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Showing posts for "Rule of Law"

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.

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This Week in Markets and Democracy: Moldova’s Protests, Investors Take on Graft, Corruption’s Costs in Nigeria

by Shannon K. O'Neil
People hold a protest in front of the parliament building in Chisinau, Moldova, January 21, 2016. At least 8,000 people protested in the Moldovan capital on Thursday against the appointment of Prime Minister Pavel Filip, whose hasty swearing-in ceremony at midnight also prompted a government spokesman to resign (Reuters/Viktor Dimitrov). People hold a protest in front of the parliament building in Chisinau, Moldova, January 21, 2016. At least 8,000 people protested in the Moldovan capital on Thursday against the appointment of Prime Minister Pavel Filip, whose hasty swearing-in ceremony at midnight also prompted a government spokesman to resign (Reuters/Viktor Dimitrov).

Moldova’s Corruption Undermines EU Bid

Moldova’s corruption continues despite deepening European Union (EU) ties. New Prime Minister Pavel Filip’s pro-EU party is linked to a $1 billion bank embezzlement scheme that saw nearly 13 percent of gross domestic product (GDP) disappear. Two former prime ministers fell in the scandal, one to a no confidence vote while another is in jail. Now, despite government rhetoric accepting the EU Association Agreement governance statutes and promising to stamp out corruption, protesters are calling for Filip’s resignation. It is unlikely that Moldova will move beyond EU “partner” status anytime soon.

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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.

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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.

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This Week in Markets and Democracy: Corruption in Iran, Africa, and Mexico

by Shannon K. O'Neil
Humberto Moreira, a former ally of Mexican President Enrique Pena Nieto, and his lawyer Ulrich Richter (L) leave the Soto del Real penitentiary outside Madrid, Spain, January 22, 2016 (Reuters/Susana Vera). Humberto Moreira, a former ally of Mexican President Enrique Pena Nieto, and his lawyer Ulrich Richter (L) leave the Soto del Real penitentiary outside Madrid, Spain, January 22, 2016 (Reuters/Susana Vera).

Iran’s Sanction Are Gone, but Not Its Corruption

Corruption presents a huge hurdle for Iran. It ranks 136 out of 175 countries in Transparency International’s Corruption Perceptions Index, and 118 of 189 in the World Bank’s Doing Business report. Despite earning $650 billion in oil profits over the last eight years, billions went missing, and little found its way into public goods such as infrastructure. Still, as international sanctions lift, European and Asian companies including Daimler, Airbus, Total, Eni, and Statoil have or are considering ventures. The UK government even published a guide on doing business in Iran, noting the prevalence of customs that violate its Bribery Act.

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This Week in Markets and Democracy: Modi’s Reform Agenda, the WTO, and 2015 UN Development Report

by Shannon K. O'Neil
A labourer pushes a handcart loaded with sacks containing tea packets, towards a supply truck at a wholesale market in Kolkata, India, June 26, 2015. For years Indian businesses have lobbied for a nationwide sales tax, hoping to replace a chaotic structure that inflates costs and halts their trucks at state borders for duty payments, and to unify the country into one of the world's largest single markets. But after political compromises that finally got a goods and services tax (GST) bill before parliament, they have turned wary (Reuters/De Chowdhuri). A labourer pushes a handcart loaded with sacks containing tea packets, towards a supply truck at a wholesale market in Kolkata, India, June 26, 2015. For years Indian businesses have lobbied for a nationwide sales tax, hoping to replace a chaotic structure that inflates costs and halts their trucks at state borders for duty payments, and to unify the country into one of the world's largest single markets. But after political compromises that finally got a goods and services tax (GST) bill before parliament, they have turned wary (Reuters/De Chowdhuri).

Modi’s Reforms at Odds
A senior official in Indian Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) is pushing a corruption probe that threatens to derail his own party’s Goods and Services Tax (GST). A linchpin of Modi’s economic platform, the reform would replace numerous local and state taxes with a single nation-wide tax. The government expects GST to boost government revenue, attract foreign investment, and add up to two percent to GDP. With the corruption case’s targets—opposition Congress Party leaders Sonia and Rahul Gandhi—denouncing the investigation as politically motivated, the fallout will likely halt Modi’s tax reform in India’s opposition-led upper house. As the Gandhi case advances, the GST may not, putting Modi’s ambitious pro-business and anticorruption agendas at odds.

