Corruption has devastating economic and political effects on countries. Economically, it undermines macroeconomic stability by reducing government revenue and increasing wasteful spending. It deters foreign investment and encourages tax evasion due to lack of trust in government. Politically, widespread corruption can increase calls for regime change and undermine conflict resolution mechanisms, weakening the rule of law. Two examples are given: in West Africa in the 1960s, corruption was rampant and fueled instability, while in the Philippines, a corrupt president demanded bribes for a failed nuclear power project that continues to burden the country financially. International initiatives aim to curb corruption, while Canada passed its own foreign anti-bribery law, though the fight against corruption remains ongoing
An Explanatory Analysis of the Economic and Social Impact of Corruption in Zi...IOSR Journals
Corruption has significant social and economic impacts in Zimbabwe. It is prevalent across both public and private sectors. Corruption diverts public funds from important services like education, healthcare and infrastructure development. It undermines good governance and rule of law. Studies estimate Zimbabwe has lost over $12 billion to illicit financial flows between 1980-2010 due to corruption. This has detrimental effects by exacerbating poverty and inequality. Corruption also increases the costs of doing business. Reducing corruption is important for Zimbabwe's economic recovery and achieving sustainable development goals.
This document summarizes the key findings of the 9th edition of Transparency International's Global Corruption Barometer survey. Some of the main results include:
- Nearly 6 in 10 people thought their government was doing a bad job fighting corruption. Police and elected representatives were seen as the most corrupt public institutions.
- On average, 1 in 4 public service users had to pay a bribe in the past year. The average bribery rate was highest in the Middle East/North Africa and Commonwealth of Independent States.
- Over half of respondents felt ordinary citizens can make a difference in fighting corruption, though views varied significantly by country.
Corporate fraud and corruption are growing problems globally according to the document. Some key points:
- Developing countries lost nearly $1 trillion to corruption, tax evasion, and trade misinvoicing in 2011 alone. Over the past decade, these countries lost almost $6 trillion illicitly.
- Fraud affects 70% of companies annually on average, costing 1.4% of revenues. Common fraud types include asset misappropriation, corruption, and financial statement fraud.
- Median fraud losses are $145,000 but 22% of cases result in losses over $1 million. Cases involving collusion or multiple perpetrators tend to be more costly.
- While no country is immune
Poverty as a_factor_in_human_trafficking_in_rwandaJohnGacinya
The aim of this study is to investigate the relationship between poverty and human trafficking. Orphans and single mothers are the ones who fall below the poverty line. To overcome poverty export diversification and expanding manufacturing sector is of paramount importance.
Florida's geographical location, social vulnerabilities, and large tourism economy contribute to it having the third highest number of human trafficking cases in the US. Its proximity to the Caribbean and Latin America means the Miami International Airport is a major entry point for victims. The state also has a large immigrant population and many vulnerable minors who are targeted. Florida's agriculture, hotels, and tourism generate huge profits for traffickers through forced labor and sex trafficking. A variety of factors help traffickers avoid risks, while more training and victim support services are still needed to adequately address the problem.
Understanding Cause and Effect of Geo Political Events - January 2019paul young cpa, cga
This document provides an overview and analysis of key geopolitical events and issues shaping the world in 2019. It discusses events including tensions with North Korea and Iran, the civil wars in Syria and Yemen, unrest in Latin America, and the role of major powers like the US, EU, China, and Saudi Arabia. It also analyzes issues like corruption at the UN and risks to global supply chains from political instability. The document aims to help readers understand international risks and their implications for business interests around the world.
Understanding Risks as part of development risk management best practices paul young cpa, cga
All levels of government and private sector continue to review their risk models as part of ensuring they take all steps to help mitigate risk-related issues
This document provides a summary of geopolitical events and risks that could impact business in 2018-2019. It discusses key issues like US protectionism, Brexit, elections in various countries, and conflicts in the Middle East. Specific risks highlighted include US-China trade wars, instability in Italy and conflict escalation on the Korean peninsula. The document also examines how events in Iran, Qatar, Yemen, Syria and Saudi Arabia could spill over geopolitically. It emphasizes the need for supply chain integration and the role of governments and businesses in navigating these risks.
An Explanatory Analysis of the Economic and Social Impact of Corruption in Zi...IOSR Journals
Corruption has significant social and economic impacts in Zimbabwe. It is prevalent across both public and private sectors. Corruption diverts public funds from important services like education, healthcare and infrastructure development. It undermines good governance and rule of law. Studies estimate Zimbabwe has lost over $12 billion to illicit financial flows between 1980-2010 due to corruption. This has detrimental effects by exacerbating poverty and inequality. Corruption also increases the costs of doing business. Reducing corruption is important for Zimbabwe's economic recovery and achieving sustainable development goals.
This document summarizes the key findings of the 9th edition of Transparency International's Global Corruption Barometer survey. Some of the main results include:
- Nearly 6 in 10 people thought their government was doing a bad job fighting corruption. Police and elected representatives were seen as the most corrupt public institutions.
- On average, 1 in 4 public service users had to pay a bribe in the past year. The average bribery rate was highest in the Middle East/North Africa and Commonwealth of Independent States.
- Over half of respondents felt ordinary citizens can make a difference in fighting corruption, though views varied significantly by country.
Corporate fraud and corruption are growing problems globally according to the document. Some key points:
- Developing countries lost nearly $1 trillion to corruption, tax evasion, and trade misinvoicing in 2011 alone. Over the past decade, these countries lost almost $6 trillion illicitly.
- Fraud affects 70% of companies annually on average, costing 1.4% of revenues. Common fraud types include asset misappropriation, corruption, and financial statement fraud.
- Median fraud losses are $145,000 but 22% of cases result in losses over $1 million. Cases involving collusion or multiple perpetrators tend to be more costly.
- While no country is immune
Poverty as a_factor_in_human_trafficking_in_rwandaJohnGacinya
The aim of this study is to investigate the relationship between poverty and human trafficking. Orphans and single mothers are the ones who fall below the poverty line. To overcome poverty export diversification and expanding manufacturing sector is of paramount importance.
Florida's geographical location, social vulnerabilities, and large tourism economy contribute to it having the third highest number of human trafficking cases in the US. Its proximity to the Caribbean and Latin America means the Miami International Airport is a major entry point for victims. The state also has a large immigrant population and many vulnerable minors who are targeted. Florida's agriculture, hotels, and tourism generate huge profits for traffickers through forced labor and sex trafficking. A variety of factors help traffickers avoid risks, while more training and victim support services are still needed to adequately address the problem.
Understanding Cause and Effect of Geo Political Events - January 2019paul young cpa, cga
This document provides an overview and analysis of key geopolitical events and issues shaping the world in 2019. It discusses events including tensions with North Korea and Iran, the civil wars in Syria and Yemen, unrest in Latin America, and the role of major powers like the US, EU, China, and Saudi Arabia. It also analyzes issues like corruption at the UN and risks to global supply chains from political instability. The document aims to help readers understand international risks and their implications for business interests around the world.
Understanding Risks as part of development risk management best practices paul young cpa, cga
All levels of government and private sector continue to review their risk models as part of ensuring they take all steps to help mitigate risk-related issues
This document provides a summary of geopolitical events and risks that could impact business in 2018-2019. It discusses key issues like US protectionism, Brexit, elections in various countries, and conflicts in the Middle East. Specific risks highlighted include US-China trade wars, instability in Italy and conflict escalation on the Korean peninsula. The document also examines how events in Iran, Qatar, Yemen, Syria and Saudi Arabia could spill over geopolitically. It emphasizes the need for supply chain integration and the role of governments and businesses in navigating these risks.
The world can change on a dime depending on the party in power for each country along with government corruption. Not enough is being done by the UN as part of ensuring security and prosperity for its' member nations.
Corruption an enemy to economic development in nigeriaAlexander Decker
This document examines the relationship between corruption and economic development in Nigeria using data from 1980-2011. A multiple linear regression analysis found a significant relationship between corruption and economic development, rejecting the null hypothesis. The paper recommends that the government be more transparent and investigate sudden wealth, in order to curb corruption and foster economic development. Corruption is defined as the misuse of public funds for private gain. It slows economic growth by reducing investment in areas like education and health. While some argue corruption can increase efficiency, most studies find it has a negative impact on development.
This document discusses the relationship between corruption and development in less developed countries. It argues that widespread corruption prevents public funds from being used effectively for development goals. Countries that have successfully curtailed corruption through the rule of law have seen more rapid economic progress. While all countries face some level of corruption, developed nations have minimized it more successfully. The document analyzes corruption and competitiveness indices for various countries and finds that those with high corruption tend to be less developed. It concludes corruption must be addressed for goals like the SDGs to be achieved in the developing world.
White collar crime poses the greatest threat to society compared to violent and organized crime. It affects the most people since victims are often unaware of the crime until much later. There are three types of white collar crime - embezzlement, fraud, and forgery/counterfeiting. Embezzlement, such as in the mortgage crisis, has had widespread economic impacts. Fraud by businesses increases costs to all consumers. Forgery/counterfeiting undermines foreign policy and trade agreements when discovered, as in the case of indicted Blackwater executives. Overall, white collar crime has broader negative consequences than other crimes.
Greece experienced a major debt crisis beginning in 2008 due to corruption at multiple levels of government and society. Rampant tax evasion, bribery, and accounting fraud distorted Greece's economic realities and contributed significantly to budget deficits and debt levels. As corruption increased, so did budget deficits. Greece also misreported financial information to join the European Union. The root causes of Greece's debt crisis were lies and corruption rather than the 2008 recession alone. To solve the crisis, Greece needs integrity and transparency at both governmental and individual citizen levels.
The document discusses fraud risks faced by non-profit organizations, noting that fraud accounts for estimated losses of $40 billion annually in the non-profit sector. It outlines common types of fraud such as skimming donations, creating fraudulent tax losses, and overstating expenses. The document also provides recommendations for non-profits to implement controls to prevent fraud, such as requiring two signatures on checks and having bank statements sent directly to someone other than the treasurer.
Combating corruption and fraud for sustainable developmen beyond audit proced...Alexander Decker
This document summarizes a research journal article about combating corruption and fraud for sustainable development. The article discusses different theories and strategies used by fraudsters, and evaluates methods used to combat corruption in developed and developing countries beyond just audit procedures and rules. It proposes strategies that empower citizens to demand accountability from public officials. These strategies require changes to audit emphasis and some level of decentralization to be effective. The principles presented could be considered by donor agencies working in countries where corruption interferes with good governance.
This document discusses corruption in Bangladesh across three paragraphs. It begins by providing background on patterns of corruption and the need to consider both internal and external factors. It then analyzes newspaper reports that show police and local government as the most reported sectors for corruption from 1997-2000. Various tables are presented analyzing the affected classes and types of losses from corruption. It concludes by recommending a comprehensive anti-corruption strategy focused on increasing accountability of the executive and reforming civil service recruitment.
This document discusses corruption in Nepal and advocates for zero tolerance. It notes that Nepal ranked 143rd out of 180 countries on Transparency International's corruption index for 2009, down from 138th the previous year. Corruption has dominated governance at all levels and has not been made a political priority. Corruption violates democracy and hinders development. Both corruption and violence weaken the state and political institutions. Strong civic action and advocacy are needed to build pressure for zero tolerance of political corruption.
