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Showing posts for "Rule of Law"

SDG 16 and the Corruption Measurement Challenge

by Guest Blogger for Shannon K. O'Neil
United Nations Secretary-General Ban Ki-Moon addresses the Annual Conference of Swiss Developement Cooperation in Zurich, Switzerland January 22, 2016. On the screen behind are displayed the 17 goals of UN's 2030 Agenda for Sustainable Development (Reuters/Arnd Wiegmann). United Nations Secretary-General Ban Ki-Moon addresses the Annual Conference of Swiss Developement Cooperation in Zurich, Switzerland January 22, 2016. On the screen behind are displayed the 17 goals of UN's 2030 Agenda for Sustainable Development (Reuters/Arnd Wiegmann).

Emerging Voices highlights new research, thinking, and approaches to development challenges from contributing scholars and practitioners. This post is from Niklas Kossow, communications officer for the European Union FP7 ANTICORRP project and the European Research Centre for Anti-Corruption and State-Building.  In this post, he considers the challenge of designing evidence-based reforms and measuring success in global development, and describes a new approach to objective measurement in the field of anticorruption and good governance: the Index of Public Integrity.

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This Week in Markets and Democracy: Duterte Targets Critic, China’s Trade Ambitions, FCPA Uncertainty

by Shannon K. O'Neil
A police officer from the SWAT team stands guard during an anti-drugs operation in Mandaluyong, Metro Manila in the Philippines, November 12, 2016 (Reuters/Erik De Castro). A police officer from the SWAT team stands guard during an anti-drugs operation in Mandaluyong, Metro Manila in the Philippines, November 12, 2016 (Reuters/Erik De Castro).

Philippines’ Duterte Tries to Take Down Critic
Philippine President Rodrigo Duterte brooks no dissent. His latest backlash is against one of his most outspoken critics, Senator Leila de Lima. After she opened an inquiry into Duterte’s role in killings while he was a mayor, and urged the international community to investigate the over 1,500 alleged extrajudicial killings during his first four months in office, the president’s Senate allies ejected her as chair of the Justice Committee. The government is now accusing her of drug trafficking, bribery, and graft. If the case moves forward, De Lima could face up to thirty years in prison—effectively silencing Duterte’s opposition.

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This Week in Markets and Democracy: New French Anticorruption Law, More Panama Papers Fallout, India’s Big Currency Ban

by Shannon K. O'Neil
A man displays a new 2000 Indian rupee banknote after withdrawing from a bank (Reuters/Mukesh Gupta). A man displays a new 2000 Indian rupee banknote after withdrawing from a bank (Reuters/Mukesh Gupta).

France’s Anticorruption Reforms
After years of criticism for failing to prosecute foreign bribery, France adopted a new anticorruption law that will force companies doing business on its soil to take more aggressive preventative measures, and also gives the government stronger tools to fight corruption. The Sapin II law—named for French Finance Minister Michel Sapin—makes compliance programs mandatory for companies with over 500 employees and €100 million in revenue, and creates a new anticorruption agency that can impose fines up to €200,000 for individuals and €1 million for companies that fail to comply. Sapin II also expands whistleblower protections (though some say they do not go far enough), and introduces deferred prosecution agreements similar to those used by the U.S. Department of Justice—allowing prosecutors to fine companies for wrongdoing without a criminal conviction. These changes should help France make good on its OECD Anti-Bribery Convention commitments. Until now, only U.S. courts—not France’s—have sanctioned French multinationals for bribery abroad.

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This Week in Markets and Democracy: Embraer Corruption Case, UK Anti-Slavery Law Neglected, Rule of Law Index

by Shannon K. O'Neil
Brazilian aircraft maker Embraer's CEO Frederico Curado (R) salutes workers next to an new Embraer E190-E2 during its unveil in Sao Jose dos Campos, Brazil, February 25, 2016. Brazilian planemaker Embraer SA is in early talks with Iran, with a focus on commercial aviation, following the end of international sanctions, Chief Executive Curado told journalists on Thursday (Reuters/Nacho Doce). Brazilian aircraft maker Embraer's CEO Frederico Curado (R) salutes workers next to an new Embraer E190-E2 during its unveil in Sao Jose dos Campos, Brazil, February 25, 2016. Brazilian planemaker Embraer SA is in early talks with Iran, with a focus on commercial aviation, following the end of international sanctions, Chief Executive Curado told journalists on Thursday (Reuters/Nacho Doce).

