Confronting Corruption

Foreword Acknowledgments Abbreviations Part I: Setting the Scene CHAPTER 1: INTRODUCTION 1 FIFA, a criminal organization? 2 The Malaysian Wealth Fund '1MDB' 3 Panama Papers CHAPTER 2: WHY THE GROWING CONCERN ABOUT CORRUPTION? 1 Present at the Creation 2 Putting Corruption on the International Agenda 3 Need for Action 4 Reasons for Continuing Resistance 5 Growth of Anti-corruption Capability 6 Expansion of Global Economy 7 Digital Communications CHAPTER 3: THE POLITICS OF ANTI-CORRUPTION 1 Transparency International and Its Politics 2 International Organizations a OECD b UNODC c G20 d World Bank e International Chamber of Commerce f FIFA 3 Governments a United States b UK c Nordic Countries d China e Bangladesh 4 Role of Media 5 Growth of Anticorruption Movement 6 Government Departments 7 Private Industry 8 NGOs 9 Professional Organizations 10 Universities 11 Illicit Activities 12 Major Political Influences a Tone at the Top b Power of the Legal Establishment c Role of Civil Society d People Power e Counter Actions CHAPTER 4: WHAT IS CORRUPTION? 1 A 'cancer' to be rooted out? 2 Giving and taking 3 Legal definitions 4 Corruption comes in different forms 5 A systemic perspective 6 What is the common denominator? 7 Are we sure that corruption is harmful? 8 How big is the problem? 9 Why have we chosen to fight corruption now? 10 Are we making a difference? Part II: Drivers of Change CHAPTER 5: EVOLUTION OF TRANSPARENCY INTERNATIONAL 1 Peter Eigen and the World Bank 2 The Genesis of TI 3 Organizing TI a Meeting with Amnesty International b Organization Meeting at Dutch Foreign Ministry c Berlin Launch Conference d Ecuador Meeting e Jeremy Pope becomes Managing Director f Growth of National Chapter Network g Publication of TI Index 4 Conventions Advocacy a OECD Convention b TI Progress Reports on Enforcement c United Nations Convention against Corruption d Evolution of TI Management e The 2005 Election CHAPTER 6: THE UNITED STATES: FOREIGN CORRUPT PRACTICES ACT AND CAMPAIGN FINANCING 1 Colonial Heritage 2 Constitutional Debates 3 Yazoo Controversy 4 Passage of 14th Amendment 5 Construction of Panama Canal 6 Watergate 7 Foreign Corrupt Practices Act 8 Citizens United Case CHAPTER 7: BRIBING FOREIGN OFFICIALS: THE OECD ANTI-CORRUPTION INSTRUMENTS 1 Is bribery a necessary evil? 2 The US Foreign Corrupt Practices Act 3 The initiative and first steps in the OECD 4 The 1994 Recommendation and the Follow-up 5 Implementing the Convention 6 The crisis 7 Overcoming the crisis: the UK Bribery Act 2010 8 Uneven application 9 Further challenges 10 A new step forward: the 2009 Recommendation 11 A final positive experience 12 Conclusion CHAPTER 8: THE UN CONVENTION AGAINST CORRUPTION 1 Global Significance 2 The Politics of UNCAC 3 The United Nations Convention against Corruption: anti-corruption's expanding frontier a Overview of the United Nations Convention Against Corruption b Provisions directly affecting international business c Strengthening national integrity systems d The implementation review mechanism Part III: Pervasive Trouble Spots CHAPTER 9: BANKING AND FINANCE 1 Grand corruption and money flows 2 A new topic altogether 3 Expansion 4 Current status of rules against corruption-money laundering 5 Asset Recovery 6 Is Asset Recovery working? 7 Conclusion CHAPTER 10: EXTRACTIVE INDUSTRIES 1 The 'resource curse' 2 Publish what you pay 3 The Extractive Industries Transparency Initiative 4 The struggle for regulation a United States: Section 1504 of the Dodd-Frank Act b EU: revision of its Transparency and Bookkeeping Directives 5 Regulating trading? 