The survey found that Egyptians view economic issues like unemployment, prices, and poverty as the most important problems facing Egypt. They ranked problems with public services and infrastructure as second. Issues related to political reform and transparency were a lower priority. Egyptians had a more positive view of their own family's economic situation compared to Egypt's overall economic situation. However, they believed both Egypt's and their family's economic conditions were better three years ago compared to the present. Citizens were less pessimistic when assessing Egypt's future economic conditions compared to current conditions.
Read how the OECD is working with countries to design, promote and implement better anti-corruption policies for better lives. For more information see www.oecd.org/corruption/
This document provides profiles of the leaders of Mauritius, Namibia, Botswana, Cape Verde, and Seychelles, including their political backgrounds, successes and failures in 2012, and key moments. For Mauritius, Prime Minister Navin Ramgoolam led the country to top rankings in Africa for democracy, transparency, and happiness. Namibia under President Hifikepunye Pohamba passed a law regulating fisheries that won an award. Botswana progressed economically under President Ian Khama but faced issues with unemployment and poverty. Cape Verde ranked highly for press freedom under President Jorge Fonseca despite youth unemployment. Seychelles placed fourth in Africa on the Mo Ibrahim Index led by President James
This document summarizes Transparency International's 2020 Corruption Perceptions Index report. Some key findings include:
- More than two-thirds of the 180 countries scored below 50, indicating widespread corruption. The global average score was 43.
- Western Europe had the highest average regional score of 66, while Sub-Saharan Africa had the lowest at 32.
- Denmark and New Zealand topped the index with 88, while South Sudan and Somalia scored lowest with 12.
- Corruption undermines equitable COVID-19 response and achievement of development goals by diverting healthcare funds. Transparency is needed in emergency spending.
Human trafficking involves the illegal movement of people for forced labor or sexual exploitation. It is a lucrative business for organized crime, generating large profits with lower risks than drug or arms trafficking. Factors like poverty, lack of education, and unawareness make some populations vulnerable to being trafficked through deception or debt bondage. Common destinations for trafficking include areas where victims are exploited through activities like prostitution, child begging, domestic servitude, or forced labor. To truly address the problem, efforts must focus on eradicating the root causes that enable trafficking to flourish.
CIHA Blog Conference PP PresententationIsrael Laizer
This document summarizes the key arguments made in a research paper about the impact of foreign aid and faith-based organizations (FBOs) on African governance. It argues that foreign aid and FBOs have historically undermined African sovereignty and governance in several ways: (1) They have weakened accountability by pressuring countries to adopt certain reforms; (2) They have weakened democracy; and (3) They have increased exploitation and undermined the rule of law. Regarding FBOs specifically, the document notes they have undermined governance through their nature of operations, historical roles in Africa, lack of autonomy due to reliance on Western donors, and failure to prioritize governance. It concludes that while FBOs provide important services
The document discusses trends that will impact local governments over the next 20 years. It identifies 4 key forces driving change - resources, technology, demographics, and governance. Under these forces, 44 trends are described relating to issues like climate change, water shortages, digital technology, sharing economies, infrastructure needs, and evolving citizen expectations. The document provides solutions for local governments, ranging from assessing resource threats to broadening sustainability efforts to reinventing government models for the future.
This document summarizes the key findings from a PricewaterhouseCoopers survey on economic crime. Some of the main points include:
1) 37% of respondents reported experiencing economic crime, up from 34% in 2011. The most common types were asset misappropriation, procurement fraud, and bribery/corruption.
2) Regions with the highest reported economic crime were Africa (50%) and North America (41%). Industries like financial services, retail, and communications reported among the highest levels.
3) The costs of economic crime go beyond direct financial losses, including damage to employee morale, reputation, and business relationships. Many respondents reported over $1 million in losses from economic
Globalization and free trade agreements have intensified the "race to the bottom" phenomenon. This occurs when countries deregulate their markets in order to attract investment from multinational corporations, but it often results in lower wages for workers, worse working conditions, and increased environmental damage. Developing nations are particularly vulnerable to exploitation by corporations that push to lower labor and environmental standards. Case studies on industries like textiles in Bangladesh and waste dumping in Africa provide examples of how multinational corporations have taken advantage of weak regulations in developing countries to cut costs at the expense of workers and the environment.
Global Trends and Forecast Presentation / six cluster of threatsAsjadAli34
The document identifies six major clusters of threats facing the world now and in the future: 1) economic and social threats like poverty, disease, and environmental issues; 2) interstate conflicts between countries; 3) internal conflicts such as civil wars and genocides within countries; 4) nuclear, radiological, chemical, and biological weapons; 5) terrorism; and 6) transnational organized crime operating across international borders. It provides brief definitions and examples for some of these threats.
This document summarizes a student paper on child trafficking in South Asian countries. It begins with an introduction describing how poverty, civil unrest, and lack of opportunities drive many people in Asia to migrate in search of work, but some fall victim to traffickers. It then discusses international conventions and laws against trafficking, as well as India's domestic legal framework prohibiting trafficking. Finally, it analyzes statistics from the UN's 2020 Global Report on Trafficking in Persons, which found that female victims continue to be disproportionately impacted by trafficking.
The document outlines a three step personal transformation series from the Point Of Light Network. Step One is the Beacon of Hope Challenge which involves using talents to positively impact your community through sharing good news on social media and inspiring others. Step Two is to become a Point Of Light by volunteering with a charity organization. Step Three involves finding a mentor and becoming a mentor yourself by continuing social media updates and weekly conference calls to further inspire positive change.
- The document summarizes the author's research advance from February to April, which involved developing an advanced wireless sensor network prototype.
- The advanced prototype integrated another Zigbee solution called Xbee that acts as a coordinator and link routers to enable larger network coverage, and allows sensor information to be sent through satellite communication channels.
- It also has the capability of hardware encryption using the AES algorithm. The network topology includes one Xbee coordinator, one router node, six sensor nodes, and an Iridium 9603 satellite server for communication.
The world can change on a dime depending on the party in power for each country along with government corruption. Not enough is being done by the UN as part of ensuring security and prosperity for its' member nations.
Corruption an enemy to economic development in nigeriaAlexander Decker
This document examines the relationship between corruption and economic development in Nigeria using data from 1980-2011. A multiple linear regression analysis found a significant relationship between corruption and economic development, rejecting the null hypothesis. The paper recommends that the government be more transparent and investigate sudden wealth, in order to curb corruption and foster economic development. Corruption is defined as the misuse of public funds for private gain. It slows economic growth by reducing investment in areas like education and health. While some argue corruption can increase efficiency, most studies find it has a negative impact on development.
This document discusses the relationship between corruption and development in less developed countries. It argues that widespread corruption prevents public funds from being used effectively for development goals. Countries that have successfully curtailed corruption through the rule of law have seen more rapid economic progress. While all countries face some level of corruption, developed nations have minimized it more successfully. The document analyzes corruption and competitiveness indices for various countries and finds that those with high corruption tend to be less developed. It concludes corruption must be addressed for goals like the SDGs to be achieved in the developing world.
White collar crime poses the greatest threat to society compared to violent and organized crime. It affects the most people since victims are often unaware of the crime until much later. There are three types of white collar crime - embezzlement, fraud, and forgery/counterfeiting. Embezzlement, such as in the mortgage crisis, has had widespread economic impacts. Fraud by businesses increases costs to all consumers. Forgery/counterfeiting undermines foreign policy and trade agreements when discovered, as in the case of indicted Blackwater executives. Overall, white collar crime has broader negative consequences than other crimes.
Greece experienced a major debt crisis beginning in 2008 due to corruption at multiple levels of government and society. Rampant tax evasion, bribery, and accounting fraud distorted Greece's economic realities and contributed significantly to budget deficits and debt levels. As corruption increased, so did budget deficits. Greece also misreported financial information to join the European Union. The root causes of Greece's debt crisis were lies and corruption rather than the 2008 recession alone. To solve the crisis, Greece needs integrity and transparency at both governmental and individual citizen levels.
The document discusses fraud risks faced by non-profit organizations, noting that fraud accounts for estimated losses of $40 billion annually in the non-profit sector. It outlines common types of fraud such as skimming donations, creating fraudulent tax losses, and overstating expenses. The document also provides recommendations for non-profits to implement controls to prevent fraud, such as requiring two signatures on checks and having bank statements sent directly to someone other than the treasurer.
Combating corruption and fraud for sustainable developmen beyond audit proced...Alexander Decker
This document summarizes a research journal article about combating corruption and fraud for sustainable development. The article discusses different theories and strategies used by fraudsters, and evaluates methods used to combat corruption in developed and developing countries beyond just audit procedures and rules. It proposes strategies that empower citizens to demand accountability from public officials. These strategies require changes to audit emphasis and some level of decentralization to be effective. The principles presented could be considered by donor agencies working in countries where corruption interferes with good governance.
This document discusses corruption in Bangladesh across three paragraphs. It begins by providing background on patterns of corruption and the need to consider both internal and external factors. It then analyzes newspaper reports that show police and local government as the most reported sectors for corruption from 1997-2000. Various tables are presented analyzing the affected classes and types of losses from corruption. It concludes by recommending a comprehensive anti-corruption strategy focused on increasing accountability of the executive and reforming civil service recruitment.
This document discusses corruption in Nepal and advocates for zero tolerance. It notes that Nepal ranked 143rd out of 180 countries on Transparency International's corruption index for 2009, down from 138th the previous year. Corruption has dominated governance at all levels and has not been made a political priority. Corruption violates democracy and hinders development. Both corruption and violence weaken the state and political institutions. Strong civic action and advocacy are needed to build pressure for zero tolerance of political corruption.
The survey found that Egyptians view economic issues like unemployment, prices, and poverty as the most important problems facing Egypt. They ranked problems with public services and infrastructure as second. Issues related to political reform and transparency were a lower priority. Egyptians had a more positive view of their own family's economic situation compared to Egypt's overall economic situation. However, they believed both Egypt's and their family's economic conditions were better three years ago compared to the present. Citizens were less pessimistic when assessing Egypt's future economic conditions compared to current conditions.
Read how the OECD is working with countries to design, promote and implement better anti-corruption policies for better lives. For more information see www.oecd.org/corruption/
This document provides profiles of the leaders of Mauritius, Namibia, Botswana, Cape Verde, and Seychelles, including their political backgrounds, successes and failures in 2012, and key moments. For Mauritius, Prime Minister Navin Ramgoolam led the country to top rankings in Africa for democracy, transparency, and happiness. Namibia under President Hifikepunye Pohamba passed a law regulating fisheries that won an award. Botswana progressed economically under President Ian Khama but faced issues with unemployment and poverty. Cape Verde ranked highly for press freedom under President Jorge Fonseca despite youth unemployment. Seychelles placed fourth in Africa on the Mo Ibrahim Index led by President James
This document summarizes Transparency International's 2020 Corruption Perceptions Index report. Some key findings include:
- More than two-thirds of the 180 countries scored below 50, indicating widespread corruption. The global average score was 43.
- Western Europe had the highest average regional score of 66, while Sub-Saharan Africa had the lowest at 32.
- Denmark and New Zealand topped the index with 88, while South Sudan and Somalia scored lowest with 12.
