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Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
Giulia Mugellini, Law School, University of St. Gallen (Switzerland)
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Giulia Mugellini, Law School, University of St. Gallen (Switzerland)

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"Engaging the private sector for armed violence reduction and prevention (AVRP) and development" …

"Engaging the private sector for armed violence reduction and prevention (AVRP) and development"
Regional Review Conference on the Geneva Declaration on Armed Violence and Development
Geneva, Switzerland | 8-9 July 2014

Published in: Government & Nonprofit
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  • È importante comprendere qual è il livello di sicurezza del settore privato e soprattutto la percezione della sicurezza delle imprese a livello locale e internazionale, perché tale percezione e tali livelli di sicurezza possono fortemente influenzare gli investimenti in un determinato paese o settore e di conseguenza impattare sulle opportunità di lavoro, sullo sviluppo economico e sociale di un paese e sulla sicurezza.

    Collecting data on crimes against businesses is necessary to assist policy makers in supporting the development, competitiveness and integrity of the business infrastructures. To know how and where to allocate resources.
  • Existing studies show that doing business abroad may be a vulnerable area for corruption in the private sector, especially for countries with a highly intertwined economy.
    On-going research in this direction by the University of St. Gallen on “Assessing areas of vulnerability to corruption for the Swiss firms in international business activities”.

  • THE NETHERLANDS - Business crime monitor, 1989, 1992, 2004 – 2010 (annually), WODC.
    ENGLAND AND WALES - Commercial Victimization Survey, 1994, 2002, 2012, Home Office.
    FINLAND – Foreign Companies and Crime in Eastern Europe. The Security Environment in St. Petersburg and Estonia, Finnish National Research Institute of Legal Policy, 1994/1995.
    BULGARIA - Corruption Monitoring System (CSM), 1997; Evaluation of grey economy, corruption and crime rates in the Bulgarian business environment, 2005, Vitosha Research with the Centre for the Study of Democracy.
    SCOTLAND – Scottish Business Crime Survey, 1998, Scottish Executive and Scottish Business Crime Centre.
    ESTONIA - Study of Encounters of Enterprises with Crime, 2007, Ministry of Justice.
    ITALY - The Italian Business Crime Survey, 2008, Italian Ministry of the Interior and Transcrime.
    CYPRUS - Company Fraud Victimization Study, 2009, Cyprus University of Technology.
    SWITZERLAND – Swiss Business Crime Survey, 2010, Institute of Criminology, University of Zurich and the Swiss National Science Foundation.
    FINLAND – Crimes against Retail and Manufacturing Premises in Finland, 2010, National Research Institute of Legal Policy.
    Nepal – Small Arms Survey and the Institute for Integrated Development Studies, 2012
  • According to the EU ICS the annual prevalence victimization rate for individuals is 14.9%.
  • In England and Wales: in 2012, 46% of the businesses (CVS) experienced at least one crime in the previous 12 months, against 21.5% of the individuals interviewed by the British Crime Survey in 2010/2011.
    In the Netherlands: in 2010, almost one third (31%) of all the companies interviewed (Business Crime Monitor) indicated that they had been victims of one or more types of offences in the previous 12 months (WODC, 2011), while, in 2004, only 19% of individuals experienced a crime.
    In Italy: between 2007 and 2008, the victimization of businesses was 10 times higher than the victimization of individuals (36% vs 3,7%) (IBVS, 2008).
    In Switzerland: between 2008 and 2010, 24% of businesses were victims of crimes committed by people working within the enterprise (SBCS, 2009).
    In 2012, 43% of the Swiss companies interviewed were urged to commit an informal payment abroad.
    56% of them accepted to give a bribe to do business abroad.
    50% of these firms paid in order to get licenses or authorizations from public authorities.
  • This happened especially when considering countries such as Russia, Bulgaria, Polonia, Romania, Serbia, Ukraine, China and India

    Russia, Libya, Italia, Ukraine and Iran.
  • By helping to identify peculiar patterns and ad-hoc interventions to counter violence and corruption.
    Using sample survey it is also possible to get Micro-level data which are necessary to design effective reform and to monitor their efficiency.

