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Al

Political corruption and social exclusion 

By Jacobo Quintanilla

Services of the Agency for Information in Solidarity (AIS)

No country in the world is immune to the corruption of its political class. However, the magnitude of the problem varies from some cases to others, as documented by the 2004 Global Report on Corruption released by Transparency International (TI), a nongovernmental organization that combats corruption worldwide. “Political corruption undermines the hopes of prosperity and stability of developing countries and damages the world economy,” said Peter Eigen, TI's president, when issuing the report.

Several of the scandals of political corruption in the past several years involve the funding of political parties. However, most governments have not adopted the necessary measures to combat this blight, measures such as public funding, limits on donations, and transparency in the origin of those contributions.

There are numerous initiatives that could be carried out to end these infamous practices that exclude millions of people from medical assistance, education and the possibility of a sustainable future. In December 2003 in Mexico, and on a worldwide basis, the United Nations approved the Convention Against Corruption. The Convention is the first global instrument to encompass a complete gamut of anticorruption measures to be applied in every nation. At the same time, it helps increase international cooperation in the prevention and monitoring of corruption.

Once again, there is a way but not a will. The Convention must be ratified by 30 member nations before it can become operative. This is expected to occur by late 2005, although the United States already has undermined the Convention's potential contribution by refusing to approve any obligatory provision about transparency in political funding.

The ‘Top Ten’ of worldwide corruption

In South Africa, for instance, after almost 10 years of democracy, the opacity in the private funding of political parties has not decreased, because of huge loopholes in South African law. On the other hand, the government of Nigeria has the political will to deal with the ignominious legacy of former President Sani Abacha (1993-1998), who – according to TI – embezzled between $2 billion and $5 billion during his administration.

Another instance typical of Africa is the case of Mobutu Sese Seko, who, in the 32 years he ruled the Democratic Republic of Congo, stashed away in Swiss banks $5 billion from the more than $12 billion his country received in subsidies, mostly from the World Bank. In his defense, Mobutu claimed it was “less than $50 million.”

But let's not assume that political corruption is the exclusive patrimony of the African continent. Europe and the United States have much to answer for. In many countries of Western Europe, citizens have free access to information about donations to political parties. However, in Austria, Byelorussia, Bulgaria, Spain, Finland and Turkey such transparency is rare, TI states. In Albania and Croatia, there simply is none. And countries like France, Greece and Turkey are introducing or passing immunity laws that will protect high-ranking functionaries from being tried for corruption.

In the United States, where the funding of parties is a parallel and crazy universe in terms of the sums of money being contributed, there is a perception that irregular payments and illegal donations are, paradoxically, less common than in the average of 102 countries surveyed for the TI report. On the other hand, there is a perception that legal donations have a notably higher impact on government policies.

Latin America is a separate case. Argentina, Bolivia, Ecuador, Guatemala, Haiti, Honduras, Panama and Paraguay are among the 10 countries with the highest levels of political corruption, according to the Opinion Survey of Executives conducted by the World Economic Forum. Argentina improved its situation by passing, in June 2002, a law on the funding of parties that imposes limits to donations and sanctions to any violations of those limits. At the opposite end are Peru and Nicaragua, living examples of continuous negligence; their two former presidents – Alberto Fujimori and Arnoldo Alemán, respectively – are among the most corrupt leaders in the world. Both are awaiting trial; an extradition order has been issued for Fujimori. 

At the head of this infamous Top Ten of corrupt leaders is the former President of Indonesia Muhammad Suharto, the most corrupt politician in the past 20 years, who has been accused of stealing between $15 billion and $35 billion of his country's money, according to TI. Asia is also home to a major focus of corruption: Bangladesh is considered to be – along with Haiti and Nigeria – one of the most corrupt countries on the planet. Ferdinand Marcos, president of the Philippines between 1972 and 1986, enjoys the doubtful honor of ranking second on the Top Ten list: TI estimates that he embezzled between $5 billion and $10 billion. And in Japan and China, fraud in public spending in the construction sector is an everyday occurrence. 

The responsibility of multinational corporations

TI's accusatory finger also points to Western corporations that “encourage corruption in developing countries and sidestep the antibribe laws passed by those countries.” After conducting a survey among more than 800 companies in 15 developing countries, TI concludes that the worst, the most corruptive companies are based in Australia, Sweden, Switzerland, Austria and Canada.

“Democracies cannot continue to tolerate bribes, fraud or dishonesty,” wrote Jimmy Carter, former President of the United States and Nobel Peace laureate, in the introduction to TI's report, “especially if this type of practice hurts the poor in a disproportionate manner.”

It seems evident, then, that if – along with the lack of a firm international commitment – there is a lack of political will on the part of corrupt leaders and corruptive multinational corporations, the result will be broken societies and the exclusion of millions of people who live with scant or no perspectives for the future.

One positive measure would be for the laws that regulate political funding to be implemented in an effective manner. This would imply an iron-fisted control by the independent agencies that supervise those processes and enabling those agencies to start legal proceedings in the event of bad electoral practices. The problem is that many government leaders would fear being persecuted by those monitoring agencies once they are removed from power.

Journalist Jacobo Quintanilla contributes regularly to the AIS.

 

 

 


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