- Corruption undermines equitable COVID-19 response and achievement of development goals by diverting healthcare funds. Transparency is needed in emergency spending.
Human trafficking involves the illegal movement of people for forced labor or sexual exploitation. It is a lucrative business for organized crime, generating large profits with lower risks than drug or arms trafficking. Factors like poverty, lack of education, and unawareness make some populations vulnerable to being trafficked through deception or debt bondage. Common destinations for trafficking include areas where victims are exploited through activities like prostitution, child begging, domestic servitude, or forced labor. To truly address the problem, efforts must focus on eradicating the root causes that enable trafficking to flourish.
CIHA Blog Conference PP PresententationIsrael Laizer
This document summarizes the key arguments made in a research paper about the impact of foreign aid and faith-based organizations (FBOs) on African governance. It argues that foreign aid and FBOs have historically undermined African sovereignty and governance in several ways: (1) They have weakened accountability by pressuring countries to adopt certain reforms; (2) They have weakened democracy; and (3) They have increased exploitation and undermined the rule of law. Regarding FBOs specifically, the document notes they have undermined governance through their nature of operations, historical roles in Africa, lack of autonomy due to reliance on Western donors, and failure to prioritize governance. It concludes that while FBOs provide important services
The document discusses trends that will impact local governments over the next 20 years. It identifies 4 key forces driving change - resources, technology, demographics, and governance. Under these forces, 44 trends are described relating to issues like climate change, water shortages, digital technology, sharing economies, infrastructure needs, and evolving citizen expectations. The document provides solutions for local governments, ranging from assessing resource threats to broadening sustainability efforts to reinventing government models for the future.
This document summarizes the key findings from a PricewaterhouseCoopers survey on economic crime. Some of the main points include:
1) 37% of respondents reported experiencing economic crime, up from 34% in 2011. The most common types were asset misappropriation, procurement fraud, and bribery/corruption.
2) Regions with the highest reported economic crime were Africa (50%) and North America (41%). Industries like financial services, retail, and communications reported among the highest levels.
3) The costs of economic crime go beyond direct financial losses, including damage to employee morale, reputation, and business relationships. Many respondents reported over $1 million in losses from economic
Globalization and free trade agreements have intensified the "race to the bottom" phenomenon. This occurs when countries deregulate their markets in order to attract investment from multinational corporations, but it often results in lower wages for workers, worse working conditions, and increased environmental damage. Developing nations are particularly vulnerable to exploitation by corporations that push to lower labor and environmental standards. Case studies on industries like textiles in Bangladesh and waste dumping in Africa provide examples of how multinational corporations have taken advantage of weak regulations in developing countries to cut costs at the expense of workers and the environment.
Global Trends and Forecast Presentation / six cluster of threatsAsjadAli34
The document identifies six major clusters of threats facing the world now and in the future: 1) economic and social threats like poverty, disease, and environmental issues; 2) interstate conflicts between countries; 3) internal conflicts such as civil wars and genocides within countries; 4) nuclear, radiological, chemical, and biological weapons; 5) terrorism; and 6) transnational organized crime operating across international borders. It provides brief definitions and examples for some of these threats.
This document summarizes a student paper on child trafficking in South Asian countries. It begins with an introduction describing how poverty, civil unrest, and lack of opportunities drive many people in Asia to migrate in search of work, but some fall victim to traffickers. It then discusses international conventions and laws against trafficking, as well as India's domestic legal framework prohibiting trafficking. Finally, it analyzes statistics from the UN's 2020 Global Report on Trafficking in Persons, which found that female victims continue to be disproportionately impacted by trafficking.
The document outlines a three step personal transformation series from the Point Of Light Network. Step One is the Beacon of Hope Challenge which involves using talents to positively impact your community through sharing good news on social media and inspiring others. Step Two is to become a Point Of Light by volunteering with a charity organization. Step Three involves finding a mentor and becoming a mentor yourself by continuing social media updates and weekly conference calls to further inspire positive change.
- The document summarizes the author's research advance from February to April, which involved developing an advanced wireless sensor network prototype.
- The advanced prototype integrated another Zigbee solution called Xbee that acts as a coordinator and link routers to enable larger network coverage, and allows sensor information to be sent through satellite communication channels.
- It also has the capability of hardware encryption using the AES algorithm. The network topology includes one Xbee coordinator, one router node, six sensor nodes, and an Iridium 9603 satellite server for communication.
The document provides a summary of a paper analyzing Section 1 of the Canadian Charter of Rights and Freedoms. It discusses the history of Section 1 and key Supreme Court of Canada decisions that have interpreted it, including R. v. Oakes, Canada v. Bedford, Carter v. Canada, and Quebec v. A. The document examines whether Section 1 has become a "dagger to the heart" of the Charter by giving excessive deference to the legislature, or if recent decisions have retrieved it as the "soul" of the Charter in line with its original purpose. The paper aims to determine if the judiciary is promoting or limiting constitutionally protected rights through its interpretation and application of Section 1.
WuXi AppTec Laboratory Testing Division provides fully integrated testing solutions to enable scientists to transform ideas into healthcare products. It has over 2,000 employees across multiple business units and locations in China and New Jersey. The division offers services spanning early screening to clinical analysis to help customers accelerate discovery and develop new medicines.
This document discusses three Canadian bills - Bill C-13, Bill C-44, and Bill C-51 - and their impact on privacy rights under the Canadian Charter of Rights and Freedoms. It provides context for each bill and analyzes concerns about how they weaken privacy protections. Bill C-13 was introduced after high-profile cyberbullying cases but expanded law enforcement's ability to access personal data. Bill C-44 increased the powers of CSIS in ways that violate court rulings regarding respecting foreign laws. And Bill C-51 broadly defined security threats in a way that triggers extensive information sharing across government agencies, compromising privacy. The document examines Canadian Supreme Court rulings that found privacy protections apply to modern
WuXi AppTec's Laboratory Testing Division (LTD) provides fully integrated drug discovery and development testing solutions through eight major business platforms and over 2,000 employees across sites in China and the US. LTD is one of WuXi AppTec's largest divisions, contributing significantly to revenue and cash flow growth. It offers end-to-end services from discovery through clinical trials, leveraging synergies across businesses in discovery, preclinical, and clinical testing to support drug nomination and regulatory filings.
Indigenous women in Latin America and inequalities access to justiceChirine Haddad ?
Indigenous women in Latin America face significant barriers to accessing justice. They experience high rates of violence, including domestic violence, violence by state actors like the military and police, and violence by non-state groups involved in resource extraction. Indigenous women also experience high levels of poverty. They have lower education levels and face pressure to leave school to help with domestic and agricultural work, perpetuating the cycle of poverty. The barriers of violence, discrimination, and poverty indigenous women face in Latin America undermine their ability to access fair treatment and remedies through the justice system.
Journal périodique de l'URISA, intitulé "Trait d'Union" N°74, de l'association "l'Union des Ingénieurs et scientifiques d'Aquitaine".
Basée à Bordeaux, cette association fédère les diplômés des écoles d'ingénieurs et d'universités scientifiques et techniques d'Aquitaine Nord sur des thèmes et evenements d'actualité liés à la carrière et aux préoccupations des cadres actifs.
Son pôle communication est animé par Emmanuel CLEMENCE grâce à l'appui des administrateurs et membres qui l'entourent.
Dans une démarche d’inbound marketing, définir son public cible est une étape essentielle.
Toute la stratégie à élaborer dépend de l’auditoire auquel l’entreprise ou la marque souhaite s’adresser.
Corruption and Greed - A Christian ResponsePeter Hammond
The document discusses corruption and greed in Africa and around the world. It notes that over $148 billion is stolen from Africa by its leaders each year, more than a quarter of the continent's GDP. Corruption impoverishes countries and prevents development. Anti-corruption reforms are needed to end the endemic corruption that is looting resources from Africa. Corruption has high costs for societies and individuals.
This document discusses corruption and its negative impacts. It argues that corruption is stealing and impoverishes people, as leaders in Africa steal over $148 billion annually from their people. It advocates for biblical principles of honesty, integrity, and justice to combat corruption, including electing godly leaders, swift punishment of wrongdoers, and full restitution for victims of crimes. Corruption increases when criminals are not punished quickly, so governments must serve as agents of wrath against evil.
A case for an International Anti-Corruption CourtDr Lendy Spires
The Case for an International Anti-Corruption Court 2 COMBATING GRAND CORRUPTION: THE NEED FOR A NEW INTERNATIONAL APPROACH United Nations Secretary General Kofi Annan rightly wrote in 2004 that: Corruption is an insidious plague that has a wide range of corrosive effects on societies. It undermines democracy and the rule of law, leads to violations of human rights, distorts markets, erodes the quality of life and allows organized crime, terrorism and other threats to human security to flourish.2 However, this rhetoric contrasts starkly with the reality of the ineffective international efforts to combat corruption. The experience of the United States provides a model for a new international approach to combating corruption. Public corruption exists in the United States. State and local officials, particularly, at times abuse their public offices for private gain. However, in contrast to many other nations, the United States is serious about combating corruption. In the United States, we do not rely on elected state prosecutors to do this because they are often part of the political establishment that must be challenged and, in any event, lack the necessary legal authority and resources. Rather, we rely primarily on federal investigators, prosecutors, and courts to pursue and punish corrupt state and local officials. In the United States, sometimes acting on information provided by private parties who want to remain anonymous, independent media often expose corruption. Federal investigators are authorized to conduct undercover operations and secretly record conversations, and are adept at unraveling complicated financial transactions.
The document discusses corruption and the gap between the rich and poor. It begins by listing the names of group members who were discussing these topics. It then provides examples of issues caused by corruption like poverty, starvation, and exploitation. The document goes on to discuss types of corruption, examples of political corruption, factors that cause people to become corrupt, and statistics on corruption. It also addresses how corruption causes poverty and its effect on inequality. Finally, it outlines some things governments are doing now to address corruption through anti-corruption laws and strengthening enforcement. The group plans to promote awareness of these issues on social media and through editorials to the newspaper club.
Netherland Antilles, Dutch Antilles, these islands banking systems seem under...SantaCruzSaint
The document discusses the economic and social costs of corruption. It states that corruption corrodes institutions, undermines legitimacy and credibility of the state, discourages investment, and raises costs of doing business. As a result, corruption obstructs economic growth and development, disproportionately impacting the poor. From development agencies' perspectives, corruption reduces impact of international assistance. The document argues that corruption signifies broader governance problems and weaknesses in the rule of law. It notes that solutions must also be broad and will take a long time, as the rule of law is fostered by democratic and accountability reforms brought by society, not just governments.
Aruba, Curacao, Dutch Antilles. Their island’s banking seems under a cloak of...GhostofBetico
The document discusses the economic and social costs of corruption. It states that corruption imposes massive costs on countries and citizens by subverting laws and institutions, undermining legitimacy of the state, and discouraging investment. It also raises the costs of doing business. As a result, corruption obstructs economic growth and development, especially hurting the poor. From the perspective of international development agencies, corruption reduces the impact of aid by misappropriating funds. The document argues that corruption is associated with broader weaknesses in rule of law and that solutions require fundamental political changes to increase accountability and transparency over the long term. Governments can also promote private markets, reform state-owned enterprises, and establish more transparent public finance systems.