    Business stakeholders were generally keen to see linkages with related policy agendas. They were aware that crime against business does not occur in isolation, and were keen to explore links between business crime, crime in general and new policing initiatives.
  • The need of going beyond rule-based indicators (identifying the application of formal rules (whether countries have legislation prohibiting corruption or have an anticorruption agency) and perception based measures in order to focus on the reality on the ground.
    And the need to consider all the dimensions of corruption (grand and petty, private and public, etc.) and to collect data from the different stakeholders who can help in disarticulating the main features of this phenomenon.

    In this context, involving the private sector in the measurement of corruption became more and more important to get a fundamental piece of puzzle.

    Sample surveys (such as environment and performance surveys and crime victimization survreys) turned out to be a good instruments to cover all these needs, and when they follow a standardized methodology they can also provide data comparable across countries and across time.

    Moreover, using sample survey it is also possible to get Micro-level data which are necessary to design effective reform and to monitor their efficiency.
  • Transcript

    • 1. Regional Review Conference on the Geneva Declaration on Armed Violence and Development 8-9 July 2014 | Geneva, Switzerland Giulia Mugellini Monitoring business security to support development: the use of crime surveys Senior Researcher University of St. Gallen (Switzerland) Killias Research & Consulting (Switzerland)
    • 2. Business security and social development  Experience and perception of crimes inhibit investment and social development.  Need to monitor, prevent and control security issues among businesses  Need to collect data on crimes against businesses to assist policy makers in supporting the development, competitiveness and integrity of the private sector.
    • 3. European Union (2008-2009): EU law enforcement and criminal justice agencies need instruments that provide not only comparable data but also an alternate perspective (possibly focusing more on the financial & economic crimes and corruption) to better inform policy and planning (Action Plan 2006/2010). Italy (2008-2009): need to better evaluate the extent of organized crime and its impact on the business sector to support the economic development of the country. Switzerland (2009): need to measure crime committed by employees. Need to identify the areas most at risk of corruption for Swiss firms while doing business abroad. UK (2010): need to collect high quality factual data on the frequency and cost of crime to form a base for discussion with parliamentarians, the government, political stakeholders, other national bodies. Western Balkans (2011): need to understand the mechanism of corruption, the economic sectors most at risk and the most vulnerable business procedures. Latin America (2011): need to measure the extent of corruption and extortion against the private sector. The need for surveys on crime and corruption against businesses
    • 4.  UNODC, International Commercial Crime Survey (ICCS), 1994.  UNODC, International Crime against Business Survey (ICBS), 2000.  UNODC, Crime and Corruption Business Survey, 2005/2006, 2007.  Gallup and Transcrime, Pilot EU Business Victimization Survey (EU BCS), 2012.  UNODC, Business Corruption and Crime in the Western Balkans, 2012-2013.  European Bank for Reconstruction and Development (EBRD), Business Environment and Enterprise Performance Survey (BBEPS), 1999, 2000, 2005, 2008 .  World Bank, Enterprise Survey, 2002-2014.  9 European countries conducting at least one BCS (by National Statistical Institutes, Ministry of the Interior, Ministry of Justice): Bulgaria, Cyprus, England and Wales, Estonia, Finland, Italy, the Netherlands, Scotland, Switzerland.  5 countries in North and South America: Canada, Chile, Mexico, USA, Uruguay.  1 in Australia.  2 countries in Asia: China and Nepal. International and European BCS National BCS Other surveys carried out by accounting/audit and insurance multi-nationals, such as PricewaterhouseCoopers, Ernst and Young, KPMG, Control Risk. Surveys on crime against businesses: key experiences
