How can corruption in developing countries be dealt with effectively? Here’s what we think.
Corruption certainly does exist in developing countries but must not be used as an excuse for rich countries to shirk their responsibilities to the world’s poor.
Rich countries must recognise that countries are not poor simply because there is corruption. Poverty’s causes are profuse – for example, Christian Aid research has shown that trade liberalisation in Africa has cost the continent $272 billion over the past 20 years.
‘The structures and processes exist. Now they must be enforced’
Poverty, on the other hand, can help cause corruption. Therefore, while it is vital to take a strong line against evidence of corruption, it is equally important to take a strong line against its causes.
This requires a united effort. But the first burden of responsibility lies with those who have the power. Here we outline the most important steps in defeating global corruption.
Support international and regional attempts to stop corruption
The paperwork has been done. The United Nations Convention against Corruption (UNCAC) is just one of a cluster of well researched, soundly constructed international agreements aimed at bringing corruption to an end.
However, signing on the dotted line isn’t enough. Enforcing these conventions is what really matters.
Not that the conventions are in perfect order; most could do with strengthening. For example, UNCAC, which the UK ratified in February 2006, requires far tighter and clearer implementation and currently lacks the kind of monitoring mechanisms to ensure that it actually makes a difference.
Keep supporting developing countries
Governments in rich countries need to make sure their development assistance (that is, aid, grants and loans) supports the fight against corruption by:
Holding recipient governments to their word – when aid packages are agreed, both parties make basic commitments; donors that a certain sum of money will be given at a specific time, and recipients that it will be spent as agreed. To ensure the latter, recipient governments should be required to open up their books. Not only will this let donors check if their funds are being spent appropriately, it will also allow people in poor countries to hold their governments to account.
Supporting efforts to make states more accountable – effectively combating corruption in the long run requires making states more accountable to their citizens, and investment in the institutions that do this – parliaments, charities and human rights organisations, a free press, and an independent judiciary.
Using different approaches in different contexts – donors need to do their research and consider the risks of corruption at the beginning of a programme rather than just reacting mid-way through. Where there is a clear risk of major state corruption, it might be wise to fund particular sectors – education, for example – or specific projects, rather than giving funds direct to the government budget.
Rich countries must put their own house in order
Rich countries and their large corporations are complicit in much of the corruption that bedevils the developing world. They have a responsibility to ensure their own plates are clean before they start dishing out the blame.
By bribing government officials and domestic companies in poor countries, rich-county companies are exporting corruption. What’s more, they are undermining the efforts of governments and local citizens (not to mention other rich countries) to tackle a pernicious blight on their limited resources. It is wrong and it is illegal – and the world’s richest and most powerful must invest time and political will into the investigation and prosecution of this crime.
As we say above, the structures and processes exist. Now they must be enforced.
Western banks and tax havens
While battles rage in Iraq and Afghanistan, a more silent battle of the so-called War on Terror has been against a global financial system that facilitates the transfer of corrupt, criminal or terrorist cash around the world. This is estimated to cost $1 trillion a year, at least half of which is leaving from developing countries.
The debate on developing-country corruption needs to focus just as much on the money leaving developing countries and where it goes, as the money going in.
A priority for rich countries serious about stopping corruption should be the closure of tax havens and tightening up of laws to prevent money laundering. This global system of tax evasion operates beyond national borders and should be recognised as what it is – a form of theft that deprives developing countries of cash for their development.