global corruption world affairs @BRLSI - PowerPoint Presentation

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global corruption

world affairs @BRLSIFebruary 19th 2019

Dr

Robert Barrington

Executive Director

Transparency International UK

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Transparency international

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‘power tends to corrupt and absolute power corrupts absolutely’ – Lord Acton

‘corrupt politicians make the other ten percent look bad’ - Kissinger

‘t

he

more corrupt the state, the more numerous the

laws’ - Tacitus

‘corruption wins not more than honesty’ – Shakespeare (Henry VIII)

What is corruption?

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Bribery

Petty bribery

Cronyism & nepotism

State capture

Grand corruption

etc

Types of corruption

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TI’s Adequate Procedures series

How To Bribe

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‘The abuse of entrusted power for private gain’

Transparency International

What is corruption?

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H

ealth official diverting doctors’ salaries to a personal bank account

C

onstruction company paying a bribe to get a bridge-building contract

Environment Minister appointed because they are a family member of the President

Ghost soldiers

In practice

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MPs expenses?

The UK allowing its Overseas Territories to act as tax havens?

FIFA’s allocation of the World Cup?

An accounting firm advising clients on tax avoidance?

A pregnant woman paying a bribe to a doctor to gain access to medical facilities?

A US President appointing his unqualified son-in-law to a position of influence?

Is this corruption?

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Can you measure corruption?

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Corruption Perceptions Index

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GLOBAL

CORRUPTIONBAROMETER

gcb.transparency.org

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$100 million?

$100 billion?

$1 trillion?

Global bribe paying

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So what?

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Social

Innospec

and Tetraethyl lead

Economic

‘deters

private investment, misallocates resources and generates social

grievances’ (The Economist)

Political- government for personal enrichmentOrdinary peoplecreates injustice and perpetuates inequality & poverty

Why does it matter?

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Can things change?

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Political will

Conditions

for success

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Strong institutional defences

Codes of conduct

Audit

Whistleblower

protection

Transparency

Courageous individuals

Free press and thriving civil society

ScandalsLegal framework and enforcementFinancial system – anti-money laundering

Conditions for success 2

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Who is

responsible?

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Nothing will change, why bother

Even if he is corrupt, he’s doing better than the old lot

apathy

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Corrupt Capital – Illicit Financial Flows

Up to £100bn pa laundered via the UK

Use of secretive shell companies and trusts

Assisted by banks, lawyers, accountants

Invested in UK property and other assets

Around 1% frozen by law enforcement agencies

complicity

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Complicit in illicit financial flows

Cronyism and self-enrichment in politics

Little effort at law enforcement

Government captured by corporate interests

Companies paying bribes

Dismantling institutional defences

Is this an accurate picture – and if so, what should be done?

The charge sheet against the UK

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Global trends (CPI)

Other big movers:Italy: up 10 pointsMyanmar: up 14 pointsAustralia: down 8 pointsBahrain: down 14 points

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Government capture -

kleptocrats

Closing down space for civil society & media freedom

Attacks on key institutions

eg

judiciary

Co-option of anti-corruption language by populists

Dominance of ChinaAbsence of global leadership

Global trends

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Legal framework

Improved understanding

Transparency revolution

Political leadership

Courage

Five causes for optimism

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www.transparency.org.uk - www.transparency.org