    • 5. Surveys on crime against businesses: key experiences Fig. 1 – Overall prevalence victimization rate across European businesses. Different years. Source: author’s elaboration of business crime surveys’ results (Mugellini 2014). In the majority of countries, the annual business crime victimization rates range between 32% and 46%.
    • 6. Surveys on crime against businesses: lessons learned FREQUENT:  At European level: on average 36% of businesses have been victims of at least one crime during 12 months (EU BCS 2013), against 15% of individuals (EU ICS 2005). COMPLEX AND ORGANIZED:  In England and Wales: 13% of crime incidents committed by organized criminals. Vehicle theft (47%), burglaries (30%) and E-crimes (25%) (CVS 2012).  In Italy: 26% of the businesses victims of intimidation and threats and the 77.5% of the businesses victims of extortion reported that these crimes were committed by local organized crime groups (IBCS 2008). COSTLY:  In Switzerland: among the firms victims of corruption abroad, on average 5% of their annual revenue in the foreign country is used for informal payments (HTW Chur 2012).  In Italy: the total cost as a consequence of organized crimes on businesses accounted for the 2.6% of the Italian GDP (Detotto &Vannini 2010).  In the Netherlands: in 2010, the total amount of crime losses for was around EUR 570 million (excluding violent offences). Annually, each interviewed business lost EUR 19,000 (WODC 2010).
    • 7. Surveys on crime against businesses: lessons learned STRONG IMPACT ON THE BUSINESSES INVESTMENTS’ CLIMATE:  In the EU and the CIS: crime and corruption are among the most impeding obstacles for doing business (WEF 2010).  In Eastern Europe: 18% of businesses stated that their investments’ decisions are strongly affected by corruption (ICBS 2000).  In Italy: 14% of micro businesses stated that their investments’ decisions are strongly affected by the risk of being victims of crime (IBCS 2008).  In Switzerland: between 2011 and 2012, a quarter of Swiss firms lost a contract (public or private) because of bribery. 10% have decided not to do business in a specific country because of the risk of corruption. 4% of them have decided to withdraw from a specific market for the same reason (HTW Chur 2012).  In the Western Balkans: in 2012, 5.9% of companies decided not to make a major investments due to the fear of having to pay bribes to obtain requisite services or permits (UNODC 2013).  In Mexico: in 2011, 59.3% of companies considered insecurity and crime as the main problems affecting their operations, followed by low purchasing power (40%) and lack of government support programs (38.1%) (ENVE 2012).
    • 8. Implications for policy making and programming  Identifying the most vulnerable sectors where to focus intervention.  Measuring the costs of violence and corruption on businesses.  Assessing the willingness to invest in a specific country.  Monitoring the effects of policies and legislations on the private sector. E.g. the OECD Convention on Combating Bribery of Foreign Public Officials or the United Nations Convention against Corruption, the FCPA , the UK Bribery Act. But also Neighbourhood policing and local accountability.  Orienting the development of crime prevention strategies. E.g. in the UK, the ActionFraud and the CIFAS (UK’s Fraud Prevention Service).  Improving the identification of social programmes to combat crime and corruption  Reducing opportunities and incentives to commit violence and corruption through environmental and situational changes.  Contributing to the revitalisation of public areas and spaces.  Increasing the mutual understanding between public and private sector organizations.
    • 9. Conducting surveys on crime against businesses: main challenges  Collect data on crime against business to complement the assessment of countries’ security and development.  Integrate perception measurements and experience-based indicators.  Need to focus on local-level and business-level data to orient and monitor interventions.  Comparability and monitoring over time and across countries.
    • 10. Thank you for your attention
    • 11. Regional Review Conference on the Geneva Declaration on Armed Violence and Development 8-9 July 2014 | Geneva, Switzerland Giulia Mugellini Monitoring business security to support development: the use of crime surveys Senior Researcher University of St. Gallen (Switzerland) Killias Research & Consulting (Switzerland)

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