors on Thursday raided the headquarters of South American soccer confederation CONMEBOL after a request for cooperation from U.S. justice officials probing corruption inside world soccer, the prosecution office said (Jorge Adorno/Reuters).

This is a guest blog post by Dr. Richard Messick, an anticorruption specialist. It is based on a CFR roundtable discussion on March 24 hosted by Matthew M. Taylor, adjunct senior fellow for Latin America Studies.

Read more »

This Week in Markets and Democracy: Brazil’s Crisis Snowballs, Deferred Corruption Prosecutions, U.S. Bets on Cuba

by Shannon K. O'Neil
Brazil's President Dilma Rousseff (R) greets former president Luiz Inacio Lula da Silva during the appointment of Lula da Silva as chief of staff, at Planalto palace in Brasilia, Brazil (Reuters/Adriano Machado). Brazil's President Dilma Rousseff (R) greets former president Luiz Inacio Lula da Silva during the appointment of Lula da Silva as chief of staff, at Planalto palace in Brasilia, Brazil (Reuters/Adriano Machado).

Brazil’s Corruption Crisis Snowballs
Brazil’s corruption investigations expanded to encompass the former and current president. Federal police detained and questioned former President Luíz Inácio Lula da Silva (“Lula”) over whether he personally benefited from the Petrobras bribery scheme. São Paulo state prosecutors then separately filed to arrest him on money-laundering charges. In a plea bargain, Senator Delcídio do Amaral claimed current President Dilma Rousseff knew about Petrobras bid-rigging and tried to stop the criminal probe. Abroad, Argentine prosecutors are investigating if their own officials received kickbacks, and my colleague Matt Taylor predicts the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) could bring FCPA charges against Petrobras. And in what most perceive as a cynical move to defy justice, Lula joined Rousseff’s cabinet as chief of staff, removing him from the jurisdiction of both state and federal courts (only the Supreme Court can now try his case). As millions take to the streets in outrage, the political consequences may come more quickly than the legal ones.

Read more »

This Week in Markets and Democracy: Nike’s Bribes in Kenya, Elections in Benin and Niger, and Women’s Anticorruption Role

by Shannon K. O'Neil
A policeman is seen outside the gates of Riadha House the Athletic Kenya (AK) Headquarters during a protest in capital Nairobi November 23, 2015. Dozens of Kenyan athletes stormed the athletics federation headquarters in Nairobi on Monday, locking out officials and demanding that top Athletics Kenya (AK) bosses step down following allegations of graft and doping cover-ups (Reuters/Noor Khamis). A policeman is seen outside the gates of Riadha House the Athletic Kenya (AK) Headquarters during a protest in capital Nairobi November 23, 2015. Dozens of Kenyan athletes stormed the athletics federation headquarters in Nairobi on Monday, locking out officials and demanding that top Athletics Kenya (AK) bosses step down following allegations of graft and doping cover-ups (Reuters/Noor Khamis).

Nike Bribes, Will the United States Prosecute?
Bank records and emails show Nike paid a $500,000 “commitment bonus” to Kenya’s athletics federation, and hundreds of thousands more in “honoraria.” Though allegedly to support poor runners, Kenyan prosecutors say athletics officials quickly transferred the money to their personal bank accounts. Yet the United States cannot use the Foreign Corrupt Practices Act (FCPA) against the mega brand. The law only covers U.S. companies that bribe “foreign officials” and “public international organizations.” Sports associations are private, so outside the FCPA’s jurisdiction. In taking on FIFA, the U.S. Department of Justice (DOJ) worked around the FCPA, indicting foreign and U.S. officials for laundering money through U.S. banks, not bribery. The United States may need to do the same in the Nike case if it wants to follow up on President Obama’s pointed criticisms of Kenyan corruption with legal actions.

Read more »

Cleaning Up Global Supply Chains

by Shannon K. O'Neil
Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province May 26, 2010. A spate of nine employee deaths at global contract electronics manufacturer Foxconn, Apple's main supplier of iPhones, has cast a spotlight on some of the harsher aspects of blue-collar life on the Chinese factory floor (Reuters/Bobby Yip). Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province May 26, 2010. A spate of nine employee deaths at global contract electronics manufacturer Foxconn, Apple's main supplier of iPhones, has cast a spotlight on some of the harsher aspects of blue-collar life on the Chinese factory floor (Reuters/Bobby Yip).