This presentation delineates between Bribery and Corruption. It offers a description of the current state of corruption in Ghana and suggest pragmatic ways of tackling the menace.
1) The document discusses how tax havens like London, New York, and Hong Kong enable $21-32 trillion in wealth to be hidden from governments, depriving developing nations of tax revenue that could help end poverty and hunger.
2) It specifically calls out the City of London Corporation for creating regulations that undermine other jurisdictions and enable secrecy and offshore tax evasion.
3) Indians have more than $500 billion illegally stashed in foreign tax havens, more than any other country, which could help India achieve its development goals in areas like nutrition, education, and healthcare.
The document discusses how tax havens like London and offshore banking enable massive amounts of wealth to be hidden from governments, estimated at $21-32 trillion globally. This hidden wealth could help end extreme poverty which requires $175 billion annually, but instead supports corruption. Developing nations have large debts while private elites from those countries hide over $7 trillion in wealth offshore. Ending tax havens and recovering this hidden money could help developing countries achieve development goals. The City of London specifically undermines other jurisdictions through secrecy and lacks regulation.
Corruption in public sphere and its impact pptsudarsan prasad
This document defines and discusses corruption. It begins by defining corruption as the abuse of power for personal gain. It then discusses different types of corruption, including government/political corruption. It explores causes of corruption like bureaucracy and inequality. The impacts of corruption discussed include lower economic growth and foreign investment, greater inequality, and distortion of public spending. Corruption is described as having hidden costs like increased transaction costs and as reducing economic efficiency. The document also examines corruption from several sources.
This paper sets out the current legal regime in place to combat corruption and fraud and explains how international arbitration tribunals handle such allegations.
14 april transparency londa esadze [compatibility mode]Olga Kozhaeva
The document discusses several key aspects of corruption and transparency based on the United Nations Convention Against Corruption (UNCAC). It summarizes the damage caused by corruption globally in terms of costs. It also discusses transparency measures and systems in the public sector that are mandatory and optional requirements under key articles of UNCAC, such as codes of conduct for public officials, public procurement processes, and declarations of conflicts of interest. Civil society participation in preventing and fighting corruption is also highlighted as a mandatory requirement of UNCAC.
The document summarizes an Oxfam report on rising economic inequality and its consequences. It finds that extreme inequality is damaging and threatens democratic systems, as it allows wealth to capture policymaking and concentrate power among a small elite. It recommends that world leaders curb tax avoidance by the wealthy and strengthen policies like progressive taxation to reduce inequality and ensure governments work for all citizens, not just the rich.
PEOPLE AND CORRUPTION: ASIA PACIFIC – GLOBAL CORRUPTION BAROMETERMYO AUNG Myanmar
PEOPLE AND CORRUPTION: ASIA PACIFIC
Global Corruption Barometer
https://www.transparency.org/whatwedo/publication/people_and_corruption_asia_pacific_global_corruption_barometer
In the most extensive survey of its kind, we spoke to 21,861 people in 16 countries, regions and territories across the Asia Pacific region between July 2015 and January 2017 about their perceptions and experiences of corruption. The survey results show a great diversity in the corruption risks across the region, but in every country surveyed there is scope for improved approaches to corruption prevention.
https://www.transparency.org/files/content/publication/2017_GCB_AsiaPacific_CoreQuestionnaire_EN.pdf
PEOPLE AND CORRUPTION: ASIA PACIFIC – GLOBAL CORRUPTION BAROMETER
People and Corruption Asia Pacific – Global Corruption BarometerMYO AUNG Myanmar
The survey found that:
1) Few people across Asia Pacific think corruption is declining, with 40% saying it has increased in the last year. Police are seen as the most corrupt institution.
2) People are divided on if governments are effectively fighting corruption, with 50% saying they are doing a bad job and 41% saying good.
3) Over 900 million people paid bribes for public services, with bribery rates varying greatly between countries. India had the highest rate at 69% and Japan the lowest at 0.2%.
Every day, all over the world, ordinary people bear the cost of corruption. In many countries, corruption affects people from birth until death. In Zimbabwe, women giving birth in a local hospital have been charged US$5 every time they scream as a penalty for raising false alarm.
1 In Bangladesh, the recent collapse of a multi-story factory, which killed more than 1,100 people due to a breach of basic safety standards, has been linked to allegations of corruption.
2 This report examines how corruption features in people’s lives around the world. Drawing on the results of a Transparency International survey of more than 114,000 respondents in 107 countries, it addresses people’s direct experiences with bribery and details their views on corruption in the main institutions in their countries. Significantly, Transparency International’s Global Corruption Barometer also provides insights into how willing and ready people are to act to stop corruption. The findings are clear: corruption is a very real burden, with more than one out of four respondents reporting having paid a bribe during the last year.3 When people are not in a position to afford a bribe, they might be prevented from buying a home, starting a business or accessing basic services. Corruption can, and often does, infringe on fundamental rights.
For those surviving on less than US$2 a day, and for women who are the primary caretakers of children around the globe, corruption and bribery are particularly devastating. For them, the additional cost of bribery can mean trade- offs are made between health and hunger, between school entrance fees and the shoes necessary to wear to school. Not only do people pay the costs of corruption directly, but their quality of life is also affected by less visible forms of corruption. When powerful groups buy influence over government decisions or when public funds are diverted into the coffers of the political elite, ordinary people suffer. When there is widespread belief that corruption prevails and the powerful in particular are able to get away with it, people lose faith in those entrusted with power.
As the Global Corruption Barometer 2013 shows, corruption is seen to be running through the foundations of the democratic and legal process in many countries, affecting public trust in political parties, the judiciary and the police, among other key institutions. Importantly, however, the people surveyed around the world as a part of the Global Corruption Barometer do not view themselves as powerless victims of corruption.
3. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
1
Introduction:
In 2013 the World Bank had confirmed that around US$ 1 trillion is being spent in bribery each
year1
, “while an estimated $2.6 trillion are stolen annually through corruption – a sum equivalent
to more than 5 per cent of the global GDP2
”. Yet there is no universally approved definition for
corruption. The challenge in coming up with a conventional definition is due to the fact that what
forms an act of corruption varies from state and culture to culture. The lack of consensus on a
conventional definition of corruption had led to the outburst of numerous definitions. The World
Bank defines corruption as the following:
“the abuse of public office for private gain. Public office is abused for private gain when an
official accepts, solicits, or extorts a bribe. It is also abused when private agents actively offer
bribes to circumvent public policies and processes for competitive advantage and profit. Public
office can also be abused for personal benefit even if no bribery occurs, through patronage and
nepotism, the theft of state assets, or the diversion of state revenues. This definition is both
simple and sufficiently broad to cover most of the corruption that the Bank encounters, and it is
widely used in the literature. Bribery occurs in the private sector, but bribery in the public sector,
offered or extracted, should be the Bank's main concern, since the Bank lends primarily to
governments and supports government policies, programs, and projects3
”.
Corruption is the cancer ravaging countries in their entirety. Writing about West Africa in 1961,
Franz Fanon underlined that “there is no soul down to the simple policemen or the customs
officer who does not join in the great procession of corruption4
”. Later on, in 1965, Arthur Lewis
reported that corruption spread in West Africa with the “vast pickings in bribes, state contracts,
diversion of public funds to private uses, and commissions of various sorts”. He conveyed that
“to be a minister in West Africa at the time was to have a lifetime’s chance to make fortune. In
time, bribery and corruption become a way of life accepted as a mean of getting by, earning a
1
Mendes, Errol, “Global Governance, Human Rights and International Law: Combating the Tragic Flaw”,
Routledge: London and New York, 2014 p. 177 [Mendes].
2
International Chamber of Commerce / Transparency International /United Nations Global Compact / World Economic Forum
Partnering Against Corruption Initiative. 2008, “Clean Business is Good Business”, online:
<http://www.unglobalcompact.org/docs/issues_doc/Anti-Corruption/clean_business_is_good_business.pdf>.
3
World Bank, “Helping Countries Combat Corruption: The Role of the World Bank”, (September, 1997) at p. 8, available
online: < http://www1.worldbank.org/publicsector/anticorrupt/corruptn/cor02.htm#note1>, [World Bank 97].
4
Meredith, Martin, The State of Africa: A History of Fifty Years of Independence, Free Press: London, 2006 p.170.
4. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
2
living, obtaining a service or avoiding hassle5
”. The cancer of corruption extended even further
and was heightened by the long tradition of gift-giving in West Africa for performed services.
The “bigger” the “man” and the service provided the bigger the gift that was supposed to be
offered6
. As a result the disease of corruption was exacerbated in West Africa right after
independence. The practice of bribery and larceny stretched from top to bottom, from public
officials to tax collectors, custom officers, law enforcements and dispensary assistants. It
contaminated everything from job applications to license issuance and renewal, scholarships,
foreign exchange operations and placement of factories7
.
Another example of corruption occurred in the Philippines. The former president of the
Philippines, Ferdinand Marcos wanted to build a nuclear power plant in the Philippines. The
project was offered out to bidding. However part of the bid was to provide President Marcos
US$80 million as a bribe. Westinghouse Electric Corporation in the Philippines won the bid after
allegedly paying President Marcos the sum he required. The nuclear plant was built costing
US$2.3 billion, three times more than the equivalent one is South Korea. The plan never went
into operation for several reasons; the main reason is linked to the cancer of corruption. All the
contractors involved in that project were corrupt, even the person who provided the location for
the power plant was corrupt; it was built at the base of a volcano on an earthquake fault line.
Despite the fact that this power plant will never go into operation, the Philippines are compelled
to pay each day, since the 1970s until 2018, a sum of US$170,000 to finance this project pulling
dreadfully needed money in a poor country away from basic services such as education and
healthcare8
. It really demonstrates how corruption is a spreading cancer ravaging entire nations.
5
Ibid.
6
Ibid at p.172.
7
Ibid at p.173.
8
Mendes, supra note 1 at p. 178.
5. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
3
As a spreading disease corruption has a dreadful effect on the economies of countries and their
political systems. Corrupt practices allow cheap and overpriced infrastructure to replace long-
lasting, profitable ones. It also erodes the rule of law and people’s belief in democratic
government. “Many experts say the global toll of corruption, in both lives and money, exceeds
that of terrorism9
”. Even in a place like Nigeria where a violent uprising has claimed the lives of
thousands, “corruption consistently leads security in public surveys as the most serious problem
facing the country10
”. The World Bank asserted that “[m]uch of the world's highest-value
corruption could not happen without institutions in wealthy nations: the firms that give large
bribes, the financial institutions that accept laundered money and the lawyers and accountants
who facilitate corrupt transactions11
”.
In order to assess the threat caused by this “cancer” called corruption, we will discuss the
economic and political instabilities it generates, the international initiatives led by different
stakeholders to fight this disease, to finally analyse the Canadian initiative through the
Corruption of Foreign Public Officials Act, Canada's Foreign Anti-Bribery Law.
1 - THE ECONOMY OF COUNTRIES:
As describe by the World Bank, “macroeconomic stability” is threatened by loss of government
revenue and extreme expenditure. This can occur with corruption in tax and customs divisions,
with debt arising from the lack of scrutiny on behalf of central banks and finance ministries, with
the awarding of contracts to high-cost bidders or in the absence of competitive tendering, and
with the weakening of expenditure control. “Excessive debt may be incurred through "white
9
Evan Dyer, “Foreign bribery cases of new RCMP crackdown”, CBC News (28 December 2014), online:
<http://www.cbc.ca/m/touch/politics/story/1.2878369>.