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This Week in Markets and Democracy: International Anticorruption Day, Corruption in Ukraine, and Elections in Venezuela

by Shannon K. O'Neil
Lilian Tintori (centre L), wife of jailed Venezuelan opposition leader Leopoldo Lopez, celebrates next to candidates of the Venezuelan coalition of opposition parties (MUD) during a news conference on the election in Caracas early December 7, 2015. Venezuela's opposition won control of the legislature from the ruling Socialists for the first time in 16 years on Sunday, giving them a long-sought platform to challenge President Nicolas Maduro (Reuters/Carlos Garcia Rawlins). Lilian Tintori (centre L), wife of jailed Venezuelan opposition leader Leopoldo Lopez, celebrates next to candidates of the Venezuelan coalition of opposition parties (MUD) during a news conference on the election in Caracas early December 7, 2015. Venezuela's opposition won control of the legislature from the ruling Socialists for the first time in 16 years on Sunday, giving them a long-sought platform to challenge President Nicolas Maduro (Reuters/Carlos Garcia Rawlins).

International Anticorruption Day
December 9 marked the United Nations’ thirteenth annual International Anticorruption Day, offering a chance to reflect on global anticorruption efforts this year—from successful antigraft cases to ongoing challenges fighting high-level theft. In commemoration, here’s what we’ve been reading:

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This Week in Markets and Democracy: The Americas’ Refugee Crisis, Impunity in Journalist Attacks, and More

by Shannon K. O'Neil
A Salvadoran immigrant carries her son while standing in vegetation to hide from organized crime bands in Huehuetoca, near Mexico City, June 1, 2015. An increasing number of Central Americans are sneaking across Mexico's border en route to the United States (Reuters/Edgard Garrido). A Salvadoran immigrant carries her son while standing in vegetation to hide from organized crime bands in Huehuetoca, near Mexico City, June 1, 2015. An increasing number of Central Americans are sneaking across Mexico's border en route to the United States (Reuters/Edgard Garrido).
CFR’s Civil Society, Markets, and Democracy (CSMD) Program highlights noteworthy events and articles each Friday in “This Week in Markets and Democracy.” 

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This Week in Markets and Democracy: Sustainable Development Goals Adopted

by Shannon K. O'Neil
U.S. President Barack Obama addresses attendees during a plenary meeting of the United Nations Sustainable Development Summit 2015 at the United Nations headquarters in Manhattan, New York September 27, 2015. More than 150 world leaders are expected to attend the UN Sustainable Development Summit from September 25-27, 2015 at United Nations in New York to formally adopt an ambitious new sustainable development agenda, a press statement by the U.N. stated (Reuters/Mike Segar). U.S. President Barack Obama addresses attendees during a plenary meeting of the United Nations Sustainable Development Summit 2015 at the United Nations headquarters in Manhattan, New York September 27, 2015. More than 150 world leaders are expected to attend the UN Sustainable Development Summit from September 25-27, 2015 at United Nations in New York to formally adopt an ambitious new sustainable development agenda, a press statement by the U.N. stated (Reuters/Mike Segar).

The biggest achievement of the past week’s United Nations General Assembly (UNGA) in New York was the adoption of a new fifteen-year plan for global development. Replacing the soon-to-expire Millennium Development Goals, seventeen new Sustainable Development Goals (SDGs) will guide UN and domestic development policies through 2030 with an ambitious, and some say overly idealistic agenda. Based on UN member and civil society input over a three-year process, the final set of SDGs aims to eliminate hunger, reduce inequality, promote shared economic growth, and “end poverty in all its forms everywhere.” President Obama, UN Secretary General Ban Ki-moon, and Pope Francis all endorsed the new “global goals” during the three-day UN Sustainable Development Summit held in the run-up to UNGA. Here are two major takeaways from the summit:

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This Week in Markets and Democracy: U.S. Fights Corruption, Preventing Mass Atrocities, and More

by Shannon K. O'Neil
Ban Ki-moon, U.N. Secretary-General addresses a plenary meeting of the United Nations Sustainable Development Summit 2015 at United Nations headquarters in Manhattan, New York, September 25, 2015. More than 150 world leaders are expected to attend the U.N. Sustainable Development Summit from September 25-27 at the United Nations in New York to formally adopt an ambitious new sustainable development agenda a press statement by the U.N. stated. (Soe Zeya Tun/Reuters). Ban Ki-moon, U.N. Secretary-General addresses a plenary meeting of the United Nations Sustainable Development Summit 2015 at United Nations headquarters in Manhattan, New York, September 25, 2015. More than 150 world leaders are expected to attend the U.N. Sustainable Development Summit from September 25-27 at the United Nations in New York to formally adopt an ambitious new sustainable development agenda a press statement by the U.N. stated. (Soe Zeya Tun/Reuters).

CFR’s Civil Society, Markets, and Democracy (CSMD) Program highlights noteworthy events and articles each Friday in “This Week in Markets and Democracy.” 

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