The UK’s Modern Slavery Act now requires companies to report efforts to prevent human trafficking and slavery in the making of every part and every process of production, from headquarters down to individual suppliers along production chains. In the United States, the Dodd Frank Act’s disclosure rules for conflict minerals hold mining and technology companies to similar standards. But surveys and reports show companies still fail to monitor their suppliers, let alone prevent abuses.

Read more »

This Week in Markets and Democracy: Central America’s Anticorruption Support, UNDP at Fifty, Foreign Bribery Action

by Shannon K. O'Neil
Demonstrators hold candles as they sing the national anthem during a march to demand the resignation of Honduras' President Juan Orlando Hernandez, in Tegucigalpa, September 11, 2015. The protesters are calling for the resignation of Hernandez over a $200-million corruption scandal at the Honduran Institute of Social Security (Reuters/Jorge Cabrera). Demonstrators hold candles as they sing the national anthem during a march to demand the resignation of Honduras' President Juan Orlando Hernandez, in Tegucigalpa, September 11, 2015. The protesters are calling for the resignation of Hernandez over a $200-million corruption scandal at the Honduran Institute of Social Security (Reuters/Jorge Cabrera).

Central America’s Anticorruption Support
The presidents of El Salvador, Guatemala, and Honduras were in Washington to discuss plans for the $750 million that Congress authorized to help their nations take on violence and boost economic development. The outlay comes in the wake of a record uptick in Central American migration to the United States. Nearly 3 million people have fled their homes and neighborhoods, including 100,000 unaccompanied minors who arrived at the southern border between October 2013 and July 2015. The U.S. funding requires Northern Triangle governments to address myriad domestic problems, including strengthening legal systems, protecting human rights, and rooting out corruption. U.S. anticorruption efforts will be met with broad civil society and multilateral support, dovetailing with grassroots campaigns against graft and high-level impunity in Honduras and Guatemala, and furthering the resolve of multilateral-backed bodies such as Honduras’s new Mission Against Corruption and Impunity (MACCIH).

Read more »

The Political Salience of Latin Americans’ Perceptions of Corruption

by Matthew Taylor
A demonstrator holds a scarf during a march to demand for the resignation of Honduran President Juan Orlando Hernandez in Tegucigalpa August 14, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Jorge Cabrera/Reuters). A demonstrator holds a scarf during a march to demand for the resignation of Honduran President Juan Orlando Hernandez in Tegucigalpa August 14, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Jorge Cabrera/Reuters).

Once a year, policymakers and the press are forcibly reminded of the terrible costs of corruption. This year, it fell on January 27, when Transparency International’s Corruption Perceptions Index (CPI) was released, inciting the ritual gnashing of teeth and beating of chests about relative national corruption gains and losses.

Read more »

Nigeria’s 2016 Budget Continues Use of Secretive ‘Security Votes’

by Guest Blogger for Shannon K. O'Neil

In a post originally published on African Arguments, CFR International Affairs Fellow Matthew Page explains that despite President Muhammadu Buhari’s anticorruption progress, the government’s new budget includes allocations for opaque funds that often go missing.

Read more »

This Week in Markets and Democracy: Egypt’s Backsliding, UK Transparency Setbacks, New Global Rankings

by Shannon K. O'Neil
Members of security forces keep watch in Tahrir Square before the fifth anniversary of the January 25 uprising, in Cairo, Egypt, January 24, 2016 (Reuters/Mohamed Abd El Ghany). Members of security forces keep watch in Tahrir Square before the fifth anniversary of the January 25 uprising, in Cairo, Egypt, January 24, 2016 (Reuters/Mohamed Abd El Ghany).

United States Undeterred by Egypt’s Democratic Backsliding
Five years after its revolution, Egypt is no closer to democracy. President Abdel Fattah al-Sisi’s government routinely arrests political and social media activists, and has detained tens of thousands of people, many held for months without charges. Raids on news outlets and a law prohibiting journalists from contradicting official government information undermine freedom of expression. Every opposition party boycotted fall 2015 legislative elections and less than a third of the population turned out to vote. Still, the United States seems to be choosing stability over political freedoms. President Obama restored $1.3 billion in annual military assistance cut after Sisi overthrew former president Mohamed Morsi in 2013. And Central Intelligence Agency (CIA) Director John Brennan recently visited Cairo to boost security and counterterrorism cooperation, congratulating Sisi on inaugurating a new parliament.

Read more »