Brazil’s Plane Maker Fined in Bribery Case Spanning Five Continents
Brazilian aircraft manufacturer Embraer will pay $205 million to U.S. authorities, including $20 million for Brazil, for bribing officials in Saudi Arabia, Mozambique, and the Dominican Republic. U.S. prosecutors worked with their law enforcement counterparts around the world—including Brazil, Switzerland, Uruguay, France, and Spain—to bring the Foreign Corrupt Practices Act case (Embraer is a U.S.-listed company). The legal cooperation has gone both ways, as U.S.-gathered evidence has spurred additional investigations by Brazilian and Saudi authorities; thirteen employees were charged with bribery. Now India is looking into kickbacks from Embraer’s air force contracts. Expect more cross-border cooperation in global corruption cases.

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Mexico’s Corrupt Governors

by Shannon K. O'Neil
Javier Duarte, governor of the state of Veracruz, attends a news conference in Xalapa, Mexico, August 10, 2015 (Reuters/Stringer). Javier Duarte, governor of the state of Veracruz, attends a news conference in Xalapa, Mexico, August 10, 2015 (Reuters/Stringer).

Last June, Mexico elected new governors in twelve of its thirty-one states. As millions of voters went to the urns, corruption was a top concern (along with insecurity). Eight states saw the incumbent party kicked out; in four—Veracruz, Quintana Roo, Chihuahua, and Durango—the PRI lost for the first time in the party’s history.

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This Week in Markets and Democracy: Study on Factory Labor, Thai Anticorruption Court, Afghanistan Aid

by Shannon K. O'Neil
A woman stitches leather gloves at the Pittards world class leather manufacturing company in Ethiopia's capital Addis Ababa, March 22, 2016. Picture taken March 22, 2016 (Reuters/Tiksa Negeri). A woman stitches leather gloves at the Pittards world class leather manufacturing company in Ethiopia's capital Addis Ababa, March 22, 2016. Picture taken March 22, 2016 (Reuters/Tiksa Negeri).

Why Trade Deals Matter for Workers Everywhere
The shift of low-skilled manufacturing jobs from industrialized to emerging economies helped lift millions out of poverty over the past few decades (even as it displaced Western workers). But a new study of Ethiopia’s growing manufacturing sector shows that while factory jobs raise wages throughout the economy, the benefits for workers are mixed. Compared to a control group of self-employed and informal sector workers, those employed in the new factories did not earn more and faced significantly higher health and safety risks—exposed to chemicals and injuries from unsafe working conditions. These findings show why trade agreements matter. By incorporating labor and environmental standards and mechanisms to enforce these rules, they can improve the livelihood of workers in all places.

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This Week in Markets and Democracy: FIFA Investigations, Corruption in Romania and the Maldives, New South Sudan Report

by Shannon K. O'Neil
British comedian known as Lee Nelson (unseen) throws banknotes at FIFA President Sepp Blatter as he arrives for a news conference after the Extraordinary FIFA Executive Committee Meeting at the FIFA headquarters in Zurich, Switzerland July 20, 2015. World football's troubled governing body FIFA will vote for a new president, to replace Sepp Blatter, at a special congress to be held on February 26 in Zurich, the organisation said on Monday (Reuters/Arnd Wiegmann). British comedian known as Lee Nelson (unseen) throws banknotes at FIFA President Sepp Blatter as he arrives for a news conference after the Extraordinary FIFA Executive Committee Meeting at the FIFA headquarters in Zurich, Switzerland July 20, 2015. World football's troubled governing body FIFA will vote for a new president, to replace Sepp Blatter, at a special congress to be held on February 26 in Zurich, the organisation said on Monday (Reuters/Arnd Wiegmann).

FIFA Investigates Its Own Corruption
A year after the United States and Switzerland went after top FIFA officials on fraud, money laundering, and racketeering charges tied to a $150 million corruption scheme, soccer’s international governing body is taking actions itself. The federation fined former vice president Jeffrey Webb $1 million for accepting bribes and banned him for life from the sport. It also opened an investigation on former President Sepp Blatter and two top associates for bribery, corruption, and conflicts of interest, including adding several illegal provisions to their contracts—boosting their combined salaries to over $80 million, and guaranteeing them eight years of pay even if fired for just cause. FIFA’s new dynamism may begin to restore its tarnished reputation, and the information it uncovers could help U.S. and Swiss prosecutors with their own ongoing criminal cases.

