UN on corruption
The United Nations (UN) has said political corruption costs governments about $1.6tn (yes: $ 1.600.000 million) worldwide every year. The money is lost in public assets moved across borders via money-laundering or undeclared holdings. The figure comes as the UN, World Bank and other watchdog meet in Doha, Qatar, to try to give a four-year-old anti-corruption agreement some teeth. But hopes are low of countries agreeing to independent reviews into countries’ finances to look for missing money. Countries such as China, Iran and Russia are resisting such measures. Two previous summits have failed to expand the powers of the UN’s anti-corruption convention.
UNODC’s Costa made some interesting comments during the summit related to the financial crisis in relation to corruption:
“After major systemic failures, financial markets have been rescued by imposing massive debts upon future generations, and at the expense of other priorities, including development assistance. International mafias, cash-rich at a time of large-scale illiquidity, have found a unique opportunity to penetrate both the financial and the real economy, world-wide.
Was this the result of bankers’ greed in financial centres, or was Mammon unleashed across the planet? Hard to say: whether the monster is in the human entrails or outside, it was corruption that acted as its mid-wife, cause and consequence of today’s crisis. Think of this:
1. Governments allowed the system, and its main actors, to get out of control. Some businesses, too corrupt to succeed, were deemed too large to fail. Without rules and without a conscience, financiers and corporate tycoons alike turned their dealings into a free-for-all game;
2. Bankers, fund managers, commodity traders and realtors sold their services (and their souls), first to make huge sums of money and then — once the system collapsed — to draw money so as to avoid foreclosure;
3. Armies of auditors, accountants and lawyers became mercenaries to licit and illicit industries – covering up dirty dealings, and giving them an air of legality;
4. Ratings agencies and advisory services, first taught the corporate world how to cheat the system, and then gave them a clean bill of health;
5. Offshore financial centres – already notorious for low ethics and high returns – have been happy to accept money from any source; no questions asked.
This is how, and here is where, corruption mid-wifed the crisis.”
“While corruption is a serious crime in itself, it is also a lubricant for other forms of crime. How is it possible that 1000 tons of heroin, another 1000 tons of cocaine, and untold amounts of cannabis and amphetamines every year cross borders unhindered? Or that massive logs, illegally cut, are floated down rivers for hundreds of kilometres without being stopped? Or that inmates in maximum security prisons run criminal networks, even order the executions of business competitors? Or that terrorists gain access to restricted areas and confidential information in order to carry out deadly acts? The answer is the “C” word: corruption.”
“Therefore, while more anti-corruption law enforcement is badly needed, more must also be done to prevent it. I urge you to use this Doha meeting to show that corruption is preventable — not a fact of life, or part of doing business.
Many countries still lack specialized, independent, and well-funded anti-corruption authorities: too often, there is much interference, little money. Even in developed democracies there is insufficient transparency in the hiring of public officials and the funding of political parties. In line with the Convention, all politically exposed persons should disclose their incomes and assets.
Above all we must tighten tendering and procurement rules. This is the area of greatest abuse – where the interests of the private and public sectors coincide, and big money is at stake. And we have to jam the revolving door of civil servants who take on private sector jobs related to their previous functions.”
UNODC and UNDP developed a new campaign against corruption: “your no counts”. We all realize that it takes more than a new slogan and website. How to organize those teeth against corruption? Reallocate some resources that are currently assigned to combat terrorism (financing) ?
As Costa points out; corruption comes in a lot of shapes and forms. Let’s hope that Costa’s gloomy scenario related to our financial sector’s vulnerability will not unfold. Do you think you are untouched by corruption? Is it really too big to fight? How can we help to stop it? UN suggest to start saying “no” every now and then.
http://news.bbc.co.uk/2/hi/business/8350239.stm
http://www.unodc.org/yournocounts/