6 Collective action as a way forward? CHAPTER 11: INFRASTRUCTURE AND CONSTRUCTION 1 The risks 2 What needs to be done? CHAPTER 12: AERONAUTICS AND DEFENSE 1 What are the particular risks in defense procurement? 2 The key role of defense offsets 3 Specific corruption risk related to offsets 4 How to prevent corruption in the defense industries? CHAPTER 13: THE ART MARKET 1 Challenges 2 Self-regulation? 3 International law? CHAPTER 14: THE PHARMACEUTICAL INDUSTRY 1 Challenges 2 What needs to be done? CHAPTER 15: SPORTS GOVERNING BODIES: THE FIFA EXPERIENCE 1 Emotions and big business 2 Multinational enterprises and quasi-intergovernmental organizations 3 Old Boys suddenly becoming rich 4 FIFA a company in trouble or a criminal organization? 5 The responsibility of the host country 6 What's wrong with self-regulation? 7 Example FIFA 8 International regulation 9 What is on the current reform list? CHAPTER 16: DEVELOPMENT ASSISTANCE 1 Its logic 2 Is development assistance effective? 3 Donor interest 4 Tolerating embezzlement? 5 Is there a way out of the dilemma? 6 Oil-for-Food a The official Programme b Planned Distribution of Oil Proceeds c What went wrong? d Oil Surcharges - Flow of Funds e Humanitarian Contract Kickbacks - Flow of Funds f Illicit Income Received by Iraq under the Programme 7 The Contribution of the IFIs Part IV: Criminal Law and other Forms of Regulation CHAPTER 17: STRENGTHS AND LIMITATIONS OF CRIMINAL LAW 1 Is criminal law really that essential to combating bribery? 2 Who is a 'foreign public official'? 3 What about the eternal 'facilitation payments'? 4 Individuals versus corporate liability 5 Watch your agents! 6 The proof is in the pudding 7 Are prosecutors and courts out of their depths? 8 Do we need a Supranational Criminal Court for large scale corruption? CHAPTER 18: BEYOND CRIMINAL LAW: ADMINISTRATIVE SANCTIONS AND PREVENTIVE MEASURES 1 Regulatory sanctions 2 Debarment by MDBs 3 Automatic debarment? 4 Is debarment always the best solution? 5 Dealing with corruption in arbitration procedures 6 Prevention Part V: Private Sector Responses CHAPTER 19: PRIVATE SECTOR RESPONSE TO CORRUPTION 1 Major Trends 2 Evolution of Compliance a Role of NGOs b UN Global Compact c Industry Sector Initiatives: Wolfsberg d Other Industry Sector Initiatives Extractive Industries Transparency Initiative (EITI) Construction Sector Transparency (CoST) Aerospace and Defense (IFBEC) 3 Common Problem Areas a Gifts, Entertainment and Travel Expenses b Lobbyists and Sales Representatives c Political Contributions d Avoiding Extortion e Private-to-Private Bribery f Facilitation Payments g Foreign Subsidiaries and Joint Ventures 4 Psychology of Corrupt Conduct a Type A b Type B c Type C 5 Factors Needed to Influence Corporate Culture a Tone at the top is important b Transparent Rules c Leadership selection 6 Moving Anti-corruption to the Next Level CHAPTER 20: COLLECTIVE ACTION 1 Why collective action? 2 From an academic think piece to a practical solution 3 What is collective action? 4 Is collective action really necessary? Part VI: Moving Forward CHAPTER 21: WHAT HAVE WE ACHIEVED? 1 Achievements and challenges 2 Accomplishments 3 Challenges CHAPTER 22: GLOBALIZATION AND DIGITAL REVOLUTION 1 Globalization a Globalization of Corruption b Impact of Globalization on Law Enforcement 2 Digital Revolution a Cyber Forensics b Digital Initiatives c The Political Impact d Awareness Raising CHAPTER 23: DIFFERENT STRATEGIES FOR DIFFERENT COUNTRIES 1 Countries with Strong Democratic Institutions 2 Countries with Weaker Democratic Institutions 3 Countries with Autocratic Governments a Working with China b Working with Russia c The Arab Spring and its Implications for the Middle East and North Africa 4 Failed States 5 Long-Term Strategy Perspective Bibliography Index