10
Ibid.
11
The World Bank, “Anti-Corruption”, (28 March 2016), online: <http://www.worldbank.org/en/topic/governance/brief/anti-
corruption> [World Bank 2016].
6. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
4
elephant" investment projects that owe their origin, in part, to bribes12
”. Corrupt transactions,
fraud in financial institutions have a detrimental effect on the macroeconomic stability of the
country deterring foreign investors from investing in the corrupt country and encouraging tax
evasion due to lack of trust13
. The economic productivity is undermined because of the unceasing
attention demanded of business by corrupt official. The public as well as foreign investors are
denied the advantages of a competitive market place because competition is becoming much
more focused on the highest bribe, thus eroded by the practice of corruption. The poor bear in
particular the disastrous effects of macroeconomic instability as reported by the World Bank:
“[w]hen access to public goods and services requires a bribe, the poor may be excluded. Given
their lack of political influence, the poor may even be asked to pay more than people with higher
incomes14
”. In Paraguay for instance, the poor pay 12.6% of their earnings to bribes whereas
high-income households pay 6.4%15
. The equivalent numbers in Sierra Leona are 13% and 3.8%.
“Every stolen dollar, euro, peso, yuan, rupee, or ruble robs the poor of an equal opportunity in
life16
”. The shift in government priorities correlated with corruption dampens spending on
services such as health, essential infrastructure, and education, with critical effect on the
country’s wellbeing. As the World Bank stated, when corruption creates inferior public services,
“the poor lack the resources to pursue "exit" options such as private schooling, health care, or
power generation17
”. The impact of corruption is also detrimental to small businesses, due to
limited consumption, lack of bargaining powers and influence to contest requests for bribes and
unlawful solicitations, scarcity of resources and smaller profit margins to comply with such
payments. Therefore, small enterprises, in certain countries, cannot always evade paying bribes
12
World Bank 97, supra note 3 at p.18.
13
Ibid.
14
Ibid at p.19.
15
World Bank 2016, supra note 11.
16
Ibid.
17
World Bank 97, supra note 3 at p.19.
7. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
5
or other unofficial payments. The outcome of refusing to engage in corrupt practices may put a
small enterprise out of business18
.
The disastrous effects of corruption threaten the economic stability and political stability as well.
The following section discusses the devastating consequences of corruption on the political
system of countries.
2-THE HAZARDS OF CORRUPTION ON POLITICAL STABILITY OF COUNTRIES:
Corruption is a threat for “the stability and security of societies, undermining the institutions and
values of democracy, ethical values and justice and jeopardizing sustainable development19
”.
Once corruption transforms a state into a ‘weak’ country, the stage is then set for its eventual
collapse by the outbreak of conflicts. How can corruption upset political stability of a state?
Three manifestations can be detected: (1) corruption can increase calls for political changes, (2)
hinder conflict resolution mechanisms eroding the confidence in the rule of law as well as (3)
lead to rigged elections jeopardizing democracy.
Corruption can increase calls for political change: Corruption can exacerbate protests and
calls for political change throughout widespread support for violent political change: coup d’état.
According to the United Nations Office for West Africa (UNOWA) “actual or even perceived
massive corruption” is considered to be as one of the factors that aggravates “the vulnerability of
states to coup d’état and render a coup almost unavoidable20
”. Starting with the overthrow of the
regime in Togo in January 1963, West African countries by the end of 2004 had witnessed
18
United Nations Industrial Development Organization and the United Nations Office on Drugs and Crime,
“Corruption prevention to foster small and medium-sized enterprise development: Providing anti-corruption
assistance to small businesses in the developing world”, Vol I, Vienna 2007, p.9, online:
<https://www.unodc.org/documents/corruption/Publications/2012/UNIDO-
UNODC_Publication_on_Small_Business_Development_and_Corruption_Vol1.pdf>.
19
United Nations Convention against Corruption, 9 December 2003, A/58/422 at 1, (entered into force 14
December 2005) [UNCAC].
20
Ahmedou Ould-Abdallah, “Life after State House: Addressing Unconstitutional changes in West Africa”,
UNOWA, Issue Papers (March 2006), at p.15, online: http://www.agora-
parl.org/sites/default/files/addressing_unconditional_changes_in_africa.original.pdf [Ahmedou Ould-Abdallah].
8. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
6
“forty-four successful military-led coups, forty three…bloody failed attempts, eighty two
reported group plots… and as many as seven terrible civil wars21
”. However, in the majority of
cases those who brought down the ‘corrupt’ regimes were even more corrupt than their
predecessors, and had in turn been removed from office by another coup d’état. Sierra Leone
provides the right example for the relation between corruption and political instability. Sierra
Leone had been the battle ground for violent conflicts between 1991 and 2002. As described by
David Keen, Sierra Leone corrupt politicians plotted with smugglers to deprive the country of
significant funds intended for development22
. Keen reported a study by Care International in
2002 asserting that “contrary to the popularly held view that ‘diamond’ was the root cause of the
war, more evidence point…to corruption23
”. With increasing corruption “poverty and bad
governance” surged while the “corresponding need for food and security, justice, and the
creation of democratic mechanism capable of protecting the rights of ordinary citizens” ignored.
Anger mounted at corruption in Sierra Leone and “some [insurgents] seem to have concluded
that in an unfair system the only rational course was to grab a piece of the good life [by force]24
”.
Once the conflict began corruption was fuelling its existence. Corruption in the army weakened
the few units who confronted the insurgents25
. Some corrupt soldiers even took bribes from
rebels in return of their releases26
.
Corruption hinders conflict resolution mechanisms and undermines the rule of law: As stated
by Paul Dewar, Conflict minerals yield up to US$180 million per year for armed group “keeping
some militias in business” and he added that “up to 40% of those working in the mines are
21
Ibid.
22
Keen, David, Conflict and Conclusion in Sierra Leone, (2005) Palgrave: New York, at p.52 [Keen].
23
Ibid at p. 64
24
Ibid.
25
Ibid at p.83.
26
Ibid at p.89.
9. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
7
children, who are exploited and abused. They then become prime targets for recruitment by
armed groups27
”. A state is supposed to settle conflicts arising on its soil through legitimate
public forums and mechanisms for peaceful debate. Corruption hinders conflict resolution
mechanisms, leading to the use of violence instead of resorting to courts and administrative
procedure to resolve disputes. The excessive use of violence as a mean for conflict settlement
will urge people to challenge the state legitimacy through violence. As summarized by the
OECD, “disappointed citizens might turn away from the state (…) or stand up against what they
perceive to be the corrupt political and economic elites28
”. Amnesty International reported that
impunity in both Guatemala and Canada has perpetuated state and corporate violence against
communities and individuals resisting mining projects, resulting in murders, assassination
attempts, rapes, land grabs, displacements and other forms of violence that were also prevalent
during Guatemala’s bloody internal conflict29
.
In a state where rule of law reigns, its citizen benefit from an equal standing under the law
regardless of their political affiliation, social status, economic power, or ethnic background. The
OECD asserted that “[r]ules and regulations are circumvented by bribes30
”. Arnone and Borlini
elaborate on the impact of corruption on the rule of law by asserting that corrupt practices
undermine the basic foundation of both, the representative mechanisms, critical to the separation
of powers, and human rights. “Since corruption generates discrimination and inequality, this
relationship [between human rights and government corruption] ... bears on civil and political
rights”. They add that for example corruption “strengthens the misappropriation of property in
27
Canada, Bill C-486, An Act respecting corporate practices relating to the extraction, processing, purchase, trade
and use of conflict minerals from the Great Lakes Region of Africa, 2nd Sess, 41th Parl, 2014, Historical,(defeated,
as of Sept. 24, 2014). Online: <https://openparliament.ca/bills/41-2/C-486/>.
28
OECD, The rationale for fighting corruption, CleanGovBiz, (2014) at p.4, online:
https://www.oecd.org/cleangovbiz/49693613.pdf .
29
Amnesty International, Guatemala: Mining in Guatemala: Rights at Risk, London (2014) at p.7.
30
Supra note 28 at p. 4.
10. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
8
violation of legal rights ... it likely leads to the rise of monopolies which either wipe out or
gravely vitiate freedom to trade31
”.
Therefore, corruption leads to the breakdown of the rule of law, which encompasses the
processes, norms, and structures that hold the population and public officials legally responsible
for their actions and impose sanctions if they violate the law. "The problem in Guatemala is not
the laws, per se, nor the structure of the legal system itself, but rather impunity," said Grahame
Russell, director of the Canadian and U.S.-based NGO Rights Action and he added what
Guatemala requires is "a fundamental transformation in its lack of democracy, its lack of rule of
law, and its corruption32
".
Least but not last corruption lead to rigged elections jeopardizing democracy: The state is
hijacked by the ruling elite through the practices of corruption. In countries where corruption and
impunity are becoming the norm, people seek political office primarily with the intention to gain
control of the state’s resources. In that case political battle among candidates is reined by
unhealthy competition that may lead to the use of violence. Access to public offices through fair
and free elections is virtually absent as the election process is usually rigged through vote buying
and bribing judges to settle electoral conflicts in favour of the ruling elite. Thus, corrupt practices
induce a government that had lost the trust of its citizens to remain in power. Substantial and
widespread corruption or manipulations by ruling elites, defiance of ruling elites to transparency,
accountability and illegitimate transactions within the population, are among the factors that
trigger state failure and the collapse of democracy33
.
31
Marco Arnone & Leonardo S. Borlini, Corruption: Economic Analysis and International Law (Cheltenham, UK; Northampton,
US: Edward Elgar Publishing Limited, 2014) at 170–171.
32
Cyril Mychaljeko, Guatemalan Government, Canadian Mining Industry Responsible For violent Conflicts, October 8, 2014,
online: http://www.rightsaction.org/action-content/guatemalan-government-canadian-mining-industry-responsible-violent-
conflicts.
33
USAID, Corruption Assessment Handbook – Draft Final Report, Washington (8 May 2006) at p.18, online:
<http://www1.worldbank.org/publicsector/anticorrupt/USAIDCorAsmtHandbook.pdf >.
11. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
9
A better understanding of the economic, political and social costs of corrupt practices has
impelled recent international initiatives to combat corruption, promote transparency and
consolidate accountability. The following section will discuss the most important international
initiatives in fighting corruption starting with the American statute, the Foreign Corrupt
Practices Act (FCPA), which was the 1st
legislation adopted to combat bribery of foreign
officials in 1977, followed by a discussion of the OECD Convention against foreign bribery, the
UN Convention Against Corruption, the Inter-American Convention Against Corruption, then a
discussion about the efforts exerted by one the most notorious civil society organisations,
Transparency International, in the international fight against corruption. We conclude this
section by discussing the role of a key international financial institution in fighting corruption,
the World Bank.