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This Week in Markets and Democracy: Central America Takes on Corruption, Venezuela’s Protests, G20 Summit

by Shannon K. O'Neil
Venezuelans living in Mexico take part in a protest to demand a referendum to remove Venezuela's President Nicolas Maduro at Angel de la Independencia monument in Mexico City, Mexico, September 4, 2016 (Reuters/Edgard Garrido). Venezuelans living in Mexico take part in a protest to demand a referendum to remove Venezuela's President Nicolas Maduro at Angel de la Independencia monument in Mexico City, Mexico, September 4, 2016 (Reuters/Edgard Garrido).

Central America Takes on Corruption 
Central American judiciaries have been stepping up to fight corruption. Last year Guatemala’s attorney general’s office, working closely with UN-backed International Commission against Impunity in Guatemala (CICIG), took down then-President Otto Pérez Molina for stealing tens of millions of dollars in customs duties. Pressured by civil society, the Honduran government agreed to a similar Organization for American States (OAS)-backed body, the Mission to Support the Fight Against Corruption and Impunity in Honduras (MACCIH), to investigate graft after $200 million disappeared from the country’s social security system. And El Salvador’s new Attorney General Douglas Meléndez, sworn in at the start of the year, is prosecuting several high-level officials and former officials with unexplained millions in their bank accounts. While this week’s asylum in Nicaragua for former Salvadorian President Mauricio Funes and his family is a potential setback, the cases themselves represent a sea change in justice for Central America’s Northern Triangle.

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A Game of Inches: The Uncertain Fight Against Corruption in Latin America

by Matthew Taylor
A boy holds a sign which reads, "No more corruption" during a demonstration demanding the resignation of Guatemalan President Otto Perez Molina, in downtown Guatemala City, May 30, 2015 (Reuters/Jorge Dan Lopez). A boy holds a sign which reads, "No more corruption" during a demonstration demanding the resignation of Guatemalan President Otto Perez Molina, in downtown Guatemala City, May 30, 2015 (Reuters/Jorge Dan Lopez).

Harvard’s inimitable Matthew Stephenson this week published a thought-provoking blog post comparing anticorruption efforts in Asia and Latin America. Crudely summarizing Stephenson’s argument, a few years ago many looked to Asia as the gold standard in anticorruption efforts, in part because of the success of independent and effective anticorruption agencies (ACAs) in the region. But recent news of political meddling with Hong Kong’s ACA, brazen kleptocracy in Malaysia’s state development fund, and efforts to water down reform in Indonesia all suggest that the pendulum is swinging in a less positive direction. By contrast, Stephenson is optimistic about the important gains made in recent years in Latin America, including by Guatemala’s International Commission Against Impunity (CICIG), Brazil’s Car Wash investigation, elections in Peru and Argentina that highlighted voter frustration with corruption, and Mexico’s “3 out of 3” reforms.

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This Week in Markets and Democracy: China’s Private Sector Corruption, Zimbabwe’s Protests, New Corruption Brief

by Shannon K. O'Neil
A man checks a message on his mobile phone, in Harare, Zimbabwe, July 7, 2016 (Reuters/Philimon Bulawayo). A man checks a message on his mobile phone, in Harare, Zimbabwe, July 7, 2016 (Reuters/Philimon Bulawayo).

Chinese Companies lag on Transparency
Chinese companies filled the bottom twenty-five spots in a recent Transparency International report ranking one-hundred emerging market multinationals on anticorruption efforts. Three received zeroes (on a zero-to-ten scale) for failing to list subsidiaries, release financials on foreign operations, or set up antibribery programs. The Chinese government is not pressing for change, instead killing a business-led anticorruption task force within the G20 framework. As a result, foreign companies operating in China are hard-pressed to avoid bribery—a challenge reflected in Foreign Corrupt Practices Act (FCPA) cases. So far this year, over half of all corporate FCPA actions involved bribes paid to Chinese officials, and since 2008, the United States found more cases of misconduct in China than in all other countries combined.

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