3-INTERNATIONAL INITIATIVES IN THE FIGHT AGAINST CORRUPTION:
The Foreign Corrupt Practices Act: Prior to 1977, the US was a pioneer in the combat against
foreign bribery by enacting legislation particularly prohibiting the bribery of foreign official. As
professor Mendes said in his book “[t]he emergence of major corporate complicity in bribery and
corruption let the Government of the US to strike back in the form of 1977 Foreign Corrupt
Practices Act34
, with its extraterritorial reach to most of the major [multinational corporations
(MNEs)] in the world through their links with US capital markets35
”. In her paper, Annalisa
Leibold noted that “given the ease with which the U.S. government can bring charges against a
foreign company, coupled with the fact that such charges are usually settled as opposed to
litigated, the FCPA looks more like an international anti-corruption business tax, rather than a
34
Pub L No 95-213, 91 Stat 1494 (1977) (codified as amended at 15 U.S.C. §§ 78m(b), (d)(1), (g) to (h), 78dd-1, 78dd-2, 78dd-
3, 78ff), amended by Foreign Corrupt Practices Act Amendment of 1988, Pub L No 100-418, 102 Stat 1107, 1415 (1988)
(codified at §§ 78dd-1 to 78dd-3, 78ff), and the International Anti-Bribery and Fair Competition Act of 1998, Pub L No 105-366,
112 Stat 3302 (1998) (codified at §§ 78dd-1 to 78dd-3, 78ff) [FCPA].
35
Mendes, supra note 1 p.211.
12. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
10
domestic criminal law with limited extraterritorial applications36
”. The FCPA was passed in
1977 as a response to the so-called Lockheed scandal, in which executives of the American
aircraft manufacturer were found to be engaged in bribing high-ranking public officials in
several countries, among them, Japan, the Netherlands and Italy, while Lockheed required
financial support from the American government. A report from the House of Representatives
insisted that the legislation was crucial due to widespread bribery admitted by companies37
. An
anti-corruption statute was believed that it would “help U.S. corporations resist corrupt
demands38
”. The FCPA forbids the payment, offer of payment, or gift to a foreign official in
order to obtain or retain business in that country39
. This Act provides for criminal prosecution by
the Department of Justice. And if a corporation is publicly traded in the US, the FCPA provides
for civil prosecution by the Securities and Exchange Commission (“SEC”). “In 2010, the SEC's
Enforcement Division created a specialized unit to further enhance its enforcement of the FCPA,
which prohibits U.S. companies from bribing foreign officials for government contracts and
other business40
”. However, after its enactment, many American corporations claimed a decline
in their business operations arguing that the Act had initiated a competitive disadvantage to their
businesses outside the US41
. The US Commerce Department and several US intelligence
agencies reckoned that in 1994-1995, US businesses lost US$11 billion in potential revenue in
36
Annalisa Leibold, The FCPA is a new international business tax on non U.S. companies, January 23, 2015,
online: <http://www.fcpablog.com/blog/2015/1/23/paper-the-fcpa-is-a-new-international-business-tax-on-non-
us.html>.
37
US, House of Representatives, Unlawful Corporate Payments Act of 1977 (HR Doc No 95-640) (1977) (“More than 400
corporations have admitted making questionable or illegal payments. The companies, most of them voluntarily, have reported
paying out well in excess of $300 million in corporate funds to foreign government officials, politicians, and political parties.
These corporations have included some of the largest and most widely held public companies in the United States; over 117 of
them rank in the top Fortune 500 industries”).
38
Ibid.
39
Sara Seck, “Unilateral Home State Regulation: Imperialism or Tool for Subaltern Resistance?” (2008) 46
Osgoode Hall Law Journal 565 at 569.
40
“SEC Enforcement Actions: FCPA Cases” available online: < http://www.sec.gov/spotlight/fcpa/fcpa-
cases.shtml>.
41
Lori Ann Wanlin, “The Gap Between Promise and Practice in the Global Fight Against Corruption” (2006) Asper
Rev of Int'l Bus and Trade Law 209 at para 5.
13. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
11
contrast to their counterparts engaged in bribing foreign officials42
. Subsequently the American
government began a strong movement to convince other governments and international
organizations to carry out measures identical to the FCPA.
“The focus of the attention in this regard was not the United Nations, where treaty obligations
have become diplomatic decorations”, as professor Mendes stated. Instead, as explained by
professor Mendes “the industrialised world gave the mandate to the OECD, the club of rich
industrialised nations of the world, together with some aspiring developing nations43
”.
OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions44
: Founded in 1968, the OECD is an international economic organisation
whose main mission is “to promote policies that will improve the economic and social well-
being of people around the world45
”. In May 1997 the OECD Ministerial meeting called for the
negotiation of a binding covenant to deal with the bribery of foreign public officials, and urged
Member States to propose legislative schemes to their national legislature in order to prohibit
such bribes and pursue their enactment by the end of 199846
. By June 21, 1997, leaders of the G-
7 countries, including PM Chrétien, released a statement in Denver advocating this approach and
timetable for the OECD. “To date, 41 states have ratified the OECD Anti-Bribery Convention,
including all 34 member states of the OECD and seven non-member states47
”. The OECD Anti-
Bribery Convention came into effect in February 15, 1999. Since then more than 300 individuals
42
Patrick Glynn, Stephen J Kobrin & Moisés Naím, “The Globalization of Corruption” in Kimberly Ann Elliott, ed, Corruption
and the Global Economy (Washington: Institute for International Economics, 1997) at p.18.
43
Mendes, supra note 1 at p. 211.
44
OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, 17 December
1997, DAFFE/IME/BR (97)20, (entered into force on 15 February 1999).
45
OECD, The Organisation for Economic Co-operation and Development, online: OECD.org <http://www.oecd.org/about/>.
46
Canada, Department of Justice, The Corruption of Foreign Public Officials Act: a Guide, (Ottawa: Communication and
Executive Services Branch, 1999) at 1 [CFPOA Guide].
47
Global Affairs Canada, Canada’s Fights against Foreign Bribery: Fifteenth Annual Report to Parliament: Implementation of
the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, and the Enforcement
of the Corruption of Foreign Public Officials Act, (Ottawa: Global Affairs, September 2013 - August 2014) online:
http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/other-autre/corr-
15.aspx?lang=eng#oecd.
14. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
12
and more than 100 entities were criminally prosecuted and held liable for foreign bribery in over
one-third of the State Parties. More than 80 of the penalised individuals were sent to prison for
engaging in foreign bribery in 1/3 of these State Parties. Around 400 investigations are still in
progress in over ½ of these State Parties48
.
The United Nations had conformed to the OECD’s approach through declarations, in 1996 and
1998, condemning bribery and corruption of public office holders. “In December 2004, the UN
General Assembly also adopted the wide-ranging but as yet unproved Convention against
Corruption49
”.
The United Nations Convention Against Corruption (UNCAC)50
: It is considered to be the 1st
global in-depth covenant on corruption. Before the adoption of the UNCAC, it had been argued
that states should consider writing passive bribery legislations to complement the already
existing provisions against supply-side bribery51
. The UNCAC was signed by 111 states in
Mérida, Mexico in December 9, 2003; by 2013 the number of signatories had increased to 16752
.
It is noteworthy that Kenya, experiencing corruption and economic crimes, became the first
country to sign and simultaneously ratify the UNCAC committing itself to enhancing the fight
against corruption through the enactment of the necessary legislative, institutional and policy
framework required to toughen public accountability, transparency and integrity53
.
According to the 1st
article, the objectives of UNCAC are (1) to foster and enhance procedures to
preclude and fight corruption more efficiently and effectively; (2) to foster, enable and
48
Ibid.
49
Mendes, supra note 1 at p. 212.
50
UNCAC, Supra note 19.
51
Steven R. Salbu, Extraterritorial Restriction of Bribery: A Premature Evocation of the Normative Global Village, 24 YALE J.
INT’L L. 233, 241 (1999) at 678; Guy Stessens, The International Fight Against Corruption, 72 REVUE INT’L DE DROIT
PENAL 892, 894 (2001) (Belg.) at 903
52
Mendes, supra note 1 at p.212.
53
Kenya
Kenya, Department of Justice, National Cohesion and Constitutional Affairs and Kenya Anti-Corruption Commission, “Kenya:
UN Convention against Corruption: Gap Analysis Report and Implementation Plan”, (2009), at p. 3, online: <
http://www.eacc.go.ke/docs/kenya-uncac-gap-analysis-report.pdf>.
15. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
13
corroborate international cooperation and technical assistance in the preclusion of and combat
against corruption, including in asset recovery; (3) to foster integrity, liability and appropriate
supervision of public affairs and public property. The UNCAC endeavours to combat corrupt
practices in both the public (art.7) and private sectors (art.12). Its preventive measures
encompass the creation of anticorruption bodies, improved transparency in campaign and
political party funding, safety measures to guarantee effective and transparent management and
provision of public goods and services, codes of conduct and financial disclosure for public
officials, and transparency as well as liability in public financial transactions and in crucial fields
such as public procurement and the judiciary. The UNCAC also urges the civil society and the
general to participate in the fight against corruption. The UNCAC exceeds other instruments of
its type in that it does not only criminalize bribery of national public officials (art.15), bribery of
foreign public officials and officials of public international organizations (art.16) and
embezzlement (art.17). The UNCAC also criminalizes trading in influence (art.18), money
laundering (art.23), concealment of any profits resulting from corrupt acts (art.24), obstruction of
justice in the prosecution of such acts (art. 25). The UNCAC also lays emphasis on mutual legal
assistance between State Parties in collecting and transferring evidence and calls for signatories
to cooperate in identifying, freezing, seizing and confiscating the proceeds of corruption (art.
46). The most important breakthrough of the UNCAC was the asset recovery provisions in
chapter V. These stipulations will enable developing states to recuperate assets illegally acquired
from their coffers. The question becomes: how did State Parties implement the UNCAC?
In a Summary of the state implementation of the UNCAC, it has been established that the
Convention have led many State parties to adopt statutory amendments and structural changes
which have produced legislative and institutional reforms and enforcement, as well as potent
16. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
14
frameworks for extradition, mutual legal assistance and law enforcement cooperation54
.
However, after 13 years and until the time of writing this paper, we couldn’t point out a single
tangible achievement on the ground in terms of actual cases or convictions in light of the
UNCAC.
There have been other noteworthy regional initiatives to fight corruption. In March, 1996, the
Organization of American States (OAS) adopted the Inter-American Convention against
Corruption in Caracas, Venezuela.
The Inter-American Convention against Corruption55
: This covenant contains a set of
preventive measures similar to the OECD Convention. It criminalizes certain corrupt practices as
transnational bribery (art. VIII) and illicit enrichment (art. IX). It encompasses a series of articles
that strengthen cross border cooperation between signatories in areas such as mutual legal
assistance and mutual technical cooperation (art. XIV), extradition (art. XIII) as well as
identification, tracing, freezing, seizure and forfeiture of property or proceeds obtained, derived
from or used in the commission of acts of corruption among others (art. XV).
A number of civil society organisations are also leading the international combat against
corruption. Among the best known is Transparency International.
Transparency International (TI): TI was established in 199356
. It has been a pioneer in shifting
the topic of corruption “from a taboo topic to a talking point57
”. TI’s mission is to “stop
corruption, and promote transparency, accountability and integrity at all levels across all sectors
54
United Nations, Summary of the state of implementation of the United Nations Convention against Corruption:
criminalization, law enforcement and international cooperation, (19 August 2015), online:
https://www.unodc.org/documents/treaties/UNCAC/COSP/session6/V1505920e.pdf.
55
The Inter-American Convention against Corruption, 29 March 1996, S. Treaty Doc. No. 105-39, (entered into
force 6 March 1997).
56
Transparency International, “Our History: 2013 20 years, more to come” online: Transparency International
<http://www.transparency.org/whoweare/history>.
57
Transparency International, “Missions, Visions and Values”, online: Transparency International
https://www.transparency.org/whoweare/organisation/mission_vision_and_values/.
17. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
15
of society58
”. In 1994, the OECD members adopted TI’s recommendations to criminalize foreign
bribery59
. TI involves 100 national chapters worldwide who cooperate with partners in
government, business and civil society to draw effective measures in to promote the anti-
corruption fight60
. In its annual report – “The Bribe Payers Index (BPI)” – TI rates the wealthiest
states in the world by the susceptibility of their businesses to participate in bribery across border.
These reports also describe the worst offenders. To reach the final index results, TI relies on
information provided by senior business executives from developed and developing states61
.
Each state is assigned a score varying from 0 to 10. The score ten shows that a country’s
domestic businesses never participate in foreign bribery. The score zero shows that a country’s
corporations are always participating in foreign bribery62
. TI’s work remains essential for the
enactment of binding anti-bribery statutes in countries like Russia, China, India, which all
require such legislation63
. TI’s monitoring procedures present effective awareness of the
guidelines that companies should put into operation in order to conform to emerging universal
Corporate Social Responsibility (CSR) corruption standards64
. TI’s reports compel governments
from all regions to be aware of corruption. A low ranking reveals an unfair system for awarding
contracts, narrow opportunities to grow a competitive private sector and perpetual reputational
58
Ibid.
59
Transparency International, “Our History: 1994 Going Global”, online: Transparency International
<http://www.transparency.org/whoweare/history>.
60
Transparency International, “Our Organisation: Overview”, online: Transparency International
<http://www.transparency.org/whoweare/organisation>.
61
Transparency International, “Bribe Payers Index: First Launched in 1999, the Bribe Payers Index Evaluates the
Supply Side of Corruption – The Likelihood of Firms from The World’s Industrialised Countries to Bribe Abroad”,
online: Transparency International <http://www.transparency.org/research/bpi/overview>.
62
Transparency International, “Bribe Payers Index Report 2011”, online: Transparency International
<http://www.transparency.org/bpi2011/results >.
63
Margot Cleveland et al, “Trend in the International Fight Against Bribery and Corruption” (2009) 90 Journal of
Business Ethics 199 at 222.
64
Adefolake Adeyeye, “Universal Standards in CSR: Are We Prepared?” (2011) 11:1 Corporate Governance 107 at
114.
18. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
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and financial risk for investors65
.
It is important to note that those international initiatives are supported by an important
international financial institution, the World Bank.
The World Bank initiatives against corruption: Considerable number and variety of WB and
World Bank Institute (WBI) surveys have been performed and provide valuable sources of hard
data. The WB became a partisan to anti-corruption initiatives in 30-40 states66
. The WB’s
approach to anti-corruption measures calls for action on 4 main fronts: (1) assisting states that
require support in combating corruption; (2) considering efforts exerted in fighting corruption as
a key focus of the WB’s inquiry and lending decisions for a state; (3) participating in
international initiatives combating corruption; and (4) striving to preclude fraud and corrupt
practices in Bank-financed projects67
. The WB’s efforts in fighting corruption regarding its own
landing portfolio are led by an independent unit, the Department of Institutional Integrity (INT),
which investigates fraud and corruption complaints in Bank-financed projects as well as claims
of staff-misconduct, and then reports its finding to decision makers i.e. the Bank’s Sanction
Committee in order to take action68
. In 201569
the INT reviewed and initiated 323 preliminary
inquiries concerning 86 states related to fraud, corruption and collusion in WB Group-financed
activities. Of those inquiries, 99 were selected for full investigation and investigators closed 81
of them. Out of the 88 external cases under investigation at the end of 2015, 65 involved
65
Transparency International, “How do Companies from your Country Behave Abroad?”, online: Transparency
International <http://www.transparency.org/bpi2011/results>.
66
Canadian International Development Agency, “Anti-Corruption Programming: Question and Strategies”, by
Bruce M. Bailey, June 2000, p. 22, online:
<http://www.acdicida.gc.ca/INET/IMAGES.NSF/vLUImages/HRDG2/$file/EngQ&S.pdf >.
67
World Bank Global Issues Seminar Series, “The Cancer of Corruption”, by Vinay Bhargava, at p.8, online:
http://siteresources.worldbank.org/EXTABOUTUS/Resources/Corruption.pdf .
68
Ibid.
69
The World Banks Integrity Vice Presidency, “Annual Update: Fiscal year 2015”, at p.35 online:
http://pubdocs.worldbank.org/pubdocs/publicdoc/2015/12/136451449168835691/INT-FY15-Annual-Update.pdf .
19. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
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allegations of corruption. To further promote corporate governance, as of September 2010, the
World Bank Group’s (WBG) default sanction is debarment with conditional release. In the fiscal
year of 2015, 71 firms and individuals were sanctioned by the WBG, 65 of which were debarred
for periods ranging from 6 months to 13 years70
. The WB’s work with sanctioned corporations
through the Integrity Compliance Office (ICO) to establish and develop their integrity
compliance programs is supporting large and small enterprises to make integrity and efficient
risk management a fundamental part of their activities. At the end of 2015, 47 corporations
debarred by the WBG were strongly involved with the ICO. Seven corporations had their
debarment lifted this year, having instigated appropriate compliance systems and satisfying other
conditions of their sanction71
.
In the midst of all these initiatives in fighting corruption, how did Canada react? How well is
Canada enforcing its Anti-Bribery provisions? Is it prevailing in the fight against corruption?
The following sections will discuss the Canadian fight against foreign bribery by zeroing in on
the Corruption of Foreign Public Official Act (CFPOA).
4-CANADA’S FIGHT AGAINST FOREIGN BRIBERY: THE CFPOA
The Canadian federal government had sought to prevent and sanction domestic corruption
through a federal statutes, parliamentary rules and administrative provisions. The Criminal Code
contained provisions which prohibited bribery, fraud on the government and influence peddling,
fraud or breach of trust in connection with duties of office, municipal corruption, selling or
purchasing office, influencing or negotiating appointments or dealing in offices, fraud,
laundering proceeds of crime and secret commissions. Internationally, Canada has joined the
fight against corruption through various international forums, including the OECD, the OAS and
70
Ibid at p. 2.
71
Ibid.
20. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
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the UN. Canada ratified the UN Convention against Corruption in May 31, 2007. It had also
ratified the OECD convention on December 17, 1998, which triggered this covenant’s entry into
force on February 15, 1999. On February 14, 1999, the Corruption of Foreign Public Officials
Act (CFPOA)72
entered into force. Section 3(1) of the Act deals with the offence of bribing a
foreign public official and represents Canada’s legislative contribution to the international
initiative to fight foreign bribery. It criminalizes those who, “in order to obtain or retain an
advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a
loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the
benefit of a foreign public official73
”. The CFPOA provisions apply when the offence is
committed in whole or in part in the Canadian territory, or when the perpetrator is a Canadian
entity, regardless of whether the entity acted directly or through an agent or a third party74
.
The enforcement of CFPOA resulted in one prosecution between 1999 and 2011, in R v Watts
(Hydro-Kleen)75
. In contrast, 227 cases were reported by the US in 2011 and 169 cases in 2010;
135 cases were reported by Germany in 2011 and 117 cases in 201076
. This embarrassing record
led TI and the OECD Working Group on Bribery in 2012 to criticize Canada’s weak role in
fighting foreign bribery by its insufficient implementation and enforcement of the OECD
Convention77
. As a response, Canada introduced Bill S-14 on February 5, 2013, to amend the
CFPOA and broaden its scope. It received Royal Assent on June 19, 2013. Six significant
amendments were included to the CFPOA. In the previous version of the Act the definition of
“business” was restricted to “any business, profession, trade, calling, manufacture or undertaking
72
SC 1998, c 34 [CFPOA].
73
Ibid at 3(1).
74
Susan M Hutton & Paul Beaudry, “Canada Takes Aim at Foreign Corruption” (2011) at 6, online: Stikeman Elliot
<http://www.stikeman.com/2011/images/core/ForeignCorruption_ALM.pdf>.
75
[2005] AJ No 568 (QB) [Hydro-Kleen].
76
Fritz Heimann, Gillian Dell & Kelly McCarthy, Progress Report 2011: Enforcement of the OECD Anti-Bribery
Convention, 4th ed (2011), [2011 Progress Report].
77
Ibid.
21. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
19
of any kind carried on in Canada or elsewhere for profit,” therefore, not taking into account
charities78
. The 1st
amendment of the Act removed the “for profit” requirement. This ensures that
the Act applies to all entities whether they are seeking profit or not79
. The 2nd
amendment
brought to the CFPOA raised the maximum sentence of imprisonment from 5 to 14 years80
. The
3rd
amendment eliminated an exception that had been in operation for the so-called “facilitation
payments”. However clause 5 of Bill S-14 stated that the abolition of the facilitation payment
exception will not take effect on Royal Assent but on the day to be fixed by order of the
Governor in Council81
. In contrast, the US kept the facilitation payment exception in the FCPA82
.
The 4th
amendment added in the Act a new offence for falsifying or concealing books or records
in order to bribe or conceal bribery of a foreign public official83
. The 5th
amendment, and
perhaps the most crucial one, added by Bill S-14 is the “nationality jurisdiction”84
as a basis for
Canadian courts to exercise jurisdiction over persons accused of violating the Act. This means
that under the amended CFPOA, two different regimes will apply depending on the
nationality/the residency of the perpetrator: (1) Canadian courts have jurisdiction over all
Canadian nationals and permanent residents committing acts, in Canada or abroad, against the
CFPOA; thus, they are captured under clause 5(1) of the Act on the mere basis of their
nationality; and (2) for a Canadian court to have jurisdiction over foreign nationals under the
78
CFPOA, supra note 72.
79
Canada, Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, 1st Sess, 41th Parl, 2013, cl
2(3) (Assented to 19 June 2013).
80
Parliament of Canada “Legislative Summary of Bill S-14: An Act to amend the Corruption of Foreign Public
Officials Act”, by Robin MacKay (28 February 2013) at p.6: online: Parliament of Canada
http://www.lop.parl.gc.ca/About/Parliament/LegislativeSummaries/bills_ls.asp?ls=s14&Parl=41&Ses=1#a10.
81
Ibid.
82
FCPA , supra note 34 at s.4: this Act stipulates that it does not apply to any “facilitating or expediting payment to
a foreign official, political party, or party official the purpose of which is to expedite or to secure the performance of
a routine government action by a foreign official, political party or party official”.)
83
Supra note 80 at p 6.
84
Ibid at p.7.
22. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
20
FCPA, it must have jurisdiction over both the crime (through a substantial link to Canada85
) and
the person (by such person being physically present in Canada86
). The 6th
amendment included in
the Act asserted that officers of the RCMP (or a person designated as a peace officer under the
Royal Canadian Mounted police Act) have the exclusive authority to prosecute under the
CFPOA87
.
5-IS CANADA PREVAILING IN THE BATTLE AGAINST FOREIGN BRIBERY?
When Bill S-14 received Royal Assent on June 19, 2013, Minister John Baird explained the
rational for the amendments by asserting that they were aimed to “further deter and prevent
Canadian companies from bribing public officials […] and help ensure that Canadian companies
continue to act in good faith in the pursuit of freer makers and expanded global trade88
”.
However there has been limited jurisprudence in Canada under the CFPOA. The 1st
decision
under was in January 10, 2005, R v Watt (Hydro-Kleen)89
. The case concerns bribes paid by
Hydro Kleen Group Inc. an Alberta-based company, to a U.S. immigration officer who worked
at the Calgary International Airport. He pleaded guilty in July 2002, to accepting bribes from the
Canadian company. Hydro Kleen had bribed this officer to facilitate the entrance of its
employees into the U.S. and to delay the U.S. entrance of competitors’ employees. The
immigration official was paid approximately CAD$ 30,000 as bribes. Unfortunately, this case
does not offer specific guidelines regarding the boundaries of the offence since the officer
pleaded guilty. He received a six month sentence and was subsequently deported to the United
States. The company entered a guilty plea under section 3(1)(a) of the CFPOA and was ordered
85
Libman v The Queen, [1985] 2 SCR 178, at para 74.
86
Chowdhury v H.M.Q, 2014 ONSC.
87
Supra note 80 at p.7.
88
Canada, Global Affairs “Strengthening Canada’s Fight Against Foreign Bribery”, (5 February 2013) online:
<http://www.international.gc.ca/media/aff/news-communiques/2013/02/05b.aspx?lang=eng>.
89
R v Watts, [2005] AJ No 568 (Alta QB).
23. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
21
to pay a fine of only $25,000. The 2nd
case prosecuted under the CFPOA is R v Niko Resources
Ltd90
. On Jun 24th
, 2011, Niko Resources Ltd, a publicly-traded company based in Calgary,
Alberta, pled guilty to a charge of bribery under the CFPOA in connection with events
surrounding a blast that occurred at Niko’s natural gas field in Bangladesh. At the time of the
explosion Niko was negotiating a gas pricing contract with the Bangladeshi government. The
specific conduct in question concerned 2 sets of benefits offered through Niko’s local subsidiary
to the Bangladeshi Minister of Energy: (1) a $190,984 SUV vehicle and (2) payment of a trip to
Calgary for business and on the way a side trip to New York and Chicago to visit relatives (the
total value of which benefits were in the range of $196,000). These sums were found to have
constituted “bribes” within the meaning of the CFPOA. The company was fined nearly $9.5
million and was placed under a probation order for 3 years to ensure that audits were completed
and to assess the company's compliance with the CFPOA. The case was perceived as the first
significant prosecution under the CFPOA. The 3rd
case prosecuted under the CFPOA is R v
Griffiths Energy International91
. Griffiths Energy International Inc. (GEI) was a small privately
held oil and gas company based in Calgary. Mr. Griffiths and one of his partners, Naeem Tyab,
spent 6 months in 2008 establishing contacts in Chad’s embassy and investigating about oil and
gas leases in the African country. The pair, together with Parvez Tyab, set up Griffiths Energy,
which contemplated bribing Chad’s ambassador to Canada in September, 2009. Instead, funds
were paid to a corporation ran by the ambassador’s wife, according to the agreed statement of
facts filed in court. GEI reported these irregularities and admitted to the bribery. The company
pleaded guilty on January 22, 2013 to one count of bribery under the CFPOA and was sentenced
on January 25, 2013 to pay a total penalty of $10,350,000. The 4th
case prosecuted under the
90
101 WCB (2d) 118, 2011 CarswellAlta 2521 (WL Can) (ABQB) [Niko Resources].
91
[2013] AJ No 412 (ABQB) [Griffiths Energy].
24. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
22
CFPOA is R v Karigar92
. In this case, Nazir Karigar, a paid agent for a group of Canadian
companies, arranged bribes to public officials in India to win a $100 million security contract
from Air India. Hackland J. of the Ontario Superior Court in Ottawa convicted Karigar in August
2013 for a conspiracy that dates back to 2005-2006. Hackland J. expressly mentioned that
“[t]here would appear to be no jurisprudence interpreting the CFPOA. This is the first
prosecution under this Act which has proceeded to trial93
”. After analysing the elements of the
offence in the Act, he held that the actus reus of the offence is “the agreement to pursue unlawful
objectives” and he inferred that “the use of the term "agrees" imports the concept of conspiracy
into the Act. In doing so, it meets Canada's obligations under the [OECD] Convention to
criminalize conspiracies to give or offer bribes to foreign public officials94
”. Finally he held that
in order to satisfy the actus reus of the offence, the accused need only to believe that a bribe has
been paid to a foreign official, independent of whether or not the bribe was actually paid95
. This
decision was considered a landmark bribery case as it marks the first sentence handed down
against an individual under CFPOA, and the 1st
jurisprudence that explained the Act and
established that a conspiracy or an agreement to bribe foreign public officials is in itself a
violation of the CFPOA.
Reviewing the cases above we are of the opinion that Canada had done so little to fulfill its
obligations under the OECD Convention in combatting foreign bribery via the CFPOA;
beginning with the Hydro-Kleen case, involving a corrupt border officer, the outcome was that
the company had to pay $25,000, a sum less than the bribe itself, and no other measure were
taken by the Canadian government in that respect. Then 6 years have elapsed with no
92
[2013] OJ No 3661, 2013 ONSC 5199.
93
Ibid at para 27.
94
Ibid at para 28.
95
Ibid at para 33.
25. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
23
convections under the Act. In 2011, TI published a report that criticized Canada for failing to
implement its foreign anti-bribery legislations underlining that the “Canadian legal system and
courts do not handle complex white collar criminal cases very well96
”. This followed, a report
issued by the OECD Working Group on Bribery in March 2011 which concluded that “Canada’s
regime for enforcement of the [CFPOA] remains problematic in important areas97
” As a response
Canada amended the CFPOA through Bill S-14 as discussed earlier. In 2013, the GEI case
surfaced; however the violation of the CFPOA was not discovered by the RCMP. Instead the
GEI new management team presided by CEO Mr. Gary Guidry detected the company’s alleged
bribe, and an internal investigation was conducted98
. Hadn’t Mr. Guidry led his team to further
investigate and report to the RCMP, would they have found out this offence? In our opinion this
self-reporting case could merely mirror Canada’s adherence to the foreign anti-bribery fight.
Thus, we can fairly say that only two basic convictions occurred under the CFPOA, which fail to
show Canada as a lead in fighting corruption. The lax enforcement of the foreign anti-bribery
legislation is further revealed by the SNC-Lavalin case. In April 2013, the WB Group announced
the debarment of SNC-Lavalin Inc. for a period of 10 due to the company’s misconduct
regarding the Padma Multipurpose Bridge Project in Bangladesh, as well as misconduct under
another Bank-financed project99
. According to the WB the SNC, which is one of Canada’s top
engineering firms, was involved in a conspiracy to pay bribes and in misrepresentations when
96
Bruce Cheadle “Canada gets failing grade for lax enforcement of anti-bribery laws”, Thestar.com Business (24
May 2011) online:
http://www.thestar.com/business/2011/05/24/canada_gets_failing_grade_for_lax_enforcement_of_antibribery_laws.
html.
97
Ibid.
98
Brian Hutchinson, “Calgary Oil Company paid $2M Bribe for Access to Oil Fields in Chad, Court Told” National
Post (1 January 2013), online: http://news.nationalpost.com/news/canada/calgary-oil-company-paid-2m-bribe-for-
access-to-oil-fields-in-chad-court-told.
99
The World Bank, “World Bank Debars SNC-Lavalin Inc. and its Affiliates for 10 years” (17 April 2013),
available online: < http://www.worldbank.org/en/news/press-release/2013/04/17/world-bank-debars-snc-lavalin-
inc-and-its-affiliates-for-ten-years>.
26. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
24
bidding for Bank-financed contracts in violent of the WB’s procurement guidelines100
. Despite
referring the matter to the RCMP no conviction had occurred. In 2015 SNC a 2 of its affiliates
were charged with fraud and corruption under the CFPOA in a case related to its operations in
Libya. In December 2015, SNC entered into an agreement with the federal government under
which, SNC will be able to participate in bidding and winning contracts to provide goods and
services to the Canadian government pending on the final result of those charges101
. This
approach with a company that was already blacklisted by the WB, reveals a huge failure on
behalf of the Canadian government in the enforcement of its anti-bribery rules.
Conclusion:
The fight against corruption has not only become more pressing, it has also become more
noticeable as the degree of its influence is growingly apparent. Not only does corruption
bankrupt economies, jeopardize democracy and undermine the rule of law, it nourishes terrorism
and organized crime. These far reaching outcomes clearly show that the war against corruption
cannot be waged at the national level alone. Corruption is without doubt a disease of
international interest as it strikes developed and developing countries alike respecting no
boundaries. All anti-bribery initiatives discussed in this paper are a product of this heightened
consciousness of corruption as a growing and indiscriminate threat. if steps were taken to halt the
trillion dollar scandal reported by the WB, they could free up revenues which, based on the data
from the Lancet Commission on Global Health, would: “Help avert 3.6 million death per year
between 2015 and 2025 in low-incomes countries; Help avert 4.3 million deaths per year
between 2015 and 2025 in lower middle countries, putting the world track to end preventable
100
Ibid.
101
Freshfields Bruckhaus Deringer, “Anti-Bribery and corruption: global enforcement and legislative developments
in 2016”, GI ABC guide 2016 at p .32.
http://www.freshfields.com/uploadedFiles/SiteWide/Campaigns/GI/content/GI%20ABC%20guide%202016.PDF.
27. Corruption: the Cancer of Nations: Is Canada wining the fight? N 7446267
25
child deaths in these countries by 2030102
”. Furthermore, winning the war against corruption in
Sub-Saharan Africa alone would generate revenues to “ [e]ducate 10 million children per year;
[p]rovide antiretroviral drugs (ARVs) for over 11 million people living with HIV/AIDS; Pay
almost 165 million vaccines103
”.
However, on April 2016, the Panama Papers provided detailed information about more than
214,000 anonymous shell companies used for unlawful purposes including sovereign and
individual fraud, drug trafficking and illegal tax evasion104
: it all adds up to a global scandal that
has to be stopped.
To conclude, one should seriously question whether MNE’s particularly in Canada, have the
intention to abide with the Canadian and international initiatives in fighting corruption,
specifically foreign bribery, while they will most certainly face competitive disadvantages in
every bidding against companies from other countries with more lax legal and regulatory
systems (i.e. the absence of anti-bribery rules and regulations)?
In our opinion it is highly unlikely.
102
One, “The Trillion Dollar Scandal” (3 September 2014) at p.2, online: http://www.one.org/international/policy/trillion-dollar-
scandal/.
103
Ibid.
104
Lizzie Dearden, “Panama Papers: What are they, who is involved and why are they important?”, Independent (4 April 2016),
online: < http://www.independent.co.uk/news/world/politics/panama-papers-what-are-they-who-is-involved-and-why-are-they-
important-illegal-legal-tax-avoidance-a6967176.html>.